State and Local Tax Update: Be Sure to Take Advantage of These Relief Benefits!
05/18/2020 Robin TeetersWith 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 |
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.) |
|
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. |
Illinois |
Liquor Revenue – Excise |
Distillers making hand sanitizer can purchase alcohol for use in production without incurring any tax. |
|
Indiana |
All |
If a business is temporarily closed and |
|
Maryland |
Individual Income Tax Withholding |
Maryland employer withholding requirements are not affected by the current shift to teleworking. |
|
Massachusetts |
Various |
An employee temporarily working |
Massachusetts |
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. https://www.rev |
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. |
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 |
Ohio |
Income Tax Withholding |
The 20 day rule for municipal withholding has been suspended during the crisis. |
https://vlcpa.com/ |
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 |
Ohio, Butler |
Real Property |
Butler County Auditor Roger Reynolds |
|
Ohio, Hamilton |
Real Property |
Bills will be mailed for Hamilton County |
Cincinnati Business |
Oregon |
Commercial |
Taxpayers that expect to have more than |
https://www.oregon |
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 |
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. |
|
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 |
|
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 |
Hopefully this list will grow as more good news is released. For now, here is the ultimate wish list of SALT professionals everywhere:
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.