Catalano, Caboor & Co.
Tax Alerts
Tax Briefing(s)
IRS Grants Relief to Taxpayers Affected by Terrorist Action in Israel; Deadlines Postponed (Notice 2025-53; IR-2025-97)
The IRS has provided relief under Code Sec. 7508A for persons determined to be affected by the terroristic action in the State of Israel throughout 2024 and 2025. Affected taxpayers have until Septe...
The IRS has provided relief under Code Sec. 7508A for persons determined to be affected by the terroristic action in the State of Israel throughout 2024 and 2025. Affected taxpayers have until Septe...
Applicable Terminal Charge and SIFL Rates for Determining Value of Noncommercial Flights on Employer-Provided Aircraft Issued (Rev. Rul. 2025-20)
The IRS has released the applicable terminal charge and the Standard Industry Fare Level (SIFL) mileage rate for determining the value of noncommercial flights on employer-provided aircraft in effect ...
The IRS has released the applicable terminal charge and the Standard Industry Fare Level (SIFL) mileage rate for determining the value of noncommercial flights on employer-provided aircraft in effect ...
Office of Appeals Begins Pilot Program on Mediation (IR-2025-100)
The IRS Independent Office of Appeals has launched a two-year pilot program to make Post Appeals Mediation (PAM) more attractive to taxpayers. Under the new PAM pilot, cases will be reassigned to an A...
The IRS Independent Office of Appeals has launched a two-year pilot program to make Post Appeals Mediation (PAM) more attractive to taxpayers. Under the new PAM pilot, cases will be reassigned to an A...
IRS Reminds Taxpayers to Safeguard Financial Records in Emergency Plans
The IRS has reminded taxpayers that emergency readiness has gone beyond food, water and shelter. It also includes safeguarding financial and tax documents. Families and businesses should review their ...
The IRS has reminded taxpayers that emergency readiness has gone beyond food, water and shelter. It also includes safeguarding financial and tax documents. Families and businesses should review their ...
AL - Privately-owned wastewater treatment equipment
The Alabama Tax Tribunal reversed the partial denial of a privately-owned for-profit wastewater utility service's application for sales and use tax certificates of exemption. The Tribunal ruled that t...
The Alabama Tax Tribunal reversed the partial denial of a privately-owned for-profit wastewater utility service's application for sales and use tax certificates of exemption. The Tribunal ruled that t...
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 rate changes announced
The Arizona Department of Revenue has announced new local transaction privilege tax (TPT) rate changes. In addition to previously announced local rate changes, the Department announced the following u...
The Arizona Department of Revenue has announced new local transaction privilege tax (TPT) rate changes. In addition to previously announced local rate changes, the Department announced the following u...
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 - San Francisco gross receipts tax rates for telecommunications activities reduced
San Francisco has reduced the tax rates on gross receipts from telecommunications business activities, moving these activities from Category 5 to Category 4 for gross receipts tax and homelessness gro...
San Francisco has reduced the tax rates on gross receipts from telecommunications business activities, moving these activities from Category 5 to Category 4 for gross receipts tax and homelessness gro...
CO - SALT parity act guidance updated
Colorado has updated its guidance on the state's SALT Parity Act to reflect that partnerships and S corporations may still elect to pay Colorado income tax at the entity level for tax years beginning ...
Colorado has updated its guidance on the state's SALT Parity Act to reflect that partnerships and S corporations may still elect to pay Colorado income tax at the entity level for tax years beginning ...
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 - Updated electronic address/jurisdiction database issued
An updated electronic address/jurisdiction database has been issued for the determination of insurance premium tax situs. Insurance companies use the address/jurisdiction database to assign premiums t...
An updated electronic address/jurisdiction database has been issued for the determination of insurance premium tax situs. Insurance companies use the address/jurisdiction database to assign premiums t...
GA - Utility charge deemed fee and not a tax
The Georgia Supreme Court affirmed a lower court decision, holding that the Unified Government of Athens-Clarke County’s stormwater utility charge is a fee and not a tax, and therefore not subject t...
The Georgia Supreme Court affirmed a lower court decision, holding that the Unified Government of Athens-Clarke County’s stormwater utility charge is a fee and not a tax, and therefore not subject t...
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 - Guidance issued on grocery tax changes
Illinois issued guidance on changes to the sales and use tax on groceries. Effective January 1, 2026, the state is eliminating its 1% sales and use tax on groceries. Municipalities and counties can im...
