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

Sales taxes

  • 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 | | @CBIAbonnie