[co-author: Jorge del Castillo Golding]

As state and local governments continued to announce extensions and other relief, we have revised our original post to include the most recent announcements. We will continue to revise as more information is made available.

As we practice social distancing during the COVID-19 (coronavirus) outbreak, our state and local governments, like the federal government, are working through their response to the outbreak. The most common response by state and local governments has been the extension of filing and payment deadlines, however, some states are responding in other ways such as promising to assist with small business loans or changing the qualifications for unemployment benefits.

Deadline extensions are extremely beneficial to many businesses that may not currently have the human resources required to file such returns, or possibly the funds to pay due to impacted business operations and are a welcome reprieve to those in that situation. Some states, such as Texas, indicated that they could not extend all their filing or payment deadlines (such as the February sales and use tax filing and payment) as these funds were needed to continue to provide emergency services across the state. While this is a catch-22, many taxpayers appreciate their government’s flexibility in these trying times.

Below is a summary of various state and local actions, which may continue to change and evolve over time as each jurisdiction seeks different remedies and incentives.

Filing and Payment Extensions:

Alabama

Small businesses whose monthly retail sales during the previous calendar year averaged $62,500 or less 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, provided it is paid by June 1, 2020. The state will waive late payment penalties through June 1, 2020. Additionally, March 2020 motor vehicle registration and vehicle property tax payment deadlines were extended to April 15, 2020. Also, the deadline for individual income tax, corporate income tax, financial institution excise tax (FIET), and business privilege tax (BPT) has been extended from April 15, 2020, to July 15, 2020.

Arizona
Deadline for filing and paying state income taxes has been moved from April 15 to July 15, 2020.

Arkansas
State deadline to file and pay individual income taxes (Individual Income Tax, Subchapter S Corporations, Fiduciary and Estates, Partnership Income Tax and Composite Returns originally due on 15 April 2020) has been extended to July 15, 2020. This extension does not apply to 2020 estimated Individual Income Tax payments due on April 15 or June 15. The penalty for late registration of motor vehicles or for the late renewal of a registration of a motor vehicle is also suspended until April 16, 2020.

California

The FTB is postponing, until July 15, 2020, the filing and payment deadlines for all individuals and business entities for the following: (1) 2019 tax returns; (2) 2019 tax return payments; (3) 2020 first and second quarter estimate payments; (4) 2020 LLC taxes and fees; and (5) 2020 non-wage withholding payments. The CDTFA has posted on its website an alert in which it advises that it has been able to make it easier for such taxpayers and feepayers to request relief from the imposition of interest and penalties.

• Los Angeles County – Property owners affected by the coronavirus that are unable to pay their property taxes due April 10th can apply for late payment penalty abatement via an online form.
• San Francisco – Deferred the due date for first quarter estimated tax payments from April 30, 2020 to February 2021, for businesses with up to $10 million in gross receipts. City business licensing fees will also be deferred for three months.

Colorado

The Governor issued a tax extension to July 15 that was more expansive than the IRS’s. He explained his order goes further because it places “no conditions and no caps on the amount of tax that can be deferred over the 90-day period.” It covers, “all filers, without penalty and without interest.” In addition, estimated tax payments due on or after April 15 can also be filed later.

Connecticut

Certain business tax filings and corresponding payments due on or after March 15, 2020, and before June 1, 2020, are extended at least 30 days. The filing date for the 2019 Connecticut corporation business tax return (Forms CT-1120 and CT-1120CU) is extended to June 15, 2020 and the payment deadline is extended to June 15, 2020. The filing date for the 2019 Connecticut pass-through entity tax return (Form CT-1065/CT-1120 SI) is extended to April 15, 2020 and the payment deadline is extended to June 15, 2020. The filing date for the 2019 Connecticut unrelated business income tax return (Form CT-990T) is extended to June 15, 2020, while the payment deadline is extended until June 15, 2020. The filing date for the 2019 individual income tax returns and payments is extended to July 15, 2020. This extension does not apply to withholdings. Plastic Bag Fee is suspended from March 26, 2020, through May 15, 2020.

