State & Local Tax Impacts of COVID-19

Thoughtware Alert Mar 25, 2020
People sitting at table with clipboard and scales

Information current as of March 26, 2020.

The novel coronavirus disease 2019 (COVID-19) is changing life across the globe. Many taxing jurisdictions are taking mitigating actions to create social distance and aid taxpayers. The following is a running list of actions by jurisdiction, which generally result in additional time to file and/or pay. Further, many jurisdictions have closed their offices to in-person use by taxpayers and suspended their audit and administrative functions. This alert doesn’t cover similar waivers from local-level taxing authorities. Many of these developments are quickly evolving; check with your BKD Trusted Advisor™ or visit our COVID-19 Resource Center for current information as needed.

Legislative Sessions

The following jurisdictions have suspended legislative activities as noted:

  • Alabama: Suspended until 3/31/2020
  • California: Suspended until 4/13/2020
  • Colorado: Suspended until 3/30/2020
  • Connecticut: Suspended until 3/30/2020
  • Delaware: Suspended indefinitely
  • Georgia: Suspended indefinitely
  • Hawaii: Suspended indefinitely
  • Illinois: House suspended until 3/30/2020
  • Iowa: Suspended until 4/15/2020
  • Kansas: Suspended until 4/15/2020
  • Louisiana: Suspended until 3/31/2020
  • Minnesota: Suspended until 4/15/2020
  • Mississippi: House suspended until 4/1/2020
  • Nebraska: Suspended indefinitely
  • New Hampshire: Suspended until 4/10/2020
  • New York: Senate suspended until further notice
  • Ohio: House suspended until further notice
  • Rhode Island: Suspended until 3/30/2020
  • Tennessee: Suspended until 6/01/2020
  • Vermont: Suspended until 3/24/2020
  • Wisconsin: Suspended indefinitely

Federal Tax

  • The IRS has issued a 90-day extension to the April 15 deadline to file and pay taxes. The IRS also removed the dollar limitations previously imposed on the deferral.
  • Colorado, Indiana, Michigan, Ohio and Oregon officials said they will mirror IRS guidelines as they’re updated throughout the pandemic.

Alabama

  • Alabama’s Department of Revenue (DOR) has extended the March motor vehicle registration and vehicle property tax payment deadlines to April 15.
    • Order of the Commission, March 16, 2020.
  • Small businesses that averaged $62,500 or less in monthly retail sales during the previous calendar year may file their monthly sales tax returns for the February, March and April 2020 reporting periods without paying the state sales tax reported as due. Late payment penalties will be waived for these taxpayers through June 1.
    • Order of the Commissioner of Revenue, March 18, 2020.
  • Late payment penalties for state lodging tax liabilities reported for February, March and April 2020 will be waived through June 1; the return filing deadlines won’t be waived.
    • Order of the Commissioner, March 20, 2020.
  • Alabama has mirrored the IRS’ return filing and payment extension for all taxpayers to July 15.
    • Order of the Commissioner, March 23, 2020.

Arizona

  • Arizona has moved the deadline for filing and paying state income taxes from April 15 to July 15, 2020. The extension applies to returns and payments for individuals, corporations and fiduciaries. Taxpayers filing returns or submitting payments by the new deadline will not incur late filing or late payment penalties.
    • DOR Notice, March 20, 2020.

Arkansas

  • The Arkansas deadline to file and pay state individual income taxes has been extended from April 15, 2020, to July 15, 2020.
    • Arkansas DOR FAQ, March 20, 2020.

California

  • The Employment Development Department (EDD) has announced that employers may request up to a 60-day extension of time from the EDD to file their state payroll reports and/or deposit payroll taxes without penalty or interest.
    • Emergency and Disaster Assistance for Employers, March 1, 2020.
  • The penalties and interest provisions applicable to the taxes and fees administered by the Department of Tax and Fee Administration are suspended for a period of 60 days after the date of the order for any taxpayer who’s unable to file a timely return or make a timely payment.
    • Governor’s Executive Order N-25-20, March 12, 2020.
  • The Franchise Tax Board (FTB) has extended the March 15 tax filing and payment deadline to July 15.
    • FTB News Release, March 20, 2020 (supersedes the March 13, 2020, notice).

