Tracking State Legislative Responses to COVID-19

Alaska

Alaska has approved $4.1 million in emergency state funding to respond to the coronavirus pandemic. The legislature remains in session, but the Capitol is closed to the public. Alaska’s Legislative Council has formed an Emergency Response Preparedness Subcommittee, which is developing plans for early adjournment of this year’s legislative session, originally scheduled to run through late May. Legislative attorneys have said the state constitution does not allow for remote voting.

While, at face value, Alaska’s rainy day fund reserves appear strong, the state’s finances have been severely impacted by the decline in oil prices due to Alaska’s heavy reliance on severance tax revenue. And the state faces a massive projected revenue shortfall of $2.5 billion heading into the next fiscal year (an estimate which predates the current crisis or the latest collapse in oil prices), putting legislators in the tough position of looking for new revenue sources as they prepare a budget for FY 2021. On March 18, the Alaska House rejected a $360 million supplemental budget bill which included $23.5 million in coronavirus response funding, drawing from the state’s dwindling Constitutional Budget Reserve. As of March 23, legislators plan for a “soft adjournment” on March 27, contingent on the passage of a new budget. On March 23, the Senate passed a $4.5 billion budget that included two $1,000 dividends. The House subsequently rejected the Senate budget, forcing the creation of a six-member conference committee to negotiate a budget. [Updated 3/24 with updated status of budget, 3/23 with Senate budget introduction and plans to adjourn, and 3/19 with details of House supplemental budget vote.]

Arizona

On March 23, the House agreed to a scaled-down $11.8 billion Senate-passed FY 2021 budget package that includes $50 million in new coronavirus funding in addition to $55 million in emergency coronavirus response money that was approved earlier in March. Some legislators voted remotely under recently adopted rules changes. Gov. Doug Ducey (R) is expected to sign the budget. After passing the budget, both chambers adjourned for at least three weeks, with plans to reconvene once the immediate public health emergency subsidies.

The budget that passed both chambers is widely viewed as a contingency budget meant to continue government operations should the legislature be unable to reconvene before the start of the new fiscal year. If lawmakers return in April as planned, they expect to revisit certain provisions. In his January State of the State address, Gov. Ducey proposed using some of the state’s $1 billion surplus for tax cuts in FY 2021. Arizona’s Budget Stabilization Fund is currently funded at over $1 billion.   

The Arizona Department of Revenue has moved the income tax filing and payment deadline to July 15. [Updated 3/25 with new budget information, 3/24 with information on budget passage and the new income tax filing and payment deadline, and 3/23 with new information on budget negotiations.]

Arkansas

The Arkansas Legislature convened on March 26 for an extraordinary session to create a special rainy day fund for COVID-19. In early March, Gov. Asa Hutchinson (R) said he wanted to transfer some of the state’s $54 million surplus into the Long Term Reserve Fund (the state’s general rainy day fund). The Long Term Reserve Fund is currently funded at only $153 million, or 2.7 percent of last year’s general fund budget.

The state has not announced plans to postpone this year’s fiscal session, which is set to begin April 8 and adjourn May 7. At that time, legislators are expected to consider a $5.8 billion budget for FY 2021 state has extended its income tax filing and payment deadline to July 15. [Updated 3/26 with special session and rainy day fund information and 3/25 with filing extension.]

California

The legislature on March 16 approved legislation allowing Gov. Gavin Newsom (D) to spend up to $1 billion for any purpose related to his coronavirus emergency declaration. The legislature then suspended its session until April 13. California’s legislative session is scheduled to last through November.

On March 24, the California Department of Finance notified legislators saying the normal budget schedule and underlying revenue assumptions and policy goals will have to be reconsidered and said there should be no expectation of full funding for new or existing policy proposals. The Department also said it will not update revenue and expenditure estimates ahead of April 1 given the evolving nature of COVID-19’s impact on the state’s economy. Typically, the Department updates revenue and expenditure projections by April 1 to be incorporated into the governor’s revised budget request. When lawmakers reconvene, revising the budget will be a top priority, with a final budget expected to be signed in June.

On March 25, the Department announced that it will use $1.3 billion from the emergency fund to purchase medical supplies and prepare for coronavirus patients. California has announced that income tax filing deadlines have been extended to July 15. [Updated 3/26 with emergency fund use, 3/25 with updated budget information, and 3/20 with filing extension.]

