Alabama – Updates Reported
Registration Fee Increase for Battery Electric Vehicles: By Memorandum dated June 8, 2023, the Alabama Department of Revenue (Department) announced that beginning July 1, 2023, the registration fee for each battery electric vehicle and each plug-in hybrid electric vehicle will increase by $3. The Department noted in this Memorandum that the Rebuild Alabama Act, enacted in 2019, imposed a registration fee of $200 for each battery electric vehicle and $100 for each plug-in hybrid electric vehicle operating on public highways in Alabama, such fees being effective January 1, 2020. With this increase as announced in the Memorandum, the registration fee for battery electric vehicles will be $203, and for plug-in hybrid electric vehicles will be $103. Contact information is provided in this Memorandum for any questions. More information can be found here.
District of Columbia – Updates Reported
Tax Sale Online Seminar To Be Conducted: By news release dated June 9, 2023, the Office of Tax and Revenue (OTR) announced that two online seminars will be conducted via Webex by the OTR so as to explain tax sale procedures involving real property. The OTR stated that all persons interested in participating in this annual seminar are encouraged to attend so as to learn critical information relating to the tax sale process. According to this news release, the June seminars are to be held on June 28 and June 29, 2023, at the times set forth in the news release. Registration for these seminars is open from June 19 through June 26, and instructions on registering for the seminars are set forth in the news release. July seminar dates will be announced at a later time. More information can be found here.
Florida – Updates Reported
E-Verify System Requirements Effective July 1, 2023: On June 15, 2023, the Florida Department of Revenue (Department) published Tax Information Publication No: 2373B-01 addressing E-Verify System requirements effective July 1, 2023. In this Publication, the Department stated that Florida public agencies and private employers with 25 or more employees are required to use E-Verify effective July 1, 2023. As referenced in this Publication, E-Verify is an internet-based application operated by the U.S. Department of Homeland Security that allows employers to electronically verify employment eligibility of newly hired employees. An employer must verify each new employee's employment eligibility within three business days of the new employee working for salary, wages, or other remuneration. This Publication also reviews the applicability of the E-Verify System to employee leasing companies, as well as addressing other responsibilities of agents and management companies. The Publication states that the Florida Department of Commerce (known prior to July 1, 2023, as the Florida Department of Economic Opportunity) is required to issue a fine of $1,000 per day if it is determined that the E-Verify System was not used three times in a 24-month period; and that the fine will continue to accrue until the employer demonstrates compliance with the law. More information can be found here.
Georgia – Updates Reported
Homestead Assessed Value Reduced: The Georgia Legislature passed, and Governor Kemp signed HB 18 which is a supplemental appropriations bill for the fiscal year ending June 30, 2023. Buried in this bill is a provision that will provide for a one-time reduction in property taxes for homestead owners in fiscal year 2023. The tax relief is accomplished by an $18,000 reduction of the assessed value of homestead property for the year 2023, pursuant to the following steps: (a) following preparation of property tax bills, the local tax official notifies the Georgia Department of Revenue (Department) of the total anticipated revenue if all applicable millage rates were applied to all qualified homesteads, and the local tax officials apply to the Department for this money; (b) the Department issues credits appropriated by the General Assembly to the local taxing authorities, but the credits cannot exceed liability once all applicable homestead exemptions and millage rollbacks have been applied; and (c) appropriation of funds is conditional on local taxing authorities reducing taxpayers' liability and including a notice on each tax bill stating that the reduction comes from the General Assembly. It is noteworthy that the property tax relief does not apply to rental property and is subject to repayment if it is found to benefit the owner of the rental property. More information can be found here.
Louisiana – Updates Reported
Sales Tax Collection Thresholds Modified for Remote Sellers and Facilitators: In late May 2023, the Louisiana Legislature passed HB171, which was subsequently signed by the Governor on May 30, 2023. That legislative initiative, which is now Act No. 15, modified the sales tax collection responsibilities for remote sellers and facilitators effective August 1, 2023, so as to eliminate the threshold requirement involving 200 or more separate transactions. The foregoing threshold, which was one of two thresholds approved by the United States Supreme Court on June 21, 2018, in the case of South Dakota vs. Wayfair, Inc., et al., imposes sales tax collection responsibilities upon a remote seller engaging in 200 or more separate transactions for delivery into the taxing state during a year. With the removal of that threshold, which has been removed or otherwise never adopted in many other states, a remote seller after the effective date of Act No. 15, will be responsible for collecting Louisiana's sales tax if that seller's gross revenues for sales delivered into Louisiana exceeds $100,000 from otherwise taxable transactions. Act No. 15 also makes this same threshold modification for marketplace facilitators selling into Louisiana. Still further, Act No. 15 modified the definition of remote sales to include only retail sales as defined under Louisiana law for marketplace facilitators. Other modifications relative to marketplace facilitators are also included within Act No. 15. More information can be found here.
