October 17, 2017

October 17, 2017

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October 16, 2017

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State Tax Relief for Hurricane Victims

In response to the impact of Hurricanes Harvey and Irma, certain counties in Texas and Florida have been declared as major disaster areas. [For a complete list of declared counties and information on hurricane related federal tax relief see IRS Provides Tax Filing and Payment Relief to Hurricane Victims.]  As a result, numerous states have enacted delayed filing and payment periods for individuals and businesses located in these major disaster areas.  The provided relief of participating states iss compiled and summarized below. 

Alabama

  • Alabama Department of Revenue Press Releases: August 29, August 31, September 12, 2017

  • Alabama taxpayers residing in Texas or Florida counties designated as disaster areas by the federal government have until Jan. 31, 2018, to file tax returns due on or after Sept. 1 (Sept. 15 for Hurricane Irma victims), 2017, and before Jan. 31, 2018.

  • Penalty relief will be provided during the extension period.

  • Taxpayers seeking this tax relief should write “Texas Flood 2017” or “Irma Relief – 2017” in red ink on any state paper return/report which relies on this filing extension relief.

  • The relief applies to individual income tax, corporate income tax, pass-through entities, sales and use tax, withholding tax, and business excise tax.

  • IRP/IFTA requirements for vehicles are temporarily suspended for vehicles engaged in disaster relief efforts.

California

  • CDTFA News Release NR 9-17 (September 1, 2017)

  • Business owners and tax and fee payers affected by Hurricane Harvey may request extensions to file their returns, ask for relief from penalties and/or interest for some taxes and fees, and request copies of records lost due to storm damage.

  • Deadlines are extended for filings that were delayed by disruptions affecting the U.S. Postal Service and private mail and freight companies.

  • Businesses located in the Gulf Coast area that have been impacted by Hurricane Harvey, and who, as a result, cannot meet their filing and payment deadlines, may be eligible for relief.

Colorado

  • Colorado Department of Revenue: Filing Relief – Natural Disasters (September 8, 2017)

  • Colorado taxpayers residing in designated disaster areas by the federal government have until January 31, 2018 to file tax returns due on or after Sept. 1, 2017 and before January 31, 2018.

  • The deadline waiver applies to Colorado State income tax, sales tax, wage withholding tax, severance tax, and excise tax returns as well as estimated payments that have either an original or extended due date occurring on or after Aug. 23, 2017 (Sept. 4 for Hurricane Irma victims) and before Jan. 31, 2018.

  • Colorado also agrees to honor any waiver of interest granted by Texas for affected International Fuel Tax Agreement (IFTA) motor carriers based in Texas if payments are received by the extension deadline.

  • In addition, the affected sales tax licensees who file and pay by the extension deadline of January 31, 2018 will be considered as “timely filing” and still eligible for any vendor fee (discount) that applies.

Connecticut

  • Connecticut Department of Revenue, Press Release (September 11, 2017)

  • Requests for extension of time to file or pay Connecticut taxes, as well as relief from any associated penalties, will be considered based on the individual circumstances of taxpayers located in the Hurricane Harvey or Hurricane Irma federal disaster relief areas in accordance with Conn. Gen. Stat. § 12-2(a)(5).

Delaware

  • Delaware Division of Revenue, Press Release (September 13, 2017)

  • Various tax filing deadlines that occurred beginning on Aug. 23, 2017 thru January 16, 2018 to January 31, 2018 have been postponed for Hurricane Harvey and Irma victims. This includes an additional filing extension for individual taxpayers with valid extensions to Oct. 16, 2017, and businesses with valid extensions to Sept. 15, 2017.

  • To avoid a penalty assessment for late filing, taxpayers should submit a written request seeking an additional extension via email to [email protected].

  • If your request is based upon the tax records being located in the disaster area, please include the address where those tax records are located.

  • Business taxpayer requests should be on company letterhead and signed by a company official.

District of Columbia

  • D.C. OTR Revenue Notice No. 2017-04 (September 14, 2017)

  • For those taxpayers who are victims of Hurricane Harvey, tax returns, payments, and other time sensitive acts originally due between August 23, 2017 and January 31, 2018, are extended until January 31, 2018.

  • For those taxpayers who are victims of Hurricane Irma, tax returns, payments, and other time sensitive acts originally due between September 4, 2017 and January 31, 2018, are extended until January 31, 2018.