Colorado

The General Assembly suspended its session March 14, roughly midway through the 120-day meeting, and set a tentative return date of March 30 while acknowledging the recess might extend longer. As of March 25, while no changes have officially been made, lawmakers do not plan to return on March 30 and expect they will return, at the earliest, in late April. The Colorado Supreme Court will determine whether legislators can vote to extend their legislative session beyond the May 6 adjournment date.

About 350 bills are unresolved and the state budget has not been completed. The bipartisan Joint Budget Committee, comprised of six of the 100 state legislators, will continue to meet. Gov. Jared Polis (D) in his emergency declaration ordered funds be used for specific coronavirus response purposes. Colorado has extended its income tax payment deadline to July 15 and its filing deadline to October 15. [Updated 3/25 with session scheduling update and 3/24 with new income tax deadlines.]

Connecticut

After initially suspending the legislative session until March 30, as of March 24, the legislature has postponed its next legislative meeting day to at least April 13. The legislature is scheduled to adjourn for the year May 6. When the legislature reconvenes, legislators will need to pass a budget for the upcoming fiscal year. There is also interest among legislators in prioritizing the passage of bills responding to the pandemic.

The state has suspended its legislative session until at least March 30 but is still scheduled to adjourn on May 6. Lawmakers must still take up the budget and will also likely consider bills to lessen the coronavirus’ effect on the state’s economy. The state has announced it will follow the IRS in delaying income tax filing and payment deadlines from April 15 to July 15. The state is also extending deadlines for the filing and payment of other annual income-related business taxes due between March 15 and June 1. [Updated 3/25 on legislative plans, and 3/24 and 3/20 with filing extension information.]

Delaware

The General Assembly, which meets throughout the year, has been suspended indefinitely, after initially being suspended for one week through March 24. The legislature has yet to adopt a budget for FY 2021. In light of the pandemic, the Delaware Economic and Financial Advisory Council reduced revenue estimates for both the current fiscal year and the upcoming fiscal year by a combined $93 million. However, estimates for both years remain higher than when the FY 2020 budget was approved last June.

Gov. John Carney (D) announced no-interest 10-year loans capped at $10,000 per month for qualifying restaurants, bars, and other hospitality businesses, to be used for non-personnel costs such as rent and utilities. Payments are deferred for nine months. This is for eligible businesses in operation for at least a year, with annual revenue below $1.5 million. Unemployment insurance benefits can be claimed by those working part-time provided they document their decreased hours and earnings.

Delaware is among a handful of states that does not follow the typical April 15 federal tax filing deadline but instead has its own separate state filing deadline, which is typically April 30. This year, Delaware has joined the majority of states in delaying its deadline for filing and payment of individual and corporate income taxes to July 15. [Updated 3/25 with typical income tax filing deadline, 3/24 with income tax filing and payment extension, 3/20 with loan and UI benefit announcements, and 3/19 with announcement of indefinite suspension.]

Florida

The legislature extended its 60-day session, which was originally scheduled to end March 13, in order to finalize a $93.2 billion budget for fiscal year 2021. The budget, which was approved unanimously by legislators on March 19 before they adjourned for the year, would dedicate $300 million in reserve funds to address COVID-19 and earmarks $25.5 million in FY 2020 and $27.3 million in FY 2021 for coronavirus response. Gov. Ron DeSantis (R), who has line-item veto authority, will have 15 days to act on the budget once it is formally sent to him. The governor has said he does not plan to act on the budget immediately but will focus his efforts on other COVID-19 response efforts and will wait to make decisions on the budget until revenue adjustment needs become more apparent. [Updated 3/26 with new budget information and 3/23 with budget vote and adjournment.]

Georgia

The General Assembly has suspended its session indefinitely, after both chambers agreed to an amended mid-year fiscal year 2020 state budget. Legislators approved shifting $100 million from the state’s $2.8 billion of reserves into the governor’s emergency fund for coronavirus response. However, the legislature must still pass a budget for FY 2021. All Georgia legislators have been encouraged to self-quarantine after a member tested positive for COVID-19 following a day of legislative business.

According to The Atlanta Journal-Constitution, the state generates about $5.2 billion of its revenue, or 28 percent, from April to June. With the slowdown because of the coronavirus outbreak, Georgia could face a deficit of more than $1 billion before the end of the fiscal year. Georgia’s income tax filing deadline is extended to July 15. [Updated 3/26 with information on self-quarantine, 3/24 with income tax filing extension 3/19 with $1 billion deficit estimate.]

