State & Local Tax News

05/10/2021

Focus on State and Local Taxation: California Partial Conformity to Federal PPP Loan Forgiveness Rules

On April 29, 2021, California Governor Gavin Newsom signed California Assembly Bill 80 (“A.B. 80”), which largely conforms to federal rules regarding deductibility of expenses paid with funds from forgiven Paycheck Protection Program (“PPP”) loans.

09/20/2019

Focus on State and Local Taxation: Illinois Tax Amnesty Program

On June 5, 2019, Illinois Governor J.B. Pritzker signed legislation enacting a tax amnesty program scheduled to run from October 1, 2019 through November 15, 2019.

07/19/2019

Focus on State & Local Taxation: Missouri Extends Statute of Limitations on Sales and Use Tax Refunds

On July 11, 2019, Governor Parson signed Senate Bill 87, which extends the statute of limitations for sales and use tax refunds.

03/14/2019

Focus on State & Local Taxation: Time-Sensitive Review of Property Tax Notices

It’s that time of year when many businesses will be receiving a notice of value in the mail containing a reassessed value of their property. This could potentially mean an increase in property tax liabilities and significantly impact a business’s operating expenses and bottom line.

10/24/2018

Focus on State & Local Taxation: Big Changes in Colorado As New Sourcing Rules Take Effect

Effective December 1, 2018, the Colorado Department of Revenue will begin enforcing new emergency sales tax sourcing rules that will significantly impact all retailers doing business in Colorado. The new rules require all Colorado taxable sales to be taxed at the effective rate of the jurisdiction in which property is transferred into the possession of a purchaser. While the rule has no effect on purchases that occur at a retailer’s business location, the big change occurs when items are shipped to Colorado customers.

06/26/2018

Focus on State & Local Taxation: U.S. Supreme Court Overrules Physical Presence Standard

In the 5-4 decision of South Dakota v. Wayfair, Inc., the Supreme Court of the United States ruled South Dakota’s economic nexus law constitutional. The decision has the potential to require online retailers and other remote sellers to collect and remit sales tax to states in which they do business, regardless of their physical presence within those states.

02/15/2018

Focus on State and Local Taxation: Sales Tax Nexus Standards

On January 12, 2018, the Supreme Court of the United States granted a petition for certiorari in the case of South Dakota v. Wayfair, Inc., a case to determine the constitutionality of a South Dakota statute obligating businesses with no physical presence in the state to collect and remit sales tax.

01/24/2018

Focus on State and Local Taxation: Colorado Use Tax Reporting Requirements

On July 1, 2017, the Colorado Department of Revenue began enforcing new use tax notice and reporting requirements relating to retailers that make sales into Colorado but do not collect state sales tax (non-collecting retailers).

12/06/2017

Focus on State and Local Tax: Colorado EZ Credits Pre-Certifications

Every year, businesses may claim any of the Colorado Enterprise Zone (EZ) income tax credits; however, they must annually pre-certify with their local EZ Administrator in order to be eligible to claim these credits. Any qualifying activity/purchase taking place before pre-certifying will not qualify for the credit.

09/19/2017

Focus on State and Local Taxation: Online Marketplace Seller Voluntary Disclosure Program Expires Soon

The Multistate Tax Commission is offering a one-time limited voluntary disclosure program targeted towards online marketplace sellers. Businesses would generally register to file and pay taxes on a prospective basis in exchange for relief from prior year taxes. Applications must be submitted by October 17, 2017 to be considered for participation in the program.

07/21/2017

Focus on State and Local Taxation: Illinois Senate Passes State Budget Package Increasing Tax Revenue

The Illinois Senate overrode the Governor’s veto and passed new legislation, Senate Bill 9, that will increase the income tax rate for individuals and corporations, reinstate the research and development (R&D) tax credit as well as adding a tax addback for IRC 199 and provisions for unitary business groups.

