Catalano, Caboor & Co.
Tax Alerts
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 - Elmore County announces new tax rates
Alabama has announced new sales, use, and rental tax rates for Elmore County, effective September 1, 2025. The rates vary by location within the county, with general rates ranging from 0% to 5.50%. Th...
Alabama has announced new sales, use, and rental tax rates for Elmore County, effective September 1, 2025. The rates vary by location within the county, with general rates ranging from 0% to 5.50%. Th...
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 - Pass through entity election guidance revised
Arizona issued revised guidance on corporate and personal income taxes for pass-through entities electing to pay entity-level income tax. The guidance outlines the Arizona Pass-Through Entity Election...
Arizona issued revised guidance on corporate and personal income taxes for pass-through entities electing to pay entity-level income tax. The guidance outlines the Arizona Pass-Through Entity Election...
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 - Amount of taxpayer's unreported purchases was not reduced due to invalid resale certificates
The Office of Tax Appeals (OTA) held that the amount of the taxpayer's unreported purchases subject to California use tax should not be reduced.Resale Certificates Issued for Purchases of Flooring Mat...
The Office of Tax Appeals (OTA) held that the amount of the taxpayer's unreported purchases subject to California use tax should not be reduced.Resale Certificates Issued for Purchases of Flooring Mat...
CO - Early childhood educator tax credit guidance updated
Colorado updated its guidance on the refundable personal income tax credit allowed to early childhood educators. The guidance specifies eligibility requirements, including credential levels, licensure...
Colorado updated its guidance on the refundable personal income tax credit allowed to early childhood educators. The guidance specifies eligibility requirements, including credential levels, licensure...
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 - Interest rate for first half of 2026 announced
The interest rate on deficiencies (underpayments), late payments, and overpayments of tax is 11% effective January 1, 2026, through June 30, 2026.Application of TaxInterest applies to the following ta...
The interest rate on deficiencies (underpayments), late payments, and overpayments of tax is 11% effective January 1, 2026, through June 30, 2026.Application of TaxInterest applies to the following ta...
GA - School construction exemption guidance issued
Georgia issued guidance on local sales and use tax exemptions for materials and services purchased for qualifying school construction projects. The guidance addresses tax-related provisions specific t...
Georgia issued guidance on local sales and use tax exemptions for materials and services purchased for qualifying school construction projects. The guidance addresses tax-related provisions specific t...
HI - Aircraft part sales proceeds were not exempt amounts from servicing and maintenance
An aircraft manufacturer's sales of parts to an airline, which the airline used to service and maintain its aircraft, were taxable sales subject to Hawaii general excise tax and did not qualify for th...
An aircraft manufacturer's sales of parts to an airline, which the airline used to service and maintain its aircraft, were taxable sales subject to Hawaii general excise tax and did not qualify for th...
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 security monitoring services and equipment discussed
Illinois issued a private letter ruling discussing the taxation of wireless security monitoring equipment leased to customers as part of a company's fee-based security services. Illinois does not tax ...
Illinois issued a private letter ruling discussing the taxation of wireless security monitoring equipment leased to customers as part of a company's fee-based security services. Illinois does not tax ...
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 - 2026 withholding tax tables issued
The Iowa Department of Revenue is issuing updated income tax withholding formulas and tables for 2026. The Department updates withholding formulas and tables when necessary to account for inflation an...
The Iowa Department of Revenue is issuing updated income tax withholding formulas and tables for 2026. The Department updates withholding formulas and tables when necessary to account for inflation an...
KS - January 2026 quarterly local rate updates
Kansas posted local sales and use tax rate updates for:the City of Maize;community improvement and other special districts, including Basehor One58 Plaza, Edgerton Crossing Woodstone, Hutchinson Amber...
Kansas posted local sales and use tax rate updates for:the City of Maize;community improvement and other special districts, including Basehor One58 Plaza, Edgerton Crossing Woodstone, Hutchinson Amber...
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 - Reporting guidance for accommodations intermediaries
Louisiana Department of Revenue has issued guidance for accommodations intermediaries to report sales and use and occupancy taxes. The Department has become aware that some accommodations intermediari...