Hawaii

The 2020 legislative session has been suspended indefinitely. Hawaii is currently operating under a two-year budget so will not need to pass a budget this year. However, legislators had been drafting a supplemental budget that they may consider should the 2020 legislative session resume. Hawaii is among a handful of states that does not follow the typical April 15 federal tax filing deadline but instead has its own separate state filing deadline, which is typically April 22. On March 23, the Hawaii Department of Revenue announced it is extending its deadline for income tax filing and payment to July 20, five days after this year’s July 15 federal deadline. [Updated 3/25 with information about Hawaii’s typical income tax filing deadline and 3/23 with income tax filing extension.]

Idaho

Legislative leaders expedited consideration of the fiscal year 2021 budget and appropriations bills and adjourned for the year on March 20. A $2 million transfer to an emergency coronavirus response fund was recently approved by the legislature. With Idaho’s legislature adjourning for the year amid the coronavirus crisis, proposed property tax cuts that had been considered in the legislature have been put on hold for the foreseeable future. Idaho has extended its income tax filing and payment deadline from April 15 to June 15, and the deadline for property tax relief applications is now June 15. [Updated 3/26 with property tax relief considerations, 3/24 with income tax filing extension and property tax relief extension, and 3/23 to note adjournment.]

Illinois

The General Assembly had been set to return to session March 18, a day after the state’s primary election, but decided against it in light of the coronavirus crisis. The state’s legislative session, which lasts throughout the year, has been suspended until March 24 and was recently further postponed until March 31. With the rainy day fund nearly depleted, Gov. J.B. Pritzker (D) last month, before the extent of the coronavirus outbreak was known, said he wanted to put $50 million from an expected state surplus into the fund this year and $50 million into the fund next year. According to the Illinois Policy Institute, the state’s nearly-empty Budget Stabilization Fund would not even be able to cover 16 minutes’ worth of state spending.

On March 19, Gov. Pritzker announced the Department of Revenue is waiving penalties and interest for late sales tax remittance by qualifying restaurants and bars to help them maintain liquidity at a time when the state has required they shutter their doors to dine-in customers. Filing deadlines remain in place. The Illinois Commission on Government Forecasting and Accountability published a budget forecast for fiscal years 2021-23. The new report describes the coming years’ potential revenue losses in regards to the coronavirus, with the lower estimate of revenue losses near $2 billion and the more severe estimate over $8 billion. The state has extended income tax filing and payment deadlines to July 15. [Updated 3/26 with income tax extension, 3/25 with budget forecast and 3/23 with further session postponement and 3/20 with sales tax remittance deferral information.]

Indiana

The 2020 regular legislative session wrapped up last week, but some legislative leaders have called for a special session to address the coronavirus outbreak. This is a non-budget year for Indiana, as the state passed its fiscal year 2020-21 budget in April 2019. Gov. Eric Holcomb (R) said he will redirect $300 million in reserve funds, which were previously designated for capital projects, to instead be used for COVID-19 response efforts. He will now consider financing the recently approved capital projects by issuing bonds. The state has announced that income tax filing and payment deadlines have been extended to July 15th. [Updated 3/26 with coronavirus response funding details and 3/20 with filing extension.]

Iowa

Iowa’s legislative session has been suspended until April 15. Prior to suspending session, lawmakers passed a session law providing supplemental appropriations for July and August 2020 at current levels, but only to take effect if the legislature is unable to reconvene before the start of the new fiscal year. The same law also provides $91.8 million in additional funding for the current fiscal year, including for response to the coronavirus outbreak.

Iowa is among a handful of states that does not follow the typical April 15 federal tax filing deadline but instead has its own separate state filing deadline, which is typically April 30. This year, Iowa has extended its deadline for filing and payment of individual income, corporate income, franchise, and related taxes to July 31. Governor Reynolds on March 20 also suspended interest and penalties for late property tax payments, as well as late alcoholic beverage tax payments, effective until the end of the emergency proclamation, which is currently set to expire April 16. [Updated 3/25 with typical income tax filing deadline, 3/24 with property and alcoholic beverage tax update and 3/20 with income tax filing extension.]

