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Alabama
The state’s sales and use tax rate on food will be reduced to 3% from 4% effective September 1, 2023. Sales and use tax returns for September 2023 due in October will have a separate column where qualified food items must be reported. City and county sales and use tax rates on food will be equal to their general sales tax rate in effect as of June 15, 2023. Local governments can reduce their rate on food in .25% increments in any year where there is sufficient growth in their local General Fund.
Arkansas
Under the newly-signed House Bill 1026, counties, municipalities, and other local governments are now prohibited from levying a tax on income. While there are currently no local income taxes in Arkansas, under prior law localities had the authority to impose an income tax if approved by a majority of its voters.
Maine
Governor Janet Mills signed a budget bill in mid-July that establishes the Dirigo Business Incentive Program to provide tax credits to businesses to train workers and invest in capital. This program terminates the Pine Tree Development Zone (PTDZ) program.
The new bill also increases the annual income tax pension deduction beginning in 2024 by tying it to the maximum annual Social Security benefit, which is tied to inflation.
And the bill updates the date from which the state conforms to the Internal Revenue Code to December 31, 2022.
More information on the budget bill is available by clicking here.
Minnesota
Minnesota taxpayers who were state residents during 2021, filed certain state tax returns by the end of 2022, and who meet certain income thresholds are eligible for a one-time tax rebate payment this fall. Rebates for joint filers equal $520 or $260 for single/head of household/married taxpayers filing separately.
The rebate payments should happen automatically for taxpayers who meet the eligibility criteria, and will either be directly deposited to the bank account on record or mailed to the same address on the recipient’s 2021 return. The timeframe for updating addresses has already passed, but taxpayers with additional questions can contact the Minnesota Department of Revenue by clicking here.
Missouri
The state has released an updated sales and use tax rate lookup map that provides current tax rates and boundaries for addresses throughout Missouri. It can be found by clicking here.
Nevada
Effective July 1, 2023, the Nevada modified business tax rate for general businesses will be reduced to 1.17% from its current 1.378%.
New Mexico
Here are three tax-related legislative changes taking effect as of July 1, 2023:
The statewide portion of the Gross Receipts Tax (GRT) will drop to 4.875% from its current 5.125% level as of July 1, 2023. This is the first GRT rate reduction in 40 years, and is due to the state’s “excellent financial condition” according to Taxation and Revenue Secretary Stephanie Schardin Clarke.
The state’s child tax credit for 2023 will be larger for families with less than $75,000 of AGI. Under new legislation, the credit will range from $25 to $600 per child, depending on family income. The child tax credits will also now be indexed for inflation.
The minimum amount of delinquent tax that Taxation and Revenue can assess now increases to $50 from its current $25. This change is intended to eliminate very small assessments.
North Dakota
The state’s legislature reduced personal income tax rates retroactively to January 1, 2023 by collapsing the five tax brackets down to three. New tax rates are 0%, 1.95%, and 2.5% (down from the highest rate of 2.9% before 2023).
- Updated tax forms and instructions have now been released, including estimated tax forms for individuals, estates and trusts and fiduciary estimated payments.
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