Delaware

Corporate tentative returns due on April 15, 2020 pursuant to 30 Del. C. § 1904(a) will now be due on July 15, 2020. Personal income tax returns and estimated payments due on April 30, 2020 will now be due on July 15, 2020. Fiduciary income tax returns due on April 30, 2020 will now be due on July 15, 2020. Additionally, taxpayers may request an extension for personal income tax and fiduciary income tax returns online by submitting forms 1027 and 400-EX, respectively. This will provide an automatic extension of time to file to October 15, 2020

District of Columbia

Effective March 11, 2020, Chief Financial Officer (CFO) may waive penalties and abate interest for failure to timely pay sales and use tax for periods ending on February 29, 2020 or March 31, 2020, provided that all taxes for such periods are paid in full on or before July 20, 2020. The CFO may waive penalties and abate interest for the first installment of real property tax for the 2020 tax year (due on or before March 31) provided the property owner pays the installment by June 20, 2020. The D.C. Office of Tax and Revenue must issue guidance on the definition of a hotel or motel for this purpose. Also, the deadline for taxpayers to file and pay their 2019 District of Columbia individual and fiduciary income tax returns (D-40, D-41, and D-40B), partnership tax returns (D-65), and franchise tax returns (D-20, D-30) is extended to July 15, 2020.

Florida

Offering flexibility in filing deadlines for certain businesses and deferring corporate income tax payments until the end of the fiscal year. Property tax payments and railroad, railroad terminal, private car and freight line and equipment company property tax returns is extended to April 15, 2020. This order applies to all 67 Florida counties. Also, adversely affected taxpayers that are required to file and pay any of the following taxes: sales and use tax, discretionary sales surtax, tourist development tax, new tire fees, rental car surcharges, prepaid wireless E-911 fees, lead acid battery fees, and dry-cleaning gross receipts tax will receive an extension. For these adversely affected taxpayers who collected tax during the February reporting period, and were unable to meet the March 20, 2020 due date, penalties and interest will be waived if the taxes are reported and remitted by March 31, 2020. For taxes collected in March and due on or before April 20, 2020, these same taxpayers have an extended due date of April 30, 2020.

• Pinellas County – The deadline for filing Tangible Personal Property returns was extended by 45 days, the deadline is now May 15th, 2020.
• Miami Dade County – The deadline for filing Tangible Personal Property returns was extended by 30 days. An additional 15-day extension is also available for any taxpayer able to demonstrate an inability to file within the extension period. Taxpayer must request the extension by the April 1st, 2020 deadline.

Georgia

Automatically extended the 2019 income tax filing and payment deadline to July 15, 2020, without penalties or interest. It also includes estimated income tax payments due on April 15, 2020, for the taxpayer's 2020 taxable year.

Hawaii

State income tax returns and payments due from April 20, 2020 to June 20, 2020 are postponed to July 20, 2020. This relief does not include estimated income tax payments for the 2020 taxable year.

Idaho

Income tax filing and payment deadlines have been extended from April 15, 2020, to June 15, 2020. The extension applies to all taxpayers – including individuals, businesses, and entities – regardless of the amount owed. Penalty and interest won’t apply if taxpayers file their return and pay by June 15.

Illinois

Delays the payment of sales tax (but not the filing of returns) by eating and drinking establishments whose 2019 annual sales tax was less than $75,000. IDOR will automatically waive penalties and interest on late payments of sales tax for March, April and May, if such payments commence as scheduled by IDOR starting on May 20th. Estates with returns and payments due between March 16, 2020 and April 15, 2020 will receive a 30-day extension for filing and payment. An extension of time to pay does not waive or abate statutory interest. The deadline for individual, trust, and corporate income taxes have been extended to July 15, no additional forms or requests for extensions are required. Note, this does not apply to 2020 estimated payments which are still due April 15 and June 15, partnerships or s-corporations filing replacement tax returns, withholding income tax returns (IL-1065 and pass through entity payments that they are required to make on behalf of their nonresident members) and previously extended returns (i.e., extended fiscals are still due on April 15). The usual requirements/penalties will apply to the 2020 estimated payments.

• Chicago - Extended the due dates for bottled water tax; checkout bag tax; amusement tax; hotel accommodation tax; restaurant tax; and the parking tax to April 30, 2020. The city will also suspend all non-public safety related business penalties until April 30, 2020.

Indiana

Individual and Corporate Income tax filing and payment deadlines have been extended to July 15, 2020. Also, all property taxes to remain due on May 11, 2020, however, counties must waive penalties on payments after May 11, 2020 for a period of 60 days. This waiver does not apply to tax payments which have been escrowed by financial institutions on behalf of property taxpayers.

Iowa

Extended filing and payment deadlines for income, franchise, and moneys and credits taxes with a due date on or after March 19, 2020, and before July 31, 2020, to a new deadline of July 31, 2020. The extension does not apply to estimated tax payments. Also, income tax withholding deposits due for the period ending March 15, 2020 is extended from March 25, 2020, to April 10, 2020. Additionally, interest and penalties for late property tax payments and late alcoholic beverage tax payments have been temporarily suspended.