Kansas

The legislature worked quickly the week of March 16 to pass a basic FY 2021 budget, coronavirus response measures, and a transportation plan before adjourning for the spring recess earlier than previously planned.

Originally, legislators had planned to pass the budget and all other bills by an April 3 adjournment, recess for most of April, then reconvene for a brief veto session April 27. Now, having passed a budget that includes $50 million for coronavirus expenditures and $15 million for emergency preparedness related to the coronavirus, legislators have adjourned until April 27, at which time they plan to make final tweaks to the budget. Certain provisions in the budget remain unfunded, including a pay raise for executive branch employees, meaning tax increases could be on the table. The state has extended income tax filing and payment deadlines to July 15th. [Updated 3/23 with new information about the budget, adjournment, and tax extension.]

Kentucky

The General Assembly, after canceling two legislative days earlier in March, went back into session March 17-19 and again on March 26. On March 19, the Senate adopted a budget before adjourning for two weeks, a move criticized by Gov. Andy Beshear (D) because the Senate budget fails to include an additional $2 million Medicaid appropriation. Both chambers reconvened March 26 to conduct business as usual. In addition, House and Senate conferees are continuing their work to resolve differences between the House- and Senate-passed budgets. After initially working toward the goal of passing a final budget March 26, those plans have been delayed. Both chambers are now expected to reconvene April 1 to approve a final budget.

Senate Appropriations and Revenue Committee Chair Chris McDaniel (R), citing concerns about the economic damage Kentucky faces in light of the coronavirus, said Republicans would request a new budget forecast and amend the final budget with those forecasts in mind. Should the governor veto the budget—in whole or in part—lawmakers will reconvene on April 15 to consider an override.

Kentucky, with one of the worst-funded pension systems in the nation and one of the most depleted rainy day funds, was already facing significant fiscal challenges before the coronavirus outbreak. Kentucky has extended its income tax filing and payment deadline to July 15, but interest will be applied to deferred income tax payments. [Updated 3/26 with new session information, 3/24 with income tax filing and payment extension, and 3/20 with new developments on the budget.]

Louisiana

Louisiana on March 16 suspended its session until March 31. When legislators reconvene, they will need to pass a budget for FY 2021. The Department of Revenue released guidance postponing February’s filing and payment deadline for sales taxes until May 20. No extension request is necessary to take advantage of the new deadline. Louisiana is among a handful of states that does not follow the typical April 15 federal tax filing deadline but instead has its own separate state filing deadline, which is typically May 15. On March 19, Louisiana announced that impacted businesses will have until May 20 to file and pay excise taxes otherwise due March 20. On March 23, Louisiana announced it is moving its income tax filing and payment deadline to July 15. [Updated 3/26 with excise payment extension and 3/25 with income tax filing and payment extension and 3/20 to mention sales tax filing and payment extension.]

Maine

The legislature adjourned March 17, nearly a month earlier than scheduled, with plans to return later this year, although no date has been set. Lawmakers agreed to an approximately $76 million supplemental budget that includes an additional $1 million for the Maine Center for Disease Control and Prevention and adds $17.4 million to the budget stabilization fund. Maine is operating under a two-year budget for fiscal years 2020 and 2021 so has no immediate need to consider further budgetary measures this year. On March 26, Gov. Janet Mills (D) announced Maine’s income tax filing and payment deadline has been extended to July 15. [Updated 3/26 with income tax extension and 3/20 with new details about the supplemental budget.]

Maryland

The General Assembly adjourned March 18, three weeks earlier than scheduled, after passing a $47.9 billion state operating budget and a $440 million revenue plan to fund education reforms and emergency responses to the coronavirus outbreak. The revenue plan includes major tax changes, including a first-in-the-nation attempt at taxing digital advertising and an increase in the cigarette excise tax from $2.00 to $3.75 per pack. The vaguely worded, legally dubious digital advertising tax is expected to be vetoed by Gov. Larry Hogan (R), but the current vote tally on that measure is enough to override a veto. The revenue plan would also extend unemployment insurance to those quarantined or who have been laid off because of the coronavirus outbreak. In addition, Gov. Hogan has already signed legislation allowing the state to tap up to $50 million from its rainy day fund.

