Catalano, Caboor & Co.
Tax Alerts
Tax Briefing(s)
2026 Inflation Adjustments for Health Savings Accounts Released (Rev. Proc. 2025-19)
The IRS has released the 2026 inflation-adjusted amounts for health savings accounts under Code Sec. 223. For calendar year 2026, the annual limitation on deductions under Code Sec. 223(b)(2) for a...
The IRS has released the 2026 inflation-adjusted amounts for health savings accounts under Code Sec. 223. For calendar year 2026, the annual limitation on deductions under Code Sec. 223(b)(2) for a...
IRS Reminds Taxpayers and Small Businesses to Stay Vigilant Against Scams Year-Round (IR-2025-57)
The IRS has marked National Small Business Week by reminding taxpayers and businesses to remain alert to scams that continue long after the April 15 tax deadline. Through its annual Dirty Dozen li...
The IRS has marked National Small Business Week by reminding taxpayers and businesses to remain alert to scams that continue long after the April 15 tax deadline. Through its annual Dirty Dozen li...
Marginal Production Percentage Depletion Rates Announced (Notice 2025-20)
The IRS has announced the applicable percentage under Code Sec. 613A to be used in determining percentage depletion for marginal properties for the 2025 calendar year. Code Sec. 613A(c)(6)(C) defi...
The IRS has announced the applicable percentage under Code Sec. 613A to be used in determining percentage depletion for marginal properties for the 2025 calendar year. Code Sec. 613A(c)(6)(C) defi...
Earned Income Tax Credit Marks 50th Year Aiding Working Families (IR-2025-38)
The IRS acknowledged the 50th anniversary of the Earned Income Tax Credit (EITC), which has helped lift millions of working families out of poverty since its inception. Signed into law by President ...
The IRS acknowledged the 50th anniversary of the Earned Income Tax Credit (EITC), which has helped lift millions of working families out of poverty since its inception. Signed into law by President ...
Applicable Terminal Charge and SIFL Rates for Determining Value of Noncommercial Flights on Employer-Provided Aircraft Issued (Rev. Rul. 2025-09)
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 ...
IRS Urges Taxpayers To Review Withholding Early To Avoid Surprises Next Filing Season (IR-2025-52)
The IRS is encouraging individuals to review their tax withholding now to avoid unexpected bills or large refunds when filing their 2025 returns next year. Because income tax operates on a pay-as-you-...
The IRS is encouraging individuals to review their tax withholding now to avoid unexpected bills or large refunds when filing their 2025 returns next year. Because income tax operates on a pay-as-you-...
IRS Whistleblower Office Unveils First Multi-Year Operating Plan To Strengthen Program Oversight (IR 2025-40)
The IRS has reminded individual taxpayers that they do not need to wait until April 15 to file their 2024 tax returns. Those who owe but cannot pay in full should still file by the deadline to avoid t...
The IRS has reminded individual taxpayers that they do not need to wait until April 15 to file their 2024 tax returns. Those who owe but cannot pay in full should still file by the deadline to avoid t...
AL - Interest rate unchanged for third quarter of 2025
The interest rate on underpayments and overpayments of Alabama taxes will remain at 7% for the third quarter of 2025. Quarterly Interest Rates, Alabama Department of Revenue, May 2025...
The interest rate on underpayments and overpayments of Alabama taxes will remain at 7% for the third quarter of 2025. Quarterly Interest Rates, Alabama Department of Revenue, May 2025...
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.DouglasThe City of Douglas has decreased the transaction privilege tax on amusements to 0.0% effe...
The Arizona Department of Revenue has announced new local transaction privilege tax (TPT) rate changes.DouglasThe City of Douglas has decreased the transaction privilege tax on amusements to 0.0% effe...
AR - Property owned by authorities under regional intermodal facilities act are exempt
The Arkansas Attorney General's office has opined that authorities created under the Regional Intermodal Facilities Act are exempt from all taxes by any political subdivision of the state, including c...
The Arkansas Attorney General's office has opined that authorities created under the Regional Intermodal Facilities Act are exempt from all taxes by any political subdivision of the state, including c...
CA - District tax rate changes announced
California district (local) sales and use tax rate changes, effective July 1, 2025, are announced. California voters approved the district tax changes in the November 2024 election. These rate changes...
California district (local) sales and use tax rate changes, effective July 1, 2025, are announced. California voters approved the district tax changes in the November 2024 election. These rate changes...