Kansas

The deadline for homestead or property tax relief claims was extended to October 15, 2020. The filing deadline for individual income tax, fiduciary income tax, corporate income tax, and privilege is extended to July 15, 2020.

Kentucky

The state will follow the IRS’ revised deadlines, extending income tax return filing and payment deadlines from April 15 to July 15.

Louisiana

The state has extended sales, beer excise, and wine excise tax return and payment deadlines for the February 2020 tax period from March 20, 2020 to May 20, 2020. Also, filing and payment extensions have been announced for income and franchise tax returns and payments due April 15, 2020 and May 15, 2020. The due date for these returns and any payments is extended to July 15, 2020.

• New Orleans – The city will waive fines, fees, interest, and penalties on sales tax payments for 60 days.

Maine

The State extended the filing and payment deadline for income tax payments from April 15, 2020, to July 15, 2020. This includes Form 1040ME (Maine Individual Income Tax Return), Form 1041ME (Maine Income Tax Return for Estates and Trusts), Form 1120ME (Maine Corporate Income Tax Return), and Form 1120B-ME (Maine Franchise Tax Return).

Maryland

Extended March, April, and May 2020 business-related filing deadlines to June 1, 2020 for sales and use tax, withholding tax, and various excise taxes and fees. No interest or penalty will be due for late income tax payments if Maryland business and individual income taxpayers make 2019 tax payments by July 15, 2020. Maryland is following the relief provided by the federal government’s 90-day extension of the April 15, 2020.

Massachusetts

Sales and use tax filing and payments for vendors whose cumulative sales and use tax liability in the 12-month period ending February 29, 2020 is less than $150,000 - returns and payments due during the period beginning March 20, 2020 and ending May 31, 2020, inclusive, will be suspended. All such returns and payments will be due on June 20, 2020. The suspension does not apply to marijuana retailers, marketplace facilitators or vendors selling motor vehicles who have to continue to file returns and make payments. Similarly, operators subject to the Room Occupancy Excise tax whose cumulative liability in the 12-month period ending February 29, 2020 is less than $150,000 - returns and payments due during the period beginning March 20, 2020 and ending May 31, 2020, inclusive, will be suspended. All such returns and payments, including any local option amount will be due on June 20, 2020. The suspension does not apply to intermediaries that must continue to file returns and make payments. The Department will waive late-file or late-pay penalties for returns and payments due during the period March 20, 2020 through May 31, 2020 for certain businesses impacted by the outbreak.

Michigan

Waiving penalty and interest for the late payment of tax or the late filing of returns due on March 20, 2020. The waiver will be effective for a period of 30 days and is limited to sales, use, and withholding payments and returns due March 20, 2020. Executive Order moves the tax foreclosure deadline from March 31, 2020, to May 29, 2020, or 30 days after the state of emergency declared in Executive Order 2020-04 is terminated, whichever comes first.

Minnesota

Granted a 30-day extension for certain bars, restaurants, and other places of public accommodation to pay their February sales tax, extending the deadline from March 20, 2020 to April 20, 2020. Also, individual income tax filings and payments deadlines have been extended to July 15, 2020, without any penalty and interest. This grace period does not include estimated tax payments for individual income taxes due April 15, 2020, for the 2020 tax year.

Mississippi

The deadline to file and pay the 2019 individual income tax and corporate income tax is extended until May 15, 2020. The first quarter 2020 estimated tax payment is also extended until May 15, 2020. Penalty and interest will not accrue on the extension period through May 15, 2020. Also, withholding tax payments for the month of April have been extended to May 15, 2020. The extension does not apply to Sales Tax, Use Tax, or any other tax types.

Missouri

Income tax payment deadlines for individual and corporate income returns due April 15, 2020, are extended to July 15, 2020. This extension also applies to estimated tax payments for tax year 2020 that are due on April 15, 2020. Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020.

Montana

Extension of payment and filing deadlines for 2019 individual income taxpayers to July 15, 2020. The Montana Department of Revenue will be lenient in waiving penalties and interest associated with late tax payments and the Department will work with taxpayers on an individual basis. The deadline for those making estimated individual income tax payments has also been extended to July 15 for both first and second quarters 2020.

Nebraska

The tax filing deadline is extended to July 15, 2020 for state income tax payments and estimated payments that were originally due on April 15, 2020. The Tax Commissioner may grant penalty or interest relief depending on individual circumstances. Penalties for late alcoholic beverage excise tax payments will also be waived.

