Tax - State & Local

Current News
California—Personal Income Tax: Legislature Approves Other State Tax Credit Fix for Taxpayers With Pass-Through Entity Tax Credits
September 23, 2022

The California Legislature has approved a bill that would change the calculation of the other state tax credit (OSTC) for taxpayers that receive pass-through entity (PTE) tax credits. For OSTC purposes, taxpayers could treat the amount of any PTE tax...

Missouri—Personal Income Tax: Senate Approves Tax Rate Cut
September 23, 2022

The Missouri Senate has given its approval to a measure that would: reduce the top individual income tax rate to 4.95% in 2023; provide four future rate reductions, triggered by revenue growth, that when fully implemented would lower the top tax rate...

New Jersey—Property Tax: Taxpayer’s Non-Compliance with Unserved Notice Was not Fatal to Appeal
September 23, 2022

A New Jersey city’s motion to dismiss a taxpayer’s property tax complaint for failure to respond to the city assessor’s request for income and expense information, commonly known as Chapter 91, was dismissed because the city assessor did not meet the...

New York—Sales and Use Tax: Request for Conciliation Conference Dismissed as Untimely
September 23, 2022

The New York State Division of Tax Appeals (DTA) determined that the Bureau of Conciliation and Mediation Services (BCMS) properly dismissed a taxpayer’s request for a conciliation conference because the request was untimely filed after 90 days from ...

Rhode Island—Personal Income Tax: Changes to Property Tax Relief Credit Program Discussed
September 23, 2022

The Rhode Island Department of Revenue issued an advisory that the taxpayers can expect to see an increase in their property tax relief credit. The property tax relief credit is based on the taxpayer’s household size and income level. The credit is c...

California—Corporate Income Tax: Annual LLC Tax Refund for Specific Years Granted
September 22, 2022

For corporate income tax purposes, the California Office of Tax Appeals (OTA) determined that a limited liability company (taxpayer) was entitled to a refund of annual LLC tax for the 2013 and 2014 tax years because the taxpayer was not doing busines...

Iowa—Property Tax: Rule Related to Property Assessment Limitation Created
September 22, 2022

Iowa has adopted a new rule regarding application of the two-tier assessment limitation that was created for properties classified as commercial, industrial, and railway property for assessment years beginning on or after January 1, 2022. The first t...

Missouri—Sales and Use Tax: Out-of-State Purchase of Furniture for In-State Client Subject to Tax
September 22, 2022

The Missouri Department of Revenue issued a letter ruling stating that an out-of-state architecture and interior design business’s (taxpayer’s) purchase of furniture from an out-of-state furniture company for an in-state client was subject to Missour...

Missouri—Sales and Use Tax: Taxability of Gift Cards and Loyalty Programs Discussed
September 22, 2022

The Missouri Department of Revenue (department) issued a letter ruling discussing the applicability of sales and use tax to a drive-thru coffee stands operator’s (taxpayer’s) gift cards and loyalty programs. The department noted that the customers’ p...

Missouri—Sales and Use Tax: Sales of Hydro Embolization Coils Subject to Tax
September 22, 2022

A medical corporation’s (taxpayer’s) sales of hydro embolization coil systems were subject to Missouri sales and use tax because, as per the relevant statute, such a coil system does not qualify as a prosthetic or orthopedic device and is not among t...

Nebraska—Corporate, Personal Income Taxes: Income Tax Credit on Property Taxes Paid to Support K-12 Public Schools Increased to 30%
September 22, 2022

For Nebraska corporate and personal income tax purposes, the refundable income tax credit on property taxes paid to support K-12 public schools is increased from 25% in tax year 2021 to 30% in the tax year 2022. The 2022 rate also applies to the new ...

New Jersey—Corporate Income Tax: Conforming Regulations Adopted
September 22, 2022

New Jersey has adopted new and amended corporation business tax regulations to address legislative changes regarding: net operating loss deductions; filing combined returns; federal tax reform measures applicable for tax years beginning on and after ...

New Jersey—Property Tax: City Assessor’s Tax Assessments Entitled to Presumption of Validity
September 22, 2022

For New Jersey property tax purposes, the tax court determined that the taxpayers’ commercial property’s 2016, 2017, 2018, 2019, and 2020 tax assessments represented the valid exercise of governmental authority and must be accorded a presumption of v...

New York City—Multiple Taxes: 2022 Legislative Highlights Discussed
September 22, 2022

The New York City Department of Finance has issued a memorandum highlighting the substantial changes created by recently enacted legislation. The changes inclue: addition of an economic nexus standard for the Business Corporation Tax exclusion from e...

