Catalano, Caboor & Co.
Tax Alerts
Tax Briefing(s)
IRS Promises to Propose Regulations on Transfers of U.S. Real Property Interests (Notice 2025-45)
Treasury and the IRS intend to issue proposed regulations under sections 897(d) and (e) to modify the rules under §§1.897-5T and 1.897-6T, Notice 89-85, 1989-31 I.R.B. 9, and Notice 2006-46, 2...
Treasury and the IRS intend to issue proposed regulations under sections 897(d) and (e) to modify the rules under §§1.897-5T and 1.897-6T, Notice 89-85, 1989-31 I.R.B. 9, and Notice 2006-46, 2...
IRS Reminds Employers Student Loan Repayments Are Excludable Through 2025 (IR-2025-81)
The IRS has reminded employers that they may continue to offer student loan repayment assistance through educational assistance programs until the end of the tax year at issue, December 31, 2025. Unde...
The IRS has reminded employers that they may continue to offer student loan repayment assistance through educational assistance programs until the end of the tax year at issue, December 31, 2025. Unde...
IRS Whistleblower Office Celebrates National Whistleblower Day (IR-2025-78)
The IRS Whistleblower Office emphasized the role whistleblowers continue to play in supporting the nation’s tax administration ahead of National Whistleblower Appreciation Day on July 30. The IRS ha...
The IRS Whistleblower Office emphasized the role whistleblowers continue to play in supporting the nation’s tax administration ahead of National Whistleblower Appreciation Day on July 30. The IRS ha...
Rates Used in Computing Special Use Value Issued, Rev. Rul. 2025-16
The 2025 interest rates to be used in computing the special use value of farm real property for which an election is made under Code Sec. 2032A were issued by the IRS.In the ruling, the IRS lists th...
The 2025 interest rates to be used in computing the special use value of farm real property for which an election is made under Code Sec. 2032A were issued by the IRS.In the ruling, the IRS lists th...
AL - Town of Blountsville increases general sales and use tax rate
Effective August 1, 2025, the town of Blountsville increases its sales and use tax rate on general items from 2% to 4%. All other local sales and use tax rates in the town of Blountsville remain uncha...
Effective August 1, 2025, the town of Blountsville increases its sales and use tax rate on general items from 2% to 4%. All other local sales and use tax rates in the town of Blountsville remain uncha...
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 - Misconceptions about the legality of taxes addressed
Arizona issued guidance to address misconceptions and false claims about personal income taxes. The ruling confirms that filing tax returns and paying taxes are mandatory and not voluntary under Arizo...
Arizona issued guidance to address misconceptions and false claims about personal income taxes. The ruling confirms that filing tax returns and paying taxes are mandatory and not voluntary under Arizo...
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 - Guidance provided for IRC sec. 355 transactions when DISA balance is attributable to distributed stock
The California Franchise Tax Board has issued guidance on how a Deferred Intercompany Stock Account (DISA) balance affects basis and income recognition when stock is distributed to shareholders in a n...
The California Franchise Tax Board has issued guidance on how a Deferred Intercompany Stock Account (DISA) balance affects basis and income recognition when stock is distributed to shareholders in a n...
CO - Electric bicycle credit guidance updated
The Colorado Department of Revenue updated its electric bicycle credit guidance to add additional information relating to registration, new qualified electric bicycles, report due dates, reporting ret...
The Colorado Department of Revenue updated its electric bicycle credit guidance to add additional information relating to registration, new qualified electric bicycles, report due dates, reporting ret...
CT - Changes in economic development-related statutes enacted
Legislation is enacted that makes changes in economic development-related statutes:effective July 1, 2025, and applicable to income and taxable years commencing on or after January 1, 2025, allows a s...
Legislation is enacted that makes changes in economic development-related statutes:effective July 1, 2025, and applicable to income and taxable years commencing on or after January 1, 2025, allows a s...
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 - Guidance provided on repeal of tax on commercial rentals
Legislation enacted this year and made effective October 1, 2025, repeals the Florida sales tax imposed on rent or license fees for the use of real property (commercial rentals).Sales Tax on Commercia...
Legislation enacted this year and made effective October 1, 2025, repeals the Florida sales tax imposed on rent or license fees for the use of real property (commercial rentals).Sales Tax on Commercia...
