Paying Too Much, Too Little Time
Some Oregonian TurboTax users may have overpaid their state taxes. Senate Finance Committee Chairman Ron Wyden (D-OR) has written Intuit, which owns tax preparation software TurboTax, asking the company to address an apparent software error that led users to overpay their state income taxes. Some Oregonians using the software platform may have claimed the standard deduction even though itemizing would have been more beneficial, reports TaxNotes (paywall). The Oregon Department of Revenue first reported the issue in late April.
More electric vehicles (EV) may be eligible for tax credits worth up to $7,500. Treasury announced final regulations for the EV credits established under the Inflation Reduction Act in 2022. Automakers will now have more time to comply with provisions on the sourcing of minerals used in EV batteries.
Connecticut lawmakers adjourn just before learning of a more optimistic budget outlook. Connecticut budget officials project the state will receive billions of dollars more in tax revenue than expected over the next several years. The good news came just a week before the state legislature adjourned the 2024 regular session, with lawmakers deciding not to revise the $26 billion budget for 2024-2025. Connecticut’s Senate Appropriations Chair Cathy Osten (D) reflected that lawmakers “could have done things differently.”
A new vacancy tax law in Maryland. Democratic Gov. Wes Moore signed House Bill 2 into law. The legislation gives local governments the authority to levy higher taxes on the owners of vacant properties. The bill is part of a state effort to reduce the number of underused and vacant lots and encourage housing construction. There are 242,361 vacant properties across the state.
Report: Canada’s digital services tax (DST) could cost US companies $2.3 billion a year. TaxNotes reports (paywall) on a new report from the Computer & Communications Industry Association. The report shares estimates of Canada’s proposed 3 percent DST on US companies. The authors assume the tax would be passed on to Canadian consumers or businesses, leading to an effective 2.1 percent decrease in US exports of relevant services. Under these conditions, they estimate US digital export revenue losses of $2.3 billion and a loss of 3,140 jobs.
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