New Hampshire

There is NO extension of the deadline to file or pay the Business Tax (Business Profits Tax and Business Enterprise Tax), Interest and Dividends Tax, Meals and Rentals Tax, or any other tax. However, for tax year 2019, business tax and interest and dividends tax returns are due on April 15, 2020 - taxpayers who have paid their tax in full by the return due date are entitled to an automatic 7-month extension of the time to file their New Hampshire Business Tax or interest and Dividends Tax return.

New Mexico

New Mexico will extend income tax deadlines consistent with the IRS, the Taxation and Revenue Department said Friday, March 20. Taxpayers will now have until July 15 to pay for personal income taxes and corporate income taxes, the department said in a news release. Penalties will not be imposed, but unpaid balances will continue to accrue interest. Employer-paid withholding taxes from employee wages that are due each month from March through June will now be due July 25, according to a news release. Interest will accrue but Governor Lujan Grisham “expressed support for waiving or refunding any interest owed by taxpayers taking advantage of the extensions announced today.” Finally, the department is adding extra staff to speed up income tax refunds.

New York

New York will follow the IRS in waiving penalties and interest for late tax returns and payments filed by July 15, according to its state budget director, at a news conference on Friday, March 20. The state will also waive penalties and interest on sales tax collections due Friday from businesses. The sales tax deadline will stand, but penalties and interest will not be charged if paid by July 15.

• New York City - Waiver of penalties for all New York City Real Property Transfer Tax returns due between March 15, 2020, and April 25, 2020. Taxpayers may request to have the penalties waived on a late-filed return, or in a separate request.

North Carolina

Will waive the following penalties: failure to obtain a license; failure to file a return; failure to pay tax when due; and the penalties regarding informational returns. The waiver applies to the failure to timely obtain a license, file a return, or pay a tax that is due between March 15 and March 31, 2020, if the license is obtained, the return or extension application is filed, or the tax is paid by April 15, 2020. The deadline to file Income and Franchise Tax Returns was also extended to July 15, 2020.

North Dakota

The income tax returns and payment deadline was extended to through July 15, 2020 without penalty and interest.

Ohio

Extended the deadline to file and pay the state income tax to July 15, 2020. Extensions and waivers will be available to those filing the Ohio individual income tax, the school district income tax, the pass-through entity tax, and to those that have opted in to have the tax commissioner administer the municipal net profit tax through the state's centralized filing system. Quarterly estimated income tax payments for the first and second quarterly payments (normally due April 15 and June 15 respectively) have both been extended to July 15 for individuals, estates, trusts, and certain businesses. The Department will waive the penalties and interest for all these during the extension period.

Oklahoma

Taxpayers now have until July 15, 2020 to file and pay their 2019 Oklahoma income tax return.

Oregon

The Department will not assess underpayment penalties on taxpayers making a good faith effort to estimate their first quarter payments that are due April 30, 2020. Oregon will automatically follow federal tax filing extensions.

Pennsylvania

The deadline for taxpayers to file their 2019 Pennsylvania personal income tax returns is extended to July 15, 2020 without penalty or interest. This extension applies to both final 2019 tax returns and payments, and estimated payments for the first and second quarters of 2020. Also the Department of Revenue is waiving penalties for businesses that are required to make Accelerated Sales Tax (AST) prepayments by the deadline of Friday, March 20. Additionally, the Department is waiving the AST prepayment requirement and asking businesses to simply remit the sales tax that they have collected in March.

• City of Philadelphia - The due date for 2020 Real Estate Taxes is now April 30, 2020.

Rhode Island

The Division of Taxation will mirror the federal extensions to July 15, 2020 for certain tax filings and payments.

South Carolina

Tax returns and payments due April 1 - June 1 will now be due June 1, 2020 for all taxes other than income taxes. Penalty and interest will not be charged if payment is made by June 1. This includes Sales and Use Tax, Admissions Tax and other taxes filed and paid with the SCDOR. Individual Income and Corporate Income Taxes originally due April 15, 2020. Taxpayers will have until July 15, 2020 to file South Carolina income tax returns and pay income taxes due, including quarterly estimated payments due on April 15, 2020. Interest or penalties related to this tax relief will be waived.

• Charleston – Will defer the collection of local accommodation and hospitality taxes for 90 days.

Tennessee

The deadline for filing and paying for franchise and excise taxes is extended from April 15 to July 15, 2020. Income tax filing and payment deadlines are extended to July 15, 2020 for taxpayers affected by the recent tornadoes.