GA - Regulation on state hotel-motel fee updated
Georgia amended the regulation regarding the state hotel-motel fee including several substantive changes. One of the most notable updates is the broadened definition of "Accommodation," which now ex...
Georgia amended the regulation regarding the state hotel-motel fee including several substantive changes. One of the most notable updates is the broadened definition of "Accommodation," which now ex...
HI - October filing extension deadline confirmed
The Hawaii Department of Taxation confirmed that the state individual income tax return filing extension deadline for the 2024 tax year is October 21, 2025. While form instructions may list the deadli...
The Hawaii Department of Taxation confirmed that the state individual income tax return filing extension deadline for the 2024 tax year is October 21, 2025. While form instructions may list the deadli...
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 - Treatment of gain from sale of sole partnership asset discussed
Illinois issued a general information letter discussing the allocation and apportionment of gain from the sale of a partnership's real property located in the state that is the partnership's sole asse...
Illinois issued a general information letter discussing the allocation and apportionment of gain from the sale of a partnership's real property located in the state that is the partnership's sole asse...
IN - September 2025 gasoline use tax rate announced
The Indiana gasoline use tax rate for the month of September 2025, is $0.178 per gallon. Departmental Notice #2, Indiana Department of Revenue, September 2025...
The Indiana gasoline use tax rate for the month of September 2025, is $0.178 per gallon. Departmental Notice #2, Indiana Department of Revenue, September 2025...
IA - Rule related to Iowa tax return preparers adopted
The Iowa Department of Revenue adopted a new rule related to continuing education obligations and other requirements Iowa tax return preparers must maintain. The rule also discusses the penalties impo...
The Iowa Department of Revenue adopted a new rule related to continuing education obligations and other requirements Iowa tax return preparers must maintain. The rule also discusses the penalties impo...
KS - October 2025 quarterly local rate updates
Kansas posted local sales and use rate updates for community improvement and other special districts, including:Goddard Tanganyika Wildlife Park;Hays Cervs;Lenexa Midas Dual Hotel;Merriam North;Olathe...
Kansas posted local sales and use rate updates for community improvement and other special districts, including:Goddard Tanganyika Wildlife Park;Hays Cervs;Lenexa Midas Dual Hotel;Merriam North;Olathe...
KY - Tax rate reduction announced
Kentucky reduced its state real property tax rate for 2025 to 10.6 cents for each $100 of assessed value. State law requires a reduction in the rate if an increase in assessed value exceeds the previo...
Kentucky reduced its state real property tax rate for 2025 to 10.6 cents for each $100 of assessed value. State law requires a reduction in the rate if an increase in assessed value exceeds the previo...
LA - Guidance issued on exemption for government contractors
Louisiana has issued guidance on the sales and use tax exemption available for purchases made by general contractors and their subcontractors when performing government contract work. The exemption wa...
Louisiana has issued guidance on the sales and use tax exemption available for purchases made by general contractors and their subcontractors when performing government contract work. The exemption wa...
ME - Dirigo business incentives tax credit rules adopted
Maine Revenue Services has adopted rules implementing the Dirigo Business Incentives Tax Credit. The nonrefundable credit, which applies to tax years beginning after 2024, is based on purchase expense...
Maine Revenue Services has adopted rules implementing the Dirigo Business Incentives Tax Credit. The nonrefundable credit, which applies to tax years beginning after 2024, is based on purchase expense...
MD - Guidance on MPU certificates issued
The Maryland Comptroller has issued a sales and use tax techical bulletin explaining the purpose, procedure for requesting, and use of multiple points of use certificates. Technical Bulletin No. 54, ...
The Maryland Comptroller has issued a sales and use tax techical bulletin explaining the purpose, procedure for requesting, and use of multiple points of use certificates. Technical Bulletin No. 54, ...
MA - Payment and notice timelines adjusted
Massachusetts enacted two timeline changes in its amendments to existing statutes. For motor vehicle excise tax procedures, the previous 14-day window for payment following issuance of a tax notice is...
Massachusetts enacted two timeline changes in its amendments to existing statutes. For motor vehicle excise tax procedures, the previous 14-day window for payment following issuance of a tax notice is...
