COVID-19 State by State Tax Analysis

COVID-19 and the Sales Tax World

Across the United States, the COVID-19 pandemic has created an unusual situation in the sales tax world. State offices are closed indefinitely, causing confusion for many taxpayers. Luckily, many states have issued extensions for sales tax filings and payment. Penalties for late filing and interest are waived.

Refer to the state by state analysis below to see which states have extended deadlines for filing returns, payments, and also waived penalties for late filing and interest.

Alabama

Response to Covid-19: The state is giving businesses that are eligible ($62,500 or lower retail sales per month) the ability to waive sales tax late fees. Returns must still be filed on time, but payments are extended. Late fees will be waived through 6/1/2020. Executive order entered into 3/18/2020

Filing Period Covered: 2/1/2020-4/30/2020

Sales Tax Payment Extension:Yes, 6/1/2020

Return Filings Date Adjustment: no

Last Update: 3/18/2020

California

Response to Covid-19: According to Executive Order N-25-20, California provides relief for interest and penalties. CDTFA provides a three-month extension for any business filing less than $1 million. Taxpayers that qualify do not need to request an extension for penalty and interest. Refund claims will have an extension of 60 additional days to file. The state is also allowing small businesses to defer payment of sales and use taxes of up to $50,000, for up to 12 months.

Filing Period Covered: Monthly: 2/1/2020-2/29/2020, 3/1/2020-3/31/2020, 4/1/2020-4/30/2020
| Quarterly: 1/1/2020-3/31/2020

Sales Tax Payment Extension: Yes, 6/30/2020, 7/31/2020, and 8/31/2020 respectively for monthly filers (prepayment filers must file on 6/24/2020 and 8/24/2020 for February and April periods). 7/31/2020 for Q1 2020 filers.

Return Filings Date Adjustment: Yes, 6/30/2020, 7/31/2020, and 8/31/2020 respectively for monthly filers (prepayment filers must file on 6/24/2020 and 8/24/2020 for February and April periods). 7/31/2020 for Q1 2020 filers.

Last Update: 4/2/2020

Colorado

Response to Covid-19: The state allows sales tax returns due 4/20/2020 to extend their deadline to 5/20/2020. (*The extension doesn’t apply to self-collecting home-rule taxing jurisdictions). Penalties and interest will also be waived for the department as long as they are paid by May 20th.

Filing Period Covered: Monthly: 3/1/2020-3/31/2020 |
Quarterly: 1/1/2020-3/31/2020

Sales Tax Payment Extension: Yes, 5/20/20

Return Filings Date Adjustment: Yes, 5/20/20

Last Update:4/8/2020

Connecticut

Response to Covid-19: Taxpayers with less than $150,000 in annual sales tax liability automatically qualify for an extension to file and pay. To determine eligibility business uses a Calendar year lookback period of 1/1/2020 through 12/31/2019. Extensions are as follows: For monthly filers due March 31st and April 30th, periods are extended to file and pay by May 31st. “Taxpayers who file and pay on or before the extended deadlines will not be subject to any penalties or interest.”

Filing Period Covered: Monthly: 2/1/2020-2/29/2020, 3/1/2020-3/31/2020 |
Quarterly: 1/1/2020-3/31/2020

Sales Tax Payment Extension:Yes, 5/31/2020

Return Filings Date Adjustment: Yes, 5/31/2020

Washington D.C.

Response to Covid-19:The Washington DC Office of Tax and Revenue will automatically waive interest and late payment penalties for sales and use tax for all businesses (except hotels and motels) for periods ending on February 29, 2020, and Mach 31, 2020. All sales tax due by these periods must be paid in full by July 20, 2020. Any payments not made by this date will be subject to penalties and interest based on the original due date.

