Mazzeffi & Company

Tax Alerts

Tax Briefing(s)

Build Back Better Act (Proposed)2021 Post-Filing Season Update American Rescue Plan Act of 2021

Third Batch of Advance Child Tax Credit Payment Released
The IRS has released the third batch of advance Child Tax Credit (CTC) payment for the month of September. Under the American Rescue Plan, most eligible families have received payments dated July 15 a...

CDFI Fund Awards New Markets Tax Credits Worth $5 Billion
The Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund) has announced New Markets Tax Credits worth $5 billion to create jobs and encourage investment and economic gr...

SBA Enhances COVID Economic Injury Disaster Loan Program
The Small Business Administration (SBA) announced enhancements to the COVID Economic Injury Disaster Loan (EIDL) Program. These enhancements include:increasing the EIDL cap from $500,000 to $2 million...

Telephonic Hearings May Continue to Satisfy Public Approval Requirements for Exempt Bonds
Due to the Coronavirus Disease 2019 (COVID-19) pandemic, the IRS extended until March 31, 2022, the time period during which telephonic hearings may satisfy the public approval requirement for private...

Tax Court Addresses Increase in Petitions Received
The U.S. Tax Court announced that it received more than 26,000 petitions this year. The Tax Court met with various stakeholders, including representatives from the American Bar Association’s Section...

AL - Town of lake view stops using department to administer, collect taxes
Effective October 1, 2021, the town of Lake View stops using the Alabama Department of Revenue in the administration and collection of its sales/use taxes and any other additional taxes.New Administra...

AK - Alaska landing tax constitutional
The Supreme Court of Alaska held that the state landing tax does not violate the Import-Export and Tonnage Clauses of the United States Constitution or 33 U.S.C. §5(b).BackgroundIn this case, two com...

AZ - No local rate changes effective September 1
There are no local Arizona transaction privilege tax (TPT) changes effective September 1, 2021. The TPT rate chart can be viewed at: https://azdor.gov/sites/default/files/media/TPT_RATETABLE_09012021...

AR - Taxpayer not engaged in commercial production of food or fiber; not entitled to exemption
A taxpayer was properly subject to Arkansas sales and use tax on purchase of equipment as the taxpayer failed to prove that he was engaged in the business of commercial farming or selling of farm prod...

CA - Taxpayer’s claim for redetermination denied due to failure to satisfy burden of proof
A used car dealership operator’s (taxpayer’s) protest against California sales and use tax assessment was denied because the taxpayer failed to establish that adjustments should be made to the unr...

CO - Enterprise zone rules amended
The Colorado Department of Revenue has amended several income tax regulations with respect to enterprise zone credits.Credit for Enterprise Zone ContributionsRule 39-30-103.5, governing the credit for...

CT - Municipalities can provide temporary tax relief
Municipalities and taxing districts can adopt programs for fiscal years ending June 30, 2022, and June 30, 2023, to provide temporary Connecticut property tax or municipal utility charge relief to tax...

DE - Historic preservation credit extended
Delaware enacted legislation that extends the sunset date for the historic preservation credit. Eligible taxpayers can claim the credit against:corporate income tax liability;bank franchise tax liabil...

DC - Cigarette surtax increase announced
The surtax for cigarettes is increasing one cent in the District of Columbia.New Surtax RateEffective October 1, 2021, the surtax on a pack of cigarettes will increase to 51¢ (currently, 50¢). The s...

FL - Solar panels on federal air base taxable
A Florida taxpayer’s tangible personal property used in connection with a solar energy generating facility within the federal Air Force base was taxable because once leased, the property is no longe...

GA - Sales and use tax treatment of fundraising activities conducted by organizations exempt from federal income discussed
For sales and use tax purposes, Georgia issued a policy bulletin providing guidance to organizations exempt from federal income tax under Internal Revenue Code (IRC) 501(c)(3) ("501(c)(3) organization...

HI - Kauai County enacts transient accommodations tax
Kauai County, Hawaii, has enacted a transient accommodations tax (TAT) of 3 percent effective October 1, 2021. Mayor Derek S. K. Kawakami signed Bill No. 2829 which levies the TAT on every taxpayer th...

ID - Calculation of estimated tax payments using commission's website discussed
The Idaho State Tax Commission has issued a release discussing the calculation of estimated property tax payments using a calculator on the commission’s website. Taxpayers in 30 Idaho counties can e...