Maryland – Updates Reported
New Advisory Councils and Work Groups: On May 23, 2023, the Comptroller of Maryland (Comptroller) published a News Release announcing that 11 new Advisory Councils and Work Groups (Groups) will be convened to provide opportunities for members of the public to help advise the agency on its strategic direction. According to this News Release, the application process has been opened for those who would like to serve on these Groups. As referenced in this Release, one of the key recommendations of the Transition Report was to strengthen the links between the Comptroller and the community by creating Groups to hear from residents, make recommendations, and ask questions of the administration. As a result, the Comptroller will establish 11 new Advisory Councils and Work Groups, including a Business Advisory Council, a Climate Advisory Council, an Information Technology Work Group, and a Tax Practice Work Group, among others as listed in the Release. According to this Release, the deadline to apply is June 23, 2023. More information regarding the application process is set forth in the Release and can be found here.
Mississippi – Updates Reported
Further Notice to Medical Cannabis Establishments: In late April 2023, the Mississippi Department of Revenue (Department) issued Notice 72-23-04 in which the Department stated that with respect to the sales tax return requirements for medical cannabis establishments, those establishments should use the rate code eighty-three (83) for reporting medical cannabis sales and should use rate code seventy-four (74) to report all other sales. The Department stated that items reported under rate code eighty-three (83) include all medical cannabis products; whereas items reported under rate code seventy-four (74) would include any items sold but do not contain medical cannabis. For any questions, contact information for the Department is provided in this Notice. More information can be found here.
North Carolina – Updates Reported
2023 Motor Carrier Seminars: The North Carolina Department of Revenue (Department) recently announced that it has partnered with the Federal Motor Carrier Safety Administration, the North Carolina Division of Motor Vehicles, and the North Carolina State Highway Patrol, to present Motor Carrier Seminars on July 18, 19, and 20, 2023, at locations designated in the announcement. The Department stated that there is no cost to attend, but registration is required. The seminar location and registration information in the announcement can be found here.
South Carolina – Updates Reported
Debit Cards for Refunds No Longer Issued After June 29, 2023: On June 1, 2023, the South Carolina Department of Revenue (Department) issued a News Release stating that the Department will no longer issue individual income tax refunds as debit cards after June 29, 2023. The Department stated that this action follows the decision by Bank of America, the Department's prepaid debit card provider, to phase out its prepaid debit card program. The Department noted that the vast majority of South Carolina taxpayers choose to receive their refunds as direct deposits or paper checks, with direct deposit remaining as the Department's recommended refund option. This Release sets forth what both the Department and Bank of America will do relative to the phase out of using debit card refunds; and it also sets forth what cardholders should do if the cardholder has an active refund prepaid debit card with a balance. Additionally, the Department's contact information for questions is set forth in this Release. More information can be found here.
Tennessee – Updates Reported
Interest Rate Increased: On June 12, 2023, the Tennessee Department of Revenue (Department) issued a Notice of Determination of Interest Rate in which the Department announced that the interest rate on all taxes collected or administered by the Department will be 12.5 percent, effective July 1, 2023, through June 30, 2024, which is up from eight percent effective July 1, 2022, through June 30, 2023. Additionally, the Department announced in that Notice that the interest rate on all tax liabilities paid in installments by agreement with the Department will be 13.25 percent for the period beginning July 1, 2023, through June 30, 2024, which is up from 11 percent for the period beginning July 1, 2022, through June 30, 2023. More information can be found here.
Texas – Updates Reported
Saving for Higher Education: On May 24, 2023, the Comptroller's Office published a Release in which the Comptroller encouraged families to save for their children's higher education expenses using the Texas 529 college plans. In that regard, the Comptroller stated in this Release that Texas offers three tax-advantaged 529 plans, those being the Texas College Savings Plan, the LoneStar 529 Plan, and the Texas Tuition Promise Fund. More information regarding each of those savings opportunities is set forth in this Release, which can be found here.
