Believes led to state being mainly a commuter state for work) 1967, Present West Virginia, corporate, from 1967; Connecticut, intangibles (but taxing capital gains and not interest), from 1969; Illinois, individual and corporate, from 1969; Maine, individual and corporate, from 1969; New Hampshire, corporate, from 1970; Florida, franchise, from 1971; Ohio, individual and corporate, from 1971; Pennsylvania, individual, from 1971; Rhode Island, individual, from 1971; The Trust Territory of the Pacific Islands, individual and corporate, from 1971. In the early 1970s, Pennsylvania and Ohio competed for businesses with Ohio wooing industries with a reduced corporate income tax but Pennsylvania warning that Ohio had higher municipal taxes that included taxes on inventories, machinery and equipment. A few more events of the 1970s follows: Michigan abolished its corporate income tax in 1975, replacing it with another value-added tax; New Jersey instituted an individual income tax in 1976; The Northern Mariana Islands negotiated with the U.S. in 1975 a mirror tax which was to go into effect in 1979, but in 1979 enacted a law rebating that tax partially or entirely each year and levying a simpler income tax; Alaska abolished its individual income tax retroactive to 1979 in 1980. (Also during this time the U.S. began returning the Panama Canal Zone to Panama in 1979, and self-government, eventually to lead to independence, began between 1979 and 1981 in all parts of the Trust Territory of the Pacific Islands except for the Northern Mariana Islands. The resulting countries - the Marshall Islands, the Federated States of Micronesia, and Palau - all levy income taxes today.) The only subsequent individual income tax instituted to date is Connecticut's, from 1991, replacing the earlier intangibles tax. The median family income in many of the state's suburbs was nearly twice that of families living in urban areas. Governor Lowell Weicker's administration imposed a personal income tax to address the inequities of the sales tax system, and implemented a program to modify state funding formulas so that urban communities received a larger share. Numerous states with income taxes have considered measures to abolish those taxes since the Late-2000s recession began, and several states without income taxes have considered measures to institute them, but only one such proposal has been enacted: Michigan replaced its more recent value-added tax with a new corporate income tax in 2009. Rates by jurisdiction Alabama The corporate income tax rate is 6.5%. Alaska Alaska