Illinois issued guidance on changes to the sales and use tax on groceries. Effective January 1, 2026, the state is eliminating its 1% sales and use tax on groceries. Municipalities and counties can im...
IN - Updated list of NCAA affiliates issued for purposes of exemptions
An updated list of National Collegiate Athletic Association (NCAA) affiliates is issued for purposes of Indiana withholding tax and sales and use tax exemptions relating to specific events held in the...
An updated list of National Collegiate Athletic Association (NCAA) affiliates is issued for purposes of Indiana withholding tax and sales and use tax exemptions relating to specific events held in the...
IA - Interest rates remain the same, individual income rate reminder
Interest on delinquent taxes administered by the Iowa Department of Revenue (DOR) is assessed from the original due date of the return to the date of payment of the tax. The annual rate is applied in ...
Interest on delinquent taxes administered by the Iowa Department of Revenue (DOR) is assessed from the original due date of the return to the date of payment of the tax. The annual rate is applied in ...
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 - Pro rata distribution of sale proceeds to lien holders required
The Kentucky Supreme Court upheld a property tax decision requiring the distribution of proceeds from a foreclosure sale to lien holders on a pro-rata basis, rather than under the common law rule of ...
The Kentucky Supreme Court upheld a property tax decision requiring the distribution of proceeds from a foreclosure sale to lien holders on a pro-rata basis, rather than under the common law rule of ...
LA - Guidance issued clarifying taxation of transportation charges
Louisiana has issued guidance clarifying the application of state and local sales and use tax to transportation charges. In general, such charges are subject to tax unless the underlying transaction i...
Louisiana has issued guidance clarifying the application of state and local sales and use tax to transportation charges. In general, such charges are subject to tax unless the underlying transaction i...
ME - New leases and rentals rule enacted
Maine Revenue Services enacted a new rule addressing the change that shifted sales or use tax on leased property from being due upfront on the entire purchase price to instead collecting tax from the ...
Maine Revenue Services enacted a new rule addressing the change that shifted sales or use tax on leased property from being due upfront on the entire purchase price to instead collecting tax from the ...
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 - Bulletin on 2026 property tax appeal procedures issued
A Michigan State Tax Commission bulletin provides the 2026 property tax appeal procedures, including the governing board of review for each type of appeal and filing dates. Bulletin No. 2025-10, Mich...
A Michigan State Tax Commission bulletin provides the 2026 property tax appeal procedures, including the governing board of review for each type of appeal and filing dates. Bulletin No. 2025-10, Mich...
MN - Faribault imposes new lodging tax
Starting January 1, 2026, Faribault, Minnesota, is imposing a new 3% lodging tax. The Department of Revenue will administer the tax. Notice, Minnesota Department of Revenue, October 16, 2025...
Starting January 1, 2026, Faribault, Minnesota, is imposing a new 3% lodging tax. The Department of Revenue will administer the tax. Notice, Minnesota Department of Revenue, October 16, 2025...
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 - Interest rate on tax delinquencies reduced for 2026
The annually adjusted rate of interest imposed on delinquent Missouri taxes for the 2026 calendar year will be 7%. The refund interest rate on individual income tax and property tax credit for calenda...
The annually adjusted rate of interest imposed on delinquent Missouri taxes for the 2026 calendar year will be 7%. The refund interest rate on individual income tax and property tax credit for calenda...
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 - Local sales tax rate chart issued
The Nebraska Department of Revenue has released a table displaying the local sales and use tax rates applicable to the period beginning October 1, 2025. Local Sales and Use Tax Rates, Nebraska Depart...
The Nebraska Department of Revenue has released a table displaying the local sales and use tax rates applicable to the period beginning October 1, 2025. Local Sales and Use Tax Rates, Nebraska Depart...
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 - Casino licensee CBT guidance issued
New Jersey has summarized casino licensee obligations under the Corporation Business Tax (CBT), compiled existing guidance, and provided references to relevant publications and rules. The guidance cov...
New Jersey has summarized casino licensee obligations under the Corporation Business Tax (CBT), compiled existing guidance, and provided references to relevant publications and rules. The guidance cov...
NY - Cities classified as special assessing units allowed to cap adjusted base proportion increases for property tax classes
Enacted New York legislation amends the real property tax law for cities classified as special assessing units. Specifically, the legislation allows the local legislative body of such a city to set a ...
