Special Trivia Question for 1/13/2026 (Pass Through Entity Tax):

In May 2018, which state became the first to enact a Pass-Through-Entity Tax?

A. California
B. New York
C. New Jersey
D. Connecticut
E. Alaska

Connecticut is the correct answer! Wisconsin, Oklahoma, Louisiana, and Rhode Island were some of the next states to get on the bandwagon. “Alaska” was included somewhat in jest. It is a state with no personal income tax, so there is no benefit to taxpayers for them to enact a tax at the pass-through-entity level. Of the 14 or so states that have not yet enacted a PTET, most of them do not levy a personal income tax.