Filing Period Covered: Monthly: 2/1/2020-2/29/2020, 3/1/2020-3/31/2020

Sales Tax Payment Extension:Yes, 7/20/2020

Return Filings Date Adjustment: No

Florida

Response to Covid-19: Emergency Waiver/Deviation # 20-52-DOR-002 extends specific deadlines for Sales and Use tax. For the period ending 2/29/20, The deadline has been extended from 3/20/20 to 3/31/20 and penalties and interest are waived. For the period ending 3/31/20 only companies adversely affected by Covid-19, the due date has been moved from 4/20/20 to 4/30/20. “The order defines “adversely affected” as any of the following conditions:
-The business closed in March 2020 in compliance with a state or local government order issued in response to the COVID-19 outbreak and following the closure had no taxable transactions for the taxes listed above.
-The business experienced sales tax collections in March 2020 that are less than 75% of March 2019 sales tax collections.
-The business was established after March 2019.
-The business is registered with the Department to file quarterly.” (Florida DOR)

Filing Period Covered: Monthly:2/1/2020-2/29/2020, 3/1/2020-3/31/2020
| Quarterly: 1/1/2020-3/31/2020

Sales Tax Payment Extension:Yes, 3/31/2020 and 4/31/2020 for monthly filers, and 4/31/2020 for Quarterly filers

Return Filings Date Adjustment: Yes, 3/31/2020 and 4/31/2020 for monthly filers, and 4/31/2020 for Quarterly filers

Illinois

Response to Covid-19: IDOR is waiving any penalty and interest payments imposed on late sales tax payments for qualified taxpayers. Qualified taxpayers are eating and drinking establishments. Qualify if, in 2019, the sales tax liability was less than $75,000. Returns must be filed on time, but penalties and interest can be waived for periods of February, March, and April. The liability will be spread out over 4 due dates equally. 1/4 of liability due 5/20, 6/22, 7/20, 8/20.

Filing Period Covered: Monthly: 2/1/2020-4/30/2020 |
Quarterly: 1/1/2020-3/31/2020

Sales Tax Payment Extension: No, 1/4th of liability due 5/20, 6/22, 7/20, 8/20

Return Filings Date Adjustment: No

Iowa

Response to Covid-19: Iowa allows an additional 60 days for filing and payment of any liability originally due between 3/20/2020 and 4/30/2020. All penalties and interest will be waived unless the 60 days extension deadline is not met. This is available to businesses of all sizes and application is open through 4/30/2020 through
tax.iowa.gov/COVID-19

Filing Period Covered: Monthly: 2/1/2020-2/29/2020, 3/1/2020-3/31/2020
| Quarterly: 1/1/2020-3/31/2020

Sales Tax Payment Extension:Yes, 5/20/2020 and 6/20/2020 respectively for monthly filers. 6/20/2020 for Quarterly filers.

Return Filings Date Adjustment: Yes, 5/20/2020 and 6/20/2020 respectively for monthly filers. 6/20/2020 for Quarterly filers.

Last Update:4/8/2020

Louisiana

Response to Covid-19: According to Revenue Information Bulletin No. 20-008, February 2020 periods return and payments due March 20 have been extended to 5/20/20.

Filing Period Covered: 2/1/2020-2/29/2020

Sales Tax Payment Extension:Yes, 5/20/2020

Return Filings Date Adjustment: Yes, 5/20/2020

Maryland

Response to Covid-19: Businesses with sales tax, use tax, and other business tax due in the months of March, April, and May 2020 may now file and pay those tax returns by July 15, 2020.

Filing Period Covered: Monthly: 1/1/2020-1/31/2020, 2/1/2020-2/29/2020, 3/1/2020-3/31/2020, 4/1/2020-4/30/2020
| Quarterly: 1/1/2020-3/31/2020

Sales Tax Payment Extension:Yes, 7/15/2020

Return Filings Date Adjustment:Yes, 7/15/2020

Last Update:4/14/2020

Massachusetts

Response to Covid-19: CMR 62C.16.2(3)-(6), vendors whose cumulative liability in 12 month period ending 2/29/20 is less than $150,000, returns and payments due from 3/20/20 and ending 5/31/20 are suspended. The returns and payments will be due on 6/20/20. Marijuana, marketplace facilitators, and motor vehicle dealers are not covered under this rule.

