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Updated: State and Local Tax: Be Sure to Take Advantage of These Relief Benefits!

5/18/20 – Robin Teeters

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With the influx of troublesome news in recent weeks, this communication will focus on some of the more positive changes that have been instituted on the state and local tax (SALT) front, as a result of COVID-19.  The chart below is an attempt to summarize some of the beneficial updates provided beyond the previously announced due date extensions.  Although this is not an exhaustive list – especially with announcements being released daily – we will do our best to keep it updated with new information that might otherwise get lost among the many available due date lists.

State

Tax Type

Good news!

For more info…

California

Sales and Use

Businesses with less than $5 million in taxable annual sales can participate in a 12 month, interest-free, payment plan for up to $50,000 of sales and use tax liability.

Small Business
Relief Payment
Plans 
https://w
ww.cdta.ca.gov/
servicescovid19.
htm#Relief

Colorado

Sales

Retailers have until 5/20/2020 to remit the sales tax formerly due on 4/20/2020.   (Sorry, a bit of bad news:  This does not apply to home rule cities.)

https://www.
colorado.gov/
Tax/COVID-19-
Updates

Kentucky

Sales and Use

There is still time to set up online filing.  Assistance with online filing of tax returns is available by calling 502-564-5170.

https://onestop.
portal.ky.gov/
OneStopPortal/
Content/Docum
ents/eFileQuick
StartUserGuide.
pdf

Illinois

Liquor Revenue – Excise

Distillers making hand sanitizer can purchase alcohol for use in production without incurring any tax.

https://www2.
illinois.gov/rev/
Pages/Taxpayer-
Resources-during
-COVID-19-%28
Coronavirus%29-
Outbreak.aspx

Indiana

All

If a business is temporarily closed and
has no tax revenue for a filing period,
simply file a return indicating $0 for that
period for all affected tax types.  If a
business is permanently closed,
complete Form BC-100. 

https://www.in.gov
/dor/3749.htm

Maryland

Individual Income Tax Withholding

Maryland employer withholding requirements are not affected by the current shift to teleworking.  

https://www.
marylandtaxes.
gov/forms/COV
ID_19_FAQ.pdf

Massachusetts

Various

An employee temporarily working
remotely in MA that previously worked
in another state, will not trigger changes
to personal income tax sourcing,
employer withholding, nexus for sales
or corporate excise tax, or corporate
excise apportionment during the state
of emergency.

Massachusetts
Technical
Information
Release No. 20-5,
04/21/2020.

Minnesota

Business Income tax and Individual Income Tax Withholding

The state will not seek to impose nexus for any business tax based upon the presence of teleworking employees due to COVID-19.  Also, no new individual income tax or payroll withholding tax requirements will be imposed based upon the presence of these teleworking employees.

https://www.
revenue.state.mn
.us/covid-19-faqs-
businesses

https://www.rev
enue.state.mn.us/
covid-19-faqs-
individuals

Mississippi

Corporate Income Tax and Individual Income Tax Withholding

Withholding requirements for businesses will not be changed based on an employee’s temporary telework location during the national emergency.  Also, these temporary employee work locations will not impact nexus determinations or apportionment factors for the company’s income tax return.

https://www.dor.
ms.gov/Documen
ts/COVID%20Exte
nsions%20Press%
20Release.pdf

New Jersey

Franchise

The presence of employees working from their homes in NJ solely as a result of closures and/or the employer’s social distancing policy, will not cause an out-of-state corporation to meet the nexus threshold for Corporation Business Tax.

See the 03.30.20
Telecommuting 
and Corporate 
Nexus update under
“Latest News and 
Developments” at 
https://www.state.
nj.us/treasury/
taxation/

 

Ohio

Income Tax Withholding

The 20 day rule for municipal withholding has been suspended during the crisis.

https://vlcpa.com/
articles/ohio-munici
pal-withholding-tax-
update-202046/493

Ohio

Sales

Certain liquor permit holders can sell and deliver beer, wine, mixed beverages or spirituous liquor by the individual drink for off premises consumption.  (A bit of bad news:  sales tax still must be collected on those drinks.)

Executive Order 
2020-10D that adopted 
Emergency Rule 
4301:1-1-13

Ohio, Butler
County

Real Property
Taxes

Butler County Auditor Roger Reynolds
asked the Ohio Tax Commissioner this
week for permission to delay the state
mandated 2020 property reappraisal.
State law allows the tax commissioner
to approve delay requests for up to one
year on six-year reappraisals.

https://www.journal-
news.com/news/
butler-county-auditor
-requests-2020-
property-reappraisal-delay/rnJAo7GIRIJtg
0SiT3MKIK/

Ohio, Hamilton
and other
Northern Ohio
Counties

Real Property
Taxes

Bills will be mailed for Hamilton County
on 6/22/2020 and payments will be
due on 7/15/2020.  Each county must
ask for approval and the Ohio Department of Revenue is posting
those approvals at on their Coronavirus
information page (link at right).

Cincinnati Business
Courier article,
05/05/2020, Interview
with Robert Goering,
Hamilton County
Treasurer

https://www.tax.ohio.
gov/Coronavirus.aspx

Oregon

Commercial
Activity Tax
(“CAT”)

Taxpayers that expect to have more than
$5000 of CAT liability for the calendar year
must make a good faith effort to estimate and
pay the 1st quarter estimate by 4/30.2020.
No underpayment penalties will be assessed if
a good faith effort is made.

https://www.oregon
.gov/dor/programs/
businesses/Pages/
corporate-activity-
tax.aspx

Pennsylvania

Income (CNI)

Employees temporarily working from home will not create nexus for an out-of-state employer while the governor’s Proclamation of Disaster emergency is in effect.

Pennsylvania DOR 
Customer Support 
Answers – 
Corporate Nexus, 
04/03/2020

Puerto Rico

Sales

Temporary exemptions have been put in place for items necessary to treat or prevent the spread of COVID-19.  This includes certain medicines, disinfectant wipes, disposable gloves, hand sanitizers, isopropyl alcohol, toilet tissue, prepared food for immediate consumption and soft drinks.

https://www.avala
ra.com/us/en/blog/
2020/03/puerto-rico-
exempts-products-to
-slow-spread-of-covi
d-19.html

Washington, D.C.

 

Nexus will not be claimed based solely on the temporary relocation of employees in the District during the declared public emergency period (currently scheduled to expire 4/24/2020).  This also applies to any property used to allow those employees to work from home.

OTR Tax Notice 2020
-05, 04/10/2020

Wisconsin

Sales, use, employer withholding, excise and others

Extensions of time to pay and payments plans are available.  All COVID-19 requests must be filed electronically after 8:00 am, Monday, April 20. Submit your request here: https://TAP.revenue.wi.gov/COVID/

Taxpayers should
have received an
email for eligible
taxes



Hopefully this list will grow as more good news is released.  For now, here is the ultimate wish list of SALT professionals everywhere:

https://www.tei.org/advocacy/submissions/tei-requests-administrative-and-payment-relief-state-and-local-taxes-response

If you find yourself needing assistance with due dates or any SALT related services during this hectic time, please contact VonLehman’s specialized SALT team at rteeters@vlcpa.com or 800.887.0437.