Colorado

  • Colorado issued a tax extension for all filers, without penalty or interest, until July. Estimated tax payments due on or after April 15 also can be filed later.
    • Gov. Jared Polis announcement, March 20, 2020.

Connecticut

  • The filing deadlines for various annual tax returns due on or after March 15, 2020, and before June 1, 2020, are extended by at least 30 days.
  • The 2019 Form CT-1120 and CT-1120CU Connecticut corporation business tax return filing date and payment deadline is extended to June 15, 2020.
  • The 2019 Form CT-1065/CT-1120 SI Connecticut pass-through entity tax return filing date and payment deadline is extended to April 15, 2020.
  • The 2019 Form CT-990T Connecticut unrelated business income tax return filing date and payment deadline is extended to June 15, 2020.
    • DRS Extends Filing Deadline for Certain Annual State Business Tax Returns, March 16, 2020.
  • Individual income tax return and payment deadlines are extended from April 15 to July 15, 2020. The extension also applies to estimated tax payments for the first and second quarters of 2020.
    • Connecticut DRS Notice, March 20, 2020.

Delaware

  • Delaware’s deadline for filing personal income tax returns has been postponed to July 15.
    • Delaware DOR Notice, March 23, 2020.
  • The deadline for filing corporate final, corporate tentative, estimated personal income taxes and fiduciary income taxes is extended to July 15.
    • Delaware DOR Technical Information Memorandum 2020-01, March 23, 2020.

District of Columbia

  • The real property tax payment due date for hotels and motels related to the first-half installment of the 2020 tax year is extended until June 30.
    • COVID-19 Response Emergency Amendment Act of 2020 and DOR Notice 2020-01, March 18, 2020.
  • The District is providing sales/use tax relief as follows: Monthly filers must file by March 20, 2020, for the period ending February 29, 2020, and returns must be filed by April 20, 2020, for the period ending March 31, 2020. Quarterly filers must file by April 20, 2020, for the period ending March 31, 2020. All sales tax due for these must be paid in full by July 20, 2020, to receive full relief abatement of interest and penalties.
    • OTR Notice 2020-02, March 20, 2020.
  • The District has extended filing and payment deadlines for 2019 individual and fiduciary income tax returns, partnership tax returns and franchise tax returns to July 15.
    • OTR Release, March 23, 2020.

Florida

  • Florida’s DOR will offer flexibility on the deadlines of taxes due, including corporate income taxes and sales taxes, to help businesses adversely affected by the new coronavirus response efforts, with some corporate income tax payments that can be deferred until the end of the fiscal year.
    • Official guidance pending; Gov. Ron DeSantis announcement, March 16, 2020.

Georgia

  • Georgia will follow the federal government’s lead in extending its income tax deadlines to July 15.
    • Gov. Brian Kemp announcement, March 23, 2020.

Hawaii

  • Individual and corporate income tax returns and payments due between April 20 and June 20 are now due July 20. Taxpayers who are entitled to a refund or pay the tax due by July 20 will receive an automatic extension to file the associated return by Oct. 20. The relief does not apply to estimated income tax payments for the 2020 taxable year.
    • DOR Notice, March 23, 2020.

Idaho

  • Idaho is extending the deadline to file or pay income tax and ask for property tax relief for 60 days, until June 15. The extension applies to all taxpayers regardless of the amount owed and will abate all interest and penalties.
    • Gov. Brad Little proclamation, March 23, 2020.

Illinois

  • The estate tax due dates are extended by 30 days for estates with returns and payments due between March 16 and April 15.
    • Illinois Attorney General Important Notice, March 1, 2020.
  • The DOR provided sales tax payment relief for eating and drinking establishments that incurred a total sales tax liability less than $75,000 in 2019, as taxpayers won’t be charged penalties or interest on liabilities reported for the February, March and April reporting periods for timely filed returns. Delayed payments are due in 25 percent increments, on May 20, June 22, July 20 and August 20.
    • Illinois DOR Information Bulletin FY 2020-23, March 19, 2020.
  • Illinois will extend the filing deadline for individual income, corporate income and trust income tax from April 15 to July 15 to conform with the new federal deadline. This does not impact the first and second installments of estimated payments for 2020 taxes that are due April 15 and June 15.
    • Gov. J.B. Pritzker announcement and DOR FY 2020-24, March 25, 2020.