  • The relief will cover: (1) extended individual, partnership, corporate and unincorporated income tax returns due October 16, 2017, (2) extended combined report returns due November 15, 2017, (3) alcohol gallonage reports due September 10, 2017, and (4) individual, corporation and unincorporated estimated tax payments.

  • Taxpayers should write in bold letters at the top of the first page of the return claiming the relief “HURRICANE HARVEY OR IRMA RELIEF,” or for electronic filers, contact the OTR’s Customer Service Administration at (202) 759-1946.

Florida

  • Florida Department of Revenue, Current Topics – Hurricane Tax Relief

  • The Florida Department of Revenue will follow the tax relief granted by Internal Revenue Service regarding postponement of return due dates.

  • Florida corporate income/franchise tax returns originally due, or due on extension, between August 24, 2017 and January 1, 2018 are now due by February 15, 2018.

  • Taxes on fuel trucks entering the state are waived to expedite fuel delivery.

  • Penalties for the sale of dyed diesel field are waived to any person who sells or uses dyed diesel fuel for highway use.

Georgia

  • Georgia Department of Revenue, Press Releases: September 5, September 12, September 14, 2017

  • The Department is postponing until January 31, 2018, certain deadlines for individuals who reside, and businesses whose principal place of business is located, in the disaster areas specified by the IRS.

  • The postponement also includes return filing, tax payment, and other time-sensitive acts related to Georgia tax types such as Georgia sales and use tax but does not apply to International Fuel Tax Agreement interest. This includes monthly sales tax returns originally due September 20, 2017, October 20, 2017, November 20, 2017, December 20, 2017, and January 22, 2018. It also includes quarterly sales tax returns due October 20, 2017, and January 22, 2018, as well as annual sales tax returns due January 22, 2018.

  • Affected taxpayers filing paper returns should write: “2017 Texas, Hurricane Harvey” or “2017 Hurricane Irma” across the top of any forms submitted to the Department.

  • International Registration Plan (IRP)/International Fuel Tax Agreement (IFTA) requirements for vehicles engaged in disaster relief efforts are temporarily suspended.

Hawaii

  • Hawaii Department of Taxation Announcement No. 2017-09 (August 31, 2017)

  • The Department of Taxation will consider requests for extensions to file and pay other taxes and waivers of penalties and interest on a case-by-case basis.

  • “Affected taxpayers” include those businesses and individuals located in the disaster areas, as well as those whose tax records are located there.

  • Taxpayers need to identify themselves as hurricane victims and should write “HURRICANE HARVEY” in BLACK ink at the top of their tax forms or any other documents filed with the Department.

Idaho

  • Idaho State Tax Commission, News Release (September 15, 2017)

  • Per the IRS extended deadlines, taxpayers from designated disaster areas have until Jan. 31, 2018, to mail any completed tax returns along with payments due on Aug. 23 (Sept. 4 for Hurricane Irma victims) through Jan. 31.

  • The relief is for all Idaho tax types, including income tax, sales tax, fuels tax, income tax withholding, and others. The extension applies both to individuals and businesses in the disaster areas, as well as to those whose tax records are located there.

  • To qualify for the extension, affected taxpayers should write “HURRICANE HARVEY” of ‘HURRICANE IRMA” in red ink at the top of their tax return. If they file electronically, receive penalties, or are charged interest for filing returns or paying taxes late, they should call the Tax Commission toll-free at (800) 972-7660.

Illinois

  • Illinois Department of Revenue, News Releases: September 11, 13, and 15, 2017

  • The Illinois Department of Revenue will waive interest and penalties for taxpayers who cannot file or pay on time due to Hurricanes Harvey and Irma.

  • Taxpayers should include a written explanation of why they cannot file or pay on time with a clear request for abatement of interest and penalties.

  • Taxpayers should include their name, account number (if using Social Security number, only use the last four digits), mailing address, and an estimate of when they believe they will file or pay.

  • The request may be sent electronically to [email protected] or mailed to the Department using the address indicated on the return. Taxpayers mailing in requests should write “Hurricane Harvey” or “Hurricane Irma,” in red, on the top of the return and attach the explanation with the abatement request.

  • The Illinois Department of Revenue will temporarily waive the International Fuel Tax Agreement (IFTA) registration and motor fuel use tax (MFUT) single trip permitting for qualified vehicles traveling into or through Illinois responding to power, communications, utilities, and infrastructure restoration to areas or events that have been declared either a national emergency by the President of the United States or a state of emergency by any governor of an IFTA jurisdiction.

