Sales Tax Updates

State Tax

  • Disaster Relief Sales and Use Tax Refund Expansion

    • The KRS 139.519 states that a legal building owner with damaged property from a disaster in a federally declared disaster area may qualify for a refund of the sales and use tax paid on the purchase of building materials for repair of the existing building or for construction to replace a destroyed building in the disaster area.

      The following declarations have been issued and remain eligible for sales and use tax refund claims:

      • Key Points

        1. Eligibility: The program provides sales tax refunds on building materials purchased for repair or replacement of damaged property due to a natural disaster. To be eligible, the property must be used in Kentucky and the materials must be used for the repair or reconstruction of the damaged property.

        2. Application Process: Eligible individuals must apply for the refund by submitting a completed application form along with proof of purchase and documentation of the disaster event.

        3. Documentation: Required documents include the following: receipts for the building materials, proof of damage (like insurance claims or disaster declarations), and an itemized list of the materials purchased.

        4. Refund Amount: The refund covers the sales tax paid on the eligible building materials. It does not cover the cost of the materials themselves.

        5. Time Limits: There are specific time limits that the application must be submitted after the disaster occurs and after the materials are purchased.

      To read more, check out the declaration from the Department of Revenue.

  • Contesting Disagreed Audits, Examinations and Refund Denials

    • Publication 96-1253 from the Texas Comptroller of Public Accounts details how to contest disagreed audits, examinations, and refund denials. It outlines the procedures and steps that individuals or businesses should follow if they disagree with the results of an audit or examination or if their refund request has been denied. Likewise, it relays information on filing a protest, the necessary documentation, and the deadlines for submitting appeals.

      To read more, visit the Texas Comptroller of Public Accounts's website now.

    Jurisdictions that Impose Local Tax on Telecommunication Services

    • Publication 96-339 gives updated information as of June 2024 on jurisdictions within Texas that impose local sales taxes on telecommunications services. The document include which areas have implemented these taxes. For specific tax rates and affected locations, the document should be consulted directly.

      To read more, visit the Texas Comptroller of Public Accounts's website now.

    Texas Comptroller of Public Accounts STAR System

    • The document outlines specific guidance and clarification on a tax matter related to the STAR System. The details of the ruling would offer insights into how certain stipulations or interpretations of Texas tax laws would apply to the situation referenced.

      To read more, visit the Texas Comptroller of Public Accounts's website now.

    Mixed Beverage Taxes - What You Can Expect

    • Publication 96-1780 lists guidelines on the taxation of mixed beverages in Texas. This document includes information about the tax rates, reporting requirements, and compliance obligations for businesses involved in selling or serving mixed beverages. This can help if you're a business that needs to understand their responsibilities under Texas law regarding mixed beverage taxes, including how to accurately calculate and remit these taxes.

      To read more, visit the Texas Comptroller of Public Accounts's website now.

  • Requests for Waiver of Electronic Filing and Payment Requirements

    • This document details West Virginia's requirements for electronic tax filing and payment.

      1. Electronic Filing Requirement: Taxpayers who had annual tax remittances of $50,000 or more must file all tax returns electronically, including business, excise, and personal income tax returns.

      2. Waiver Requests: Taxpayers can request a waiver from electronic filing and payment requirements if they can prove undue hardship or that the requirement resulted from an isolated event. Requests must be submitted in writing, at least 30 days before the start of the calendar year, using Form WV-EFT-WR.

      3. Undue Hardship: This can be defined as excessive or insurmountable difficulty, judged on a case-by-case basis. General objections to technology or high costs relative to the tax amount can be insufficient grounds for a waiver.

      4. Electronic Payment Methods: Options include ACH Credit, the MyTaxes website for filing and communication, credit card payments through the State Treasurer’s site, and Modernized e-filing (MEF) for certain taxes.

      5. Notification and Compliance: Taxpayers will be notified if they need to file and pay electronically and must continue to do so until a waiver is granted. If a waiver is approved, taxpayers can file and pay by other means for 12 months. After 12 months, they must reapply for a new waiver if needed.

      6. Tax Preparers: Paid tax preparers must use Form HW-1 for waivers instead of Form WV-EFT-WR. Combined Filers of Corporate Income Tax should contact Taxpayer Services directly for waiver procedures.

      For more detailed information, taxpayers are encouraged to visit www.tax.wv.gov.

      Read more now.

    Small Business Property Tax Adjustment Credit

    • Starting January 1, 2024, small businesses in West Virginia can claim a Small Business Property Tax Adjustment Credit on their 2024 income tax return, filed in 2025. This credit applies to 50% of the personal property tax paid on qualifying real property, excluding automobiles.

      • Eligibility Criteria:

        • Small businesses with an aggregate appraised personal property value of $1 million or less.

        • Must file personal property assessment returns by September 1 (businesses) or October 1 (individuals).

        • Must pay personal property taxes by October 1 (first half) and April 1 (second half).

      • Additional Details:

        • The credit is only for taxes paid on West Virginia personal property, not including public service companies or entities involved in oil or natural gas production.

        • For businesses with multiple members, the credit needs to be distributed among members based on their share of profits and losses.

        • Payments made in 2023 but due in 2024 are still considered timely and will not incur penalties.

    For more information and to verify eligibility, contact your County Assessor or visit tax.wv.gov.

    Read more now.

    Nonresident Wage Income Guidance Updated

    • For nonresidents working in West Virginia, TSD 437 states that wage income is subject to West Virginia personal income tax based on where the work was performed. This includes:

      1. Severance Pay: Taxed based on where the employee's work was conducted.

      2. Equity-Based Awards: Distributed based on where the award was granted and exercised, and the percentage of work done in West Virginia during the vesting period.

      3. Deferred Compensation: Distributed proportionally based on the ratio of days worked in West Virginia to the total days worked.

      Guaranteed Payments:

      - To current partners, treated like distributive share for tax purposes, with withholding required unless included in a composite return.

      - To retired partners, treated as distributive share for federal purposes, but not taxable by West Virginia if classified as retirement income under federal law.

      Qualified Deferred Compensation:

      - Includes pensions, 401(k), IRA, and 457 plans. These are generally not taxable by West Virginia for nonresidents or are exempt under federal law.

      Nonresident Mobile Employees:

      - West Virginia income is excluded for nonresidents working 30 days or fewer in the state in a year, provided certain conditions are met (e.g., working in multiple states, not being a professional athlete or entertainer).

      - Employers must withhold tax if the employee works more than 30 days in the state.

      Withholding Requirements:

      - Employers are not required to withhold taxes if the employee’s income is exempted, unless they work more than 30 days in West Virginia. In such cases, withholding applies for every day worked.

      - Employers can use time and attendance records or employee statements to determine the number of days worked in West Virginia.

      This guidance is aimed at ensuring proper taxation and withholding practices for nonresidents working in West Virginia.

      Read more now.

Oil and Gas Tax

  • Frequently asked questions about applying for registration for the Clean Fuel Production Credit under § 45Z

    • The FS-2024-25 answers many FAQs and also provides clarification:

      1. Registration Requirement: Each business unit with a separate EIN that produces clean fuel must apply for registration separately using Form 637. This applies to both related entities with separate EINs.

      2. Disregarded Entities: Disregarded entities (for income tax purposes) that produce clean fuel must apply for registration individually, rather than being covered under their parent entity's registration.

      3. Claiming the Credit: An entity that owns a disregarded entity registered for the Clean Fuel Production Credit can claim the credit using the registered disregarded entity’s registration number, even if the owner itself is not registered.

      For more information, visit IRS.gov.