Tax Attorneys Outline Expected State Responses to COVID-19-Related Revenue Shortfalls

December 22, 2020
Tax Notes State

In an article for Tax Notes State, Bass, Berry & Sims attorneys Mike Sontag, Steve Jasper, and Michael Cottone outlined states’ likely responses to lost revenue caused by the COVID-19 pandemic. The authors advise taxpayers to be cautious of – and prepare for – states trying to close budgetary gaps by:

  1. Aggressively pursuing corporate income tax liability for out-of-state businesses.
  2. Broadening the base for sales and use tax.
  3. Limiting credits and incentives.
  4. Increasing rates on “vice” taxes and taxes levied on small groups of individuals or businesses.

The full article, “How Will States Respond to Pandemic-Related Revenue Shortfalls?” was published by Tax Notes State on December 21 and is available online.