Indiana

  • The DOR is extending filing and payment deadlines to align with the IRS. Corporate and individual tax returns and payments, along with estimated payments originally due by April 15, are now due on or before July 15. Corporate income tax returns and payments originally due on May 15 are now due August 17. All other tax return filings and payment due dates remain unchanged.
    • Gov. Eric Holcomb announcement, March 19, 2020.

Iowa

  • Iowa is extending filing and payment deadlines for income, franchise and moneys and credits taxes with a due date on or after March 19 and before July 31 to July 31. This includes corporate income tax, individual income tax, composite returns, fiduciary returns, franchise tax, partnership returns, S corporation returns and credit union reports. The order excludes estimated payments.
  • Iowa also extended the income tax withholding deposit due date for the period ending March 15 from March 25 to the new deposit due date April 10.
    • Order 2020-01, March 19, 2020.
  • Iowa has temporarily suspended collections of property taxes as well as penalties and interest.
    • Gov. Kim Reynolds Supplemental State Public Health Emergency Declaration, March 20, 2020.

Kansas

  • While motor carriers and persons operating commercial vehicles must still obtain the requisite overdimension/overweight permits as required by the Department of Transportation before operating, the registration and fuel tax permit fees are temporarily waived.
    • Governor's Executive Order 20-09, March 20, 2020.
  • Kansas has extended homestead or property tax relief refund claim due dates to October 15 from April 15 for 2019 homestead or property tax relief refund claims.
  • Kansas has extended individual income, corporate income, fiduciary and privilege taxes to July 15 from April 15 for filing and payment for calendar and fiscal-year filers and no penalty and interest will be imposed until either extended due date. The extension doesn’t apply to estimated tax payments due April 15.
    • Kansas Governor’s Executive Order 20-13 and DOR Notice 20-01, March 23, 2020.

Kentucky

  • Kentucky is providing income tax return filing and payment extension from April 20 to July 15, 2020, for corporations, S corporations, partnerships, limited liability companies (LLC), fiduciaries and individuals. Kentucky will waive late filing and payment penalties for taxpayers who file returns and pay taxes by the July 15 deadline. Interest will still apply to the extended tax payments.
    • DOR Notice March 22, 2020.

Louisiana

  • The DOR is automatically extending the due date for the February 2020 sales tax return and payment from March 20 to May 20.
    • Louisiana DOR Information Bulletin 20-008, March 19, 2020.
  • The tax deadlines and legal proceedings are suspended until April 13, affecting corporate income, individual income and sales and use, property, excise and trust income taxes.
    • Governor’s Proclamation No. JBE 2020-30, March 16, 2020.
  • The due date for income tax returns and any payments due with the returns is extended to July 15.
    • Louisiana DOR Information Bulletin 20-009, March 23, 2020.
  • The filing date for personal property renditions was suspended until at least April 13 from April 1 previously.
    • Louisiana Tax Commission Advisory 02-2020, March 25, 2020.

Maryland

  • Individual, corporate, pass-through and fiduciary taxpayers are permitted an automatic income tax filing and payment extension with full waiver of any penalty and interest until July 15.
  • Business tax filing deadlines are extended to June 1, 2020, for returns with due dates during the months of March, April and May for businesses filing the following returns: sales and use tax; withholding tax; admissions and amusement tax; alcohol tax; tobacco tax; motor fuel excise tax; tire recycling fee; and the bay restoration fee.
  • Unclaimed property reports and payments for insurance companies are extended from April 30 to July 31.
    • Comptroller of Maryland Tax Alert 03-20, March 23, 2020.

Massachusetts

  • The DOR will provide an extension until June 20 for payments of sales, meals and room occupancy taxes for businesses that paid less than $150,000 in those taxes in 2018.
    • Massachusetts Emergency Regulation Section 62C.16.2.7, effective March 19, 2020.
  • The DOR will waive penalties for meals and room occupancy returns and payments due during the period of March 20 through May 31 for vendors whose cumulative sales and use tax liability in the 12 months ending February 29 was at least $150,000.
    • Massachusetts DOR Technical Information Release TIR 20-2, March 19, 2020.
  • The DOR has said the state will match any IRS tax relief from federal filing obligations and also may waive late filing penalties in certain circumstances.
    • Massachusetts DOR Press Release, March 20, 2020.

Michigan

  • Michigan is waiving late-filing penalties for sales and use tax and employer withholding for 30 days on original returns originally due March 20, 2020.
    • Treasury Department Notice, March 17, 2020.
  • Michigan is extending the deadline for residents to pay back property taxes and avoid foreclosure. The tax foreclosure deadline moves from March 31 to May 29, or 30 days after the state of emergency is terminated, whichever occurs first.
    • Executive Order 2020-14, March 18, 2020.

Minnesota

  • The DOR will provide a 30-day extension until April 20 for sales tax returns due March 20.
    • Minnesota DOR Notice, March 18, 2020.
  • The DOR will provide a 60-day filing extension for MinnesotaCare excise tax returns that were due on March 16, provided: 1) taxpayers must request an extension by April 15; and 2) taxpayers can request penalty and interest relief for reasonable cause on payments that were due March 16.
    • Minnesota DOR Notice, March 20, 2020.
  • The DOR will extend individual income tax return and payment deadlines to July 15, 2020. The grace period does not apply to state estimated tax payments for individual income taxes or to income taxes for business entities.
    • Minnesota DOR Notice, March 23, 2020.

Mississippi

  • Deadlines for 2019 individual income tax and corporate income tax filing and payments are extended until May 15. The extension also applies to the first-quarter 2020 estimated tax payment and withholding tax payments for the month of April. Penalty and interest will not accrue on the extension period through May 15, 2020. The extension does not apply to sales tax, use tax or any other tax types.
    • Mississippi DOR Notice 2020-01, March 23, 2020.

Missouri

  • The state is providing individual income, corporate income and trust income tax relief conforming to the IRS actions: 1) the filing deadline extension moves to July 15 from April 15; 2) the extension for estimated tax payments for the 2020 tax year is similarly extended; 3) interest and penalty waiver for taxpayers who file their return or request an extension by July 15.
    • Governor's News Release, March 21, 2020.

Montana

  • The DOR extended individual income tax filing and payments to July 15 in accordance with the new federal filing deadline. The deadline for those making estimated tax payments for the first quarter of 2020 also has been extended to July 15.
    • Montana DOR Notice, March 20, 2020.

Nebraska

  • Nebraska has extended the due date for individual income, corporate income and trust income tax filings and payments to July 15 from April 15. This extension includes estimated payments originally due on April 15. Taxpayers must request abatement of penalty and interest.
    • Governor’s Office, News Release, March 23, 2020.

New Jersey

  • New Jersey will extend its state tax deadlines to match the IRS extended deadlines, but the new due date will be no later than June 30, 2020.
    • AB 3841, passage pending in the New Jersey Senate.

New Mexico

  • The DOR has announced extended return and payment deadlines for corporate and personal income tax returns and payments due between April 15 and July 15, which may be submitted without penalty no later than July 15. Withholding returns and payments due between March 25 and July 25 may be submitted without penalty no later than July 25. While no penalties will be imposed if a taxpayer complies with the extensions, the DOR notes that it’s statutorily prohibited from waiving interest imposed on late payments from the original statutory due date.
    • New Mexico DOR Bulletin B-100.35, March 20, 2020.

New York

  • New York will follow the IRS in waiving penalties and interest for late tax returns and payments filed by July 15 and also will waive penalties and interest on sales tax collections due March 20 (the sales tax deadline will stand, but penalties and interest won’t be charged).
    • Gov. Andrew M. Cuomo and State Budget Director Robert F. Mujica announcement, March 20, 2020.
  • New York will abate interest and penalties on sales tax collections due March 20, extending these filings an extra 60 days.
    • Department of Taxation and Finance Notice No. N-20-1, March 20, 2020.