Louisiana Department of Revenue has issued guidance for accommodations intermediaries to report sales and use and occupancy taxes. The Department has become aware that some accommodations intermediari...
ME - MRS issues legislative update
Maine Revenue Services has issued a general information bulletin summarizing recent legislative changes to Maine sales, use, service provider, and other special taxes. General Information Bulletin No...
Maine Revenue Services has issued a general information bulletin summarizing recent legislative changes to Maine sales, use, service provider, and other special taxes. General Information Bulletin No...
MD - State will defer payment plans for federal employees unable to meet obligations
The Maryland Comptroller announced that the state will defer payment plans for federal employees who are unable to meet their tax obligations due to the federal government shutdown.Federal employees d...
The Maryland Comptroller announced that the state will defer payment plans for federal employees who are unable to meet their tax obligations due to the federal government shutdown.Federal employees d...
MA - Circuit breaker tax credit thresholds and limits updated
Massachusetts updated its guidance on the real estate tax credit (aka the circuit breaker tax credit) for qualified persons age 65 and older. The update revises prior guidance to include adjusted inco...
Massachusetts updated its guidance on the real estate tax credit (aka the circuit breaker tax credit) for qualified persons age 65 and older. The update revises prior guidance to include adjusted inco...
MI - Prepaid fuel tax rates announced
The Michigan prepaid sales tax rate for the period of December 1, 2025 to December 31, 2025 decreases to 15.2 cents per gallon for gasoline. For diesel fuel, the rate remains 19.1 cents per gallon. Re...
The Michigan prepaid sales tax rate for the period of December 1, 2025 to December 31, 2025 decreases to 15.2 cents per gallon for gasoline. For diesel fuel, the rate remains 19.1 cents per gallon. Re...
MN - OBBBA provisions may require adjustments to income on state returns
Taxpayers may need to make adjustments to income on their Minnesota returns because the state has not adopted the federal provisions enacted in the 2025 Federal Tax Budget and Reconciliation Bill (H.R...
Taxpayers may need to make adjustments to income on their Minnesota returns because the state has not adopted the federal provisions enacted in the 2025 Federal Tax Budget and Reconciliation Bill (H.R...
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 refunds unchanged for first quarter of 2026
The interest rates on all qualifying Missouri tax refunds remain at 3.2% for the period from January 1 through March 31, 2026. Statutory Interest Rates, Missouri Department of Revenue, November 2025...
The interest rates on all qualifying Missouri tax refunds remain at 3.2% for the period from January 1 through March 31, 2026. Statutory Interest Rates, Missouri Department of Revenue, November 2025...
MT - Revision of reported wages affirmed
The Montana Tax Appeal Board affirmed the Department of Revenue's adjustment to the taxpayer’s 2023 personal income tax liability, concluding the agency acted within its legal authority to revise th...
The Montana Tax Appeal Board affirmed the Department of Revenue's adjustment to the taxpayer’s 2023 personal income tax liability, concluding the agency acted within its legal authority to revise th...
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 - 2026 withholding tables released
Updated New York State, New York City, and Yonkers publications containing withholding tables and methods have been released for 2026.The revised state schedules reflect certain rate reductions enacte...
Updated New York State, New York City, and Yonkers publications containing withholding tables and methods have been released for 2026.The revised state schedules reflect certain rate reductions enacte...
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 for taxes updated
Ohio has certified new interest rates for taxes for calendar year 2026. For 2026 the interest rates will decrease to:4%, from 5%, for estate tax and persoanl property tax; and7%, from 8%, for all othe...
Ohio has certified new interest rates for taxes for calendar year 2026. For 2026 the interest rates will decrease to:4%, from 5%, for estate tax and persoanl property tax; and7%, from 8%, for all othe...
OK - Rule on manufacturing facilities exemption updated
The Oklahoma Tax Commission has updated a rule on the ad valorem property tax exemption for manufacturing facilities. Qualifying manufacturing facilities engaged in manufacturing under Industrial Grou...
The Oklahoma Tax Commission has updated a rule on the ad valorem property tax exemption for manufacturing facilities. Qualifying manufacturing facilities engaged in manufacturing under Industrial Grou...
