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Coronavirus Tax Coverage

In response to COVID-19, the Massachusetts Department of Revenue has adopted an emergency amendment to a regulation governing the application of the state and local room occupancy excise tax to transfers of occupancy in a bed and breakfast establishment, hotel, motel, lodging house, or short-term rental to suspend return filing and payment remittance obligations for operators whose cumulative liability in the 12-month period ending February 29, 2020, is below $150,000.
The Connecticut comptroller announced that the state is projecting a $249.8 million budget surplus for fiscal 2021 — an upgrade from last month's forecast — led by increased withholding tax receipts, which are 3.8 percent above fiscal 2020 levels, through March 2021; the recent economic improvements are also attributable to federal COVID-19 relief efforts, as well as the continued rollout of COVID-19 vaccinations.
The Massachusetts Department of Revenue has issued a technical information release announcing that it will waive any late filing or payment penalties for returns and payments due during the period March 20, 2020, through June 1, 2021, for vendors with meals tax return and payment obligations and operators and intermediaries with room occupancy excise tax return and payment responsibilities that don't qualify for relief under recently promulgated emergency regulations (830 CMR 62C.16.2 and 830 CMR 64G.1.1).
The Pioneer Institute released a paper examining how increased interstate tax and regulatory competition during the COVID-19 pandemic — which has caused many workers to telecommute — could lead to long-term fiscal and economic problems in Massachusetts as other states “lure major corporations” with tax incentives; the paper concludes that Massachusetts could address the potential exodus of “talented workers” by not imposing further tax increases.
The Idaho State Tax Commission — ahead of the May 17 extended income tax filing and payment deadline — advised taxpayers to file electronically; check for free e-filing offers; determine whether COVID-19-related income is taxable; ensure that their returns are complete; schedule electronic payments; and provide additional information to the commission when requested.
The California Franchise Tax Board announced that the state has begun issuing one-time Golden State Stimulus payments made available by recently enacted legislation to qualifying low-income taxpayers and claimants of the state’s earned income tax credit who file state individual income tax returns with a Social Security number or an individual taxpayer identification number.
The Massachusetts Department of Revenue has adopted an emergency amendment to a regulation explaining the procedures for payments of sales and use tax liabilities to suspend return filing and payment remittance obligations for vendors whose cumulative sales and use tax liability in the 12-month period ending February 29, 2020, is less than $150,000; returns and payments due between March 20, 2020, and June 1, 2021, including any local option amounts, are now due October 30, 2021.
The Massachusetts Department of Revenue commissioner has reported that April revenue collections were up $1.885 billion — or 95.1 percent — from April 2020, with increases in receipts from income tax, sales and use tax, income tax estimated payments, corporate and business tax, and withholding tax of $1.057 billion, $468 million, $414 million, $330 million, and $183 million, respectively.
The Indiana Department of Revenue has released guidance regarding the state and federal tax treatment of 2020 unemployment compensation in light of recently enacted legislation, answering frequently asked questions for affected individuals filing individual income tax returns, and also referring taxpayers to a recently updated information bulletin addressing additional federal and state conformity issues.
The Pennsylvania Department of Revenue has reminded low-income residents ahead of the May 17 personal income tax filing deadline that they could be eligible for a partial or complete reduction in their Pennsylvania personal income taxes of up to $1,000 through the state's tax forgiveness program.