Catalano, Caboor & Co.
Tax Alerts
Tax Briefing(s)
IRS Announces Availability of Work Opportunity Tax Credit Through 2025
The IRS has announced that the Work Opportunity Tax Credit (WOTC) will continue to be available to employers through the end of 2025. This federal incentive is designed to encourage businesses to hire...
The IRS has announced that the Work Opportunity Tax Credit (WOTC) will continue to be available to employers through the end of 2025. This federal incentive is designed to encourage businesses to hire...
IRS Alerts Individuals to Fraudulent Tax Schemes on Social Media, (IR-2025-90)
he IRS has cautioned individuals about a rise in fraudulent tax schemes on social media that misuse credits such as the Fuel Tax Credit and the Sick and Family Leave Credit. The scams typically appear...
he IRS has cautioned individuals about a rise in fraudulent tax schemes on social media that misuse credits such as the Fuel Tax Credit and the Sick and Family Leave Credit. The scams typically appear...
IRS Urges Emergency Preparedness Ahead of Peak Disaster Season (IR-2025-89)
The IRS has urged individuals and businesses to review emergency preparedness plans as hurricane season peaks and wildfire risks remain high. Essential documents such as tax returns, Social Security c...
The IRS has urged individuals and businesses to review emergency preparedness plans as hurricane season peaks and wildfire risks remain high. Essential documents such as tax returns, Social Security c...
IRS Warns of Scams When Donating After Disasters
The IRS has reminded taxpayers that while donating to disaster relief is a compassionate and impactful way to help, it is equally important to remain cautious. In the aftermath of disasters, scam acti...
The IRS has reminded taxpayers that while donating to disaster relief is a compassionate and impactful way to help, it is equally important to remain cautious. In the aftermath of disasters, scam acti...
IRS Highlights Retirement Benefits of IRAs
The IRS has reminded taxpayers that Individual Retirement Accounts (IRAs) continue to provide important benefits for those planning their financial future. A traditional IRA allows earnings to grow ta...
The IRS has reminded taxpayers that Individual Retirement Accounts (IRAs) continue to provide important benefits for those planning their financial future. A traditional IRA allows earnings to grow ta...
AL - City of Cleveland imposes lodgings tax
Effective October 1, 2025, the city of Cleveland imposes a new local lodgings tax at a rate of 4%. The city's first lodgings tax return is due on November 20, 2025 for the month of October 2025. Loca...
Effective October 1, 2025, the city of Cleveland imposes a new local lodgings tax at a rate of 4%. The city's first lodgings tax return is due on November 20, 2025 for the month of October 2025. Loca...
AK - Integrated transmission systems legislation enacted
Alaska has enacted legislation creating new energy incentives by extending tax-exempt statutes to independent power producers. An electricity generation facility or electricity storage facility that i...
Alaska has enacted legislation creating new energy incentives by extending tax-exempt statutes to independent power producers. An electricity generation facility or electricity storage facility that i...
AZ - Local tax rate table released
Arizona's Department of Revenue released the transaction privilege tax (TPT) rate chart effective November 1, 2025. The only change is Manufactured Buildings in Chino Valley new rate will be 3%.Transa...
Arizona's Department of Revenue released the transaction privilege tax (TPT) rate chart effective November 1, 2025. The only change is Manufactured Buildings in Chino Valley new rate will be 3%.Transa...
AR - Optional standard mileage rates announced
The Arkansas Department of Finance and Administration has announced the 2025 optional standard mileage reimbursement rates for state income tax purposes. For business use, the reimbursement rate is 70...
The Arkansas Department of Finance and Administration has announced the 2025 optional standard mileage reimbursement rates for state income tax purposes. For business use, the reimbursement rate is 70...
CA - IRC conformity updated
California has enacted legislation that updates the state's Internal Revenue Code (IRC) conformity date to January 1, 2025, for taxable years beginning on or after January 1, 2025, with significant ex...
California has enacted legislation that updates the state's Internal Revenue Code (IRC) conformity date to January 1, 2025, for taxable years beginning on or after January 1, 2025, with significant ex...
CO - Innovative motor vehicle and truck tax credits rule amended
Colorado has amended its innovative motor vehicle and truck tax credits rule to update guidance regarding the quarterly electronic report that must be submitted to the Department of Revenue; make clea...
