Liberal green state abolishing new tax (4)
I believe the answer is:
levy
'tax' is the definition.
(I've seen this before)
'liberal green state abolishing new' is the wordplay.
'liberal' becomes 'l' (abbreviation).
'green state' becomes 'envy' (state of being green with envy).
'abolishing' suggests deleting specific letters.
'new' becomes 'n' (common abbreviation eg NT for New Testament).
'envy' with 'n' taken away is 'evy'.
'l'+'evy'='LEVY'
(Other definitions for levy that I've seen before include "Money raised from taxes, etc" , "Imposition of a tax" , "Troops raised" , "Tax raised" , "tax money" .)