07/21/2017

Focus on State and Local Taxation: New Missouri Sales and Use Tax Filing Requirements

As part of a new integrated tax system, the Missouri Department of Revenue has established new filing requirements for sales and use tax forms that will become effective August 1, 2017. Filers will recognize several formatting changes along with modified codes for identifying business locations.

07/14/2017

Focus on State and Local Taxation: Fewer Hurdles, Faster Benefits for Missouri Works Training Program

Recently passed legislation expands upon the Missouri Works Training Program. Originally enacted in 2013, the program was established to consolidate Missouri’s workforce programs into a single streamlined program.

06/26/2017

Focus on State and Local Taxation: Pending Legislation on Missouri Delivery Charges

Senate Bill 16 has been sent to the Governor for signature after it was passed through the Missouri House.  If signed, this bill will reinstate the sales and use tax exemption of delivery charges which were called into question after the Missouri Supreme Court ruling on Alberici Constructors, Inc. v. Director of Revenue.

06/12/2017

Focus on State and Local Taxation: Kansas Tax Package Passes with Retroactive Provisions

Recently passed legislation now subjects business owners and owners of rental property to tax in Kansas. During the 2017 legislative session, SB 30 was passed, vetoed by Governor Brownback and quickly overridden by the Kansas Legislature. The bill becomes law July 1, 2017 but several provisions are effective January 1, 2017.

02/10/2017

Focus on State and Local Taxation: Real Estate Reassessment

Many jurisdictions perform reassessments of all real property located within their boundaries to determine full and fair market value as of the applicable assessment date. Reassessment can occur annually or on a regular cycle every few years.

01/27/2017

Focus on State and Local Taxation: Amazon to Charge Missouri Sales Tax

Earlier this week, it was announced Amazon will begin charging Missouri sales tax as of February 1, 2017. The retailer will charge the state rate of 4.225 percent.

01/17/2017

Focus on State and Local Taxation: Missouri Instructional Classes Update

During the 2016 veto session the Missouri legislature acted to protect taxpayers by overriding Governor Nixon’s veto of a senate bill related to the taxability of instructional classes.

01/09/2017

Focus on State and Local Taxation: You May Owe Personal Property Tax

Business owners may complete all the necessary forms and permits to operate their businesses but may be surprised to receive a property tax bill from their local jurisdiction. Personal property tax is an ad valorem tax, meaning the tax amount is set according to the value of the tangible property.

09/21/2016

Focus on State and Local Taxation: Missouri Instructional Classes

During the recent 2016 veto session the Missouri legislature acted to protect taxpayers by overriding Governor Nixon’s veto of a senate bill related to the taxability of instructional classes. 

09/14/2016

Focus on State and Local Taxation: Arizona and Pennsylvania Tax Amnesty Programs

Arizona and Pennsylvania are offering tax amnesty programs to taxpayers. The Arizona program provides amnesty for individual and corporate income taxes for tax years ending before January 1, 2014 and transaction privilege (sales) taxes, including such taxes for program cities, for tax periods ending prior to February 1, 2015.

08/04/2016

Focus on State and Local Taxation: Missouri Delivery Charges

Earlier this week, the Missouri Department of Revenue mailed nearly 100,000 letters to taxpayers regarding delivery charges. The letters were mailed to notify taxpayers of a Missouri Supreme Court decision regarding the potential obligation to remit tax on delivery charges. Prior to the court ruling Missouri allowed separately stated shipping/delivery fees to be exempt from the tax base.

04/04/2016

Focus on Taxation: Time Sensitive Opportunity - Work Opportunity Tax Credit (WOTC) Extension for 2015 and 2016

WOTC is a federal credit for employers that hire individuals from targeted groups and is currently extended through December 31, 2019. The IRS recently issued guidance and transition relief with Notice 2016-22 as a result of the PATH Act extending the WOTC retroactively for 2015 and adding a new targeted group for Long-Term Unemployed Recipients effective January 1, 2016.

