State and local taxes impact almost every taxpayer, and developments in any one jurisdiction can be frequent and sometimes confusing. ln this newsletter edition, we will briefly summarize selected state and local tax (SALT) developments in several states which may be important to you.

Alabama

Reduced Storage Tank Trust Fund Charge: The Alabama Department of Revenue (Department) has recently published a Notice stating that the Alabama Environmental Management Commission is decreasing the storage tank trust fund charge from $0.012 per gallon to $0.01 per gallon for each gallon of motor fuel first withdrawn from bulk in Alabama or delivered into Alabama. The effective date of this rate change is May 1, 2024. The Department stated in this Notice that this decrease in the charge shall be reflected on the May 2024 return which is due no later than June 20, 2024; and that taxpayers should ensure that the person responsible for preparing the taxpayer's monthly Storage Tank Trust Fund Charge return receives this Notice. The Department's contact information for this rate change was also set forth in the Notice. More information can be found here.

District of Columbia

Medical Cannabis Sales Tax Holiday Week: The Office of Tax and Revenue (OTR) recently published an announcement that the Council of the District of Columbia has passed the Medical Cannabis Patient Card Extension and 4/20 Medical Cannabis Sales Tax Holiday Week Emergency Act of 2024. According to this announcement by OTR, the rate of tax is six percent of the gross receipts from the sale of or charges for medical cannabis, as defined by District of Columbia law, except for sales or charges occurring the period of April 15, 2024, through April 28, 2024, which is established as the 4/20 Medical Cannabis Sales Tax Holiday Week for the year 2024. The OTR noted in this announcement that all medical marijuana dispensaries that are registered for a sales and use tax account with the OTR should file FR-800-SM, Specialized Sales Tax as usual through My.Tax.DC.gov on or before May 20 and should continue to report their total gross sales. Any exempt sales, according to this announcement, made during the 4/20 Medical Cannabis Sales Tax Holiday Week for 2024 should be reported on Line 18, Column B, and subtracted from gross sales to determine a taxpayer's taxable sales. Contact information is provided for additional information. More information can be found here.

Florida

Reduction in State Sales Tax Rate Imposed on Rentals to Use Real Property: The Florida Department of Revenue (Department) recently published Tax Information Publication No: 24A01-02, stating that, effective June 1, 2024, the state's sales tax imposed on the rent charged for renting, leasing, letting, or granting a license to use real property (also known as commercial rentals) is reduced from 4.5 percent to 2.0 percent. This Publication provided some examples of real property rentals subject to the tax, including rentals of commercial office or retail space, warehouses, and self-storage units or mini-warehouses. The Department notes in this Publication that the total rent charged includes all consideration due and payable by the tenant for the privilege or right to use or occupy the real property. Further, the Department also noted that the local option discretionary sales surtax imposed by the county where the real property is located continues to apply to the total rent charged. Additionally, the Department noted that the reduced state sales tax rate on commercial rentals does not apply to the state sales tax rate on rentals or leases of living, sleeping, or housekeeping accommodations for six months or less, nor to parking or storage spaces for motor vehicles in parking lots or garages, docking or storage spaces for boats in boat docks or marinas, or the tie-down or storage space for aircraft at airports. The Department's contact information is provided in this Publication for this rate reduction. More information can be found here.

Georgia

Accelerated Tax Rate Reductions: On April 18, 2024, the Office of Georgia Governor Kemp issued a Press Release announcing that the Governor has signed, among other Bills, HB 1015 and HB 1023 which accelerate the rate reduction for both the 2024 Georgia individual income tax and the corporate income tax. By way of background, the Press Release noted that previous Georgia legislation scheduled a step down of ten basis points in the income tax rate starting in 2025, but HB 1015 accelerates that rate reduction for the individual income tax to 5.39 percent rather than 5.49 percent as set by previous Georgia law and marking a cut of 36 basis points from the 2023 tax rate of 5.75 percent. Additionally, HB 1023 lowers the corporate income tax rate from 5.75 percent for tax year 2024 to 5.39 percent by matching the corporate income tax rate to the individual income tax rate. The Press Release also noted that HB 1015 accelerated the largest state income tax cut in Georgia history. More information can be found here.

Louisiana

Firearm Safety Device Credit: The Louisiana Department of Revenue (Department) has recently issued Revenue Information Bulletin No. 24-009 dealing with the firearm safety device credit for individual income tax purposes. The Bulletin explains that the firearm safety device credit is a nonrefundable individual income tax credit that may be claimed for the purchase of one or more firearm safety devices in a single transaction. To qualify, the firearm safety device(s) must be listed in La R.S. 47:927.24(A)(3) and be purchased from a dealer who is federally licensed to sell firearms, that is, a dealer must possess a federal firearm license. The Bulletin notes that the amount credited is equal to the amount of the purchase price including the local state sales and use taxes, limited to $500; and because the credit is limited to a single transaction; the purchase price of firearm safety devices bought in separate transactions cannot be combined to calculate the amount of the credit. In other words, if a Taxpayer purchases more than one qualifying firearm safety device in a single year in separate transactions, the Taxpayer may only seek a credit for one of the transactions; but if the Taxpayer purchases multiple qualifying firearm safety devices in one transaction, that Taxpayer may seek a credit for each device purchased until hitting the $500 cap. The Bulletin also notes that individuals who have a Louisiana income tax liability may claim the credit on either Form IT-504, Resident Individual Income Tax Return, or Form IT-540B, Nonresident Individual Income Tax Return. A copy of the receipt listing the firearm device and its purchase price must be attached to the return as documentation of the credit. The Bulletin then sets forth a number of Frequently Asked Questions pertaining to this credit. More information can be found here.

