Catalano, Caboor & Co.
Tax Alerts
Tax Briefing(s)
IRS Announces Availability of Work Opportunity Tax Credit Through 2025
The IRS has announced that the Work Opportunity Tax Credit (WOTC) will continue to be available to employers through the end of 2025. This federal incentive is designed to encourage businesses to hire...
The IRS has announced that the Work Opportunity Tax Credit (WOTC) will continue to be available to employers through the end of 2025. This federal incentive is designed to encourage businesses to hire...
IRS Alerts Individuals to Fraudulent Tax Schemes on Social Media, (IR-2025-90)
he IRS has cautioned individuals about a rise in fraudulent tax schemes on social media that misuse credits such as the Fuel Tax Credit and the Sick and Family Leave Credit. The scams typically appear...
he IRS has cautioned individuals about a rise in fraudulent tax schemes on social media that misuse credits such as the Fuel Tax Credit and the Sick and Family Leave Credit. The scams typically appear...
IRS Urges Emergency Preparedness Ahead of Peak Disaster Season (IR-2025-89)
The IRS has urged individuals and businesses to review emergency preparedness plans as hurricane season peaks and wildfire risks remain high. Essential documents such as tax returns, Social Security c...
The IRS has urged individuals and businesses to review emergency preparedness plans as hurricane season peaks and wildfire risks remain high. Essential documents such as tax returns, Social Security c...
IRS Warns of Scams When Donating After Disasters
The IRS has reminded taxpayers that while donating to disaster relief is a compassionate and impactful way to help, it is equally important to remain cautious. In the aftermath of disasters, scam acti...
The IRS has reminded taxpayers that while donating to disaster relief is a compassionate and impactful way to help, it is equally important to remain cautious. In the aftermath of disasters, scam acti...
IRS Highlights Retirement Benefits of IRAs
The IRS has reminded taxpayers that Individual Retirement Accounts (IRAs) continue to provide important benefits for those planning their financial future. A traditional IRA allows earnings to grow ta...
The IRS has reminded taxpayers that Individual Retirement Accounts (IRAs) continue to provide important benefits for those planning their financial future. A traditional IRA allows earnings to grow ta...
AL - City of Cleveland imposes lodgings tax
Effective October 1, 2025, the city of Cleveland imposes a new local lodgings tax at a rate of 4%. The city's first lodgings tax return is due on November 20, 2025 for the month of October 2025. Loca...
Effective October 1, 2025, the city of Cleveland imposes a new local lodgings tax at a rate of 4%. The city's first lodgings tax return is due on November 20, 2025 for the month of October 2025. Loca...
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 November 1, 2025. The only change is Manufactured Buildings in Chino Valley new rate will be 3%.Transa...
Arizona's Department of Revenue released the transaction privilege tax (TPT) rate chart effective November 1, 2025. The only change is Manufactured Buildings in Chino Valley new rate will be 3%.Transa...
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 - Disregarded SMLLC assignment of motion picture production tax credits clarified
California has enacted legislation clarifying that a tax credit under Motion Picture and Television Production Tax Credit Program 3.0 generated by a disregarded single-member limited liability company...
California has enacted legislation clarifying that a tax credit under Motion Picture and Television Production Tax Credit Program 3.0 generated by a disregarded single-member limited liability company...
CO - Innovative motor vehicle and truck tax credits rule amended
Colorado has amended its innovative motor vehicle and truck tax credits rule to update guidance regarding the quarterly electronic report that must be submitted to the Department of Revenue; make clea...
Colorado has amended its innovative motor vehicle and truck tax credits rule to update guidance regarding the quarterly electronic report that must be submitted to the Department of Revenue; make clea...
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 - Department issues updated guidance for veterinarians and veterinary clinics
Updated guidance is issued regarding the application of sales and use tax to transactions engaged in by veterinarians and veterinary clinics. Definitions are provided as well as information on out-of-...
Updated guidance is issued regarding the application of sales and use tax to transactions engaged in by veterinarians and veterinary clinics. Definitions are provided as well as information on out-of-...
GA - Tax assessors permitted to use income approach with limitations for section 42 properties
The Supreme Court of Georgia reversed the Court of Appeals' decision regarding property tax assessments for affordable housing properties qualifying for Section 42 tax credits, holding that tax assess...
The Supreme Court of Georgia reversed the Court of Appeals' decision regarding property tax assessments for affordable housing properties qualifying for Section 42 tax credits, holding that tax assess...
HI - Cigarette tax increase guidance issued
Hawaii issued guidance on the cigarette tax increase to 18 cents per cigarette or little cigar beginning January 1, 2026 (Act 95 (H.B. 441), Laws 2025). The guidance outlines procedures for wholesaler...