Filing Period Covered: Monthly: 2/1/2020-2/29/2020, 3/1/2020-3/31/2020, 4/1/2020-4/30/2020
| Quarterly: 1/1/2020-3/31/2020

Sales Tax Payment Extension:Yes, 6/20/2020

Return Filings Date Adjustment: Yes, 6/20/2020

Michigan

Response to Covid-19: Michigan is also waiving late penalties and interest for all sales and use tax payments due March 20, 2020, for 30 days. This means that taxpayers have until May 20, 2020 to file and pay sales tax payments due on both March 20 and April 20, 2020

Filing Period Covered: 2/1/2020-2/29/2020

Sales Tax Payment Extension:Yes, 5/20/2020

Return Filings Date Adjustment: Yes, 5/20/2020

Last Update:4/15/2020

Minnesota

Response to Covid-19: As announced in a press release, Minnesota has extended the sales tax grace period for businesses identified in Executive Order 20-04 and closed by COVID-19. Businesses with a monthly sales and use tax payment due March 20, 2020 will now have until May 20, 2020 to make that payment. Businesses with a monthly or quarterly sales tax payment due April 20, 2020 will now have until May 20, 2020 to make that payment.

Filing Period Covered: Monthly: 3/1/2020-3/31/2020

Sales Tax Payment Extension: Yes, 5/20/2020

Return Filings Date Adjustment: No

Last Update: 4/10/20

Mississippi

Response to Covid-19: Mississippi has extended all sales tax levies by one month without requiring the imposition of interest and penalties on unpaid tax balance for the period covered by presidentially declared national emergency. Time to file returns has not been extended.

Filing Period Covered: Covers period of national emergency, allowing 1-month extension of no penalty and interest to cover unpaid tax liabilities

Sales Tax Payment Extension:Yes

Return Filings Date Adjustment: No

New York

Response to Covid-19: Executive Order allows abatement of late filing, payment penalties, and interest on quarterly returns due 3/20/20. Returns must be filed and paid within 60 days of this due date. “Taxpayers seeking interest and penalty abatements for COVID-related filing and payment delays may request relief by visiting the Department’s website at
www.tax.ny.gov
. From the Department homepage, taxpayers can click on Tax Department response to novel coronavirus (COVID-19) to find instructions on how to apply for relief.” Sales Tax Vendors who are required to file returns on a monthly basis and participants in the Promptax program for sales and use tax or prepaid sales tax on fuel are not eligible for this relief.

Filing Period Covered: Quarterly filers only 12/1/2019-2/29/2020

Sales Tax Payment Extension: Yes (quarterly filers must be paid within 60 days of due date of 3/20/2020)

Return Filings Date Adjustment: Yes (quarterly filers must be filed within 60 days of due date of 3/20/2020)

North Carolina

Response to Covid-19: Executive Order 116 declares a state of emergency and the following penalties have been waived: The penalty for failure to obtain a license (G.S. 105-236(a)(2); The penalty for failure to file a return (G.S. 105-236(a)(3)); The penalty for failure to pay tax when due (G.S. 105-236(a)(4)), and The penalties regarding informational returns (G.S. 105-236(a)(10)) for the period of 3/15/20 through 7-15/20. Interest cannot be waived. “Affected Taxpayers who cannot meet their filing or payment requirement as a result of COVID-19 should complete Form NC-5500, Request to Waive Penalties (“NC-5500”). Affected Taxpayers should write “COVID-19” on the top of the NC-5500.”

Filing Period Covered: 3/15/2020-7/15/2020

Sales Tax Payment Extension: The only Penalty waived, 7/15/2020

Return Filings Date Adjustment: No

Pennsylvania

Response to Covid-19: Department waiving penalties for businesses required to make Accelerated Sales Tax (AST) prepayments for 3/20/20. For April payments AST is being waived and businesses simply need to remit sales tax collected in March. Businesses that collect sales tax will not need to make AST payments for the next 3 months. Businesses will not be penalized for missing deadlines during the period of April, May, June, and prepayment is not required for these months. Businesses will only need to remit sales tax as a standard monthly filer from the prior month.