Indiana

  • State of Indiana Office of the Governor, Order (September 8, 2017)

  • Filing due dates are extended 60 days for any individual or business taxpayer whose filing address is either in Florida or Texas.  Penalties or interest are also waived during this 60-day extension period.

  • International Registration Plan and the International Fuel Tax Agreement requirements for operators of commercial vehicles traveling through Indiana to Florida to provide disaster relief for Hurricane Irma are suspended from September 8 through October 6, 2017.

Kansas

  • Kansas Office of the Governor, Executive Order 17-03 (August 30, 2017)

  • Regulations on motor carriers traveling through Kansas en route to aid in recovery from widespread damage left by Hurricane Harvey have been lifted via executive order.

  • Executive Order 17-03 applies to commercial vehicles directly participating in relief and restoration of areas in Texas recovering from the destruction of the hurricane and resulting floods.

Maryland

  • Comptroller of Maryland, News Releases: August 31, September 11, 2017

  • Temporary waiver of certain International Fuel Tax Agreement requirements for shippers and carriers of essential emergency relief supplies, aid personnel, or those restoring utilities.

  • Other taxes including withholding, sales and use, individual non-resident, corporate, admission and amusement and alcohol and tobacco, taxpayers and tax returns extensions from Texas and Florida will be handled on a case-by-case basis.

Massachusetts

Nebraska

  • Nebraska Department of Revenue Tax Information for Victims of Natural Disasters

  • Nebraska Revenue Ruling 99-09-2 provides that if a federal filing date is “postponed” due to a federal disaster declaration, the state filing date will be the same as the new federal filing date.

  • Nebraska taxpayers that are impacted and that have returns that are due during the period covered by the federal disaster designation would have a new due date that is the same as the postponed federal due date.

New Jersey

  • N.J. Dep’t. of the Treasury, Hurricane Irma Victims Granted New Jersey Extension of Filing and Payment Deadlines (September 14, 2017)

  • Filing due dates for individual and business taxpayers affected by Hurricanes Harvey and Irma are extended to January 31, 2018.

  • The deadline extension applies to sales tax, individual income tax, corporate income tax, corporation business excise tax, and other taxes with filing deadlines between Aug. 23 (Sept. 4 for Hurricane Irma victims) and Jan. 31, 2018.

  • The deadline extension also applies to any quarterly estimated payments due between Aug. 23 and Jan. 16, 2018.

  • For individual tax filers, the extension includes 2016 income tax returns that received a tax-filing extension until Oct. 16.

New Mexico

  • New Mexico Taxation & Revenue Department, Bulletin B-100.30

  • Filing due dates for taxpayers affected by Hurricanes Harvey and Irma are extended to January 31, 2018 in compliance with the IRS extended due date.

  • The extension is for personal, corporate, CRS (gross receipts, compensating, withholding) taxes for New Mexico taxpayers who reside or have businesses located in the affected areas.

  • The extension is only to file a return and does not extend the time to pay any associated tax. \

  • Affected taxpayers can write “Hurricane Harvey” or “Hurricane Irma” at the top of their return if filing a paper return or send in a letter to TRD if you are filing electronically.

Oklahoma

  • Oklahoma Tax Commission, Public Notice (September 11, 2017)

  • Affected taxpayers who are unable to timely report or make payment of taxes because of the August 2017 hurricane are provided relief through the waiver of interest and/or penalty as provided in 68 O.S. § 220 or through the authorization of extended payment plans as provided by Commission guidelines.

Pennsylvania

  • Pennsylvania Department of Revenue, Extension for Filing the Corporation Tax Report

  • In general, Pennsylvania will follow Internal Revenue Service rules outlined in Issue Number: IR-2017-135.

  • The tax relief postpones various tax filing deadlines that occurred starting on Aug. 23, 2017 thru January 31, 2018 to January 31, 2018.

  • This does not apply to Specialty Tax return filings or payments applicable to all returns.

Texas

  • Texas Comptroller, Declared Natural Disasters and Emergencies Tax Help

  • Taxpayers in declared disaster areas affected by Hurricane Harvey can contact the Comptroller’s office and request up to a 30-day extension to file and pay certain monthly and quarterly state taxes.

  • For the 2017 franchise tax reports with valid extensions to Nov. 15, the Comptroller’s office is granting an automatic extension to Jan. 5, 2018, to businesses located in the federally declared disaster area. Businesses located in these counties do not need to request an extension for their franchise tax reports. Service providers who file franchise tax reports on behalf of other taxpayers can request a franchise tax extension if the provider is affected by Hurricane Harvey.

