close
Share with your friends

Arizona (federal conformity); Connecticut (sales tax); Illinois (tax rate increases)

KPMG reports: Arizona, Connecticut, Illinois

KPMG’s This Week in State Tax—produced weekly by KPMG’s State and Local Tax practice—focuses on recent state and local tax developments.

1000

Related content

  • Arizona: House Bill 2757 has been signed, and its measures update Arizona’s conformity to the Internal Revenue Code. Accordingly, provisions of the federal tax law that is often referred to as the “Tax Cuts and Jobs Act” (Pub. L. No. 115-97) are incorporated into Arizona law for the 2018 tax year.

  • Connecticut: Pending legislation (House Bill 7424) includes measures that would revise the definition of tangible personal property (that is, property subject to sales and use tax at a general rate of 6.35%) to include digital goods and canned or prewritten software that is electronically accessed or transferred (other than when purchased by a business for its own use). The bill also increases the rate of sales and use tax imposed on meals and drinks sold at eating establishments and bars by 1% so that these sales would be taxed at a rate of 7.35%. 

  • Illinois: Certain bills recently signed into law include new, graduated income tax rates for individuals, trusts, and estates. Currently, a flat 4.95% rate applies to all income of these taxpayers. Under Senate Bill 687, the rate on income over $1 million is 7.99% on all income—and not just income over the $1 million threshold. The individual income tax rate increases would not be effective unless and until Illinois voters approve a constitutional amendment allowing the state to impose income taxes at graduated rates (set for a 2020 ballot initiative). Senate Bill 687 also includes a contingent corporate income tax increase to 7.99%, so that with the 2.5% replacement tax added in, this would increase the Illinois corporate income tax rate to 10.49%.  


Read more at KPMG's This Week in State Tax

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal