State by State News

Alabama

Qualifying Alabama taxpayers will begin receiving one-time tax rebates beginning December 1, 2023. Eligible taxpayers include those who filed a 2021 individual tax return received by the Department of Revenue on or before October 17, 2022. The amount of the rebate is based on the taxpayer's filing status:

• Single, head of family, and married separately - $150
• Married filing jointly - $300

Rebates will be issued in the same form of payment as 2021 tax refunds, or if the taxpayer did not receive a 2021 refund, as a paper check. More information is available from the Department of Revenue website by clicking here.

Colorado

Property Tax Relief – Due to new legislation signed in November, the property tax rate for 2023 will be temporarily reduced for residential property; certain administrative deadlines have been extended; and delinquent interest will not be imposed under certain circumstances.

Taxpayer’s Bill of Rights (TABOR) Refund – For 2023 only, TABOR state sales tax refunds claimed on income tax returns or PTC applications will provide an equal refund of $800 for all qualifying individuals and $1,600 for two qualifying individuals filing jointly. More information is available here.

Maine

Income tax rates, personal exemption, and standard deduction amounts have been released by the Maine Revenue Services and can be found by here.

Texas

Franchise Tax - The state’s Franchise Tax No Tax Due Report will be discontinued starting in 2024, due to an increase in the revenue threshold to $2.47 million. Instead, entities that currently file a No Tax Due Report will be subject to the following requirements:

Taxable entities whose annualized total revenue is at or below the no tax threshold do not owe any tax and are not required to file a franchise tax report. However, they are still required to file a Public Information Report (PIR) or Ownership Information Report (OIR).

A combined group must include all taxable entities in the combined group report even if any member, on a separate entity basis, has annualized total revenue at or below the no tax due revenue threshold. If a combined group's annualized total revenue is at or below the no tax due revenue threshold, the combined group is no longer required to file a franchise tax report, an Affiliate Schedule (Form 05-166), and a Common Owner Information Report (Form 05-177) for that report year. Each individual member of the combined group that is organized in Texas or has nexus in Texas must file a PIR or OIR.

Wisconsin

The state tax treatment of contributions to a health savings account will be consistent with federal tax treatment retroactive for taxable years beginning after 2021. This includes an income deduction for state tax purposes for HSA contributions if an individual is covered by a high deductible health insurance plan even if it does not provide a deductible for telehealth services.

For more about State and Local Tax visit MizeCPAs.com