IL - Taxability of sales to contractors for incorporation into real estate owned by governmental bodies
The Illinois Department of Revenue issued a general letter ruling discussing the sales and use tax exempt sales to contractors that have entered into a construction contract with a governmental body. ...

IN - Guidance on collection of sales tax on drop shipments
Indiana has updated its sales tax guidance on drop shipments to note that a purchaser is required to collect Indiana sales tax, not use tax, on retail transactions in Indiana, unless a specific exempt...

IA - Updated sales and use tax guidance issued
The Iowa Department of Revenue has issued updated general guidance on sales and use tax in the state. The guidance contains information such as permit requirements, tax rates, filing requirements, ref...

KS - Disabled access credit limit increased
For personal income tax purposes, the Kansas Department of Revenue (department) has issued a notice discussing recent amendments to the disabled access credit. The credit applies to Kansas residents w...

KY - 2021 property tax rate announced
For 2021, the Kentucky state real property tax rate is 11.9¢ per $100 of assessed value. The rate was 12.2¢ in 2020. This is the first time the rate has decreased since 2008. Release, Kentucky Depa...

LA - Board of tax appeals has jurisdiction over state or local taxes or fees; taxpayer’s petition denied prematurely
For corporate income tax purposes, the Lousiana Board of Tax Appeals (BTA), in an appeal, determined that BTA has jurisdiction on all subject matter relating to state or local taxes or fees and the ta...

ME - Paper mill's tax abatement request was correctly denied
For Maine property tax purposes, the Supreme Court affirmed the superior court’s decision affirming the State Board of Property Tax Review’s (Review Board’s) denial of a paper mill’s tax abate...

MD - Evidence for claiming refund under statute of limitation discussed
The Court of Special Appeals of Maryland (court), in a personal income tax matter, determined that in a situation where a taxpayer mails a claim for a refund, but the Comptroller of Maryland does not ...

MA - Credit and deduction changes enacted
Massachusetts budget legislation contains numerous changes to corporate excise and personal income tax credits and deductions. The changes include:extension of the sunset date for the historic rehabi...

MI - Agency responsibilities regarding tax exemption certificate applications discussed
For Michigan property tax purposes, the Attorney General has issued an opinion on state agency responsibilities regarding applications for tax exemption certificates.’ The Attorney General notes tha...

MN - Tax treatment of prepared food discussed
A Minnesota Department of Revenue sales tax fact sheet discusses prepared food and provides examples and a flow chart to determine taxability. Generally, prepared food is taxable."Prepared food" mean...

MS - City of Sardis repeals tourism tax
Effective July 1, 2021 the city of Sardis will repeal its tourism tax. The Sardis tourism tax is levied at the rate of 3% on the gross proceeds derived from sales of prepared foods at restaurants and ...

MO - Deduction for long-term care insurance premium amounts expanded
Missouri has expanded the definition of "qualified long-term care insurance" for purposes of the personal income tax deduction for nonreimbursed long-term care insurance premium amounts. "Qualified...

MT - Non resident’s capital gains from land sale properly subject tax
A non resident who sold a property in Montana but did not report the same in a Montana personal income tax return was properly subject to additional personal income tax assessment. In this matter, the...

NE - Social security income exemption initiated
Nebraska initiated plans to provide an exemption from personal income tax for all social security income.Current TreatmentIndividuals computing Nebraska personal income tax liability can subtract soci...

NV - State high court upholds decision invalidating parts of 2019 MBT legislation
The Nevada Supreme Court affirmed a district court decision that invalidated portions of a 2019 law (S.B. 551) affecting the rates of the modified business tax. The law had resulted in Nevada continui...

NH - Disaster-related nexus waiver provisions enacted
New Hampshire has enacted provisions stating that no out-of-state businesses or employees who are in the state to perform disaster-related or emergency-relate work will be deemed to have established s...

NJ - Economic recovery act and certain other economic development programs revised
Enacted New Jersey legislation revises various corporation business tax credits and incentives that were previously enacted as part of the (Act). The legislation also revises certain other economic de...

NM - Guidance on gross receipts tax holiday revised
The New Mexico Taxation and Revenue Department has revised its publication providing information on the gross receipts tax holiday. The publication covers numerous topics, including a general summary ...

