State Tax News & Views: SALT Roundup

Welcome to this edition of our state and local tax roundup. Remember Eide Bailly for your state and local tax planning, compliance, and incentive needs.

State-by-State Roundup

California

Due date for California state tax returns and payments moved to November 16, 2023 - www.ftb.ca.gov.

Colorado

Colo. Finalizes Regs For Wildfire Costs Tax Break -  Zak Kostro, Law360 Tax Authority ($): "Colorado explained how sales and use tax exemptions for construction materials used to rebuild wildfire-damaged homes should be calculated for homes outside certain districts under regulations adopted by the state Department of Revenue."

Colo. Panel Moves To Boost Tax On Short-Term Rentals - Sanjay Talwani , Law360 Tax Authority ($): "A bill to reclassify some short-term rental units for property tax purposes, increasing their tax liability, won approval from a Colorado legislative interim panel Tuesday, sending the legislation to the 2024 General Assembly."

Colo. Includes Trailer Coaches In Rentals Subject To Sales Tax - Sanjay Talwani, Law360 Tax Authority ($): "Colorado will include trailer coaches in its definition of accommodations whose rental is subject to the state's sales and use tax under a rule adopted Wednesday by the state tax department."

Iowa

Iowa Tax Dept. Won't Rule On Taxability Of Cleaning Services - Zak Kostro, Law360 Tax Authority ($): "The Iowa Department of Revenue declined to rule on the taxability of cleaning and maintenance services provided to an ATV dealer, finding the entity that provided the services is under audit and the matter could be better resolved through other proceedings."

Michigan

Mich. Levies For Home Energy Financing Are Taxes, AG Says - Paul Williams, Law360 Tax Authority ($): "Financing assessments that Michigan local governments issue to help property owners pay for energy or water efficiency improvements and install renewable energy systems are considered special assessments akin to property taxes, the state attorney general said." 

Mich. House OKs Research And Development Tax Credits - Jaqueline McCool, Law360 Tax Authority ($): "Michigan would create businesses research and development tax credits under a five-bill package passed by the state House of Representatives and next headed to the Senate."

New Jersey

NJ Explains Tax Exceptions For Nonresident Telecommuters - "Paul Williams, Law360 Tax Authority ($): "New Jersey's reciprocal convenience-of-the-employer rule won't apply to nonresidents who don't work inside New Jersey during a calendar year, the state Division of Taxation said in guidance on the law."

New York

NY AG Snags $328M Deal With Uber - Irene Spezzamonte, Law360 Tax Authority ($): "Ride-hailing companies Uber and Lyft will shell out $328 million to more than 100,000 drivers, New York Attorney General Letitia James said Thursday, ending her investigation into allegations that the companies illegally deducted taxes or fees from drivers instead of customers."

NY Senate Bill Seeks 11% Tax On Guns, Ammunition - Jaqueline McCool, Law360 Tax Authority ($): "New York would impose an 11% tax on guns and ammunition to be paid by manufacturers and sellers under a bill introduced in the state Senate."

NY Assembly Bill Would Tax Cos. For Workers Displaced By AI - By Zak Kostro, Law360 Tax Authority ($): "New York would impose additional tax on businesses that use artificial intelligence or machinery to replace employees, under a bill introduced in the state Assembly."

Texas

Texas Comptroller Proposes Change In Sales Tax Sourcing - Michael Nunes, Law360 Tax Authority ($): "Texas would add a provision to its sales and use tax rules stipulating that orders are sourced to the physical location of a seller or third party and not where an order is accepted, completed or fulfilled under a proposal by the state comptroller's office."

Washington

Wash. Panel Mulls If Citibank Owes State Credit Card Tax - Greg Lamm, Law360 Tax Authority ($): "Citibank told a Washington state appellate panel Friday that the state can't retroactively collect a business tax on credit card activity because the bank didn't have a physical presence in the state at the time, prompting one judge to ask why "earning a lot of money from Washington consumers" wasn't in-state business activity."

The Not-So Tax History Corner

Depending where you are in the country, here is a reminder to "fall back" again. Seems the Sunshine Protection Act is waiting patiently for Congress like many year end tax bills.  

What’s the status of the bill to make daylight saving time permanent - Tara Suter, the Hill.