Maryland is among the states conforming its individual and corporate income tax filing and payment deadlines with the federal government, thereby extending them to July 15. In addition, the March, April, and May filing and remittance deadlines for several business taxes have been extended to June 1. These include sales and use taxes, withholding taxes, admissions and amusement taxes, and alcohol, tobacco, and motor fuel excise taxes, among others. [Updated 3/26 and 3/23 with tax filing extensions.]

Massachusetts

The legislature, which meets year-round, is currently still in session but has taken precautions to limit close interaction among members by conducting smaller informal meetings and by passing legislation by voice vote instead of by roll call vote. On March 18 passed a bill from Gov. Charlie Baker (R) speeding up unemployment payments to those quarantined or laid off because of the coronavirus outbreak. Gov. Baker also announced the state will distribute $5 million in emergency funds for localities impacted by the outbreak. A budget bill for FY 2021 has not yet been introduced. 

The Massachusetts Department of Revenue announced sales tax filing and remittance deadline extensions for businesses that paid less than $150,000 in sales and use taxes for the 12-month period ending February 29. The state is also waiving penalties for late filing and payment of meals taxes and room occupancy taxes due between March 20 and May 31, although interest will continue to accrue. The deadline for filing and payment of such taxes is now June 20 for qualifying businesses. Marketplace facilitators are not eligible for the extension. [Updated 3/26 with legislative session details and 3/25 with marketplace facilitators information and 3/24 with relief for certain businesses.]

Michigan

The Michigan legislature, which meets throughout the year, is currently in a pre-scheduled recess but plans to meet on an as-needed basis to consider the budget and other priorities. Both chambers canceled their meeting on March 25 and plan to return to session April 1. On March 17, lawmakers approved $125 million in emergency coronavirus response funding. Gov. Gretchen Whitmer (D) also signed a bill to expand unemployment insurance benefits for those facing job loss or suspension due to the virus. The Michigan Department of Treasury has extended the deadline for sales and use tax payments from March 20 to April 20, effective immediately. The governor also issued an executive order extending the tax foreclosure deadline from March 31 to May 29 for properties with delinquent tax payments. [Updated 3/25 with session change and 3/20 with information on extension of tax foreclosure deadline.]

Minnesota

The Minnesota legislature suspended its legislative session March 17, taking its spring recess three weeks earlier than planned. Legislators plan to resume session as previously scheduled April 14. Before adjourning they added an additional $50 million in emergency funding to the $21 million supplemental appropriation for state health agencies that was signed March 10. Minnesota is operating under a two-year biennial budget for fiscal years 2020 and 2021. The Minnesota Department of Revenue has issued a sales tax remittance extension, from March 20 to April 20, for certain qualified businesses, although all business must file their March return on March 20 even if they defer payment. The Department also announced individuals have until July 15 to file and pay their state income taxes. [Updated 3/24 with income tax extension and 3/20 with sales tax deferral information.]

Mississippi

Legislators voted March 17 and 18 to suspend the legislative session until at least April 1, but no official return date has been set. The state’s rainy day fund is filled to its statutory limit of $554 million, providing an important cushion for times of economic instability. However, some have voiced concerns about whether that is enough funding for times of true economic hardship. The state has extended its individual and corporate income tax filing and payment deadline to May 15. The Department of Revenue has stated it cannot extend the deadline beyond the end of the fiscal year while still retaining a balanced budget. [Updated 3/26 with new rainy day fund information and 3/25 with income tax filing deadline extension.]

Missouri

Missouri’s legislative spring break, originally schedule for March 23-27, started a week early in the Senate and on March 19 in the House. The House had initially planned to pass its FY 2021 budget before the spring recess but ultimately did not do so. However, on March 19, the House did pass a supplemental budget package that includes $33 million in federal aid and $7 million in state aid, for coronavirus response. Both chambers plan to resume meeting the week of March 30 to finalize the budget, supplemental funding, and related priorities. Missouri has extended its deadline for filing and paying individual and corporate income taxes to July 15. [Updated 3/24 with filing extension and budget and supplemental funding updates.]

Montana

The state legislature is not in session in 2020. Many legislative interim meetings have been canceled. According to the leaders of the House Appropriations Committee and the Senate Finance and Claims Committee, Montana has $115 million in its Budget Stabilization Fund, a general fund surplus of $300 million, and $360 million in Unemployment Insurance Fund reserves. Governor Steve Bullock extended the filing and payment deadlines for the individual income tax to July 15. [Updated 3/24 with income tax extension and 3/20 with information about Montana’s fiscal standing.]