Hawaii issued guidance on the cigarette tax increase to 18 cents per cigarette or little cigar beginning January 1, 2026 (Act 95 (H.B. 441), Laws 2025). The guidance outlines procedures for wholesaler...
ID: Reminder issued on exemption for small sellers
daho residents are reminded about previously enacted legislation that provides a sales and use tax exemption for certain small sellers with annual sales of $5,000 or less. The exemption is effective J...
daho residents are reminded about previously enacted legislation that provides a sales and use tax exemption for certain small sellers with annual sales of $5,000 or less. The exemption is effective J...
IL - Energy assistance charge increase announced
Illinois announced an increase to the energy assistance charge for electric or natural gas utilities and cooperatives that served 100,000 or more customers in the state on January 1, 2021. Effective J...
Illinois announced an increase to the energy assistance charge for electric or natural gas utilities and cooperatives that served 100,000 or more customers in the state on January 1, 2021. Effective J...
IN - Boone County imposes County Innkeepers' tax
Effective November 1, 2025, the Indiana county innkeepers' tax rate imposed in Boone County is 8%. County Innkeepers' Tax, Indiana Department of Revenue, October 2025...
Effective November 1, 2025, the Indiana county innkeepers' tax rate imposed in Boone County is 8%. County Innkeepers' Tax, Indiana Department of Revenue, October 2025...
IA - Employment agency placement not subject to tax
Iowa Department of Revenue ruled on the sales and use tax implications for an out-of-state private employment agency providing temporary medical workers within the state. Generally, the work of privat...
Iowa Department of Revenue ruled on the sales and use tax implications for an out-of-state private employment agency providing temporary medical workers within the state. Generally, the work of privat...
KS - 2025 revenues do not trigger rate reduction
Kansas announced that taxpayers will not receive an income tax rate reduction for the 2026 tax year. The state can reduce the rate only if:revenue from income and privilege tax collections in the stat...
Kansas announced that taxpayers will not receive an income tax rate reduction for the 2026 tax year. The state can reduce the rate only if:revenue from income and privilege tax collections in the stat...
KY - Standard deduction for 2026 tax year announced
Kentucky announced the personal income tax standard deduction for the 2026 tax year. The deduction is increasing by $90 from $3,270 for the 2025 tax year to $3,360. Press Release, Kentucky Department...
Kentucky announced the personal income tax standard deduction for the 2026 tax year. The deduction is increasing by $90 from $3,270 for the 2025 tax year to $3,360. Press Release, Kentucky Department...
LA - Guidance issued clarifying taxation of transportation charges
Louisiana has issued guidance clarifying the application of state and local sales and use tax to transportation charges. In general, such charges are subject to tax unless the underlying transaction i...
Louisiana has issued guidance clarifying the application of state and local sales and use tax to transportation charges. In general, such charges are subject to tax unless the underlying transaction i...
ME - New leases and rentals rule enacted
Maine Revenue Services enacted a new rule addressing the change that shifted sales or use tax on leased property from being due upfront on the entire purchase price to instead collecting tax from the ...
Maine Revenue Services enacted a new rule addressing the change that shifted sales or use tax on leased property from being due upfront on the entire purchase price to instead collecting tax from the ...
MD - Impact report on OBBBA issued
The Maryland Comptroller has issued a report outlining the impact that the One Big Beautiful Bill Act is expected to have on Maryland tax revenues. Maryland law requires such a report when amendments ...
The Maryland Comptroller has issued a report outlining the impact that the One Big Beautiful Bill Act is expected to have on Maryland tax revenues. Maryland law requires such a report when amendments ...
MA - Rule issued on withholding requirements from sales of real estate
A new Massachusetts rule establishes and explains the corporate and personal withholding requirements that apply to the proceeds of sales or transfers of Massachusetts real estate. The rules will will...
A new Massachusetts rule establishes and explains the corporate and personal withholding requirements that apply to the proceeds of sales or transfers of Massachusetts real estate. The rules will will...
MI - Governor Whitmer signs FY26 budget
Governor Whitmer has signed into law Michigan's FY26 budget. The budget rolls back the retirement tax on seniors, expands the working families tax credit, and eliminates state taxes on tips, overtime ...
Governor Whitmer has signed into law Michigan's FY26 budget. The budget rolls back the retirement tax on seniors, expands the working families tax credit, and eliminates state taxes on tips, overtime ...
MN - Mobility enhancing equipment guidance updated
Minnesota updated its guidance on the sales and use tax exemption for mobility enhancing equipment. The exemption applies to qualifying equipment and its repair or replacement parts, regardless of the...
Minnesota updated its guidance on the sales and use tax exemption for mobility enhancing equipment. The exemption applies to qualifying equipment and its repair or replacement parts, regardless of the...
MS - Tupelo water procurement facility tax no longer imposed on groceries
Mississippi issued a notice announcing that retail sales of groceries in City of Tupelo are exempt effective July 1, 2025 from the Tupelo Water Procurement Facility Tax, which is a .25% tax on retail ...