CO - Advanced industry investment tax credit reauthorized
Colorado has enacted legislation extending the advanced industry investment tax credit through 2031. Previously, it was scheduled to be available only through 2026. The total amount of advanced indust...
Colorado has enacted legislation extending the advanced industry investment tax credit through 2031. Previously, it was scheduled to be available only through 2026. The total amount of advanced indust...
CT - Tobacco products manufacturers notified of annual revision of required forms
Connecticut notifies tobacco products manufacturers of the annual revision of required forms that must be completed and filed with either the Connecticut Department of Revenue Services or the Office o...
Connecticut notifies tobacco products manufacturers of the annual revision of required forms that must be completed and filed with either the Connecticut Department of Revenue Services or the Office o...
DE - Budget proposes rate cuts, new brackets, tobacco tax increase
Delaware Gov. Matt Meyer released his budget for fiscal year 2026 that includes proposals to cut personal income taxes and create 3 new tax brackets. The budget also includes a proposal to increase th...
Delaware Gov. Matt Meyer released his budget for fiscal year 2026 that includes proposals to cut personal income taxes and create 3 new tax brackets. The budget also includes a proposal to increase th...
FL - Guidance issued on local option fuel tax ordinances
Any county in the state of Florida may, by extraordinary vote of the membership of its governing body or subject to a referendum, levy a ninth-cent ($0.01) or local option fuel tax ($0.01 to $0.11) on...
Any county in the state of Florida may, by extraordinary vote of the membership of its governing body or subject to a referendum, levy a ninth-cent ($0.01) or local option fuel tax ($0.01 to $0.11) on...
GA - Expansion and creation of child and dependent care tax credits
Georgia enacted a new tax credit and revised existing tax credits related to child care and dependents. The amendments revamp the state tax credit for child and dependent care expenses, now equal to 5...
Georgia enacted a new tax credit and revised existing tax credits related to child care and dependents. The amendments revamp the state tax credit for child and dependent care expenses, now equal to 5...
HI - PTE tax credit claimants must adjust income for share of taxes paid by PTE
For taxable years beginning after December 31, 2024, a qualified member of an electing pass-through entity (PTE) who claims a Hawaii PTE tax credit must add back to the member’s taxable income the m...
For taxable years beginning after December 31, 2024, a qualified member of an electing pass-through entity (PTE) who claims a Hawaii PTE tax credit must add back to the member’s taxable income the m...
ID: State tax commission analyzing implementation of parental choice tax credit
The Idaho State Tax Commission announced that it is analyzing the implementation of previously enacted the Idaho Parental Choice Tax Credit. Once the program details are available, the Commission will...
The Idaho State Tax Commission announced that it is analyzing the implementation of previously enacted the Idaho Parental Choice Tax Credit. Once the program details are available, the Commission will...
IL - Local aviation fuel sales tax rate increases announced
Illinois announced local sales tax rate changes for aviation fuel, effective beginning July 1, 2025. The sales tax rate for aviation fuel is increasing from 6.25% to 7.5% in Galesburg and 6.25% to 7.2...
Illinois announced local sales tax rate changes for aviation fuel, effective beginning July 1, 2025. The sales tax rate for aviation fuel is increasing from 6.25% to 7.5% in Galesburg and 6.25% to 7.2...
IN - June 2025 gasoline use tax rate announced
The Indiana gasoline use tax rate for the month of June 2025, is $0.174 per gallon. Departmental Notice #2, Indiana Department of Revenue, June 2025...
The Indiana gasoline use tax rate for the month of June 2025, is $0.174 per gallon. Departmental Notice #2, Indiana Department of Revenue, June 2025...
IA - Proper avenue for disabled veteran tax credit complaint discussed
The Iowa Department of Revenue (DOR) refused to issue a declaratory order because the questions presented by the petition would more properly be resolved by another body with jurisdiction over the mat...
The Iowa Department of Revenue (DOR) refused to issue a declaratory order because the questions presented by the petition would more properly be resolved by another body with jurisdiction over the mat...
KS - State must follow funding intent of voter approved local tax
The Kansas Attorney General (AG) directed the state to no longer divide revenue from a Morton County sales tax between the county and its municipalities when voters approved the tax for funding the co...
The Kansas Attorney General (AG) directed the state to no longer divide revenue from a Morton County sales tax between the county and its municipalities when voters approved the tax for funding the co...