MI - SST taxability matrix and certificate of compliance updated
Michigan updated its Streamlined Sales and Use Tax (SST) Agreement taxability matrix and certificate of compliance. The changes to the taxability matrix (library of definitions) and certificate of com...
Michigan updated its Streamlined Sales and Use Tax (SST) Agreement taxability matrix and certificate of compliance. The changes to the taxability matrix (library of definitions) and certificate of com...
MN - 2025 individual income and corporate franchise tax changes highlighted
Minnesota released a legislative bulletin highlighting 2025 individual income and corporation franchise tax changes. The highlights include changes to tax credits, subtractions, and refund provisions....
Minnesota released a legislative bulletin highlighting 2025 individual income and corporation franchise tax changes. The highlights include changes to tax credits, subtractions, and refund provisions....
MS - Guidance on purchases by farmers
Mississippi issued guidance on sales and use tax rates for farmers purchasing agricultural equipment and supplies. Qualified farmers may access a reduced tax rate of 1.5% for farm tractors, farm imple...
Mississippi issued guidance on sales and use tax rates for farmers purchasing agricultural equipment and supplies. Qualified farmers may access a reduced tax rate of 1.5% for farm tractors, farm imple...
MO - Department of revenue working to accommodate change made by State Supreme Court
The Missouri Department of Revenue announced that it is working on updates to accommodate a change made by the Missouri Supreme Court in a recent ruling regarding the stacking of local adult use recre...
The Missouri Department of Revenue announced that it is working on updates to accommodate a change made by the Missouri Supreme Court in a recent ruling regarding the stacking of local adult use recre...
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 on housing agency exemption provided
The Nebraska Department of Revenue has provided guidance on the property tax exemption for housing agencies with controlled affiliates. The real and personal property of an agency with controlled affi...
The Nebraska Department of Revenue has provided guidance on the property tax exemption for housing agencies with controlled affiliates. The real and personal property of an agency with controlled affi...
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 - Cultural arts institutions credit amended
New Jersey has amended Cultural Arts Incentives Program, allowing broader eligibility for tax credits.The law amends the definition of a "cultural arts institution" to include any nonprofit operatin...
New Jersey has amended Cultural Arts Incentives Program, allowing broader eligibility for tax credits.The law amends the definition of a "cultural arts institution" to include any nonprofit operatin...
NY - Imposition of gross receipts tax preempted by ITFA
In a New York case involving a company that provided various services, such as fiber broadband aggregation and access, the Tax Appeals Tribunal held that the gross receipts tax imposed under Tax Law S...
In a New York case involving a company that provided various services, such as fiber broadband aggregation and access, the Tax Appeals Tribunal held that the gross receipts tax imposed under Tax Law S...
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 - Board's choice of appraisal upheld
The Ohio Supreme Court upheld a Board of Tax Appeals decision adopting the tax commissioner's method of appraisal of a public-utility's pipeline.The taxpayer's and Ohio's appraiser used the unit appra...
The Ohio Supreme Court upheld a Board of Tax Appeals decision adopting the tax commissioner's method of appraisal of a public-utility's pipeline.The taxpayer's and Ohio's appraiser used the unit appra...
OK - Local tax rate changes announced
Oklahoma local sales and use tax rate changes have been announced effective October 1, 2025.Lindsay imposes a new sales and use tax at a rate of 4.0%.Maysville imposes a new use tax at a rate of 4.0%....
Oklahoma local sales and use tax rate changes have been announced effective October 1, 2025.Lindsay imposes a new sales and use tax at a rate of 4.0%.Maysville imposes a new use tax at a rate of 4.0%....
OR - Employer tax credit enacted
Oregon has enacted a nonrefundable tax credit against an employers' unemployment insurance payroll taxes. The credit is available to employers whose 2025 tax rate at least 2.5 percentage point less th...
Oregon has enacted a nonrefundable tax credit against an employers' unemployment insurance payroll taxes. The credit is available to employers whose 2025 tax rate at least 2.5 percentage point less th...
PA - Philadelphia clarifies BIRT transition for small businesses
Philadelphia has clarified its Business Income and Receipts Tax policy following the elimination of a $100,000 exemption beginning in 2025. Businesses newly subject to the tax are treated as "new busi...
