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 - New tax levied on leasing or renting tangible personal property in Elmore County
The Alabama Legislature has enacted legislation imposing a new county rental tax in Elmore County. Starting September 1, 2025, a tax will be levied on those leasing or renting tangible personal proper...
The Alabama Legislature has enacted legislation imposing a new county rental tax in Elmore County. Starting September 1, 2025, a tax will be levied on those leasing or renting tangible personal proper...
AK - Integrated transmission systems legislation enacted
Alaska has enacted legislation creating new energy incentives by extending tax-exempt statutes to independent power producers. An electricity generation facility or electricity storage facility that i...
Alaska has enacted legislation creating new energy incentives by extending tax-exempt statutes to independent power producers. An electricity generation facility or electricity storage facility that i...
AZ - Local tax rate table released
Arizona's Department of Revenue released the transaction privilege tax (TPT) rate chart effective July 1, 2025. It includes rate changes for Douglas, Flagstaff, Phoenix, and Scottsdale. Transaction P...
Arizona's Department of Revenue released the transaction privilege tax (TPT) rate chart effective July 1, 2025. It includes rate changes for Douglas, Flagstaff, Phoenix, and Scottsdale. Transaction P...
AR - Tax holiday period announced
The annual Arkansas sales tax holiday will take place from Saturday August 2, 2025 through Sunday August 3, 2025. 2025 Sales Tax Holiday, Arkansas Department of Finance and Administration, May 28, 20...
The annual Arkansas sales tax holiday will take place from Saturday August 2, 2025 through Sunday August 3, 2025. 2025 Sales Tax Holiday, Arkansas Department of Finance and Administration, May 28, 20...
CA - Updated guidance provided on use tax
Updated guidance is provided regarding California use tax. Topics discussed include the application of use tax and the exemption for items purchased in a foreign country. CDTFA Publication 110, Use T...
Updated guidance is provided regarding California use tax. Topics discussed include the application of use tax and the exemption for items purchased in a foreign country. CDTFA Publication 110, Use T...
CO - Federal court interference in state tax collection barred due to adequate remedies
The U.S. Court of Appeals for the Tenth Circuit affirmed the dismissal of a taxpayer's tax refund claim against the Colorado Department of Revenue on the grounds that it was barred by the Tax Injuncti...
The U.S. Court of Appeals for the Tenth Circuit affirmed the dismissal of a taxpayer's tax refund claim against the Colorado Department of Revenue on the grounds that it was barred by the Tax Injuncti...
CT - 2025-2026 diesel fuel tax rate announced
Effective July 1, 2025, through June 30, 2026, the Connecticut motor vehicle fuels tax rate applicable to the sale or use of diesel fuel is $0.489 per gallon (formerly, $0.524). Announcement 2025(2),...
Effective July 1, 2025, through June 30, 2026, the Connecticut motor vehicle fuels tax rate applicable to the sale or use of diesel fuel is $0.489 per gallon (formerly, $0.524). Announcement 2025(2),...
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 - Exemption for certain coin or currency revised
The Florida sales and use tax exemption for certain coin or currency is revised. A coin or currency that is legal tender of the United States, or any gold or silver coin recognized as legal tender in ...
The Florida sales and use tax exemption for certain coin or currency is revised. A coin or currency that is legal tender of the United States, or any gold or silver coin recognized as legal tender in ...
GA - Illegally collected taxes ordered to be refunded
The Court of Appeals of Georgia reversed and remanded a case involving property tax, holding that the taxpayer was subject to illegally collected ad valorem taxes by Clayton County and the City of Col...
The Court of Appeals of Georgia reversed and remanded a case involving property tax, holding that the taxpayer was subject to illegally collected ad valorem taxes by Clayton County and the City of Col...
HI - Tax lien procedures revised
Beginning January 1, 2027, the Hawaii Department of Taxation must:include the assessment date on tax lien certificates; andissue certificates of discharge when the tax liability on which a lien is bas...
Beginning January 1, 2027, the Hawaii Department of Taxation must:include the assessment date on tax lien certificates; andissue certificates of discharge when the tax liability on which a lien is bas...
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 - Prepaid motor fuel sales tax rates beginning July 1
The Illinois prepaid sales tax rates for motor fuel during the period of July 1 through December 31, 2025, are:13¢ per gallon for mid-range ethanol blends;15¢ per gallon for gasohol (E15 only); and1...
The Illinois prepaid sales tax rates for motor fuel during the period of July 1 through December 31, 2025, are:13¢ per gallon for mid-range ethanol blends;15¢ per gallon for gasohol (E15 only); and1...
IN - Guidance issued on exemption for an event comprising an all-star weekend for the women's NBA
Guidance is issued on recently enacted legislation which provides that the income of the Women's National Basketball Association (WNBA), and their respective affiliates derived from an event in Indian...
Guidance is issued on recently enacted legislation which provides that the income of the Women's National Basketball Association (WNBA), and their respective affiliates derived from an event in Indian...
