State Tax Changes
Issues & Policies
The new state budget makes numerous tax changes, most as of July 1, 2015.
- Corporate tax credits: Reduced from 70% to 50.01%
- Corporate tax surcharge: Extended for at least another two years
- Net loss carryforward (NOL): Reduced to 50% of net income in any income year
- Personal income tax: Top rate increased to 6.99%
- Unitary/Mandatory combined reporting: Will be implemented starting in 2016
- Computer and data processing maintained at 1%
- Car wash services now taxable.
- Clothing and footwear remain taxable. Exemption for clothing and footwear costing less than $50 is not restored on July 1, 2015.
- Luxury sales tax rate increased to 7.75%. No change in items that are taxable at the higher rate.
- Motor vehicle parking in all seasonal parking lots and hospital garages taxable–but only for non-metered lots with 30 or more parking spaces.
- Water company sales taxable. Exemption eliminated.
- Web design services: Now taxable at 1%
For more information, contact CBIA’s Bonnie Stewart at 860.244.1925 | firstname.lastname@example.org | @CBIAbonnie
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