Filing Period Covered: 2/1/2020-2/29/2020, 3/1/2020-3/31/2020, 4/1/2020-4/30/2020, 5/1/2020-5/31/2020

Sales Tax Payment Extension: Only AST payments (waiving prepayment, only remit February sales tax collected due 3/20/2020. March sales tax collected will be due 4/20/2020, April sales tax collected due 5/20/2020, and May sales tax collected due 6/22/2020. AST filers will be considered monthly filers for these periods.

Return Filings Date Adjustment: No

Last Update: 4/15/2020

South Carolina

Response to Covid-19: Returns and payments due 4/1/20-6/1/20 are due 6/1/20. Penalty and interest will not be charged if payment is made by 6/1/20.

Filing Period Covered: Monthly: 3/1/2020-5/31/2020
| Quarterly: 1/1/2020-3/31/2020

Sales Tax Payment Extension: Yes, 6/1/2020

Return Filings Date Adjustment: Yes, 6/1/2020

Texas

Response to Covid-19: Offers assistance like short term payment agreements, and waiver of penalty and interest if a taxpayer cannot fulfill requirements. There are no specific guidelines for Texas and returns and payments are expected to be filed as regularly scheduled.

Filing Period Covered: 2/1/2020-2/29/2020

Sales Tax Payment Extension: Yes, short term payment agreements

Return Filings Date Adjustment: No

Vermont

Response to Covid-19: Businesses will get relief from sales tax for the filing deadlines of 3/25/20 and 4/25/20. These filings and payments can be made on 7/15/20 with no penalty or interest.

Filing Period Covered: Monthly: 2/1/2020-2/29/2020, 3/1/2020-/3/31/2020
| Quarterly: 1/1/2020-3/31/2020

Sales Tax Payment Extension: Yes, 7/15/2020

Return Filings Date Adjustment: Yes, 7/15/2020

Virginia

Response to Covid-19: Department is considering extending the filing period for due date 3/20/20 to 4/20/20 with a waiver of penalties. However, interest will accrue even if an extension is granted.

Filing Period Covered: 2/1/2020-2/29/2020

Sales Tax Payment Extension: Only Penalty (interest will accrue), must submit a request to the state. The request must be granted by the state

Return Filings Date Adjustment: Only Penalty (interest will accrue), must submit a request to the state. The request must be granted by the state

Washington

Response to Covid-19: Requests businesses still file returns even if they are unable to pay.
-“Monthly filers: Request an extension for paying tax returns (even if the request is after the due date) by sending a secure email in your My DOR account or by calling Revenue’s customer service at 360-705-6705, Monday through Friday 8 a.m. to 5 p.m.
-Quarterly filers: The Quarter 1, 2020 return is now due June 30, 2020
-Annual filers: The Annual 2019 return is now due June 15, 2020
Please note: Extensions only push out the due date; they don’t waive the tax owed. If you already filed and scheduled your payment, you must cancel your payment in your online My DOR account, BEFORE the day the payment is scheduled.” The Department has the authority to waive interest through 4/17/20.

Filing Period Covered: Monthly: must request an extension from the state
| Quarterly: 1/1/2020-3/31/2020 Q1 return due 6/30/2020
Annual: due 6/15/2020

Sales Tax Payment Extension: Yes, Q1 payment due 6/30/2020. Annual Payment is due 6/15/2020. Monthly Need request granted from the state

Return Filings Date Adjustment: Yes, Q1 returns due 6/30/2020. Annual Returns are due 6/15/2020. Monthly Need request granted from the state

Wisconsin

Response to Covid-19: Small businesses can request to file sales tax returns due 3/31/20 to 4/30/20 and returns due 4/30/20 to 6/1/2020 without late filing fees or penalties. 12% interest will accrue beginning on the original due date.

Filing Period Covered: Monthly: 2/1/2020-2/29/2020
| Quarterly: 1/1/2020-3/31/2020

Sales Tax Payment Extension: No (due to Wisconsin Law; could change)

Return Filings Date Adjustment: Yes, 4/30/2020 for Monthly 3/31/2020 returns, and 6/1/2020 for Quarterly 4/30/2020 returns

Last Update: 3/27/20

Questions? Contact Us

    By entering your email address, you agree to receive more information from PMBA in accordance with our privacy policy