IA - Local option sales tax jurisdiction changes announced
The Iowa local option sales tax (LOST) has a number of changes effective July 1, 2025. The sunset date has been removed for the following: Cedar County—West Branch; Johnson County—Hills, Lone Tree...
The Iowa local option sales tax (LOST) has a number of changes effective July 1, 2025. The sunset date has been removed for the following: Cedar County—West Branch; Johnson County—Hills, Lone Tree...
KS - Local transient guest tax rate changes announced
Kansas announced local transient guest tax rate changes for the second quarter of 2025. Effective July 1, 2025, the transient guest tax rate is 5% in the City of Seneca. Transient Guest Tax Rates, Ka...
Kansas announced local transient guest tax rate changes for the second quarter of 2025. Effective July 1, 2025, the transient guest tax rate is 5% in the City of Seneca. Transient Guest Tax Rates, Ka...
KY - Disaster relief announced for may storms
Kentucky announced the counties in the state where building owners with property damaged or destroyed by severe storms, straight-line winds, and tornadoes that began on May 2, 2025 are eligible for di...
Kentucky announced the counties in the state where building owners with property damaged or destroyed by severe storms, straight-line winds, and tornadoes that began on May 2, 2025 are eligible for di...
LA - Exemption allowed for Louisiana fortify homes program
Grants received from the Louisiana Fortify Homes Program on or after January 1, 2025, are exempt from Louisiana personal income tax. Act 32 (S.B. 52), Laws 2025, effective as noted...
Grants received from the Louisiana Fortify Homes Program on or after January 1, 2025, are exempt from Louisiana personal income tax. Act 32 (S.B. 52), Laws 2025, effective as noted...
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 - Bulletin issued explaining tax expansion to data/information services
The Comptroller of Maryland has issued a technical bulletin explaining the imposition of Maryland sales and use tax on data or information technology services and software publishing services. Tax is ...
The Comptroller of Maryland has issued a technical bulletin explaining the imposition of Maryland sales and use tax on data or information technology services and software publishing services. Tax is ...
MA - Sales tax holiday dates announced for 2025
Massachusetts has designated August 9 and 10, 2025, as the annual sales tax holiday. The sales tax holiday applies to non-business retail sales of property with a price up to $2,500 per item. Some exc...
Massachusetts has designated August 9 and 10, 2025, as the annual sales tax holiday. The sales tax holiday applies to non-business retail sales of property with a price up to $2,500 per item. Some exc...
MI - Tax relief available due to severe weather
The Michigan Department of Treasury has announced that pursuant to Governor Whitmer's emergency declaration for Baraga and Allegan counties and the City of Lansing, individuals and businesses within t...
The Michigan Department of Treasury has announced that pursuant to Governor Whitmer's emergency declaration for Baraga and Allegan counties and the City of Lansing, individuals and businesses within t...
MN - Data center exemption expanded and new fee imposed
Minnesota has expanded the sales and use tax exemption for purchases of enterprise information technology equipment and software for use in a qualified data center or qualified refurbished data center...
Minnesota has expanded the sales and use tax exemption for purchases of enterprise information technology equipment and software for use in a qualified data center or qualified refurbished data center...
MS - Third-party booking companies required to collect taxes
Mississippi issued guidance on sales tax collection for third-party booking companies following the enactment of Senate Bill 2805. The bill clarifies that these entities must collect state and local s...
Mississippi issued guidance on sales tax collection for third-party booking companies following the enactment of Senate Bill 2805. The bill clarifies that these entities must collect state and local s...
MO - Local tax rate changes announced
The following local Missouri sales and use tax rate changes take effective July 1, 2025. Also, new rates are listed for each county, city, and special district affected by the rate changes.County Chan...
The following local Missouri sales and use tax rate changes take effective July 1, 2025. Also, new rates are listed for each county, city, and special district affected by the rate changes.County Chan...
MT - Property tax relief legislation signed
Montana Gov. Greg Gianforte signed property tax relief legislation created by H.B. 231 and S.B. 542. A tiered tax rate is created for residential and commercial class 4 property beginning in tax year ...
Montana Gov. Greg Gianforte signed property tax relief legislation created by H.B. 231 and S.B. 542. A tiered tax rate is created for residential and commercial class 4 property beginning in tax year ...
NE - Reminder issued on upcoming homestead exemption deadline
The Nebraska Department of Revenue has reminded property owners that the homestead exemption application, form 458, must be filed with the county assessor by June 30, 2025. A homestead exemption is av...
The Nebraska Department of Revenue has reminded property owners that the homestead exemption application, form 458, must be filed with the county assessor by June 30, 2025. A homestead exemption is av...
NV - Transportation tax recommendation deadlines extended
Nevada has extended the deadline for a regional transportation commission to prepare and submit recommendations for a proposed retail sales tax to fund transportation projects. The previous deadline o...
