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State Legislative Update: Tax Relief Opportunities and New Tax Obligations Enacted in 2022

Carlton Huntley, J.D., LL.M.  Tax & Accounting Editor, Checkpoint

· 5 minute read

Carlton Huntley, J.D., LL.M.  Tax & Accounting Editor, Checkpoint

· 5 minute read

In the middle of a busy legislative season, several states have made important changes in their tax code that practitioners across the nation will want to be aware of in order to service clients who may have multistate needs. These legislative highlights have been grouped into two categories: new opportunities for tax relief and new tax obligations.

Tax Relief Enacted in Delaware, Florida, Georgia, and New Mexico

Delaware Relief Rebate Program

The Delaware legislature passed legislation that created the 2022 Delaware Relief Rebate Program to provide resident, individual income taxpayers a one-time, retroactive, refundable income tax credit in the amount of $300. The tax credit is referred to as a “relief rebate.” To receive the tax credit, a person must have been a resident individual for the 2020 tax year, must have timely filed a Delaware resident personal income tax return, and must be living as of the date the credit is issued. Practitioners should advise Delaware-resident clients that they may be eligible for this retroactive rebate.

Florida Sales Tax Holiday

Governor Ron DeSantis signed House Bill 7071, which provides more than $1.2 billion of tax relief for Floridians. The bill provides for ten sales tax holidays for a variety of items commonly purchased by Florida families, including fuel, diapers, disaster supplies, and tools.

Keep up with sales tax holidays using customizable State Charts from Checkpoint Edge!

Georgia Fuel Tax Suspension

On May 26, 2022, Georgia Governor Brian Kemp issued an executive order that extends the suspension of the collection of state motor fuel and diesel fuel taxes required by Ga. Code Ann. § 48-9-3 from Thursday, May 26, 2022, until Thursday, July 14, 2022, at 11:59 p.m. The extension is due to the ongoing disruptions to the state’s supply chain.

New Mexico Rebates and Relief Payments

The New Mexico Taxation and Revenue Department has issued additional guidance on the multiple tax rebates and economic relief payments enacted by the legislature in 2022. A refundable income tax rebate of $500 for married couples filing joint returns, heads of household, and surviving spouses with incomes under $150,000, and $250 for single filers and married individuals filing separately with incomes under $75,000.

Need to stay current with state tax credit changes? Checkpoint Edge has State Charts covering numerous tax credits with links to primary sources and expert guidance.

New Sales Tax Obligations in Rhode Island and Oklahoma

Rhode Island Recreational Cannabis Framework

On May 25, 2022, Rhode Island Governor Dan McKee signed into law the Rhode Island Cannabis Act, which legalizes and regulates the recreational adult use of cannabis. The bill provides for the taxation of the retail sale of cannabis, removes marijuana from the Marijuana and Controlled Substances Taxation Act, and promulgates the licensing requirements and regulatory framework. The retail sale of cannabis can commence on December 1, 2022, by licensed retailers. Sales tax at 7%, a state cannabis excise tax of 10%, and a local cannabis excise tax of 3% will all be applied to purchases of marijuana.

Checkpoint Edge has detailed guidance on cannabis taxation in all 50 states and the District of Columbia.

Oklahoma Marketplace Facilitator Expansion

The state of Oklahoma passed legislation that expands the definition of “marketplace facilitator” to mean a person that facilitates the sale at retail of a marketplace seller’s product (currently limited to a marketplace seller’s tangible personal property). “Product” means tangible personal property, services, or other transactions taxable under the Oklahoma sales tax code. The law also provides that the collection obligation of a marketplace facilitator or a referrer that elects to collect and remit sales or use tax also applies to any other taxes administered by the Tax Commission, which are levied by local jurisdictions on a retail sale of a product. Quickly view marketplace facilitator rules in each state with State Charts and Nexus Assistant from Checkpoint Edge and dig into the details of each state’s policy with Checkpoint Catalyst.

Checkpoint Edge is the #1 destination for state tax research with daily news, detailed state-by-state charts, expert analysis, and practical guidance. Start your free 7-day trial today!

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