  • The Comptroller’s office is granting businesses located in the federally declared disaster area that are not required to report (file) electronically an automatic 30‐day extension to complete August monthly reports due Sept. 20 and quarterly reports due Oct. 20.

  • In addition to allowing the Comptroller to extend tax-filing deadlines, Texas law exempts certain recovery-related expenses from sales tax, including:

    • (i) the cost of labor to repair storm-damaged, nonresidential property, including office buildings and stores. Labor charges must be separately stated on the repair bill. Texas also does not impose sales tax on labor for residential repairs;

    • (ii) services used to restore storm-damaged tangible personal property, including dry cleaning of clothing and draperies, rug and carpet cleaning, and appliance repairs regardless of whether the property is residential or nonresidential.

  • All laws authorizing or requiring the collection of state or local hotel or motel occupancy taxes from the victims of Hurricane Harvey or personnel participating in relief operations are suspended beginning August 23, 2017, and ending September 22, 2017.

  • Temporary waiver of the International Fuel Tax Agreement (IFTA), which will suspend requirements that trucking firms track and pay tax on the amount of fuel used in Texas when delivering needed relief supplies and fuel into the state.

Virginia

  • Virginia Department of Taxation, Tax Bulletin 17-10 (September 14, 2017)

  • The Department of Taxation will provide extensions and penalty waivers to individuals and businesses affected by Hurricane Harvey.

  • Corporate income, individual income, and fiduciary income tax returns with an original or extended due date between Aug. 23 and Jan. 31, 2018 will be granted a waiver of late filing and late payment penalties if the returns and payments are filed on or before March 2, 2018.

  • Any other state tax return and payment with a due date on or after August 23, 2017, for which the taxpayer can demonstrate hardship attributable to Hurricane Harvey, may be granted a waiver of late filing and late payment penalties upon request in writing.

Washington

  • Washington State Department of Revenue, Disaster Relief for Taxpayers

  • Requests for such extensions or waivers of tax filing and payment can be requested by phone or by sending a secure email through My Account on the Department of Revenue website.

  • Businesses may also request audit rescheduling, additional time for business license or registration renewals or extensions of expiring reseller permits.

West Virginia

  • West Virginia State Tax Department, Administrative Notice 2017-20 (September 14, 2017)

  • For income tax returns of corporations, affected corporations with a due date that falls on or after August 23, 2017 (Hurricane Harvey), or on or after September 4, 2017 (Hurricane Irma), and before January 31, 2018, are granted an extension of time to file until January 31, 2018.

  • When filing the West Virginia income tax return with the extension to January 31, 2018, taxpayers should mark at the top of the return either “Hurricane Harvey” or “Hurricane Irma,” whichever is appropriate.

  • Individual taxpayers have until January 31, 2018, to file their income tax returns for tax year 2017 for both federal and West Virginia purposes.

  • This extension applies to returns with an original or extended due date occurring on or after August 23, 2017 (Hurricane Harvey), or on and after September 4, 2017 (Hurricane Irma), and before January 31, 2018. When filing the West Virginia income tax return with the extension to January 31, 2018, taxpayers should mark at the top of the return either “Hurricane Harvey” or “Hurricane Irma,” whichever is appropriate.

  • Taxpayers with an estimated tax payment due on or after August 23, 2017 (Hurricane Harvey), or on and after September 4, 2017 (Hurricane Irma), and before January 31, 2018, receive an extension to make the payment until January 31, 2018.

Wisconsin

  • Wisconsin Department of Revenue, Press Release (September 7, 2017)

  • Beginning August 23, 2017, those taxpayers who were affected by Hurricane Harvey have until January 31, 2018, to file certain individual and business tax returns. This includes an additional filing extension for taxpayers with valid extensions that run out on October 16, 2017 and businesses with extensions that run out on September 15, 2017.

  • Sales and use, withholding, and excise tax returns, reports, and payments may be granted a 30-day extension for due dates beginning August 23, 2017 and before January 31, 2018.

© 2017 Jones Walker LLP

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About this Author

Associate

Joseph Z. Landry is an associate in the firm’s Tax & Estates Practice Group and practices in the firm’s New Orleans office. Before joining Jones Walker LLP, Mr. Landry’s previous legal experience included extensive research in the field of state and local tax such as the treatment of bundled and unbundled sales tax transactions, distinct local taxes, and in-depth analysis of state sales tax exemptions, particularly in the field of telecommunications. 

Mr. Landry holds a Master of Laws in Taxation from Georgetown University Law Center where...

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