NY - Taxpayer’s motion for recusal of ALJ denied due to failure to provide accompanying affidavit
A taxpayer’s motion for recusal of an administrative law judge in a New York State sales and use tax matter was denied because the taxpayer failed to meet the fundamental requirement of an accompany...

NC - SST boundary database updated
North Carolina has updated the boundary database under the Streamlined Sales and Use Tax (SST) Agreement.Effective Date of Boundary DatabaseThe database is updated to include changes effective October...

ND - Tax incentives for businesses in 2021-22 discussed
An updated brochure was published by the North Dakota Office of Tax Commissioner describing various corporate income tax, property tax and sales and use tax incentives for businesses and notes that in...

OH - Church property failed to meet requirements for exemption
An Ohio taxpayer’s property did not qualify for a property tax exemption because the taxpayer was not a charitable or educational institution that used the property exclusively for charitable purpos...

OK - Employer blood donation credit enacted
Oklahoma has enacted a nonrefundable income tax credit for employers whose employees participate in a blood drive that is organized with a nonprofit blood donation organization. The blood drive may no...

OR - Central assessment statutory scheme permits taxation of entire enterprise value of company
For Oregon property tax purposes, the tax court did not err by upholding the Department of Revenue’s (department’s) valuation determinations because the tax court’s conclusions were supported by...

PA - Dismissal of untimely appeals affirmed, mailing did not constitute filing
A Pennsylvania trial court’s decision to quash the taxpayers’ property tax appeals on jurisdictional grounds was affirmed because the appeals to the County Board of Assessment Appeals (BOAA) were ...

RI - Taxpayers informed of changes in certain income tax credits
Rhode Island issued a notice informing taxpayers of the changes made to certain Rhode Island corporate and personal income state tax credits because of the recently enacted legislation. The legislatio...

SC - Taxpayer not a qualified surviving spouse of disabled veteran; property tax exemption denied
The spouse of a deceased military veteran (taxpayer) was denied South Carolina property tax exemption as the taxpayer was not a "qualified surviving spouse" of a disabled veteran. South Carolina all...

SD - Legislative changes expanding property tax relief for eligible landowners discussed
South Dakota has issued a release providing information on the legislative changes made to the riparian buffer strip program that expanded the property tax relief for eligible landowners. Applications...

TN - Guidance provided on filing a claim for refund when dealer is unresponsive
Effective October 1, 2021, a customer must follow a specific procedure to, in limited instances, file a claim for refund of erroneously paid sales or use tax directly with the Tennessee Department of ...

TX - Agreements entered into by a political subdivision of state exempt from tax
For Texas sales and use tax purposes, contracts for the design and construction of a municipal hotel and convention center project qualify as exempt contracts because a municipal development district ...

UT - Subscription access to online professional training platform subject to tax
An online professional education services platform’s (taxpayer’s) receipts for providing subscription access to its online training platform was subject to Utah sales and use tax, when the purchas...

VT - Guidance on meals tax for businesses
Vermont has updated its fact sheet that provides businesses information related to the circumstances in which the meals tax applies to them. The fact sheet provides information on businesses subject t...

VA - Taxpayer filed untimely amended return; refund properly denied
A taxpayer was properly denied a refund of Virginia personal income tax as the taxpayer refund request was erroneous and untimely. In this matter, the taxpayer filed a part-year Virginia and another s...

WA - Taxability of online classes explained
Live, online classes that permit interaction between the presenter and participants, are not subject to Washington sales tax. However, this activity is subject to business and occupation (B&O) tax...

WV - Deadline for filing tax returns for oil-producing and natural gas-producing properties extended
West Virginia provides a 30-day extension for filing property tax returns for oil-producing property and natural gas-producing properties for the 2022 tax year. Therefore, the due date for filing prop...

WI - Assessment of big box store affirmed for failure to overcome presumption of correctness
For property tax purposes, the circuit court did not err 4when it determined that the 2015 assessment complied with Wisconsin law because the taxpayer failed to overcome the statutory presumption of c...

WY - Guides and outfitters subject to lodging assessment
Beginning July 1, 2021 guides and outfitters must collect the Wyoming lodging assessment. They are still exempt from local lodging taxes. Lodging services provided by guides and outfitters include pla...