Colorado has amended its innovative motor vehicle and truck tax credits rule to update guidance regarding the quarterly electronic report that must be submitted to the Department of Revenue; make clea...
CT - The generation of electricity was not manufacturing for purposes of exemption
The generation of electricity is not manufacturing within the meaning of the statutory property tax exemption for machinery and equipment used in manufacturing. The term "machinery and equipment" is...
The generation of electricity is not manufacturing within the meaning of the statutory property tax exemption for machinery and equipment used in manufacturing. The term "machinery and equipment" is...
DE - Refunds required for overpayments of $50 or more
Delaware legislation requires a refund of county taxes, including local school taxes, if an assessment appeal results in:the reduction in the assessed value of real property; andthe total overpayment ...
Delaware legislation requires a refund of county taxes, including local school taxes, if an assessment appeal results in:the reduction in the assessed value of real property; andthe total overpayment ...
FL - Department issues updated guidance for veterinarians and veterinary clinics
Updated guidance is issued regarding the application of sales and use tax to transactions engaged in by veterinarians and veterinary clinics. Definitions are provided as well as information on out-of-...
Updated guidance is issued regarding the application of sales and use tax to transactions engaged in by veterinarians and veterinary clinics. Definitions are provided as well as information on out-of-...
GA - Tax assessors permitted to use income approach with limitations for section 42 properties
The Supreme Court of Georgia reversed the Court of Appeals' decision regarding property tax assessments for affordable housing properties qualifying for Section 42 tax credits, holding that tax assess...
The Supreme Court of Georgia reversed the Court of Appeals' decision regarding property tax assessments for affordable housing properties qualifying for Section 42 tax credits, holding that tax assess...
HI - Cigarette tax increase guidance issued
Hawaii issued guidance on the cigarette tax increase to 18 cents per cigarette or little cigar beginning January 1, 2026 (Act 95 (H.B. 441), Laws 2025). The guidance outlines procedures for wholesaler...
Hawaii issued guidance on the cigarette tax increase to 18 cents per cigarette or little cigar beginning January 1, 2026 (Act 95 (H.B. 441), Laws 2025). The guidance outlines procedures for wholesaler...
ID: Reminder issued on exemption for small sellers
daho residents are reminded about previously enacted legislation that provides a sales and use tax exemption for certain small sellers with annual sales of $5,000 or less. The exemption is effective J...
daho residents are reminded about previously enacted legislation that provides a sales and use tax exemption for certain small sellers with annual sales of $5,000 or less. The exemption is effective J...
IL - Taxation of travel magazines and related services addressed
Illinois issued a general information letter addressing the taxation of travel magazines, marketing materials, and related services provided to member travel agencies for a fee. Generally, if a compan...
Illinois issued a general information letter addressing the taxation of travel magazines, marketing materials, and related services provided to member travel agencies for a fee. Generally, if a compan...
IN - Boone County imposes County Innkeepers' tax
Effective November 1, 2025, the Indiana county innkeepers' tax rate imposed in Boone County is 8%. County Innkeepers' Tax, Indiana Department of Revenue, October 2025...
Effective November 1, 2025, the Indiana county innkeepers' tax rate imposed in Boone County is 8%. County Innkeepers' Tax, Indiana Department of Revenue, October 2025...
IA - Employment agency placement not subject to tax
Iowa Department of Revenue ruled on the sales and use tax implications for an out-of-state private employment agency providing temporary medical workers within the state. Generally, the work of privat...
Iowa Department of Revenue ruled on the sales and use tax implications for an out-of-state private employment agency providing temporary medical workers within the state. Generally, the work of privat...
KS - 2025 revenues do not trigger rate reduction
Kansas announced that taxpayers will not receive an income tax rate reduction for the 2026 tax year. The state can reduce the rate only if:revenue from income and privilege tax collections in the stat...
Kansas announced that taxpayers will not receive an income tax rate reduction for the 2026 tax year. The state can reduce the rate only if:revenue from income and privilege tax collections in the stat...
KY - Standard deduction for 2026 tax year announced
Kentucky announced the personal income tax standard deduction for the 2026 tax year. The deduction is increasing by $90 from $3,270 for the 2025 tax year to $3,360. Press Release, Kentucky Department...
Kentucky announced the personal income tax standard deduction for the 2026 tax year. The deduction is increasing by $90 from $3,270 for the 2025 tax year to $3,360. Press Release, Kentucky Department...