Philadelphia has clarified its Business Income and Receipts Tax policy following the elimination of a $100,000 exemption beginning in 2025. Businesses newly subject to the tax are treated as "new busi...
RI - Motor fuel tax increase because of budget
Effective July 1, 2025, the tax rate on gasoline, diesel, and other motor fuels increased to 40 cents per gallon.Although the tax was scheduled to increase to 38 cents per gallon effective July 1, the...
Effective July 1, 2025, the tax rate on gasoline, diesel, and other motor fuels increased to 40 cents per gallon.Although the tax was scheduled to increase to 38 cents per gallon effective July 1, the...
SC - Guidance issued on new jobs credit
South Carolina has issued a revenue ruling intended to address common questions about the new jobs credit, which can be claimed against the corporate income, individual income, bank, and insurance pre...
South Carolina has issued a revenue ruling intended to address common questions about the new jobs credit, which can be claimed against the corporate income, individual income, bank, and insurance pre...
SD - Tax license requirements for contractor's excise tax updated
South Dakota updated its guidance on sales, use, and contractor’s excise taxes. Businesses are required to hold a sales tax license if they have a physical presence in South Dakota or exceed $100,00...
South Dakota updated its guidance on sales, use, and contractor’s excise taxes. Businesses are required to hold a sales tax license if they have a physical presence in South Dakota or exceed $100,00...
TN - Rate increase announced for Sullivan County
Effective October 1, 2025, Sullivan County, Tennessee, will increase its mineral severance tax to 20 cents per ton. Notice 25-20, Tennessee Department of Revenue, August 2025...
Effective October 1, 2025, Sullivan County, Tennessee, will increase its mineral severance tax to 20 cents per ton. Notice 25-20, Tennessee Department of Revenue, August 2025...
TX - Telehealth services
The Texas Comptroller issued a private letter ruling stating that a taxpayer’s telehealth services are not subject to sales and use tax. The telehealth services are provided in a bundle that include...
The Texas Comptroller issued a private letter ruling stating that a taxpayer’s telehealth services are not subject to sales and use tax. The telehealth services are provided in a bundle that include...
UT - Multiple locations impose municipal energy sales and use tax
Beginning October 1, 2025, the 25 locations listed in the Utah Tax Bulletin each impose the municipal energy sales and use tax at the rate of 6%. Tax Bulletin No. 16-25, Utah State Tax Commission, Au...
Beginning October 1, 2025, the 25 locations listed in the Utah Tax Bulletin each impose the municipal energy sales and use tax at the rate of 6%. Tax Bulletin No. 16-25, Utah State Tax Commission, Au...
VT - Failure to notify taxpayer's counsel did not violate due process
The Vermont Supreme Court reversed a lower court's holding that a town failed to satisfy due process by not mailing notice of a property tax decision to both the taxpayer and the taxpayer's counsel. A...
The Vermont Supreme Court reversed a lower court's holding that a town failed to satisfy due process by not mailing notice of a property tax decision to both the taxpayer and the taxpayer's counsel. A...
VA - Reminder issued on upcoming sales tax holiday
The Virginia Department of Taxation issued a reminder about the sales tax holiday being held from August 1 through August 3, 2025. During the holiday period, consumers can buy the following qualifying...
The Virginia Department of Taxation issued a reminder about the sales tax holiday being held from August 1 through August 3, 2025. During the holiday period, consumers can buy the following qualifying...
WA - Manufacturer that deviated from facts contained in letter ruling could not rely on it to evade liability
A manufacturer and seller of medical imaging devices could not rely on a Department of Revenue letter ruling to provide safe harbor from manufacturing business and occupation (B&O) tax liability b...
A manufacturer and seller of medical imaging devices could not rely on a Department of Revenue letter ruling to provide safe harbor from manufacturing business and occupation (B&O) tax liability b...
WV - Clay, Franklin, Saint Marys, and Winfield impose local tax in 2026
Effective January 1, 2026, a 1% sales and use tax will apply to purchases made of taxable goods, custom software, and services provided within the municipal boundaries of:Clay;Franklin;Saint Marys; an...
Effective January 1, 2026, a 1% sales and use tax will apply to purchases made of taxable goods, custom software, and services provided within the municipal boundaries of:Clay;Franklin;Saint Marys; an...
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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