Nebraska

Nebraska’s 2020 legislative session has been suspended indefinitely. It is a non-budget year for Nebraska, but the Revenue Committee had sought to pass property tax relief legislation before the Unicameral’s scheduled adjournment date in late April. On March 19, Gov. Pete Ricketts (R) issued an executive order waiving late penalties for excise tax payors. On March 23, Gov. Pete Ricketts (R) announced the income tax filing deadline would be extended to July 15, but few official details have been released. [Updated 3/26 with excise tax payment information and 3/23 with income tax filing extension.]

Nevada

The state legislature is not in session in 2020, and legislative leaders have said they currently have no plans to go into special session related to the coronavirus outbreak. Gov. Steve Sisolak (D) has declared a state of emergency and ordered casinos, restaurants, and bars to close for 30 days. Nevada’s state sales taxes and gaming taxes account for 47.4 percent of the state’s forecasted general fund revenue for FY 2020 and 2021. [Updated 3/23 with state of emergency declaration details.]

New Hampshire

The state legislature suspended its session through April 10. Both chambers have passed emergency rules to allow normal legislative deadlines to be shifted, such as the requirement that all bills be sent from one chamber to the other by March 26. Gov. Chris Sununu has expanded unemployment benefits in response to the coronavirus. To mitigate potential administrative issues with an overwhelming number of people applying for UI benefits, the state has designated specific time slots to assist claimants based on the first letter of their last name. The New Hampshire Department of Revenue Administration (DRA) on March 23 issued a statement saying the April 15 due date still stands for filing and paying the Business Profits Tax, Business Enterprise Tax, Interest & Dividends Tax, and Meals & Rentals Tax. New Hampshire is one of two states (the other being Tennessee) that currently taxes interest income but does not tax wage income. [Updated 3/25 with UI benefits expansion and 3/24 with DRA’s announcement.]

New Jersey

The Assembly has canceled all committee hearings except those focused on coronavirus legislation, and on March 16 passed a package of 29 coronavirus response measures which the Senate is scheduled to take up March 19. The state has not yet passed a budget for FY 2021.

New Mexico

Lawmakers adjourned Feb. 20. Gov. Michelle Lujan Grisham (D) recently vetoed about $150 million in infrastructure spending given the coronavirus outbreak. The state’s operating reserve is low, but before the extent of the coronavirus outbreak was known, the Tax Stabilization Reserve was projected to increase to $1.6 billion by next fiscal year. To access it, Gov. Grisham would have to declare it “necessary for the public peace, health, and safety” and both houses would have to approve with a two-thirds majority. In light of the outbreak, the state has waived for up to four weeks the requirement of “work search” to apply for unemployment benefits.

New Mexico’s income tax filing and payment due date is tied to the federal due date, so New Mexico’s filing and payment deadline has been extended to July 15. On March 25, the Taxation and Revenue Department announced that taxpayers will not owe interest if they delay income tax payment until July 15; however, interest will accrue on delayed withholding tax payments. [Updated 3/26 with additional details about the extended income tax filing deadline.]

New York

Gov. Andrew Cuomo (D) has signed legislation dedicating $40 million to combat the coronavirus outbreak. The state is currently working on a budget, and the chair of the Assembly Ways and Means Committee has tested positive for the virus. The Assembly and Senate suspended session for two days but went back into session March 18, passing legislation requiring all public employers, as well as private employers with at least 100 employees, to provide 14 days of paid sick leave. As of March 23, the Senate and House are suspended but have signaled no plans to adjourn for an extended period of time. New York’s income tax filing and payment deadlines are tied to the federal deadline, so both deadlines have been extended to July 15. The state is not extending its sales tax payment deadline, but is waiving late payment penalties. [Updated 3/24 with updated information regarding fees for late sales tax payments.]

North Carolina

The legislative session is still set to convene April 28 and adjourn mid-July. However, pre-session committee meetings are canceled until April 1. North Carolina is operating under a two-year budget so will not need to pass a budget this year. The executive order from Gov. Roy Cooper (D) expands unemployment insurance benefits and places limits on restaurants and bars in response to the coronavirus. North Carolina’s income and franchise tax filing and payment deadline has been moved to July 15. However, interest will accrue between April 15 and the date of payment in accordance with preexisting state law.

