Author: News Desk

Ride Services to Collect and Remit Tax Under New Law The North Carolina Department of Revenue (NCDOR) will begin administering the new Transportation Commerce Tax on July 1, 2025, affecting taxis and transportation network companies across the state. Key Details of the New Tax Next Steps for Affected Businesses The NCDOR website offers registration details, filing requirements, and FAQs for impacted businesses. Companies must ensure compliance with tax collection and reporting obligations before the deadline. For further details, clarification, contributions, or any concerns regarding this article, please contact us at editorial@tax.news. We value your feedback and are committed to providing…

State Collects $128 Million in Taxes from Sports Betting in First Year One year after the legalization of sports betting in North Carolina, the industry has generated over $713 million in gross wagering revenue, contributing $128 million in state tax proceeds. These funds are being distributed to education, youth sports, and problem gambling programs across the state. How Sports Betting Revenue is Allocated According to the N.C. State Lottery Commission, North Carolinians have placed over $6.6 billion in bets, with players winning more than $5.85 billion in the first year of legal wagering. The state applies an 18% tax on…

Bipartisan Support for Tax Cuts as Bill Moves to Senate The Alabama House of Representatives has passed a series of tax cut bills, including reducing bipartisan-backed legislation aimed at providing financial relief for residents while maintaining funding for public education. Grocery Tax Cut Gains Momentum State Rep. Danny Garrett (R-Trussville) emphasized that the tax reduction would not jeopardize education funding, which is supported by grocery tax revenue. “We’re trying to do what we can while being responsible in our budgeting,” Garrett said. “Revenue has stabilized, but we’ve accounted for that.” He noted that most states do not tax groceries and…

Legislation to Lower Tax Rate from 4.25% to 4.05% Moves to Senate The Michigan House of Representatives has approved a bill to reduce the state’s income tax rate from 4.25% to 4.05% starting January 1, 2025. The move, backed by Republican lawmakers, is being framed as a way to provide financial relief for Michigan families, while many Democrats argue it primarily benefits higher-income earners. House Bill 4170: A Step Toward Permanent Tax Cuts The bill, sponsored by Rep. Kathy Schmaltz, R-Jackson, aims to make tax relief permanent by amending Michigan’s tax law. A provision in the law previously triggered a…

Tax Returns and Processing Continue to Lag, IRS Web Visits See Sharp Decline WASHINGTON, D.C. – With just a month left in the 2025 tax filing season, IRS data continues to show a slowdown in tax return submissions and processing. This trend has persisted since the season opened on January 27, 2025. Despite expectations that over 140 million tax returns will be filed by April 15, filings, IRS website visits, and e-filing activity remain lower than last year. Filing and Processing Numbers Show a Downward Trend As of March 7, 2025, the IRS received 62.76 million tax returns, a 2.1%…

Government Tightens ITC Distribution Rules to Prevent Misallocation The Indian government has announced a significant overhaul in the Goods and Services Tax (GST) framework, making the Input Service Distributor (ISD) mechanism mandatory for businesses claiming input tax credit (ITC) on standard services. Effective April 1, 2025, non-compliance with this rule will lead to ITC denial and a minimum penalty of ₹10,000. This regulatory shift is aimed at eliminating ambiguity in ITC allocation and ensuring that businesses distribute tax credits to the locations where services are actually consumed. Until now, companies have had the flexibility to use the ISD mechanism or…

Summary: BRASILIA – The Brazilian government is set to introduce new tax measures, including a 10% withholding tax on corporate profits and dividends sent abroad, in an effort to compensate for revenue lost from an expanded income tax exemption for lower-income earners, two sources familiar with the matter said Monday. The proposal, part of President Luiz Inácio Lula da Silva’s economic plan, is expected to impact multinational corporations with subsidiaries in Brazil, which have long benefited from tax exemptions on overseas remittances under a 1995 corporate income tax law. The finance ministry has yet to comment, but the government has…

Summary: COLUMBUS, OHIO – Despite emotional appeals from families affected by cancer, Ohio lawmakers have rejected a proposed increase in the state’s cigarette tax. The measure, championed by Governor Mike DeWine, aimed to raise the tax by $1.50 per pack to discourage smoking, increase funding for tobacco prevention, and support a $1,000 child tax credit. For Vince Marchetta of Akron, the fight is personal. His wife, Betsy, lost her battle with cervical cancer in 2019, leaving their two children without a mother. Now, he serves as Ohio’s lead ambassador for the American Cancer Society, advocating for policies that could prevent…

Summary: AUSTIN, TEXAS – The Texas Supreme Court ruled Friday that GEO Group, one of the world’s largest private prison companies, is not entitled to a $4 million sales tax refund, affirming a previous lower court decision. In a near-unanimous verdict, the court rejected GEO Group’s argument that it should be exempt from state sales taxes because it functions as a government entity under its contracts with the federal and state governments. The decision marks a significant setback for GEO, which operates 11 facilities across Texas, including several U.S. Immigration and Customs Enforcement (ICE) detention centers. Justice Brett Busby, writing…

Summary: WASHINGTON, D.C. – In the wake of heightened pressure to advance former President Donald Trump’s ambitious tax cuts and border security plans, Congressional Republicans are divided on the path forward. The core debate centers around balancing necessary federal budget reductions with the political risks posed by cutting social safety net programs, notably Medicaid. Tax Cuts and Border Security at StakeRepublican senators have been deeply engaged in closed-door negotiations over how to finance the extension of Trump’s 2017 tax cuts — which cost an estimated $4.6 trillion — alongside funding for immigration enforcement and military expansion. The proposed cuts also…