President Obama called for expanding middle-income tax incentives, tweaking the Affordable Care Act’s excise tax on high dollar health plans and net investment income (NII) tax, imposing a fee on oil to fund infrastructure spending, and more in his fiscal year (FY) 2017 federal government budget released on February 9. is the final federal budget that President Obama will propose. As expected, the President also renewed tax proposals from previous budgets, particularly in the international and retirement savings areas. e overall White House budget would raise over $2.8 trillion in revenue over the next 10 years.
The July issue of the Kentucky Tax Alert reviews important corporate, personal, sales and use, and property tax changes that were enacted in the 2016 regular legislative session. Specifically, as previously reported, legislation has been enacted that updates the Internal Revenue Code (IRC) conformity tie-in date for taxpayers computing Kentucky corporation and personal income tax liability from December 31, 2013 to December 31, 2015. In addition, as previously reported, a sales and use tax exemption is enacted for gross receipts from (1) 911 emergency service fees or charges levied by a local government; and (2) Commercial Mobile Radio Services (CMRS) service charges, including those paid by Lifeline providers and a new CMRS prepaid service charge that takes effect on January 1, 2017. Finally, new legislation is enacted to require the Kentucky Department of Revenue to value and assess the property tax of a municipal solid waste disposal facility as of January 1, as previously reported. Online sales and use tax filing is also outlined with specific sign-up instructions for taxpayers. Kentucky Tax Alert, Kentucky Department of Revenue, July 2016
The end of the 2016 filing season ends many tax practitioners needing to catch up on a long list of new developments that have taken place since January 1, 2016, especially those developments with an immediate impact on what taxpayers do next. Key items include guidance and new rules involving the Affordable Care Act, FATCA, partnerships, corporations, pension and retirement plans, exempt organizations, and more. Treasury and the IRS also started rolling out guidance under the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), passed at year- end 2015 with significant impact on 2016 and beyond. At the same time, Treasury and IRS officials previewed important guidance due out over the next several months. And the Tax Court and federal district and appellate courts issued a number of important tax decisions.