Nevada has extended the deadline for a regional transportation commission to prepare and submit recommendations for a proposed retail sales tax to fund transportation projects. The previous deadline 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 - Guidance on taxability of lawyers' purchases updated
New Jersey updated it guidance on the taxability of purchases made by lawyers and law firms in relation to the state's Sales and Use Tax Act. The bulletin was updated to include links to the NJ Tax P...
New Jersey updated it guidance on the taxability of purchases made by lawyers and law firms in relation to the state's Sales and Use Tax Act. The bulletin was updated to include links to the NJ Tax P...
NY - Amortized premiums on out-of-state bonds treated as itemized deductions
A New York appellate court upheld a Tax Appeals Tribunal decision finding that taxpayers could not subtract amortized premiums on their out-of-state bonds directly from their interest income, but inst...
A New York appellate court upheld a Tax Appeals Tribunal decision finding that taxpayers could not subtract amortized premiums on their out-of-state bonds directly from their interest income, but inst...
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 - 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 - 2025 third quarter PAT average wholesale prices released
Ohio has released the petroleum activity tax (PAT) statewide average wholesale prices for the third quarter of 2025.The average prices per gallon for the third quarter are:$1.998 for unleaded gasoline...
Ohio has released the petroleum activity tax (PAT) statewide average wholesale prices for the third quarter of 2025.The average prices per gallon for the third quarter are:$1.998 for unleaded gasoline...
OK - Adoption expense credit modified
The amount of Oklahoma's personal income tax credit for nonrecurring adoption expenses has been increased to 15% of qualified expenses. The credit will not exceed $3,000 for single filers and married ...
The amount of Oklahoma's personal income tax credit for nonrecurring adoption expenses has been increased to 15% of qualified expenses. The credit will not exceed $3,000 for single filers and married ...
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 - Taxable and exempt property list updated
Pennsylvania has updated a sales and use notice that lists personal property and services as taxable or nontaxable. The list notes new items, changes and clarifications, along with property subject to...
Pennsylvania has updated a sales and use notice that lists personal property and services as taxable or nontaxable. The list notes new items, changes and clarifications, along with property subject to...
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 - Amended exemption for durable medical equipment discussed
South Carolina issued a sales and use tax information letter discussing the durable medical equipment exemption, which was amended recently. The information letter gives notice that now all sellers of...
South Carolina issued a sales and use tax information letter discussing the durable medical equipment exemption, which was amended recently. The information letter gives notice that now all sellers of...
SD - Municipal tax changes announced
South Dakota has announced that two communities will implement a 1% municipal tax on lodging, dining, alcohol sales, and admissions. The communities of Newell and Wagner will implement the tax startin...
South Dakota has announced that two communities will implement a 1% municipal tax on lodging, dining, alcohol sales, and admissions. The communities of Newell and Wagner will implement the tax startin...
TN - Interest rate announced
The interest rate on all taxes collected or administered by the Tennessee Department of Revenue is 11.50% (formerly, 12.50%) effective July 1, 2025, through June 30, 2026. The interest rate on all tax...
The interest rate on all taxes collected or administered by the Tennessee Department of Revenue is 11.50% (formerly, 12.50%) effective July 1, 2025, through June 30, 2026. The interest rate on all tax...
TX - Solid materials processing activities
The Texas Comptroller has changed the effective date of its policy memorandum stating the Comptroller’s changes in tax policy regarding the application of the manufacturing exemption from sales and ...
The Texas Comptroller has changed the effective date of its policy memorandum stating the Comptroller’s changes in tax policy regarding the application of the manufacturing exemption from sales and ...
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 - New employer withholding tax tables issued
The Virginia Department of Taxation has released new employer withholding tax tables effective July 1, 2025.What changed?Previously enacted legislation increased the individual income tax standard ded...
The Virginia Department of Taxation has released new employer withholding tax tables effective July 1, 2025.What changed?Previously enacted legislation increased the individual income tax standard ded...
WA - Guidance provided on taxability of live presentations for schools
The Washington Department of Revenue has provided guidance on the impact the expansion of retailing business and occupation (B&O) tax and sales tax to live presentations has on elementary and seco...
The Washington Department of Revenue has provided guidance on the impact the expansion of retailing business and occupation (B&O) tax and sales tax to live presentations has on elementary and seco...
WV - July 2025 acute care tax rate announced
West Virginia announced a change to the tax rate imposed on acute care hospitals that provide Medicaid and Medicare services in the state. The rate is decreasing from 3.86% to 3.85% starting July 1, 2...
West Virginia announced a change to the tax rate imposed on acute care hospitals that provide Medicaid and Medicare services in the state. The rate is decreasing from 3.86% to 3.85% starting July 1, 2...
WI - Royalty payments disallowed as sham transactions
The Court of Appeals of Wisconsin affirmed the circuit court's decision disallowing the taxpayer's deductions for royalty payments as corporate income taxes due to their classification as sham transac...
The Court of Appeals of Wisconsin affirmed the circuit court's decision disallowing the taxpayer's deductions for royalty payments as corporate income taxes due to their classification as sham transac...
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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