KPMG reports: Connecticut, Illinois, Louisiana, Mississippi, Oklahoma

KPMG This Week in State Tax focuses on recent state and local tax developments.

KPMG This Week in State Tax focuses on recent state and local tax developments.

KPMG This Week in State Tax—produced weekly by the KPMG State and Local Tax practice—focuses on recent state and local tax developments.

  • Connecticut: The state’s budget bill, which is currently pending signature, revives the 10% corporation business tax surcharge that expired at the end of 2022. Under the bill, the surcharge is extended through tax years beginning prior to January 1, 2026. The bill also makes numerous changes to Connecticut’s tax credit provisions, including allowing corporations that meet specific criteria fixed capital investment tax credits for investments made by certain LLCs they own. Finally, the bill makes Connecticut’s mandatory pass-through entity tax optional for tax years beginning on or after January 1, 2024. Numerous additional changes are made to implement the optional tax.
  • Illinois: The governor signed Senate Bill 1963, which includes changes to the Illinois investment partnership test and new requirements for certain Illinois investment partnerships. These changes are effective for tax years ending on or after December 31, 2023, which means payments that will become due on April 15, 2024, may be affected.
  • Louisiana: House Bill 171 eliminated the 200 transactions sales and use tax economic nexus threshold.  Senate Bill 1, which has been sent to the governor, would reduce the franchise tax rate by 25% each year that sufficient revenues were deposited into the state Revenue Stabilization Trust Fund. Louisiana House Bill 631, if signed, would repeal the corporate income tax throwout rule effective for tax years beginning on or after January 1, 2024.
  • Mississippi: The Court of Appeals affirmed an earlier determination that a taxpayer was liable for uncollected sales tax on supplies and equipment sold to oilfield service companies that held Mississippi retail sales tax permits. For the sales at issue, there was no evidence that the purchasers were ever asked any questions about the nature of their business or the purpose for which each specific purchase was being made, either before or after having presented the permit. The court concluded that the taxpayer did not have a good faith basis to believe that the sales at issue were wholesale sales.
  • Oklahoma: House Bill 1039, which became law without signature, repeals the state’s corporate franchise tax effective beginning with the 2024 tax year.

Read a June 2023 report prepared by KPMG LLP



The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.