LA - Guidance issued for boats registered in Louisiana
Louisiana has issued guidance explaining the partial exemption from state and local sales and use tax for boats registered in the state that was enacted during the 2025 Regular Legislative Session. R...
Louisiana has issued guidance explaining the partial exemption from state and local sales and use tax for boats registered in the state that was enacted during the 2025 Regular Legislative Session. R...
ME - Interest rates decrease
The interest rate on underpayments and refunds of Maine taxes decreases to 9% for 2026. Maine Revenue Services, Maine Department of Revenue, September 17, 2025...
The interest rate on underpayments and refunds of Maine taxes decreases to 9% for 2026. Maine Revenue Services, Maine Department of Revenue, September 17, 2025...
MD - Impact report on OBBBA issued
The Maryland Comptroller has issued a report outlining the impact that the One Big Beautiful Bill Act is expected to have on Maryland tax revenues. Maryland law requires such a report when amendments ...
The Maryland Comptroller has issued a report outlining the impact that the One Big Beautiful Bill Act is expected to have on Maryland tax revenues. Maryland law requires such a report when amendments ...
MA - Rule issued on withholding requirements from sales of real estate
A new Massachusetts rule establishes and explains the corporate and personal withholding requirements that apply to the proceeds of sales or transfers of Massachusetts real estate. The rules will will...
A new Massachusetts rule establishes and explains the corporate and personal withholding requirements that apply to the proceeds of sales or transfers of Massachusetts real estate. The rules will will...
MI - Prepaid fuel tax rates announced
The Michigan prepaid sales tax rate for the period of November 1, 2025 to November 30, 2025 decreases to 16.0 cents per gallon for gasoline. For diesel fuel, the rate decreases to 19.1 cents per gallo...
The Michigan prepaid sales tax rate for the period of November 1, 2025 to November 30, 2025 decreases to 16.0 cents per gallon for gasoline. For diesel fuel, the rate decreases to 19.1 cents per gallo...
MN - Digital products guidance updated
Minnesota has updated its guidance on how sales and use tax applies to digital products. The guidance covers taxable and nontaxable sales; bundled transactions; webinars, online classes, and instructi...
Minnesota has updated its guidance on how sales and use tax applies to digital products. The guidance covers taxable and nontaxable sales; bundled transactions; webinars, online classes, and instructi...
MS - Tupelo water procurement facility tax no longer imposed on groceries
Mississippi issued a notice announcing that retail sales of groceries in City of Tupelo are exempt effective July 1, 2025 from the Tupelo Water Procurement Facility Tax, which is a .25% tax on retail ...
Mississippi issued a notice announcing that retail sales of groceries in City of Tupelo are exempt effective July 1, 2025 from the Tupelo Water Procurement Facility Tax, which is a .25% tax on retail ...
MO - Local tax rate changes announced
The following local Missouri sales and use tax rate changes take effect October 1, 2025. Also, new rates are listed for each county, city, and special district affected by the rate changes.County Chan...
The following local Missouri sales and use tax rate changes take effect October 1, 2025. Also, new rates are listed for each county, city, and special district affected by the rate changes.County Chan...
MT - Governor sends reminder about property tax relief
Montana Gov. Greg Gianforte reminded Montana homeowners about new tax rates and property tax rebates. Between August 15 and October 1, 2025, eligible Montana homeowners may claim a property tax rebate...
Montana Gov. Greg Gianforte reminded Montana homeowners about new tax rates and property tax rebates. Between August 15 and October 1, 2025, eligible Montana homeowners may claim a property tax rebate...
NE - Guidance provided on prohibition on tax benefits received by foreign adversary companies
The Nebraska Department of Revenue has provided guidance on the prohibition on foreign adversary companies (FACs) receiving benefits from any of the state's tax incentive programs as of October 1, 202...
The Nebraska Department of Revenue has provided guidance on the prohibition on foreign adversary companies (FACs) receiving benefits from any of the state's tax incentive programs as of October 1, 202...
NV - Tax exemption criteria tightened for nonprofit organizations
Nevada's Department of Taxation has revised the criteria for nonprofit organizations to qualify for sales and use tax exemptions, requiring compliance with enhanced standards. In determining whether a...
Nevada's Department of Taxation has revised the criteria for nonprofit organizations to qualify for sales and use tax exemptions, requiring compliance with enhanced standards. In determining whether a...
