State & Local Tax Blog

COVID-19 & State Sales Tax Rules

A number of states have announced sales and use tax relief for businesses affected by the coronavirus outbreak.

In this post, we will break down what each state has announced. We will keep this updated as a resource for companies during this difficult time.

As always, our team is available to you if you have questions about your sales tax nexus or responsibilities, or if you’re currently under audit. The easiest way to get in touch is to fill out our 5-minute What’s Next questionnaire. A consultant will be in touch within one business day.

Alabama (Updated Monday, March 23)

  • Waived late payment penalties through June 1, 2020, for sales tax due in February, March and April for taxpayers registered with the DOR as engaging in NAICS sector 72 business activities, including restaurants
  • Waived late payment penalties for small retail businesses’ sales tax due in February, March and April

Alaska

  • No updates

Arizona

  • No updates

California (Updated Tuesday, April 7)

  • Allowed taxpayers an extra 60 days to file or pay sales tax
  • Allowed taxpayers with $5 million or less in California revenue to repay up to $50,000 in annual sales tax liability in 12 equal monthly installments

Colorado (Updated Tuesday, April 7)

  • Extended the April 20, 2020, filing and remittance deadline for state and state-administered sales taxes to May 20, 2020. There are some exceptions; details are here.

Connecticut (Updated Tuesday, April 7)

  • Extended deadlines to file and pay sales tax for taxpayers with $150,000 or less in annual sales tax liability.
  • March 31, 2020, and April 30, 2020, deadlines are extended to May 31, 2020, for monthly filers.
  • April 30, 2020, deadlines are extended to May 31, 2020, for quarterly filers.

Delaware

  • No updates

Florida (Updated Tuesday, April 7)

  • Waived penalties and fees for the March 2020 reporting period (due April 20, 2020) if taxes are filed and remitted by April 30, 2020.
  • Taxpayers must be “adversely affected” by COVID-19. That constitutes a business closure in March, sales tax collections in March less than 75% of March 2019 collections, businesses established after March 2019, or registration with the DoR to file quarterly.

Georgia

  • No updates

Hawaii

  • No updates

Idaho

  • No updates

Illinois (Updated Friday, March 27)

  • Gave eating and drinking establishments with a total sales tax liability less than $75,000 an extension for their February, March and April sales tax payments. The payments can be spread over four months, between May and August.

Indiana

  • No updates

Iowa

  • No updates

Kansas

  • No updates

Kentucky

  • No updates

Louisiana (Updated Monday, March 23)

  • Extended the filing and payment deadline for February 2020 sales tax and returns and payments to May 20, 2020
  • Suspended all electronic filing requirements for sales tax

Maine

  • No updates

Maryland (Updated Monday, March 23)

  • Allowed businesses who paid sales and use taxes early for March to request a refund by emailing [email protected] or calling 410-260-4020

Massachusetts (Updated Friday, March 27)

  • Pushed sales tax due dates in March, April and May to June 20, 2020. Sales tax returns must still be filed by their original due dates; the extension applies only to payments. Only businesses who paid less than $150,000 in sales tax and meal taxes in the year ending Feb. 29, 2020, are eligible. Marijuana retailers, marketplace facilitators and motor vehicle vendors are not eligible.

Michigan (Updated Monday, March 23)

  • Waived penalty and interest for late payments or filing of sales and use tax returns due March 20, 2020 until April 20, 2020

Minnesota (Updated Friday, March 27)

  • Gave businesses with a monthly sales and use tax payment due March 20, 2020, until April 20, 2020, to make payments. Questions can be directed to [email protected] or 800-657-3777.

Mississippi (Updated Tuesday, April 7)

  • Delayed the imposition of interest and penalties on unpaid tax balance for the period covered by the presidentially declared national emergency.

Missouri

  • No updates

Montana

  • No updates

Nebraska

  • No updates

Nevada

  • No updates

New Hampshire

  • No updates

New Jersey

  • No updates

New Mexico

  • No updates

New York (Updated Friday, March 27)

  • Waived penalties on taxpayers who did not make a sales tax payment due on March 20, 2020

North Carolina (Updated Friday, March 27)

  • Waived penalties for failing to file a return, obtain a license, or pay a tax that is due between March 15 and March 31, 2020, until April 15, 2020

North Dakota

  • No updates

Ohio (Updated Tuesday, April 7)

  • Authorized the Tax Commissioner to grant extensions to file sales and use tax, and to waive penalties and interest.

Oklahoma

  • No updates

Oregon

  • No updates

Pennsylvania (Updated Friday, March 27)

  • Waived penalties for businesses required to make Accelerated Sales Tax payments by March 20, 2020
  • Waived Accelerated Sales Tax prepayment requirements for April sales tax payments. Businesses are still asked to remit the sales tax they collected in March.

Rhode Island

  • No updates

South Carolina (Updated Monday, March 23)

  • Extended filing and payment deadlines for taxpayers impacted by COVID-19 until June 1, 2020. The extension applies to all taxes administered by the DOR due between April 1, 2020 and June 1, 2020.

Tennessee

  • No updates

Texas (Updated Tuesday, April 7)

  • Offered short-term payment agreements and waivers of penalties and interest for taxpayers who could not remit February 2020 sales tax on March 20, 2020.

Utah

  • No updates

Vermont (Updated Friday, March 27)

  • Waived penalties and interest on taxpayers who cannot meet sales tax filing deadlines on March 25 or April 25, 2020. Taxpayers must file by July 15, 2020, to be eligible for penalty and interest relief.

Virginia (Updated Friday, March 27)

  • Offered provisional extensions for the February 2020 sales tax return, which was due March 20, 2020. Interest will continue to accrue on late payments.

Washington (Updated Friday, March 27)

  • Offered 60-day penalty waivers to monthly sales tax filers
  • Offered 30-day penalty waivers to quarterly or annual sales tax filers

Washington, D.C. (Updated Friday, March 27)

  • Waived interest and late payment penalties for sales and use tax (except hotels and motels) for periods ending on Feb. 29 and March 31. All tax due must be paid in full by July 20.

West Virginia

  • No updates

Wisconsin (Updated Tuesday, April 7)

  • Allowed businesses to file sales tax returns due on March 31, 2020, by April 30, 2020.
  • Allowed businesses to file sales tax returns due on April 30, 2020, by June 1, 2020.

Wyoming

  • No updates

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