North Carolina

  • The DOR is providing a penalty waiver applicable to tax deadlines falling between March 15 and March 31, as long as the filing or payment is made by April 15. Taxpayers seeking the extension must file a state form NC-5500 and write “COVID-19” at the top.
    • North Carolina DOR Notice, March 17, 2020.
  • The DOR will waive late tax payment penalties through July 15 for individual income, corporate income and trust income taxpayers. Interest won’t be waived, and the due date for filing remains April 15.
    • North Carolina DOR Notice, March 19, 2020.
  • The DOR will extend the state’s income tax deadline to July 15, which is the new federal income tax deadline.
    • North Carolina DOR Notice, March 20, 2020.

North Dakota

  • The DOR has noted that while the income tax filing deadline remains April 15, no penalty or interest will be assessed if the return and payment are filed by July 15.
    • DOR Guidance on COVID-19, March 20, 2020.

Ohio

  • DOR officials have indicated they will mirror the IRS deadlines.
    • Pending official guidance.
    • H.B. 565 would extend the filing and payment dates for state, municipal and school district income taxes by the same period as any federal income tax extension granted in response to COVID-19.

Oklahoma

  • Oklahoma will mirror the IRS deadlines and provide both income tax filing and payment extensions from April 15 to July 15. This extension also applies to the first-quarter payment for tax year 2020, normally due on April 15.
    • Tax Commission Order, March 20, 2020.

Oregon

  • The DOR won’t assess underpayment penalties on taxpayers making a good faith effort to estimate their first-quarter corporate activity tax payments due April 30.
    • DOR Notice, March 13, 2020.
  • The DOR said the state is tied to IRS filing and payment due dates for personal income taxes and will automatically match the IRS extended due date of April 15 and also may waive penalties under certain circumstances.
    • Oregon DOR announcement, March 20, 2020.
  • The due dates for February monthly fuel tax reports are extended by two weeks; monthly use fuel user and seller reports are due April 3, and motor vehicle fuel dealer, bulk distributor and terminal operator reports are due April 8.
    • Oregon Governor’s Office Notice, March 23, 2020.

Pennsylvania

  • The DOR has extended the filing deadline for state taxpayers until July 15, giving filers an extra 90 days. The DOR also will waive penalties and interest on 2019 personal income tax payments through the new deadline, both for final 2019 tax returns and payments, and estimated payments for the first and second quarters of 2020.
    • Pennsylvania DOR Notice, March 23, 2020.
      • The statutory deadline for holders to file and remit unclaimed property remains April 15, 2020. However, the DOR will waive all fines, penalties and interest otherwise applicable for all late-filed reports and property received by the DOR on or before June 15, 2020.
    • Pennsylvania Treasury website, March 25, 2020.

Puerto Rico

  • The Puerto Rico Treasury Department (PRTD) has extended the due date for income tax returns and tax payments due in March to April 15, 2020. For returns and payments originally due April 15, 2020, the PRTD has extended the due date to May 15, 2020.
  • In addition, pass-through entities with estimated tax payments due in March will have until April 15, 2020, to make those payments. Taxpayers with estimated tax payments originally due April 15, 2020, must make those payments on or before May 15, 2020.
  • The time to satisfy certain sales and use tax obligations and to file informative returns and other returns and payments due in March is extended to April 15.
    • Puerto Rico Administrative Determination 20-03.
  • The Puerto Rico Treasury Department (PRTD) extended the due dates for various returns. The due date for monthly sales tax returns and payments due March 20 is extended to April 20, 2020. The PRTD also extends the due date for any SUT payments corresponding to February 2020 from March 20 to April 20, 2020. The PRTD also will not impose penalties on biweekly sales and use tax payments due in March.
  • For all other tax types besides income tax, the PRTD is extending the return and payment due date by one month, counted from the original due date. The extension applies to other returns, payments and deposits due from March 15 to April 15, 2020.
  • Bonds and internal revenue licenses with a due date from March 15 to March 31, 2020, are automatically extended to April 30, 2020.
    • Puerto Rico Administrative Determination 20-05, March 17, 2020.