Enacted New York legislation amends the real property tax law for cities classified as special assessing units. Specifically, the legislation allows the local legislative body of such a city to set a ...
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 - Local rate changes announced
North Dakota has announced the following local sales and use tax changes effective January 1, 2026: (1) the city of Medina will impose a 1% local lodging and restaurant tax; (2) the city of Sherwood w...
North Dakota has announced the following local sales and use tax changes effective January 1, 2026: (1) the city of Medina will impose a 1% local lodging and restaurant tax; (2) the city of Sherwood w...
OH - Interest rates announced
Ohio has announced the interest rates for underpayments and overpayments of income taxes and sales and use taxes will be 7% in calendar year 2026. The rate for estate and tangible personal property ta...
Ohio has announced the interest rates for underpayments and overpayments of income taxes and sales and use taxes will be 7% in calendar year 2026. The rate for estate and tangible personal property ta...
OK - Local tax rate notice amended
The Oklahoma Tax Commission has amended its notice on local tax rate changes taking effect January 1, 2026 to reflect that Altus will not be imposing a new lodging tax. Rates and Codes for Sales, Use...
The Oklahoma Tax Commission has amended its notice on local tax rate changes taking effect January 1, 2026 to reflect that Altus will not be imposing a new lodging tax. Rates and Codes for Sales, Use...
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 on decoupling from OBBBA issued
Rhode Island has issued filing guidance for individuals in response to decoupling from the One Big Beautiful Bill Act of 2025 (H.R. 1, Public Law No. 119-21). The guidance outlines which items allowed...
Rhode Island has issued filing guidance for individuals in response to decoupling from the One Big Beautiful Bill Act of 2025 (H.R. 1, Public Law No. 119-21). The guidance outlines which items allowed...
SC - State per capita income figure announced
South Carolina announced that the most recently available state per capita income figure is $60,776. The figure is important because various income, sales and use, and property tax incentives require ...
South Carolina announced that the most recently available state per capita income figure is $60,776. The figure is important because various income, sales and use, and property tax incentives require ...
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 - Retail accountability program manual issued
Tennessee issued a manual concerning the Retail Accountability Program (RAP), which is designed to ensure that sales tax collected from consumers is properly paid to the state. The manual addresses nu...
Tennessee issued a manual concerning the Retail Accountability Program (RAP), which is designed to ensure that sales tax collected from consumers is properly paid to the state. The manual addresses nu...
TX - Ready mix concrete manufacturer
The Texas Comptroller issued a private letter ruling finding that a business that operates ready mix concrete fabrication plants did not meet the statutory definition of a "ready mix concrete contract...
The Texas Comptroller issued a private letter ruling finding that a business that operates ready mix concrete fabrication plants did not meet the statutory definition of a "ready mix concrete contract...
UT - Monticello imposes botanical, cultural, recreational and zoological tax; big water and torrey impose resort communities tax
Utah announced various local sales and use tax rate changes, effective January 1, 2026.Botanical, Cultural, Recreational And Zoological TaxMonticello (San Juan County) has not renewed its botanical, c...
Utah announced various local sales and use tax rate changes, effective January 1, 2026.Botanical, Cultural, Recreational And Zoological TaxMonticello (San Juan County) has not renewed its botanical, c...
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 - Local tax rates for tax year 2024 issued
The Virginia Department of Taxation has issued the real estate, tangible personal property, machinery and tools, and merchants’ capital tax rates for county, city, town, and districts for tax year 2...
The Virginia Department of Taxation has issued the real estate, tangible personal property, machinery and tools, and merchants’ capital tax rates for county, city, town, and districts for tax year 2...
WA - Rule on watercraft excise tax amended
The Washington Department of Revenue has updated its rule on the watercraft excise tax to reflect depreciation values for the 2026 calendar year. WAC 458-20-23801, Washington Department of Revenue, e...
The Washington Department of Revenue has updated its rule on the watercraft excise tax to reflect depreciation values for the 2026 calendar year. WAC 458-20-23801, Washington Department of Revenue, e...
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 - Taxpayer not entitled to earned income credit
The Wisconsin Tax Appeals Commission dismissed a taxpayer’s appeal regarding an earned income tax credit. At trial, the taxpayer could not substantiate his self-employment income and could not provi...
The Wisconsin Tax Appeals Commission dismissed a taxpayer’s appeal regarding an earned income tax credit. At trial, the taxpayer could not substantiate his self-employment income and could not provi...
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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