NH - Parsonage tax exemptions expanded
New Hampshire has expanded property tax exemptions for religious use to include church parsonages that are rented or vacant. Previously, exemptions applied only to parsonages occupied by pastors. Ch. ...
New Hampshire has expanded property tax exemptions for religious use to include church parsonages that are rented or vacant. Previously, exemptions applied only to parsonages occupied by pastors. Ch. ...
NJ - HMFA project financing credit program guidance issued
New Jersey has issued guidance regarding the New Jersey Housing and Mortgage Finance Agency (NJHMFA) tax credit program. Awarded tax credits can be applied against Corporation Business Tax or Insuranc...
New Jersey has issued guidance regarding the New Jersey Housing and Mortgage Finance Agency (NJHMFA) tax credit program. Awarded tax credits can be applied against Corporation Business Tax or Insuranc...
NY - Subscription fees for integrated facilities management services properly subject to tax
The New York Tax Appeals upheld an administrative law judge decision that the taxpayers’ subscription fees for integrated facilities management services were properly subject to sales and use tax. I...
The New York Tax Appeals upheld an administrative law judge decision that the taxpayers’ subscription fees for integrated facilities management services were properly subject to sales and use tax. I...
NC: Guidance issued on weight-based snuff tax, alternative nicotine products tax, and inventory tax
Guidance is issued regarding recently enacted legislation, effective July 1, 2025, that changed the North Carolina excise tax rate methodology for snuff, imposed a new excise tax on alternative nicoti...
Guidance is issued regarding recently enacted legislation, effective July 1, 2025, that changed the North Carolina excise tax rate methodology for snuff, imposed a new excise tax on alternative nicoti...
ND - Guide to business tax incentives updated
North Dakota has released a business tax incentives publication for 2025, summarizing a number of provisions such as property tax exemptions, sales tax exemptions, and income tax credits. For example,...
North Dakota has released a business tax incentives publication for 2025, summarizing a number of provisions such as property tax exemptions, sales tax exemptions, and income tax credits. For example,...
OH - Auctioneer guidance issued
Ohio issued guidance discussing its sales and use tax rules for auctioneers. The guidance incorporates recent changes and revised business practices. The guidance discusses the casual sale exemption, ...
Ohio issued guidance discussing its sales and use tax rules for auctioneers. The guidance incorporates recent changes and revised business practices. The guidance discusses the casual sale exemption, ...
OK - Parental choice tax credit rules withdrawn
The Oklahoma Tax Commission has withdrawn several emergency rules relating to the Oklahoma Parental Choice Tax Credit. The Commission plans on submitting a revised version of the rules for review. Ok...
The Oklahoma Tax Commission has withdrawn several emergency rules relating to the Oklahoma Parental Choice Tax Credit. The Commission plans on submitting a revised version of the rules for review. Ok...
OR - Preschool for all estimated payment threshold increased
Multnomah County has amended its Preschool for All personal income tax regulations to increase the threshold for estimated tax payments from $1,000 to $5,000 starting in tax year 2026. Ord. No. 1339,...
Multnomah County has amended its Preschool for All personal income tax regulations to increase the threshold for estimated tax payments from $1,000 to $5,000 starting in tax year 2026. Ord. No. 1339,...
PA -PURTA surcharge rate announced
Pennsylvania has provided notice that the Public Utility Realty Tax Act (PURTA) surcharge calculation for tax years beginning January 1, 2026 is 0 mills. No PURTA surcharge will be imposed for the tax...
Pennsylvania has provided notice that the Public Utility Realty Tax Act (PURTA) surcharge calculation for tax years beginning January 1, 2026 is 0 mills. No PURTA surcharge will be imposed for the tax...
RI - Guidance issued on decoupling from federal treatment of R&D expenditures
Rhode Island issued guidance on its treatment of domestic research and experimental expenditures and recent federal legislation, which the state decoupled from in the 2026 budget.Eligible taxpayers th...
Rhode Island issued guidance on its treatment of domestic research and experimental expenditures and recent federal legislation, which the state decoupled from in the 2026 budget.Eligible taxpayers th...
SC - Guidance on exemptions for farmers updated
South Carolina issued a revenue ruling that addresses common sales tax exemptions available to farmers and updates previous guidance concerning the use of South Carolina Agriculture Tax Exemption (SCA...
