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The City of Chicago has changed the terms of its voluntary disclosure (VDA) program. In addition to waiving all penalties for qualified participating taxpayers, the city will now also waive 50% of interest that would apply. This is a significant change as the city did not previously waive any interest as part of its VDA program. It also should be noted that the city provides for a limited look-back period of 4 years for qualified taxpayers participating in the program. If under audit an error rate of less than 10% is discovered for periods disclosed, the additional tax, interest and penalty will be due for the amount not previously disclosed.  If the error rate is greater than 10%, the Department reserves the right to dissolve the voluntary disclosure agreement. For more information regarding the VDA program, you can visit the City of Chicago website. (City of Chicago Tax Collection and Enforcement – Apply for Voluntary Disclosure of Business Taxes webpage)

(01/02/2018)

Effective October 1, 2017, any Connecticut sales tax permit issued after October 1, 2017 will expire 2 years from the date that the permit was issued, unless the permit is renewed. Previously, Connecticut sales tax permits expired every 5 years. (Ch. 36 (H.B. 7109), Laws 2017)

(01/02/2018)

With the turn of the new year, Florida’s sales tax rate imposed on the total rent charged for renting, leasing, letting, or granting a license to use commercial real property will be reduced. The general state level tax will drop from 6 percent to 5.8 percent for rental payments received on or after January 1, 2018, and for occupancy periods beginning on or after January 1, 2018. Many Florida counties also impose a local option surtax, varying between 0.5 percent and one percent. The local tax rates will not be reduced for 2018.



The tax is imposed not only on the base rent, but also on any additional rent, or any consideration required to be paid by the tenant as a condition of occupancy. As a result, the tax is also due on the tenant’s share of common area maintenance charges, real property taxes, and most other charges required under the lease.



The reduced tax rate is applicable to the lease period to which the rent relates. For example, if a landlord receives rent payments in 2018 for December 2017 occupancy, the 6 percent state level rate would still be applicable. However, if a tenant pays rent for January 2018 in December 2017, the new 5.8 percent rate would apply.



Unless a rental is under a bona fide written lease for 6 months or longer, the lease of residential property is subject to the sales tax on transient rentals. The tax rate on transient rentals will remain unchanged at the 6 percent rate (plus local option surtax) for 2018. The local tourist development taxes that are also applicable to transient rentals will not receive a rate reduction either (GreenbergTraurig Alert, Marvin A. Kirsner & Tax Information Publication, No. 17A01-14, Florida Department of Revenue, November 13, 2017).

(01/02/2018)

The Ohio Department of Taxation will be running a tax amnesty program for a variety of state taxes beginning January 1, 2018 and ending February 15, 2018. Ohio Tax Amnesty is available to eligible businesses and individuals that have unreported or underreported taxes that were due and payable prior to May 1, 2017.


Taxes included in the Ohio Tax Amnesty:

 

  • Individual income tax
  • School district income tax
  • Employer withholding tax
  • Employer withholding for school district income tax
  • Pass-through entity tax
  • Sales tax
  • Use tax
  • Commercial activity tax
  • Financial institutions tax
  • Cigarette and other tobacco products taxes
  • Alcoholic beverages taxes

 

For taxpayers who fully pay qualifying tax delinquencies, the DOT will waive penalties and half of the interest normally charged. Taxpayers should visit the DOT website dedicated to the amnesty program to learn more about the program, including eligibility and required documentation (Release, Ohio Department of Taxation, November 13, 2017).
 

(12/18/2017)

Effective January 1, 2018, the Arizona Department of Revenue has amended regulations governing electronic filing thresholds for taxpayers. For tax periods beginning on or after the following tax years, any taxpayer, other than an individual income taxpayer, that had a tax liability equal to or more than the following amounts during the prior tax year or that can reasonably anticipate tax liability in the current tax year exceeding the following amounts, must remit tax payments electronically and file the required return using an electronic filing program established by the Department:

 

 

  • January 1, 2018, prior tax year or expected current year tax liability of $20,000;
  • January 1, 2019, prior tax year or expected current year tax liability of $10,000;
  • January 1, 2020, prior tax year or expected current year tax liability of $5,000;
  • January 1, 2021, prior tax year or expected current year tax liability of $500.

 


For tax periods beginning on or after January 1, 2018, any taxpayer, other than an individual income taxpayer that does not meet the new tax liability threshold amounts, may voluntarily participate in the electronic payment process by an submitting an electronic funds transfer authorization agreement to the Department. Failure to comply with the electronic filing requirements could result in the assessment of penalties. (R15-10-302, R15-10-303 and R15-10-505, Arizona Department of Revenue)
 

(12/18/2017)

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