The accounting and consulting firm of Amper, Politziner & Mattia has published information regarding recent state and local tax changes for the following:
Connecticut: 2009 Amnesty Program
• Connecticut has established a state tax amnesty program effective May 1, 2009, through June 25, 2009, for persons that owe any tax imposed by any Connecticut law and required to be paid to the Department of Revenue Services for any affected taxable period.
• At this point, the Commissioner has been directed to prepare the amnesty application.
• Connecticut's Voluntary Disclosure Program remains in effect. In many instances, Voluntary Disclosure will be the preferable option.
Massachusetts: "Check-the-Box" Conformity
• For taxable years beginning on or after January 1, 2009, the federal "choice of entity" rules will apply for Massachusetts corporate excise and personal income tax (TIR 08-15 is effective on July 3, 2008).
• For tax years beginning on or after January 1, 2009, corporate trusts will cease to exist in Massachusetts. Corporate trusts will be reclassified as a corporation, partnership, or disregarded entity consistent with their federal classification.
• Transition Rules apply to re-organizations of: Corporate Trust to Corporation, Partnership, or Disregarded Entity; and, Partnership to Corporation. Consult your Amper tax advisor for specifics.
Visit http://www.amper.com/publications/ma-salt-advisory.asp. New Jersey: 2008 Recent Legislation And Salable/Transferable Tax Credit
• The NOL carryforward period was extended from seven to 20 years (applicable to NOLs arising for periods ending after 6/30/09).
• A job creation benefit of a $3,000 cash grant for each new job created in the State has been enacted to run through 2010.
• New Jersey has income tax credits that can be sold or transferred to other taxpayers. Corporations might want to review their state tax situation in order to determine if they can reduce their state tax liability by purchasing these credits.
• Gov. Corzine has signed legislation to repeal the "throw-out" rule, and to repeal the "regular place of business requirement." These changes apply to tax periods beginning on or after July 1, 2010.
New York: 2008 Update
• The State has revised the computation of the fee payable by LLC/LLPs. The fee is now based on gross receipts instead of the number of members of partners. Multiple-tier LLC/LLPs will be taxed at each separate tier, with no credit for the fee paid by the lower tier entity.
• For taxable years beginning on or after January 1, 2008, the fixed dollar minimum tax for both C and S corporations has been revised and will be based on the State's receipts of the corporation.
• New York State sales tax vendors must re-register, beginning November 1, 2008.