Rhode Island—Multiple Taxes: Interest Rate for Delinquent Payments Changes Starting January 1
September 22, 2022

Starting January 1, 2023, the interest rate on certain Rhode Island delinquent tax payments is changing. The minimum interest rate is reduced from 18% to 12% for tax periods beginning on or after January 1, 2023, for most taxes administered by the Di...

Wyoming—Property Tax: County Board’s Determination Classifying Pasture Lands as Agricultural Reversed
September 22, 2022

The Wyoming State Board of Equalization (SBOE) reversed the County Board of Equalization’s (County Board’s) decision because the County Board, without sufficient explanation, rejected the county assessor’s property tax classification and valuation of...

All States—Multiple Taxes: New Issue of State Tax Review Available
September 21, 2022

A new issue of State Tax Review is now available. Subscribers can view the new issue.

California—Corporate, Personal Income Taxes: 2022 Rate Schedules, Filing Thresholds, Other Adjusted Figures Released
September 21, 2022

California has released 2022 indexed income tax figures, based on a 8.3% inflation rate for June 2021 through June 2022. The Franchise Tax Board (FTB) provides indexed values for the following: personal income tax rates; return filing thresholds; sta...

California—Personal Income Tax: Federal Preemption Claim Denied Due to Lack of Jurisdiction
September 21, 2022

In a personal income tax dispute involving a married couple (taxpayers), the California Office of Tax Appeals (OTA) determined that it lacked jurisdiction to rule on the issue of federal preemption and accordingly sustained the Franchise Tax Board’s ...

Colorado—Sales and Use Tax: Guidance on Tribal Exemption Issued
September 21, 2022

Colorado has issued a publication providing guidance on the applicability of sales and use tax to the sales of tangible personal property and services to tribes and tribal members. The publication supplements the guidance provided in the Colorado Sal...

Florida—Utilities Tax: Communications Services Tax Local Jurisdiction Changes Announced
September 21, 2022

Florida communications services tax (CST) local jurisdiction changes are announced: the City of Bonita Springs approved an ordinance that changed the expiration date of the CST local tax rate from December 31, 2022, to the date of the repeal of the t...

Indiana—Sales and Use Tax: October 2022 Gasoline Use Tax Rate Announced
September 21, 2022

The Indiana gasoline use tax rate for the month of October 2022 is $0.220 per gallon. Departmental Notice #2 , Indiana Department of Revenue, September 16, 2022 , ¶403-796 Other References: Explanations at ¶60-110

Missouri—Sales and Use Tax: Not-for-Profit Organizations Entitled to Civic And Charitable Sales Tax Exemptions
September 21, 2022

A nonprofit corporation's (along with its subsidiaries) purchases of building materials for a community development project qualified as a charitable organization exemption because the project intended to benefit persons with low income in a specific...

Vermont—Motor Fuel Tax: MFTIA and MFTA Rates Announced for Fourth Quarter of 2022
September 21, 2022

Vermont has announced the motor fuel transportation infrastructure assessment (MFTIA) and motor fuel tax assessment (MFTA) rates for the fourth quarter of 2022 (October to December 2022). MFTIA Rate Decreased The MFTIA rate has decreased from $0.0795...

Organizations Mentioned:California Air Resources Board
Arkansas—Sales and Use Tax: Taxpayer Not Entitled to Farm Machinery and Equipment Exemption
September 20, 2022

For Arkansas sales and use tax purposes, a taxpayer was properly disallowed a farm machinery and equipment exemption on her purchase of certain equipment because she failed to prove that the equipment was used exclusively and directly in the commerci...

Arkansas—Sales and Use Tax: Assessment Affirmed Because Taxpayer Failed to Provide Suitable Records
September 20, 2022

The Arkansas Department of Finance and Administration (department) properly assessed sales and use tax against a cleaning business (taxpayer) because it failed to provide suitable records to refute the assessment. In this matter, the department issue...

California—Multiple Taxes: Tax Relief for Taxpayers Impacted by Wildfires Announced
September 20, 2022

Business owners and taxpayers affected by wildfires in El Dorado, Madera, Modoc, Placer, Riverside, and Siskiyou counties are eligible for emergency tax or fee relief from the California Department of Tax and Fee Administration (CDTFA). Taxpayers aff...