08/26/2015

Focus on State and Local Taxation: Alabama Enacts Factor Presence Nexus Standard

Governor Bentley signed legislation establishing a factor presence nexus standard for business activity, effective for tax years beginning after December 31, 2014, for purposes of business privilege taxes, income taxes, and financial institution excise taxes.

08/25/2015

Focus on State and Local Taxation: Kansas Credit for Taxes Paid to Other States to Include Earnings Tax

Based on the recent Supreme Court Ruling, Comptroller of Treasury of Maryland v. Wynne, the Kansas Department of Revenue has advised the Kansas Legislature that they are now interpreting the Kansas Statute allowing credit for taxes paid to other states to include the Kansas City, Missouri earnings tax.

08/07/2015

Focus on State and Local Taxation:  Nevada Commerce Tax Enacted and Modified Business Tax Amended

Governor Sandoval signed legislation enacting a commerce tax based on gross revenue assigned to the state of Nevada.  This annually collected tax applies to entities engaged in business in Nevada who have over $4 million of Nevada gross revenue in the fiscal year of July 1st through June 30th. 

07/24/2015

Focus on State and Local Taxation: Kansas Tax Amnesty Program

Kansas has enacted a 2015 tax amnesty program. This program provides amnesty for all penalties and interest on unpaid taxes through December 31, 2013, if paid in full during the amnesty period of September 1, 2015 through October 15, 2015.

07/15/2015

Focus on State and Local Taxation: Missouri Legislative Update

On July 6, 2015 Governor Nixon signed several bills into law, House Bills 517, 613, 616 and Senate Bill 18. This legislation amends a variety of tax provisions.

07/09/2015

Focus on State and Local Taxation: Indiana Tax Amnesty Program

Governor Pence recently signed a bill creating a tax amnesty program. This program provides amnesty for penalties, interest, and other collection fees, as well as, the release of tax liens, and protection from civil or criminal prosecution on unpaid taxes through December 31, 2012, if paid in full during the amnesty period of September 15, 2015 through November 16, 2015. 

06/29/2015

Focus on State and Local Taxation: Tennessee Revenue Modernization Act

On May 20, 2015, Governor Bill Haslam signed the Revenue Modernization Act. The Act expands the definition of nexus, changes sourcing rules for franchise and excise tax purposes, places greater weight on the sales factor for franchise and excise tax purposes, and makes other changes.

06/24/2015

Focus on State and Local Taxation: Kansas Tax Changes

Kansas lawmakers have enacted broad tax law changes to balance the state’s $400 million budget shortfall.  Below is a summary of the tax plan passed, which passed in two different bills, H.B. 2109 and S.B. 270, effective July 1, 2015 and applicable as noted.

06/02/2015

Focus on State and Local Taxation: Oklahoma Tax Amnesty Program

Governor Fallin recently signed a bill creating a tax amnesty program. This program provides amnesty for penalties, interest, and other collection fees on unpaid taxes through December 31, 2014, if paid in full during the amnesty period of September 14, 2015 through November 13, 2015.  

05/13/2015

Focus on State and Local Taxation: Missouri Tax Amnesty Program

Governor Nixon recently signed a bill creating a tax amnesty program and other tax provisions. This program provides amnesty for penalties, additions to tax and interest on unpaid income, sales, withholding, and franchise taxes through December 31, 2014, if paid in full during the amnesty period of September 1, 2015 through November 30, 2015.

05/12/2015

Focus on State and Local Taxation: Single-Sales Factor Election Available to all Missouri Taxpayers

Governor Nixon, on May 6, 2015, signed into law Senate Bill 19 which clarified an existing statute to allow all Missouri companies, including those receiving income from sources other than the sale of tangible personal property, to use the single-sales factor apportionment election enacted in July 2013.

