Health care companies have joined the roster of tax relief recipients in Minnesota, South Carolina is extending deadlines, and Pennsylvania is waiving penalties on prepayments. Here’s the latest on shifting state tax guidelines, deadlines, and policy to deal with the coronavirus pandemic. For Monday’s coverage click here. Here’s a state-by-state roadmap.
The Minnesota Department of Revenue has granted a 60-day payment grace period on monthly and quarterly excise taxes paid by health care providers.
The grace period for payments due April 15 was extended to June 15 for taxpayers with duties under MinnesotaCare. The extension applies to the state’s provider tax, hospital tax, surgical center tax, wholesale drug distributor tax, and legend drug use tax.
In addition, the 60-day filing extension is available for annual 2019 MinnesotaCare returns that were due March 16. Taxpayers can request an extension by April 15, but must file their return by May 15.
Connecticut Conforms with IRS Deadlines
Connecticut has extended the deadline for residents and businesses to file state income and other taxes to align with the extended federal income tax deadline, the state Department of Revenue Services announced Tuesday.
The state has extended the filing and payment deadlines for corporate income taxes, individual income taxes and other taxes, from April 15 to July 15, the department said.
“In these difficult circumstances,” the extensions “offer taxpayers and tax professionals clarity and more time to prepare their returns,” John Biello, acting commissioner at the department said Tuesday in a statement.
The state’s Office of Fiscal Analysis warned last month that the budget would deteriorate as the “extraordinary” economic impact of the pandemic took hold.
“I feel confident we have enough cash to get through this fiscal year,” Gov. Ned Lamont (D), told reporters Tuesday.
Michigan Extends Penalty Waivers
Michigan is extending its waiver of late penalties for its sales and use tax and employer withholding filing for an additional 30 days to help businesses, the state Department of Treasury said Tuesday.
Companies scheduled to make payments in March, April, or for the first quarter of 2020 can postpone filing and payment requirements for these tax payments until May 20. This follows March guidance postponing these required payments until April 20.
“By moving sales, use and withholding tax payment deadlines from March and April to May, it gives small businesses critical time to figure out the next steps as we continue to move forward,” Treasurer Rachael Eubanks said in a Tuesday statement.
South Carolina Expands Deadline Relief
South Carolina taxpayers are being provided additional filing and payment relief, the Department of Revenue announced Tuesday.
The state had already extended the personal income tax filing date to July 15, tying it to the new federal deadline. The department said it was now expanding that relief to all income, franchise, and estimated taxes, as well as corporate license fee filings and payments.
All other types of tax filings and payments due between April 1 and June 1 remain due June 1.
The department also said it was making additional estimated tax payments eligible for relief, extending the time to file for refunds, and allowing individual income tax returns to be filed as late as Oct. 15 in certain cases.
“While collecting tax dollars and ensuring compliance is critical to the continued fiscal health of South Carolina, we are making every effort to support people and businesses during these uncertain times,” Hartley Powell, the department director, said in a statement.
Biggest Illinois County Assessing Outbreak’s Property Tax Impact
The largest county in Illinois, which includes Chicago, will review and adjust assessments on nearly two million properties to reflect the devastating impact the Covid-19 pandemic has had on local real estate markets, the Assessor’s Office announced Tuesday.
Cook County operates on a three-year cycle and reassesses the county’s 1.8 million parcels in thirds each year for property tax purposes. Under a new reassessment plan, the county plans to reassess the southern and western third of the county, and then adjust property values in Chicago and its northern suburbs if the public health crisis has had a significant impact on values. Read more here.
N.Y. Bill Would Set Tax Break for Front-Line Personnel
New York would offer front-line medical workers and first responders an income tax deduction covering up to $5,000 in expenses for personal protective equipment and transportation related to the health emergency under a bill introduced Tuesday.
The deduction would be available to health care professionals, certified first responders, and emergency medical technicians. The state “will never be able to fully repay” the debt owed to the workers, but the proposed tax deduction would be “a crucial first step,” said State Sen. Brad Hoylman (D), who sponsored the bill (S.8195).
Hoylman’s bill follows a proposal last week by Joseph Griffo, deputy leader of the state Senate’s Republican minority, for an income tax exemption for health care professionals and first responders. But the outlook for relief bills introduced from either side of the aisle remains uncertain, with no immediate plan for lawmakers to reconvene either remotely or in person before the current session is slated to end June 2.
Pennsylvania Sales Tax Relief for Businesses
Businesses that collect Pennsylvania sales tax won’t have to make accelerated prepayments over the next three months, Gov. Tom Wolf (D) said Tuesday.
The relief, offered as part of the state’s pandemic response, means that businesses that normally have a monthly prepayment obligation won’t be charged penalties for missing April, May, or June deadlines.
Monthly prepayments are required from businesses with sales tax liability of more than $25,000 during the third quarter of the preceding year. Under the temporary policy, the state Revenue Department is asking those businesses to simply remit the sales tax that they collected during the prior month. The April 20, May 20, and June 22 due dates match the standard deadlines for monthly filers with no prepayment requirement, the department said on its Covid-19 information page.
“Waiving this prepayment requirement will provide support to our businesses at a time when they are doing their part to help us prevent the spread of the virus,” Revenue Secretary Dan Hassell said in a statement.
Utah Legislators Discussing Tax Policy in Cyberspace
Utah lawmakers have decided to call themselves into an historic special session, the start date still to be determined, to deal with pandemic measures including tax policy.
Lawmakers will deal with a bill extending the deadline for submitting state income taxes to July 15, a bill making changes to income tax provisions relating to qualified retirement plan distributions, filing and payment deadlines, and extension requirements, and a bill dealing with how school districts in the state education system come up with the funds they need from property taxes.
It will be the first-ever virtual session of the Legislature, and the first time lawmakers have used their new authority—granted to them by voters—to call themselves together because of an emergency. Until now, special sessions have been called only by the governor.
The session will begin with the convening of the House, with only one legislator, House Speaker Brad Wilson (R), on the floor, leading his colleagues via video-conference.
The Senate will start meeting the day after the House convenes. “We are working together to achieve the most favorable outcomes in our state’s fight against the virus, protecting Utah’s families as well as Utah’s businesses,” Senate President J. Stuart Adams (R) said in a statement.
—With assistance from Andrew M. Ballard in Raleigh, N.C., Alex Ebert in Columbus, Ohio, Adrianne Appel in Boston, and Tripp Baltz in Denver.