South Carolina issued a revenue ruling that addresses common sales tax exemptions available to farmers and updates previous guidance concerning the use of South Carolina Agriculture Tax Exemption (SCA...
SD - Assessment methodology challenged for exceeding actual property value
The South Dakota Supreme Court reversed and remanded a property tax assessment involving agricultural properties subject to perpetual wetlands reserve easements, concluding that the assessed valuation...
The South Dakota Supreme Court reversed and remanded a property tax assessment involving agricultural properties subject to perpetual wetlands reserve easements, concluding that the assessed valuation...
TN - Expansion of central business improvement district discussed
Tennessee issued a notice announcing that the Nashville Metropolitan Government of Davidson County is expanding its Central Business Improvement District (CBID) boundaries. Retailers located in the CB...
Tennessee issued a notice announcing that the Nashville Metropolitan Government of Davidson County is expanding its Central Business Improvement District (CBID) boundaries. Retailers located in the CB...
TX - August 2025 certification of the average closing price of gas and oil released
The Texas Comptroller of Public Accounts has determined the average taxable price of crude oil for the reporting period August 2025 is $39.33 per barrel for the three-month period beginning on May 1, ...
The Texas Comptroller of Public Accounts has determined the average taxable price of crude oil for the reporting period August 2025 is $39.33 per barrel for the three-month period beginning on May 1, ...
UT - 2025 reporting instructions for holders of unclaimed property issued
Utah has issued the 2025 reporting instructions for holders of unclaimed property. The instructions include the following recent unclaimed property law changes affecting holder reporting:Electronic re...
Utah has issued the 2025 reporting instructions for holders of unclaimed property. The instructions include the following recent unclaimed property law changes affecting holder reporting:Electronic re...
VT - MFTIA and MFTA rates announced for fourth quarter of 2025
The Vermont motor fuel transportation infrastructure assessment (MFTIA) rate for the fourth quarter of 2025 (October to December 2025) is $0.0510, and the motor fuel tax assessment (MFTA) rate is $0.1...
The Vermont motor fuel transportation infrastructure assessment (MFTIA) rate for the fourth quarter of 2025 (October to December 2025) is $0.0510, and the motor fuel tax assessment (MFTA) rate is $0.1...
VA - Interest rates unchanged for fourth quarter of 2025
The Virginia interest rates for the fourth quarter of 2025 remain at 9% for tax underpayments (assessments) and 9% for tax overpayments (refunds).For the purpose of computing the addition to the tax f...
The Virginia interest rates for the fourth quarter of 2025 remain at 9% for tax underpayments (assessments) and 9% for tax overpayments (refunds).For the purpose of computing the addition to the tax f...
WA - Guidance provided on luxury motor vehicle tax
Beginning January 1, 2026, an additional 8% luxury motor vehicle tax applies to the amount of a vehicle's selling price that exceeds $100,000. The tax also applies to the fair market value of a leased...
Beginning January 1, 2026, an additional 8% luxury motor vehicle tax applies to the amount of a vehicle's selling price that exceeds $100,000. The tax also applies to the fair market value of a leased...
WV - Employer withholding guidance updated
West Virginia updated guidance for employers on income tax withholding from employee wages. The guidance provides information on:compensation that is subject to withholding;monthly withholding payment...
West Virginia updated guidance for employers on income tax withholding from employee wages. The guidance provides information on:compensation that is subject to withholding;monthly withholding payment...
WI - Failure to timely file petition
A Notice of Action by the Wisconsin Department of Revenue was sent by USPS Certified Mail to the taxpayers. The Department asserts the mail was received by the taxpayers on March 27, 2025. The taxpaye...
A Notice of Action by the Wisconsin Department of Revenue was sent by USPS Certified Mail to the taxpayers. The Department asserts the mail was received by the taxpayers on March 27, 2025. The taxpaye...
WY - Local tax rate changes announced
Wyoming has issued a revised overview of changes in local tax rates effective July 1, 2025, for sales, use, and lodging taxes across various localities. The only change from the chart issued April 1, ...
Wyoming has issued a revised overview of changes in local tax rates effective July 1, 2025, for sales, use, and lodging taxes across various localities. The only change from the chart issued April 1, ...
Catalano, Caboor & Co. is a full service Chicagoland CPA firm located in Lombard, Illinois.
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