02/24/2015

Focus on Taxation: Time Sensitive Opportunity - Work Opportunity Tax Credit (WOTC) Extension for 2014

The IRS recently issued guidance and transition relief with Notice 2015-13 for those employers claiming the WOTC through December 31, 2014.  The WOTC is a Federal credit for employers that hire individuals from specific targeted groups.

01/28/2015

Focus on State & Local Taxation: Delaware Franchise Tax May be Reduced by Using Alternative Calculation

Corporations formed in Delaware, regardless of where headquartered or operating, are subject to an annual franchise tax for the privilege of being incorporated in the state.

05/07/2014

Focus on State & Local Taxation: Personal Income Tax Reduction in Missouri

On May 6, 2014, the Missouri legislature voted to override the governor's veto of Senate Bill 509, giving Missouri taxpayers a personal tax reduction for the first time since the 1920's.

04/30/2014

Focus on State & Local Taxation: Annual Reporting Requirement for Illinois Business Incentives Due June 2, 2014

If your company received zone benefits in Illinois during 2013, you must complete the user-friendly, online reporting by June 2, 2014 to secure future benefits.

09/20/2013

Focus on State & Local Taxes: Missouri Adopts for 2012 Returns New Single Sales Factor Income Tax Apportionment Formula

On September 18, the Missouri Department of Revenue announced the new single sales factor formula (enacted in HB 128) may be elected on corporate tax returns which have not been filed for the 2012 tax year. The new formula should be a benefit to Missouri corporations which market their goods and services outside of the state of Missouri.

08/29/2013

Focus on State & Local Taxes: Missouri Enacts “Amazon” Nexus Law for Sales and Use Taxes

Missouri has enacted a law to allow the enforcement of tax collection on remote sellers/retailers of taxable product and services through catalog or internet sales.

08/21/2013

Focus on State & Local Taxation: New Illinois Law Eliminates Composite Return Filings and Changes Nonresident Withholdings and Corporate Income Tax Apportionment

On August 16, 2013, Gov. Pat Quinn signed into law legislation (H.B. 3157) containing important changes to Illinois treatment of nonresident taxpayers and how to apportion income by corporate income taxpayers to the state.

08/16/2013

Focus on State & Local Taxation: New Missouri Law Changes Economic Incentive Programs

Legislation has been enacted that provides income and franchise tax credits and training program incentives under the"Missouri Works Program". The legislation also revises the process for designating an enhanced enterprise zone for income tax and property tax incentive purposes, and makes sales, use and transient guest tax changes. The "Missouri Works Program" replaces the Development Tax Credit program, the Rebuilding Communities Tax Credit program, the Enhanced Enterprise Zone Tax Credit program and the Missouri Quality Jobs program.

03/20/2013

Focus on State & Local Taxation: Delaware Unclaimed Property Voluntary Disclosure Programs

If you have a business operating out of or incorporated within the state of Delaware, you may benefit from applying to the newly enacted unclaimed property voluntary disclosure agreement programs.

11/08/2012

Focus on State & Local Taxation: California Passed Various Ballot Initiatives on November 6, 2012 and Relief Announced for Victims of Hurricane Sandy

Proposition 30 retroactively increases income taxes effective January 1, 2012. The following rate increases are effective for seven years.

08/10/2012

Focus on State & Local Taxation: Updates For Missouri, Colorado, and Kansas

Every year in December, RubinBrown is proud to host our Year-End Tax & Accounting Updates in Denver, Kansas City, and St. Louis.

05/30/2012

Focus on State & Local Taxation: Kansas Tax Relief Measures

Kansas Governor Sam Brownback recently signed one of the largest tax relief measures in Kansas history. At the heart of the tax changes is a reduction of individual tax rates and a shift from a three-bracket to a two-bracket system.

10/27/2011

Focus on State & Local Taxation: Promoting Employment Across Kansas (PEAK)

With the legislative changes to the Kansas Business and Jobs Credit and the High Performance Incentive Program, many businesses may mistakenly believe that the state of Kansas no longer provides incentives to expand or relocate an existing business to Kansas or locate a new business in Kansas.

