United States – States provide sales and use tax relief to help mitigate COVID-19 impact

In brief

As businesses continue to grapple with the challenges related to COVID-19, many states are providing tax relief in the form of filing and payment deadline extensions.

While many are mirroring federal relief for income tax filings, some states have extended relief to sales and use taxes. This provides an opportunity to improve cash flow and help mitigate the immediate economic impact of COVID-19 on businesses.

This Insight provides select state-specific summaries of sales and use tax filing and payment relief, with the plan to follow up with additional information in the weeks ahead as well as reports focused on specific indirect tax areas such as excise taxes. For more information, including filing and payment relief for other tax types, see Select state and local tax relief relating to Coronavirus.

Note: This document summarizes certain sales and use tax relief provided by states; however, it is not
intended to address every indirect tax relief measure relating to COVID-19. This document should not be
a replacement for independent tax research. This content is for general information purposes only and
should not be used as a substitute for consultation with professional advisors.

In detail

For some states, sales and use tax filing and payment relief only applies (at least for the time being) to the most recent due date (e.g., March 20), while in others the relief covers multiple monthly reporting periods. Maryland has announced the ability to apply for a refund of taxes already paid over to the state with the return due on March 20.

Further, some states are providing other indirect tax relief. For example, the Washington Department of Revenue is providing business and occupation (B&O) tax relief, although it asks all businesses still to file their returns if they are able to do so. Upon request, the Department will provide extensions for paying taxes that are due and not already paid (even if the request is after the due date).

States also are providing property tax relief. For example, Indiana has provided a waiver of penalties for late property tax payments, and Iowa has suspended penalty and interest for delay of property tax payments. Numerous localities are pushing out deadlines or suspending certain operations. For example, the Cook County Assessor’s Office has announced a temporary suspension of assessment notice mailings and appeal deadlines.

Find more information on each state by downloading the document below.

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