KY - Counties eligible for April storm disaster relief expanded
Kentucky expanded the list of counties in the state eligible for disaster relief sales and use tax refunds. The counties added to the list are Breckenridge, Bullitt, Calloway, Daviess, Garrard, Grayso...
Kentucky expanded the list of counties in the state eligible for disaster relief sales and use tax refunds. The counties added to the list are Breckenridge, Bullitt, Calloway, Daviess, Garrard, Grayso...
LA - Proposed amendment 2 fails
Proposed Amendment 2 to the Louisiana Constitution, which was on the March 29, 2025 ballot, failed. The amendment would have :lowered the maximum income tax rate;increased income tax deductions for ci...
Proposed Amendment 2 to the Louisiana Constitution, which was on the March 29, 2025 ballot, failed. The amendment would have :lowered the maximum income tax rate;increased income tax deductions for ci...
ME - Rule amended to impose electronic filing on certain taxpayers
Maine Rule 104, which outlines requirements for filing certain Maine tax returns, including electronic filing requirements, has been amended to require that the following file electronic returns:certa...
Maine Rule 104, which outlines requirements for filing certain Maine tax returns, including electronic filing requirements, has been amended to require that the following file electronic returns:certa...
MD - Personal income tax abatement expanded to uniformed service members, public health emergency responders
Applicable to tax years after 2024, Maryland personal income tax is abated for those who die while serving as members of the uniformed services (formerly, members of the armed forces). In addition, pe...
Applicable to tax years after 2024, Maryland personal income tax is abated for those who die while serving as members of the uniformed services (formerly, members of the armed forces). In addition, pe...
MA - Financial institutions eligible for research tax credits
The Massachusetts Department of Revenue explains their position following the Appellate Tax Board's decision confirming that financial institutions are eligible to claim the corporate income tax resea...
The Massachusetts Department of Revenue explains their position following the Appellate Tax Board's decision confirming that financial institutions are eligible to claim the corporate income tax resea...
MI - Apple Orchard did not qualify for 100% qualified agricultural exemption
A taxpayer that owned and operated a Michigan apple orchard did not qualify for a 100% qualified agricultural property tax exemption because a portion of its property consisted of property used for co...
A taxpayer that owned and operated a Michigan apple orchard did not qualify for a 100% qualified agricultural property tax exemption because a portion of its property consisted of property used for co...
MN - Agricultural asset owners credit provisions amended
For purposes of the income tax credit allowed to agricultural asset owners who sell or rent their assets to beginning farmers in Minnesota, the higher credit percentage for sales to emerging farmers w...
For purposes of the income tax credit allowed to agricultural asset owners who sell or rent their assets to beginning farmers in Minnesota, the higher credit percentage for sales to emerging farmers w...
MS - Incentives and tax credits introduced for rehabilitation of blighted property
Mississippi has enacted legislation providing income tax credits and incentive payments for developers who rehabilitate blighted property in the state. Eligible taxpayers can claim a credit amounting ...
Mississippi has enacted legislation providing income tax credits and incentive payments for developers who rehabilitate blighted property in the state. Eligible taxpayers can claim a credit amounting ...
MO - New order regarding Jackson County 2025 residential property tax assessments issued
The Missouri State Tax Commission has issued a new order regarding Jackson County 2025 residential property tax assessments. Specifically, in order to prevent excessive, mistaken, and erroneous assess...
The Missouri State Tax Commission has issued a new order regarding Jackson County 2025 residential property tax assessments. Specifically, in order to prevent excessive, mistaken, and erroneous assess...
MT - Property tax levy calculation amended
Montana has enacted legislation that amends the automatic adjustments to revenue authority of property tax entities other than schools. For property tax years beginning after December 31, 2025, taxing...
Montana has enacted legislation that amends the automatic adjustments to revenue authority of property tax entities other than schools. For property tax years beginning after December 31, 2025, taxing...
NE - Documentary stamp tax rate increased
Nebraska has authorized an increase in the documentary stamp tax rate to $2.32 per $1,000 value or fraction thereof. L.B. 78, Laws 2025, effective three months after adjournment of the 2025 legislati...
Nebraska has authorized an increase in the documentary stamp tax rate to $2.32 per $1,000 value or fraction thereof. L.B. 78, Laws 2025, effective three months after adjournment of the 2025 legislati...