Mississippi issued a notice announcing that retail sales of groceries in City of Tupelo are exempt effective July 1, 2025 from the Tupelo Water Procurement Facility Tax, which is a .25% tax on retail ...
MO - Interest rate on tax delinquencies reduced for 2026
The annually adjusted rate of interest imposed on delinquent Missouri taxes for the 2026 calendar year will be 7%. The refund interest rate on individual income tax and property tax credit for calenda...
The annually adjusted rate of interest imposed on delinquent Missouri taxes for the 2026 calendar year will be 7%. The refund interest rate on individual income tax and property tax credit for calenda...
MT - Governor sends reminder about property tax relief
Montana Gov. Greg Gianforte reminded Montana homeowners about new tax rates and property tax rebates. Between August 15 and October 1, 2025, eligible Montana homeowners may claim a property tax rebate...
Montana Gov. Greg Gianforte reminded Montana homeowners about new tax rates and property tax rebates. Between August 15 and October 1, 2025, eligible Montana homeowners may claim a property tax rebate...
NE - Local sales tax rate chart issued
The Nebraska Department of Revenue has released a table displaying the local sales and use tax rates applicable to the period beginning October 1, 2025. Local Sales and Use Tax Rates, Nebraska Depart...
The Nebraska Department of Revenue has released a table displaying the local sales and use tax rates applicable to the period beginning October 1, 2025. Local Sales and Use Tax Rates, Nebraska Depart...
NV - Tax exemption criteria tightened for nonprofit organizations
Nevada's Department of Taxation has revised the criteria for nonprofit organizations to qualify for sales and use tax exemptions, requiring compliance with enhanced standards. In determining whether a...
Nevada's Department of Taxation has revised the criteria for nonprofit organizations to qualify for sales and use tax exemptions, requiring compliance with enhanced standards. In determining whether a...
NH - Parsonage tax exemptions expanded
New Hampshire has expanded property tax exemptions for religious use to include church parsonages that are rented or vacant. Previously, exemptions applied only to parsonages occupied by pastors. Ch. ...
New Hampshire has expanded property tax exemptions for religious use to include church parsonages that are rented or vacant. Previously, exemptions applied only to parsonages occupied by pastors. Ch. ...
NJ - Casino licensee CBT guidance issued
New Jersey has summarized casino licensee obligations under the Corporation Business Tax (CBT), compiled existing guidance, and provided references to relevant publications and rules. The guidance cov...
New Jersey has summarized casino licensee obligations under the Corporation Business Tax (CBT), compiled existing guidance, and provided references to relevant publications and rules. The guidance cov...
NY - Subscription fees for integrated facilities management services properly subject to tax
The New York Tax Appeals upheld an administrative law judge decision that the taxpayers’ subscription fees for integrated facilities management services were properly subject to sales and use tax. I...
The New York Tax Appeals upheld an administrative law judge decision that the taxpayers’ subscription fees for integrated facilities management services were properly subject to sales and use tax. I...
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 - Chargebacks could reduce gross receipts
The Ohio Board of Tax Appeals concluded that a taxpayer's wholesale adjustment cost (WAC) should be reduced by chargebacks when calculating its taxable gross receipts for commercial activity tax (CAT)...
The Ohio Board of Tax Appeals concluded that a taxpayer's wholesale adjustment cost (WAC) should be reduced by chargebacks when calculating its taxable gross receipts for commercial activity tax (CAT)...
OK - Local tax rate notice amended
The Oklahoma Tax Commission has amended its notice on local tax rate changes taking effect January 1, 2026 to reflect that Altus will not be imposing a new lodging tax. Rates and Codes for Sales, Use...
The Oklahoma Tax Commission has amended its notice on local tax rate changes taking effect January 1, 2026 to reflect that Altus will not be imposing a new lodging tax. Rates and Codes for Sales, Use...
OR - Preschool for all estimated payment threshold increased
Multnomah County has amended its Preschool for All personal income tax regulations to increase the threshold for estimated tax payments from $1,000 to $5,000 starting in tax year 2026. Ord. No. 1339,...
Multnomah County has amended its Preschool for All personal income tax regulations to increase the threshold for estimated tax payments from $1,000 to $5,000 starting in tax year 2026. Ord. No. 1339,...
PA -PURTA surcharge rate announced
Pennsylvania has provided notice that the Public Utility Realty Tax Act (PURTA) surcharge calculation for tax years beginning January 1, 2026 is 0 mills. No PURTA surcharge will be imposed for the tax...
Pennsylvania has provided notice that the Public Utility Realty Tax Act (PURTA) surcharge calculation for tax years beginning January 1, 2026 is 0 mills. No PURTA surcharge will be imposed for the tax...
