Tax Refund

Will the Senate confirm a new IRS Commissioner this week? Senate Finance Committee Chairman Ron Wyden (R-OR) said a vote could come as early as this week on the confirmation of Danny Werfel to serve as IRS Commissioner. The panel released its questions and Werfel’s full responses; not all were able to be covered during the committee’s nomination hearing.

House Ways & Means shares tax policy priorities with House Budget Committee. Ways & Means Chairman Jason Smith (R-MO) wrote a letter (TaxNotes paywall) to the House Budget Committee outlining policies his committee will focus on during this session. These include helping families afford their living expenses, expanding middle-income jobs, and ensuring fair tax law administration and accountability for the IRS.

Maryland argues for dismissal of federal challenge to its digital advertising services tax. Via Tax Notes reports (paywall), Maryland is pushing for the dismissal of Chamber of Commerce of the United States v. Lierman, a legal challenge to its digital advertising tax. Maryland argues that because it is a tax and not a penalty, the Tax Injunction Act bars the federal challenge to the law.

As promised, Gov. Healey releases a plan for $742 million in tax cuts. The governor will file her first budget tomorrow, including a tax relief plan that will cost $742 million. Her plan would eliminate the estate tax for assets totaling less than $3 million and reduce the state’s short-term capital gains tax from 12 percent to 5 percent. It would also combine the Household Dependent Tax Credit and the Dependent Care Tax Credit to provide eligible households a $600 tax credit per dependent.

South Dakota tax-writing panel approves a temporary sales tax cut. The Senate Taxation Committee passed a plan to reduce the state’s sales tax from 4.5 percent to 4.2 percent. The cut would last for two years, expiring June 30, 2025. The measure would cost an estimated $104 million. 

Kansas Senate advances bill to further cut grocery sales tax. Lawmakers passed a proposal to eliminate all state and local sales taxes on all groceries. The measure would go into effect on Jan. 1 with an expected cost of $115 million. Officials have not estimated how much sales tax revenue local governments would lose. The plan mirrors what Gov. Laura Kelly (D) has called for – the speedy elimination of the state’s 6.5 percent tax on food. Lawmakers are continuing to negotiate how to use the state’s $2 billion budget surplus. 


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