NV - Regulation on reduction of taxable value amended
Nevada has amended its regulation on the deduction of obsolescence from the taxable value of property. In determining the amount of obsolescence to be deducted, the State Board and the county boards o...
Nevada has amended its regulation on the deduction of obsolescence from the taxable value of property. In determining the amount of obsolescence to be deducted, the State Board and the county boards o...
NH - Department reminds taxpayers of interest and dividends tax repeal
The New Hampshire Department of Revenue Administration reminds taxpayers that the Interest and Dividends Tax is repealed effective January 1, 2025. Technical Information Release TIR 2025-001, New Ham...
The New Hampshire Department of Revenue Administration reminds taxpayers that the Interest and Dividends Tax is repealed effective January 1, 2025. Technical Information Release TIR 2025-001, New Ham...
NJ - Treatment of tariff mark ups discussed
New Jersey has explained that when a seller passes along the cost of a tariff to the consumer/purchaser, the charges are subject to sales tax as part of the taxable sales price. The tariff is subject ...
New Jersey has explained that when a seller passes along the cost of a tariff to the consumer/purchaser, the charges are subject to sales tax as part of the taxable sales price. The tariff is subject ...
NY - Application of convenience-of-employer test during pandemic closure upheld
In a personal income tax case involving a professor who worked for a New York law school from his out-of-state home during the COVID-19 pandemic, the Tax Appeals Tribunal found that it was proper for ...
In a personal income tax case involving a professor who worked for a New York law school from his out-of-state home during the COVID-19 pandemic, the Tax Appeals Tribunal found that it was proper for ...
NC: Type of real property interest that may be donated under the conservation tax credit is expanded
The type of real property interest that may be donated to be eligible for the conservation tax credit against North Carolina corporate and personal income taxes is expanded to match the federal defini...
The type of real property interest that may be donated to be eligible for the conservation tax credit against North Carolina corporate and personal income taxes is expanded to match the federal defini...
ND - Coal severance and coal conversion facilities taxes revised
The existing North Dakota coal conversion facilities tax exemption is modified to be a partial exemption from the coal conversion state share of the tax, equal to:90% for taxable production after June...
The existing North Dakota coal conversion facilities tax exemption is modified to be a partial exemption from the coal conversion state share of the tax, equal to:90% for taxable production after June...
OH - Public utility TPP taxation rate adjusted
Ohio has amended public utility tangible personal property (TPP) taxation. The newly enacted law changes the rate, classification, and exemption of property. Specifically, the amendments:reduce the pe...
Ohio has amended public utility tangible personal property (TPP) taxation. The newly enacted law changes the rate, classification, and exemption of property. Specifically, the amendments:reduce the pe...
OK - Vendor of agricultural equipment is not subject to liability if in receipt of proper exemption documentation
A seller of lawnmowers and other agricultural equipment is relieved of Oklahoma sales tax liability as long as they receive the appropriate documentation of the exemption at the time of the transactio...
A seller of lawnmowers and other agricultural equipment is relieved of Oklahoma sales tax liability as long as they receive the appropriate documentation of the exemption at the time of the transactio...
OR - Oregon health funding measures extended through 2032
Oregon has extended the sunset dates for certain medical provider assessments, from 2026 to December 31, 2032.Specifically, the sunset date of:health insurance plan premiums or premium equivalents is ...
Oregon has extended the sunset dates for certain medical provider assessments, from 2026 to December 31, 2032.Specifically, the sunset date of:health insurance plan premiums or premium equivalents is ...
PA - Deadline extended for property tax/rent rebate program
The filing deadline for the Property Tax/Rent Rebate Program in Pennsylvania has been extended to December 31, 2025. The extension allows more time for eligible older residents, widows, widowers, and ...
The filing deadline for the Property Tax/Rent Rebate Program in Pennsylvania has been extended to December 31, 2025. The extension allows more time for eligible older residents, widows, widowers, and ...
RI - Taxpayers reminded of 2025 LLC filing requirements
The Rhode Island Department of Revenue Division of Taxation has issued a notice summarizing the 2025 income tax filing requirements for LLCs. Notice 2025-01, Rhode Island Division of Taxation, Februa...
The Rhode Island Department of Revenue Division of Taxation has issued a notice summarizing the 2025 income tax filing requirements for LLCs. Notice 2025-01, Rhode Island Division of Taxation, Februa...
