It is that time of year when county appraisal districts begin to send out notices of appraised value on real property and business personal property. If you feel your property is over-valued, the due date for filing a protest is later than May 15th or 30 days after the notice of appraised value was mailed. Taxpayers that file a protest with their appraisal district will be scheduled for a hearing before the Appraisal Review Board (ARB) to review the property’s market value and resolve or validate the disparity. See your county appraisal district website for guidance on filing a protest or calling your ATKG advisor for assistance.
If your business holds unclaimed property, don’t forget that you are responsible for filing a report and remitting that property to the State. This applies to items such as uncashed vendor checks or employee paychecks.
Additional information can be found at www.claimittexas.org or www.comptroller.texas.gov/programs/unclaimed. Almost every state has unclaimed property laws. If you have business locations in other states, check out those states’ unclaimed property websites for more guidance.
Just because your PPP loan forgiveness isn’t taxable on your federal income tax return and deductions will be allowed for expenses paid with loan proceeds doesn’t mean that will be the case for state income or franchise tax purposes. There are still a few remaining states that will tax the loan forgiveness either by treating the forgiven loans as taxable income or by denying the deduction for expenses paid with these funds, or both.
Texas: Texas was among the most recent states to forgive PPP loans non-taxable by excluding PPP loan forgiveness from the gross receipts calculation for the Texas Franchise Tax (passed April 23, 2021). Returns already filed that included PPP forgiveness income in gross receipts will likely need to be amended.
Other States: As of today, the states that include PPP loan forgiveness in taxable income are California (for some but not all businesses), Nevada, Utah, Florida, Minnesota, North Carolina, Virginia (allows only the first $100,000 in expenses to be deducted), Hawaii and New Hampshire.
With many states facing budget deficits, some state legislatures have proposed tax increases to close the gap. California Gov. Gavin Newson, for example, has signed into law Assembly Bill 85, which included a retroactive suspension of the ability for certain individuals and businesses to utilize net operating loss (NOL) carryovers in 2020, 2021, or 2022. California legislators have also proposed a 3.5% increase for high-income taxpayers – on top of what is already one of the highest tax rates in the U.S. Lawmakers in New York, Illinois, Massachusetts, Maryland, Wisconsin, Hawaii, Oklahoma, and Vermont have proposed various forms of tax increases on high earners. As 2021 progresses, it is expected that more and more states will start looking to raise taxes to offset budget shortfalls.
If you are a retail seller of these items, you will need to make sure they are coded as non-taxable in your software during these periods. For more information, visit the Texas Comptroller’s website by clicking on these links:
For further information on this SALT topic or others, please contact Annette Goodson, Director of ATKG’s SALT practice, at email@example.com or 210.733.6611. ATKG extends its appreciation to Tax Seniors Lindsey Huesing, Ernesto Aguilar, Steve Burgamy, and Marcus Cantu for their collaboration on this article.
‘‘My father and I have used ATKG since the days of its founder James Ahern, and they have always provided excellent and accurate advice.’’
‘‘I can't name just one reason about Eric and Hayley! Their proactivity, creativity, collaborative spirit, and communication are all absolutely incredible.’’
‘‘Everyone that I have worked with at ATKG is extremely friendly, helpful, and always very responsive!’’
‘‘We appreciate ATKG's responsiveness, timeliness, and good communications’’
‘‘Very personable and knowledgeable. Over the years, I have created great relationships with Teryn Grater, Diane White, and the seniors and managers on my account.’’
‘‘I call them my ATKG team!’’
‘‘I couldn't be happier with the choice to move from EY to ATKG. A.J. Sturm, Diane White, Alisha Bell, and the support staff have been instrumental in helping me with a complicated Estate and Foundation scenario. Not only have they provided me with phenomenal accounting and tax advice, but they have also gone above and beyond to help me plan for today, tomorrow, and far beyond. Thank you, ATKG!!!’’
‘‘We continue to consider ATKG a part of our personal and business planning team. They are a professional firm with an impeccable level of service.’’
‘‘ATKG is very professional, responsive, and client-oriented. They are committed and make a point to communicate with annual meetings and anytime I have a question.’’
‘‘Angie Stone and her team provided valuable forensic accounting services and excellent litigation support in some complex family law cases handled by our firm.’’
‘‘Angie Stone and Courtney Mastin are prompt in their response to any inquiry our clients or I may have. Additionally, everyone at ATKG maintains a wonderful level of professionalism.’’
‘‘Great people, good response time, and helpful’’
‘‘Excellent customer service. Rapid response to questions!’’
‘‘Great people and very informative, up-to-date with ever-changing rules and guidelines in this ever-changing government!’’
‘‘ATKG is invested in my success and is highly responsive to my needs.’’
‘‘ATKG offers great customer service.’’
‘‘Prompt service and excellent forecasting. I also feel that I get tremendous support, more than I have received in the past.’’
‘‘Katie provides great service and is very knowledgeable.’’
‘‘Been working with ATKG for several years; they are extremely professional, knowledgeable and offer great customer service.’’
‘‘ATKG provides services up and above any other accounting firm I have ever used. They want to help their clients manage their wealth and offer to help teach their children about wealth and how to manage it.’’
‘‘She is friendly, responsive, and knowledgeable.’’
‘‘David and the ATKG team are knowledgeable regarding current tax issues, and they are extremely responsive to all questions.’’
‘‘A. J. is professional, knowledgeable, and provides friendly assistance.’’
‘‘Eric and Sarah do an excellent job handling our account and promptly answering questions. They are proactive in planning meetings and looking forward.’’
‘‘Our ATKG team, which includes Eric, Ruth, Katie, and Shannon is incredibly knowledgeable, professional, and supportive of our business. Client service always feels like it is at the forefront of their mind.’’
‘‘Loyal, excellent service over 35 years with Melanie and her team.’’
‘‘Our interactions with Diane and the ATKG team are always a model for how a professional services company should interact with its clients. With ATKG, we know that our finances are in good hands.’’
‘‘Melanie, Teryn, and Sandy have clearly had my and my family's best interests at the forefront. I have had a 19-year relationship that has proved to be very beneficial to my family and me.’’
‘‘Melanie, Teryn, and Katie offer us confidence.’’
‘‘Diane and Shannon are a critical resource and partner to our firm. They are knowledgeable, responsive, and dependable on all levels.’’
‘‘Diane and Shannon provide great service. They are very knowledgeable and are always willing to assist our group with sage advice.’’
‘‘Teryn is always quick to respond to questions and on top of the latest accounting rules.’’
‘‘Amanda and Shannon offer us consistent communication’’
‘‘Great work, timely, and the best part....nice folks!’’