Sales Tax State Activity Update -October 2008

Relief for Businesses affected by Hurricane in Various States

Various states are responding to the devastation affected by the latest hurricanes and storms that have negatively impacted business operations. Numerous states are allowing tax return filing extensions, other states will waive penalty and/or interest for late payment, Kansas offers tax credits, and Texas allows an exemption for businesses directly affected by the bad weather.

Many states are following the IRS filing extension for Sales tax, Income tax, etc. States such as California, Florida, Georgia, Idaho, Louisiana, Maryland, Mississippi, Ohio, South Carolina, Tennessee, Texas, and Washington are offering a filing extension to file for various state returns. (Please see individual state for specific deadline extension).

The state of Colorado offers penalty and interest relief provisions that have been adopted by the Internal Revenue Service for all Colorado taxes including income tax, wage withholding, sales tax, severance tax, fuel tax, and tobacco tax administered by the Department of Revenue. Illinois on the other hand will waive penalties for taxpayers who cannot make tax filings or payments on time as a result of the recent hurricanes or floods.

The state of Kansas is offering businesses an investment credit of 10% of the capital investment, limited to $100,000 for any business that constructs, equips, reconstructs, maintains repairs, enlarges, or furnishes a business facility. The affected business must be located in the city of Chanute, Coffeyville, Erie, Fredonia, Greensburg, Independence, Iola, Neodesha, or Osawatomie Kansas, or within one mile of the city limits of any such cities as long as the business is located in Kansas.

Texas offers an exemption from sales tax to be claimed for businesses in a declared disaster area for labor charges to repair damaged property. The charge of the labor has to be separately stated for the repair or restoration of nonresidential real property damaged by the disaster. An Exemption certificate must be presented to the seller stating the reason such as “Repair due to Hurricane ____ in ______ county.”

For detailed guidance of these relief offerings, please consult with each States official for deadlines, forms, and additional information. Information on states’ relief offering can be viewed at:

California State Board of Equalization
Colorado Department of Revenue
Florida Department of Revenue
Georgia Department of Revenue
Idaho State Tax Commission
Illinois Department of Revenue
Kansas Department of Revenue
Louisiana Department of Revenue
Comptroller of Maryland
Ohio Department of Taxation
South Carolina Department of Revenue
Tennessee Department of Revenue
Texas Comptroller of Public Accounts
Texas Comptroller of Public Accounts
Washington State Department of Revenue

 

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