OR - Surplus revenue "kicker" credit certified
Oregon has certified a surplus revenue amount of $1.41 billion for the 2023-2025 biennium, triggering the personal income tax "kicker" provision. Taxpayers can claim a refundable credit on their tax y...
Oregon has certified a surplus revenue amount of $1.41 billion for the 2023-2025 biennium, triggering the personal income tax "kicker" provision. Taxpayers can claim a refundable credit on their tax y...
PA - Philadelphia reminds taxpayers of changes
Philadelphia reminds taxpayers about upcoming changes to its:business income and receipts tax (BIRT);property tax;use & occupancy tax; andwage, school income, and earnings tax.Exemption Eliminatio...
Philadelphia reminds taxpayers about upcoming changes to its:business income and receipts tax (BIRT);property tax;use & occupancy tax; andwage, school income, and earnings tax.Exemption Eliminatio...
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 - Reminder issued on repeal of angel investor credit
South Carolina has issued an information letter to remind taxpayers that the enabling legislation for the angel investor tax credit is set to expire on December 31, 2025. Carryforward credits may cont...
South Carolina has issued an information letter to remind taxpayers that the enabling legislation for the angel investor tax credit is set to expire on December 31, 2025. Carryforward credits may cont...
SD - City of Clark implements new municipal gross receipts tax
South Dakota announced that the City of Clark will implement a new 1% municipal gross receipts tax effective January 1, 2026. News Release, South Dakota Department of Revenue, November 5, 2025...
South Dakota announced that the City of Clark will implement a new 1% municipal gross receipts tax effective January 1, 2026. News Release, South Dakota Department of Revenue, November 5, 2025...
TN - Williamson County rate increased
Effective January 1, 2026, the Williamson County, Tennessee, mineral severance tax rate will increase to 20 cents per ton. This rate will apply to sand, chert, sandstone, limestone, and gravel severed...
Effective January 1, 2026, the Williamson County, Tennessee, mineral severance tax rate will increase to 20 cents per ton. This rate will apply to sand, chert, sandstone, limestone, and gravel severed...
TX - September 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 September 2025 is $39.91 per barrel for the three-month period beginning on June...
The Texas Comptroller of Public Accounts has determined the average taxable price of crude oil for the reporting period September 2025 is $39.91 per barrel for the three-month period beginning on June...
UT - Interest rate remains at 6%
The Utah interest rate for the calendar year 2026 is 6%. Interest is calculated using the number of calendar days from the original due date of the return until the tax is paid. Generally, payments ar...
The Utah interest rate for the calendar year 2026 is 6%. Interest is calculated using the number of calendar days from the original due date of the return until the tax is paid. Generally, payments ar...
VT - 2026 interest rate announced
The Vermont annual interest rate for the overpayment and underpayment of tax liabilities for the 2026 calendar year is 7.75%. This rate is effective January 1, 2026, and applies to interest that accru...
The Vermont annual interest rate for the overpayment and underpayment of tax liabilities for the 2026 calendar year is 7.75%. This rate is effective January 1, 2026, and applies to interest that accru...
VA - City of Richmond enacts disposable plastic bag tax
Effective January 1, 2026, the city of Richmond adopts the Virginia disposable plastic bag tax. The tax is imposed at the rate of 5 cents on each disposable plastic bag provided to shoppers in local g...
Effective January 1, 2026, the city of Richmond adopts the Virginia disposable plastic bag tax. The tax is imposed at the rate of 5 cents on each disposable plastic bag provided to shoppers in local g...
WA - New location codes announced for certain tribal boundaries
New location codes for Washington sales tax purposes have been established in certain tribal boundaries. The department has provided maps of the respective boundaries.Location CodesWithin certain area...
New location codes for Washington sales tax purposes have been established in certain tribal boundaries. The department has provided maps of the respective boundaries.Location CodesWithin certain area...
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 - 2025 withholding tax update released
Wisconsin issued a withholding tax update noting that there are currently no plans to change the withholding tax rates. The update also addresses numerous withholding topics, including: requirements f...
Wisconsin issued a withholding tax update noting that there are currently no plans to change the withholding tax rates. The update also addresses numerous withholding topics, including: requirements f...
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, ...
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