Seven state legislative chambers flipped control from Republican to Democrat, as 333 legislative seats changed party hands.
Small business owners saw one of the most consequential midterm elections of their lifetime in November. In 46 states, voters chose more than 6,000 state lawmakers, 36 governors, and decided on a total of 157 ballot initiatives, with top issues including raising state minimum wage and tax cuts.
Small business midterm highlights include major wins from NFIB-endorsed gubernatorial candidates like Kay Ivey in Alabama and Mike DeWine in Ohio. In Tennessee, NFIB-backed Bill Lee also won his gubernatorial race.
RELATED: How and Why NFIB Endorses Small Business-Friendly Candidates
Meanwhile, seven state legislative chambers flipped control from Republican to Democrat, as 333 legislative seats changed party hands.
Minnesota is now the only state home to a divided legislature—the Senate is controlled by Republicans; the House, by Democrats, according to the National Conference for State Legislatures.
On the post-midterm horizon, issues such as predictive scheduling and protection of the right to work loom.
Here’s a closer look at a few key statewide election results and their effect on small business:
Arizona
- Arizona Proposition 126 was passed. This measure will prohibit new or increased taxes on services. This is a win for small business.
California
- California Proposition 6 was defeated. Fuel tax increases and vehicle fees enacted in 2017, including the Road Repair and Accountability Act of 2017, will remain and the state legislature will have the authority to impose, extend, or increase taxes without voter approval. This is a loss for small business.
- California Proposition 10 was defeated. The Costa-Hawkins Rental Housing Act will be retained and continue to prohibit local governments from enacting rent control. This is a win for small business.
Colorado
- Colorado Amendment 73 failed, retaining the state’s current income tax structure and rates. This is a win for small business.
Florida
- Florida Amendment 2 was passed, and will cap non-homestead property tax assessments at 10 percent each year. This is a win for small business.
Indiana
- Indiana Public Question 1 was passed, an amendment requiring the state legislature to enact a balanced budget for each biennial budget period. This is a win for small business.
Maine
- Maine Question 1 was defeated, saving voters a 3.8 percent surcharge on income tax to fund home healthcare for the elderly and disabled. This is a win for small business.
Minnesota
- As of Jan. 1, Minnesota will be the only state legislature to have one chamber controlled by Democrats and the other by Republicans.
Missouri
- Missouri Proposition B was passed, raising the minimum wage to $12 an hour by 2023. This is a loss for small business.
- Missouri Proposition D was defeated, saving small business owners a 10-cent tax increase on tax. This is a win for small business.
North Carolina
- A constitutional amendment capping the maximum state income tax at 7 percent was passed. This is a win for small business.
Washington
- Washington Initiative 1631, a measure enacting a series of state carbon taxes and fees, was defeated. This is a win for small business.