RI - Guidance on decoupling from OBBBA issued
Rhode Island has issued filing guidance for individuals in response to decoupling from the One Big Beautiful Bill Act of 2025 (H.R. 1, Public Law No. 119-21). The guidance outlines which items allowed...
Rhode Island has issued filing guidance for individuals in response to decoupling from the One Big Beautiful Bill Act of 2025 (H.R. 1, Public Law No. 119-21). The guidance outlines which items allowed...
SC - State per capita income figure announced
South Carolina announced that the most recently available state per capita income figure is $60,776. The figure is important because various income, sales and use, and property tax incentives require ...
South Carolina announced that the most recently available state per capita income figure is $60,776. The figure is important because various income, sales and use, and property tax incentives require ...
SD - Assessment methodology challenged for exceeding actual property value
The South Dakota Supreme Court reversed and remanded a property tax assessment involving agricultural properties subject to perpetual wetlands reserve easements, concluding that the assessed valuation...
The South Dakota Supreme Court reversed and remanded a property tax assessment involving agricultural properties subject to perpetual wetlands reserve easements, concluding that the assessed valuation...
TN - Expansion of central business improvement district discussed
Tennessee issued a notice announcing that the Nashville Metropolitan Government of Davidson County is expanding its Central Business Improvement District (CBID) boundaries. Retailers located in the CB...
Tennessee issued a notice announcing that the Nashville Metropolitan Government of Davidson County is expanding its Central Business Improvement District (CBID) boundaries. Retailers located in the CB...
TX - Ready mix concrete manufacturer
The Texas Comptroller issued a private letter ruling finding that a business that operates ready mix concrete fabrication plants did not meet the statutory definition of a "ready mix concrete contract...
The Texas Comptroller issued a private letter ruling finding that a business that operates ready mix concrete fabrication plants did not meet the statutory definition of a "ready mix concrete contract...
UT - 2025 reporting instructions for holders of unclaimed property issued
Utah has issued the 2025 reporting instructions for holders of unclaimed property. The instructions include the following recent unclaimed property law changes affecting holder reporting:Electronic re...
Utah has issued the 2025 reporting instructions for holders of unclaimed property. The instructions include the following recent unclaimed property law changes affecting holder reporting:Electronic re...
VT - MFTIA and MFTA rates announced for fourth quarter of 2025
The Vermont motor fuel transportation infrastructure assessment (MFTIA) rate for the fourth quarter of 2025 (October to December 2025) is $0.0510, and the motor fuel tax assessment (MFTA) rate is $0.1...
The Vermont motor fuel transportation infrastructure assessment (MFTIA) rate for the fourth quarter of 2025 (October to December 2025) is $0.0510, and the motor fuel tax assessment (MFTA) rate is $0.1...
VA - Interest rates unchanged for fourth quarter of 2025
The Virginia interest rates for the fourth quarter of 2025 remain at 9% for tax underpayments (assessments) and 9% for tax overpayments (refunds).For the purpose of computing the addition to the tax f...
The Virginia interest rates for the fourth quarter of 2025 remain at 9% for tax underpayments (assessments) and 9% for tax overpayments (refunds).For the purpose of computing the addition to the tax f...
WA - Taxation of concession fees on duty-free sales explained
Sales of merchandise by duty-free sales enterprises in Washington are subject to a concession fee at a rate of 10% of gross proceeds. This amount is separate from and in addition to business and occup...
Sales of merchandise by duty-free sales enterprises in Washington are subject to a concession fee at a rate of 10% of gross proceeds. This amount is separate from and in addition to business and occup...
WV - Employer withholding guidance updated
West Virginia updated guidance for employers on income tax withholding from employee wages. The guidance provides information on:compensation that is subject to withholding;monthly withholding payment...
West Virginia updated guidance for employers on income tax withholding from employee wages. The guidance provides information on:compensation that is subject to withholding;monthly withholding payment...
WI - Taxpayer not entitled to earned income credit
The Wisconsin Tax Appeals Commission dismissed a taxpayer’s appeal regarding an earned income tax credit. At trial, the taxpayer could not substantiate his self-employment income and could not provi...
The Wisconsin Tax Appeals Commission dismissed a taxpayer’s appeal regarding an earned income tax credit. At trial, the taxpayer could not substantiate his self-employment income and could not provi...
WY - Local tax rate changes announced
Wyoming has issued a revised overview of changes in local tax rates effective July 1, 2025, for sales, use, and lodging taxes across various localities. The only change from the chart issued April 1, ...
Wyoming has issued a revised overview of changes in local tax rates effective July 1, 2025, for sales, use, and lodging taxes across various localities. The only change from the chart issued April 1, ...
Catalano, Caboor & Co. is a full service Chicagoland CPA firm located in Lombard, Illinois.
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