Maryland

Temporary Relief from IFTA Requirements Following Bridge Collapse: The Comptroller of Maryland (Comptroller) issued a News Release authorizing a temporary waiver of the International Fuel Tax Agreement (IFTA) licensing and decal requirements for motor carriers hauling freight to and from a seaport and will waive certain penalties associated with late filing of IFTA returns. According to the Release, the Comptroller will waive such IFTA licensing and decal requirements until at least May 31, 2024. The Release also noted that with the expectation that some IFTA licensees located in the affected area may experience hurdles or delays in filing their quarterly IFTA returns by the April 30 due date, the agency will also grant a waiver of penalties for this filing period; however, the Release goes on to state that IFTA licensees must file on or before June 30, 2024, to be granted this relief. This Release also noted that these announcements follow the Comptroller's decision to waive interest and penalties for business tax returns filed by May 31, 2024. Contact information for the Comptroller's Office is also provided in this Release. More information can be found here.

Mississippi

Expenditure Report for Counties Due by May 15, 2024: The Mississippi Department of Revenue (Department) published a form entitled Modernization Expenditure Report for Counties which provides in part that counties are eligible to receive funds twice during each year with payments made in July and January pursuant to Miss. Code Annotated § 27-67-35. The Department notes in this form that such funds are to assist counties in Mississippi in paying costs associated with the repair, maintenance, and/or construction of roads, streets, and bridges. As also noted in this form, the Department further requires counties to enter the total amount of funds (excluding bond proceeds) used to pay for the repair, maintenance, and/or construction of roads, streets, and bridges in the county during the county's prior fiscal year ending in 2023. The Department then notes in this form that any county failing to submit this completed form by May 15, 2024, will forfeit the July 2024 distribution of funds. Instructions are included in the form for emailing the Department. More information can be found here.

North Carolina

Updated Approved E-File Software Products: The North Carolina Department of Revenue (Department) has recently updated the approved listing of products that meet the requirements for electronic filing with the Department relative to individuals, corporations and franchises, partnerships, and estates and trusts. Those approved products are set forth in this updated listing, although such publication states that the Department does not endorse or promote any specific products. That updated listing can be found here.

South Carolina

Solar Energy Credit for Income Tax: The South Carolina Department of Revenue (Department) recently issued Revenue Ruling #24-2, the purpose of which is to provide guidance to the public regarding the solar energy credit to be applied against a taxpayer's income tax liability. The Department notes in this Ruling that S.C. Code Ann. § 12-6-3587 provides a credit against a taxpayer's income tax liability for the purchase and installation of a qualifying solar energy system, small hydropower system, or geothermal machinery and equipment. Further, the Department provides various questions and answers about this credit, which is generally known as the Solar Energy Credit. Those FAQs include (among many other FAQs) which purchases qualify for the Solar Energy Credit; which expenses qualify for the Credit; what other requirements the system must meet in order to qualify for the Credit; do taxpayers who qualify for the federal solar credit also qualify for the South Carolina Credit; is the Credit reduced by any rebates or other incentives the taxpayer receives; can nonresidents take the Solar Energy Credit; can taxpayers claim multiple Credits for the installation or qualifying equipment at the same facility; and when do the Credits expire. More information can be found here.

Tennessee

Business Tax Return No Longer Required by Small Businesses: The Tennessee Department of Revenue (Department) in its recent Revenue Review, reminded small businesses that the Tennessee Works Tax Act eliminated the annual business tax filing obligation for businesses with annual gross sales under $100,000 within a county and/or city. The Department noted in such Review that this change applies to tax periods ending on or after December 31, 2023, and that letters have been sent by the Department to business owners who may be affected asking them to confirm locations that are no longer subject to the business tax. However, the Department did note in this publication that businesses not liable for the tax are still required to keep their business licenses up to date; and, for jurisdictions where a business has total gross sales between $3,000 and $100,000, must obtain a minimal activity license directly from the local county or city jurisdiction. More information can be found here.

Texas

Water-Efficient Products Sales Tax Holiday: The Texas Comptroller's Office recently published information regarding the Water-Efficient Products Sales Tax Holiday, which begins May 25, 2024 through May 27, 2024, and coincides with the ENERGY STAR Sales Tax Holiday, which provides an exemption from sales tax for purchases of certain energy-efficient products. During the holiday period, any product that displays a WaterSense label or logo can be purchased free from tax, regardless of whether such products will be used for personal or business purposes. In addition, and according to the Comptroller's Office, during the sales tax holiday certain water-conserving products can also be bought tax free; however, unlike the WaterSense labeled or logoed items, the water-conserving products are only exempt when purchased for use at the purchaser's residential property. The water-conserving products, according to the Comptroller's publication, include items that are used or planted for conserving or retaining ground water; recharging water tables; or decreasing ambient air temperature, and so limiting water evaporation. That publication then gives examples of various water-conserving products, such as a soaker or drip-irrigation hose, a moisture control for sprinkler or irrigation system, and mulch, among others. The Comptroller's publication also addresses purchases by contractors, landscapers and other service providers. More information can be found here.