Rhode Island

  • The Division of Taxation has announced that it will mirror the federal income tax deadline extensions; therefore, the filing and payment due date for Rhode Island corporate and personal income taxes is extended 90 days, to July 15, 2020.
    • Pending further guidance; DOR Notice, March 20, 2020.

South Carolina

  • Tax returns and payments normally due from April 1 through June 1 now are all due June 1, and penalties and interest won’t be charged for those extensions. This includes state individual and corporate income, sales and use, admissions and other taxes that are filed and paid to the DOR.
    • South Carolina Information Letter 20-3, March 17, 2020.
  • The DOR will extend the April 15 tax filing deadline to July 15 for individual, corporate and franchise taxes to mirror the announced deadline change from the IRS.
    • South Carolina Information Letter 20-4, March 23, 2020.

Tennessee

  • Tennessee will extend the deadline for businesses to file returns and make payments on the state’s franchise and excise taxes by three months to July 15.
    • Gov. Bill Lee announcement, March 24, 2020.
  • Tennessee has announced that franchise and excise taxpayers will have until July 15, 2020, to file returns and make any payments, including quarterly estimated payments, originally due April 15, 2020. Interest and late filing penalties will not be applied to returns filed and payments made by the extended due date.
    • Tennessee DOR Notice No. 20-05, March 25, 2020.

Texas

  • The state is granting an extension of up to 90 days past the original due date to pay the motor vehicle tax due on purchased motor vehicles. The extension does not apply to seller-financed motor vehicles sales.
    • Texas Comptroller COVID-19 News, March 23, 2020.

Utah

  • Utah’s individual income tax return due date is the same day as the federal individual income tax return due date; if the IRS changes the due date with reasons related to the outbreak, Utah also will extend its due date.
    • DOR Notice, March 17, 2020.
  • Utah has extended the individual income, corporate income and trust income tax filing and payment date to July 15 without penalties and interest.
    • Utah DOR Notice, March 20, 2020.

Vermont

  • Vermont announced that the filing and payment due dates for the following Vermont taxes have been extended from April 15 to July 15, 2020: corporate income tax, personal income tax, homestead declarations and property tax claims and fiduciary income tax. This includes any tax year 2020 estimated payments that were due for these taxes on April 15, 2020. Furthermore, taxpayers who are unable to meet the March 25 and April 25 sales and use tax deadlines will not be charged any penalty or interest on these taxes for late submissions.
    • Vermont DOR Press Release, March 23, 2020.

Virginia

  • Virginia is allowing sales and use tax dealers to request an extension of the February 2020 sales tax return due date from March 20 to April 20. The extension includes a waiver of any penalties, but interest will continue to accrue.
    • Virginia Tax Bulletin 20-3, March 19, 2020.
  • Virginia has announced an income tax payment extension and waiver of late payment penalties for any income tax payments due from April 1 to June 1, which can be submitted to the Department of Taxation by June 1 without penalty. Interest will continue to accrue from the original due date. Taxes eligible for the payment extension and penalty waiver include individual, corporate and fiduciary income taxes, as well as any estimated income tax payments that are required to be paid to the department during this period. The announcement doesn’t provide a filing extension.
    • Virginia Tax Bulletin 20-4, March 20, 2020.

Washington

  • The DOR will provide extensions for filing and payment for purposes of the business and occupation tax, as well as other taxes it administers, of 60 days for monthly filers and 30 days for quarterly and annual filers.
    • DOR News Release, March 19, 2020.

West Virginia

  • West Virginia is extending both the filing and payment deadlines for state income taxes until July 15 to match the federal relief.
  • The state also is waiving interest and penalties on property tax filings until May 1.
    • Gov. Jim Justice announcement, March 25, 2020.

Wisconsin

  • Announced an extension to July 15, 2020, for corporate and individual income tax payments, estimated income tax payments and returns due April 15, 2020.
    • Wisconsin DOR Notice, March 21, 2020.

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