09/29/2011

Focus on State & Local Taxation: Colorado (and the City and County of Denver) Tax Amnesty Programs Available

The Colorado Department of Revenue has issued guidance on the tax amnesty program that is operative from October 1, 2011 through November 15, 2011. The amnesty program allows taxpayers to pay the following overdue taxes without additional penalties.

08/18/2011

Focus on State & Local Taxation: Illinois Law Lowers Requirement for Unclaimed Property Reporting

Illinois Governor Pat Quinn signed into law HB 1560 (P.A. 097-0270), Uniform Disposition of Unclaimed Property Act. This law shortens the holding period of unclaimed wages and salary to one year.

08/02/2011

Focus on State & Local Taxation: Missouri "Big Government Get Off My Back Act" To Become Law on August 28

Missouri Governor Nixon’s recently signed into law, House Bill 45, which modifies the so-called “Big Government Get Off My Back Act.”

06/16/2011

Focus on State & Local Taxation: Colorado Announces Amnesty Program

The Colorado Department of Revenue has announced a tax amnesty program under which taxpayers will be allowed to pay the full amount of overdue personal, corporate, partnership or fiduciary income tax; sales and use tax; gasoline tax; special fuels tax; cigarette and tobacco tax, or severance tax without penalty.

06/03/2011

Focus on State & Local Taxation: Michigan and Connecticut Increase Tax Rates

If your company has operations in Michigan and Connecticut, be aware that recently passed legislation in these states will change your tax burden.

02/16/2011

Focus on State & Local Taxation: Employers Required to Verify St. Louis Earnings Tax Refund Claims of Employees

Individuals requesting an earnings tax refund from the City of St. Louis not only are required to use a new form, but they also now need employer verification and sign off.

02/09/2011

Focus on State & Local Taxation: Health Care Costs for Children Under Age 27 May Be Subject to State Taxation

It may come as a surprise to employers, but many states are not conforming with the new healthcare reform legislation, which requires insurers that provide group health coverage for dependent children to continue such coverage until the dependent turns 26 years old.

01/13/2011

Focus on State & Local Taxation: Illinois Proposes Hefty Tax Increase on Individuals aAnd Businesses

On January 13, 2011, Illinois Governor Pat Quinn signed into law a bill which increases taxes for individuals, estates, trusts and corporations nearly 67 percent. These tax increases serve as an effort to close what is expected to be a $15 billion dollar state budget gap.

12/16/2010

Focus on State & Local Taxation: New Oklahoma Tax Enacted

Recently, the state of Oklahoma enacted a business activity tax (BAT) that will be in effect for tax years beginning in 2010, 2011, and 2012. In conjunction with the new BAT, Oklahoma has put a moratorium on their currently imposed franchise tax.

12/15/2010

Focus on State & Local Taxation: Current Tax Amnesty Programs

States and other taxing jurisdictions often offer amnesty programs to accelerate the collection of revenue. Some programs are only for non-filers, some are for only certain tax types and others may accept any outstanding tax due, even those previously assessed. Often under these programs, assessment of penalties are waived.

06/15/2010

Focus on Taxation: Illinois Legislators Pass Tax Amnesty Program; Bill Awaits Governor’s Action

On May 27th, a tax amnesty and collections bill (SB0377) passed both legislative houses adding Illinois to the list of states trying to accelerate tax receipts.

05/27/2010

Focus on Taxation: New Missouri Law on the “Resale” Exemption Enacted

On May 12, 2010, Governor Nixon signed into law Missouri Senate Bill 928. The law became effective immediately.

01/11/2010

Focus On Taxes: Illinois Repeals Previous Replacement Tax Code Change

On December 16, 2009, Illinois Gov. Pat Quinn (D) signed legislation, effective immediately, repealing a law change that would have subjected businesses operating as professional service partnerships, LLPs or LLCs to an additional tax on profits.