California—Sales and Use Tax: Partial Exemption for Specified Zero-Emission Technology Transit Buses Extended
September 20, 2022

The sunset date of the partial California sales and use tax exemption for specified zero-emission technology transit buses sold to a city, county, city and county, transportation or transit district, or other public agency providing transit services ...

California—Sales and Use Tax: Exemption Enacted for Designated Plug-In Hybrid or Zero-Emission Vehicles
September 20, 2022

Applicable January 1, 2023, a California sales and use tax exemption is available to a qualified motor vehicle sold to a qualified buyer. For these purposes, the following definitions apply: a qualified motor vehicle is a vehicle for which a grant le...

California—Miscellaneous Tax: Sunset Date of New Tire Fee Extended
September 20, 2022

The sunset date of the California new tire fee, which requires a person who purchases a new tire to pay a fee of $1.75 per tire, is extended from January 1, 2024, to January 1, 2034. A.B. 2836 , Laws 2022, effective January 1, 2023

Louisiana—Sales and Use Tax: Remote Sellers Voluntary Disclosure Agreement Regulations Updated
September 20, 2022

The Louisiana Sales and Use Tax Commission for Remote Sellers has updated a rule on voluntary disclosure agreements to provide guidance and administration procedures for voluntary disclosure agreements. LAC 61:III.2905 , Louisiana Register, September...

Massachusetts—Property Tax: Assessment of Taxpayer's Property Reduced
September 20, 2022

A Massachusetts taxpayer’s request for abatement of property tax was granted by the Appellate Tax Board (Board) because the Presiding Commissioner was persuaded by the taxpayer’s testimony concerning the detrimental impact of routine and unavoidable ...

Missouri—Sales and Use Tax: Purchase of Equipment Used to Create Vehicle History Reports Not Tax Exempt
September 20, 2022

A corporation's (taxpayer's) purchase of certain equipment used to create Vehicle History Reports (VHRs) was not entitled to Missouri sales and use tax exemption as the taxpayer did not use the equipment to manufacture VHRs. Under Missouri law, machi...

Missouri—Sales and Use Tax: Local Tax Rate Changes Announced
September 20, 2022

The following local Missouri sales and use tax rate changes take effect October 1, 2022. Also, new rates are listed for each county, city, and special district affected by the rate changes. County Changes Barry County imposes a 0.5% county law enforc...

All States—Sales and Use Tax: State or Local Tax Rate Changes Reported During the Period September 12 - September 16, 2022
September 19, 2022

The following state had state and/or local sales and use tax rate changes reported during the period September 12 - 16, 2022. Oklahoma

Arkansas—Sales and Use Tax: Taxpayer Failed to Prove Entitlement to Refund
September 19, 2022

The Arkansas Department of Finance and Administration (department) properly denied a manufacturing facility operator’s (taxpayer’s) claim for a refund of sales and use tax paid on purchases of certain items and services because the taxpayer did not p...

Idaho—Motor Fuel Tax: Publication on Retail or Bulk Sales of Fuel Revised
September 19, 2022

The Idaho State Tax Commission has revised a publication that discusses the taxation of retail or bulk sales of gasoline and diesel fuel. The publication includes a chart noting the taxability of different fuel types for various types of fuel users. ...

Mississippi—Sales and Use Tax: City of Olive Branch Levies 1% Hotel and Motel Tax
September 19, 2022

The Mayor and the Board of Aldermen of the city of Olive Branch, Mississippi adopted on July 5, 2022, by resolution, their intent to levy a tax at the rate of 1% on the overnight room rentals of hotels and motels within the city. The tax will be levi...

Nebraska—Corporate Income, Sales and Use Taxes: Interest Rate Increases
September 19, 2022

The Nebraska interest rate applied to any credit or refund of taxes, delinquent payment, or special assessment, is 5% for the period of January 1, 2023 to December 31, 2024. Revenue Ruling 99-22-1 , Nebraska Department of Revenue, September 16, 2022 ...

Ohio—Miscellaneous Tax: Sports Gaming Tax Rule Issued
September 19, 2022

The Ohio Department of Taxation has issued a rule relating to the gaming receipts tax in order to define a taxpayer. A taxpayer is a sports gaming proprietor, which includes a mobile management services provider and management service provider to the...

Texas—Sales and Use Tax: Natural Gas Distributor’s Tax Liability Discussed
September 19, 2022

The Texas Comptroller of Public Accounts issued a private letter ruling discussing the applicability of Texas miscellaneous gross receipts tax (MGRT) and sales tax to gross receipts of a natural gas distributor (taxpayer). The comptroller noted that:...