SC - IRC conformity updated
South Carolina has updated its Internal Revenue Code conformity date from December 31, 2023, to December 31, 2024.If there are IRC sections adopted by South Carolina that expired on December 31, 2024,...
South Carolina has updated its Internal Revenue Code conformity date from December 31, 2023, to December 31, 2024.If there are IRC sections adopted by South Carolina that expired on December 31, 2024,...
SD - Guidance on the taxation of universities updated
In South Dakota, sales of tangible personal property and services by public and private non-profit universities may be exempt from sales and use tax when certain criteria are met. Guidance on the taxa...
In South Dakota, sales of tangible personal property and services by public and private non-profit universities may be exempt from sales and use tax when certain criteria are met. Guidance on the taxa...
TN - Temporary sales periods increased for exempt religious institutions
Tennessee has increased from two to four the number of temporary sales periods that a bona fide religious institution can participate in annually and remain exempt from registering to collect sales ta...
Tennessee has increased from two to four the number of temporary sales periods that a bona fide religious institution can participate in annually and remain exempt from registering to collect sales ta...
TX - Back-to-school tax holiday date adjusted
Texas has enacted legislation adjusting the date of the annual back-to-school sales tax holiday. Effective September 1, 2025, the holiday will take place beginning on the first Friday in August until ...
Texas has enacted legislation adjusting the date of the annual back-to-school sales tax holiday. Effective September 1, 2025, the holiday will take place beginning on the first Friday in August until ...
UT - Rich, salt lake and summit Counties impose County-wide local taxes
Effective July 1, 2025, the following counties impose the indicated county-wide taxes:Rich County imposes a 0.3% county option sales and use tax to fund a fixed guideway, public transit or highways;Sa...
Effective July 1, 2025, the following counties impose the indicated county-wide taxes:Rich County imposes a 0.3% county option sales and use tax to fund a fixed guideway, public transit or highways;Sa...
VT - Nonhomestead rate and homestead dollar equivalent yields set for fiscal Year 2026
Vermont has enacted a law setting the property and income dollar equivalent yields for homestead property tax rates and the nonhomestead property tax rate for fiscal year 2026. The law sets the proper...
Vermont has enacted a law setting the property and income dollar equivalent yields for homestead property tax rates and the nonhomestead property tax rate for fiscal year 2026. The law sets the proper...
VA - Enacted budget provides rebate checks, increases standard deduction, extends elective PTET tax, extends and amends credits, and makes other changes
Virginia enacted biennial budget legislation containing various corporate income, personal income, retail sales and use, and other tax provisions.Rebate ChecksTax refund checks will be issued in an am...
Virginia enacted biennial budget legislation containing various corporate income, personal income, retail sales and use, and other tax provisions.Rebate ChecksTax refund checks will be issued in an am...
WA - Medical Marijuana retailer failed to document exemption
A marijuana retailer with a medical marijuana endorsement was subject to Washington retail sales tax because it failed to maintain proper records to document an exemption. The Department of Revenue ha...
A marijuana retailer with a medical marijuana endorsement was subject to Washington retail sales tax because it failed to maintain proper records to document an exemption. The Department of Revenue ha...
WV - - Acute care hospital tax payment deadline extended again
West Virginia granted acute care hospital taxpayers an additional one-month extension for first quarter tax payments. The state originally extended the April 15, 2025 deadline to May 15, 2025 and is e...
West Virginia granted acute care hospital taxpayers an additional one-month extension for first quarter tax payments. The state originally extended the April 15, 2025 deadline to May 15, 2025 and is e...
WI - DOR bulletin issued
The Wisconsin Department of Revenue has issued Wisconsin Tax Bulletin Number 229 (April 2025). The Bulletin includes:General Updates and Reminders;Income and Franchise Tax Updates and Reminders;Sales ...
The Wisconsin Department of Revenue has issued Wisconsin Tax Bulletin Number 229 (April 2025). The Bulletin includes:General Updates and Reminders;Income and Franchise Tax Updates and Reminders;Sales ...
WY - Order of application of property tax exemptions provided
Wyoming has enacted legislation specifying the order in which a taxpayer should apply property tax exemptions when multiple property tax exemptions apply to the same property. The legislation states t...
Wyoming has enacted legislation specifying the order in which a taxpayer should apply property tax exemptions when multiple property tax exemptions apply to the same property. The legislation states t...
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