Texas

The comptroller provided an extension of up to 90 days past the original due date to pay the motor vehicle tax. However, the extension does not apply to seller-financed motor vehicle sales, as the tax is reported and paid directly to the Comptroller’s Office instead of a county tax assessor-collector upon registration.

Utah

Will conform to IRS filing deadlines for individual income tax filings, but the due dates for Utah corporate and pass-through entity filings are set by statute and requires legislative, not administrative, action to change.

Vermont

The deadline for filing income tax has been moved from April 15 to July 15, 2020. Furthermore, the Vermont Department of Taxes will provide relief to businesses owing Meals and Rooms Tax and Sales and Use Tax by foregoing any penalty or interest for those who are not able to meet the March 25 or April 25 deadlines.

Virginia

Any income tax payments due during the period from April 1, 2020 to June 1, 2020 can now be submitted to the Department at any time on or before June 1, 2020 without penalty. If full payment of the amount owed during the period is not made by June 1, 2020, this penalty waiver will not apply, and late payment penalties will accrue from the original date that the payment was due.

Washington

Businesses impacted by coronavirus can request filing and payment extensions and penalty waivers related to business tax filings.

• Seattle – Deferred business and occupational tax filings for certain small businesses and has closed its public-facing customer service counters for the time being.

West Virginia

The deadline to file and pay 2019 annual income tax returns for individuals, trusts or estates, and corporations has been extended from April 15, 2020, to July 15, 2020. Failure to pay any balance of tax due by July 15, 2020 will result in the accrual of penalties and interest beginning July 16, 2020. This relief also extends to estimated tax payments for tax year 2020 that are due between April 15, 2020 and July 15, 2020 for individuals, trusts or estates, corporations, and pass-thru entities. This relief does not apply to employer withholding tax returns and payments or to any other tax collected by the Tax Commissioner.

Wisconsin

Wisconsin income tax payment and return due dates are automatically extended to July 15, 2020. This is applicable to income tax payments, estimated income tax payments and returns due April 15, 2020. There will be no interest or penalty for the period of April 15, 2020 to July 15, 2020, but will begin on July 16, 2020 if not paid.

Other Relief:

Florida – Will supplement federal Small Business Administration loans with a $50 million bridge loan program from the state.

Illinois – Plans to file emergency rules to help individuals unemployed due to COVID-19 qualify for unemployment benefits.

• Chicago will provide small business loans to small business impacted by the outbreak.

Indiana announced that, subject to the DOR approval, that the manufacturers making donations of medicine, medical supplies, or other goods in the furtherance of fighting the COVID-19 pandemic will not be subject to use tax on those items donated. In addition, groups or organizations who make any donations of medicine, medical supplies, or other goods will not incur a sales/use tax obligation. Donation of these items will not entitle the donor to a refund of any sales or use tax previously paid to the DOR or to a vendor.

Iowa – Temporarily suspended collections of property taxes.

Oklahoma – Ordered the temporary suspension of the costs and fees for oversize/overweight permits required of carriers whose sole purpose is transportation of materials, equipment, and supplies used for direct assistance in support of emergency relief efforts which would normally require an overweight permit.

Texas – The comptroller's audit offices are currently closed therefore the comptroller is temporarily suspending the 60-day deadline for businesses to contest audit results for both redetermination and refund hearings. Interest accrued during this period will be waived, and businesses will be notified to reestablish a request deadline at a later date. However, if taxpayers are able to request redetermination during the 60-day deadline, the Comptroller's Office can handle these requests.

Other Impacts:

New York City has postponed a hearing on preliminary reforms to its property tax.

Connecticut Department of Revenue has requested taxpayers not to use walk in services.

Kentucky Department of Revenue, Ohio Department of Taxation, Idaho State Tax Commission, Massachusetts Department of Revenue, and many others have suspended in person services.

Pennsylvania Department of Revenue offices and call centers have closed.

Maryland’s legislative session will end early.

Louisiana has suspended legal deadlines, including liberative prescription and preemptive periods applicable to legal proceedings in all courts, administrative agencies, and boards, until at least Monday, April 13, 2020.

Tennessee will not charge liquor-by-the-drink tax on take-out or delivery sales, however, sales and use tax will continue to apply to these sales.

Additionally, this outbreak is impacting litigation as many state courts and administrative bodies have rescheduled hearing dates and interim deadlines to later in the year. If you have any ongoing litigation related to tax or otherwise, we recommend that you discuss any potential deadlines with your attorneys as many have changed over the last few days.

We anticipate that additional extensions, relief, closures, and litigation impacts will be announced as time goes on and especially considering the federal relief packages that were recently announced and those that are currently being debated.