North Dakota

The state’s legislature is not in session in 2020 and will not need to pass a budget until 2021. Mirroring the federal government, the state has extended its income tax filing and payment deadline until July 15. [Updated 3/23 to with filing extension.]

Ohio

The House suspended its session briefly earlier this month, but both chambers have now resumed a somewhat regular, albeit modified, meeting schedule. The next scheduled legislative meeting day is March 31 for both the House and the Senate.

On March 25, the Ohio Senate and House unanimously passed a bill that included extending the state income tax filing deadline to July 15, changing the date for estimated payments, and waiving interest payments in addition to already waived penalties. It also codified an executive order by Gov. Mike DeWine (R) to temporarily waive the waiting period to qualify for unemployment benefits and the requirement that people seeking jobless benefits must search for work. In addition, approval was given to start the process of transferring money from the state’s rainy day fund for coronavirus outbreak relief as needed by DeWine.

Gov. DeWine on March 23 ordered a freeze in state government hiring, with an exception for positions directly related to coronavirus response, safety and security, and direct care or institutional services. He also ordered agencies to cut unnecessary spending by up to 20 percent for the remainder of this fiscal year and the next. [Updated 3/26 with new session dates, 3/25 with legislative developments, and 3/23 with governor’s hiring freeze.]

Oklahoma

Following the legislature’s scheduled spring break March 18-20, both the House and the Senate will remain in recess through at least March 27, as someone on the floor tested positive for coronavirus. On March 16, both chambers passed legislation allowing the legislature to adjourn for longer than three days and to vote by proxy if needed.

Many are concerned about the state’s already-anticipated $85 million revenue shortfall going into FY 2021 and the further damaging effects low oil revenues and the coronavirus could have on the state’s finances. On March 23, the state issued an updated announcement postponing the income tax payment and filing deadline to July 15. Previously, only the payment, not the filing, deadline had been extended. [Updated 3/25 with income tax filing extension, 3/23 with extended recess proxy voting information, and 3/20 with income tax payment extension.]

Oregon

The 2020 session adjourned March 8 as scheduled, but legislative leaders have said they will call a special session to pass a coronavirus response package when it is ready for consideration. The legislature formed a Special Joint Committee on Coronavirus Response, which held its first meeting March 18. The state has announced that it will follow the IRS in delaying income tax filing deadlines from April 15 to July 15. Quarterly payments for the new Corporate Activity Tax (CAT) are still due on April 30, but the Oregon Department of Revenue will not be charging underpayment penalties for companies that make a good faith effort to estimate these payments.  [Updated 3/25 with CAT information and 3/20 with filing extension.]

Pennsylvania

The Pennsylvania legislature has not announced plans to postpone its session. Both the House and Senate are prepared to vote remotely and have passed several coronavirus-related measures, one of which provides $50 million of additional funds for health care facilities. Pennsylvania has modified unemployment compensation benefits in response to the coronavirus by suspending the “waiting week” as well as waiving certain requirements. The state has extended its income tax filing and payment deadline to July 15.

The Pennsylvania Independent Fiscal Office is anticipating a large reduction in motor vehicle sales tax revenue for the current fiscal year due to car dealership closures. [Updated 3/26 with healthcare funding and sales tax revenue information and 3/24 with new income tax filing deadline.]

Rhode Island

Rhode Island previously suspended its session for the week of March 17 and recently extended the suspension for an additional week. When lawmakers return, they will need to pass a budget for the upcoming fiscal year. Rhode Island’s legislature meets throughout the year. The state’s Division of Taxation has announced it will follow the United States Treasury’s lead on tax filing deadlines, but has not updated its guidance to reflect the new July 15 date. This new filing deadline has state officials looking for ways to address budgetary issues arising from the income tax deadline being pushed into the new fiscal year. The state is looking into various options, such short-term borrowing or transferring revenue between accounts. [Updated 3/26 with budgetary considerations and 3/24 regarding filing dates.]

South Carolina

The South Carolina legislature canceled a recess originally planned for the week of March 16 to vote on $45 million in emergency funding for the state Department of Health and Environmental Control. Gov. Henry McMaster (R) signed the bill into law March 19.

House Speaker Jay Lucas (R) told legislators to expect to be out of session for at least two weeks. When they return, they can expect quick passage of a continuing resolution to extend current funding levels through the beginning of the new fiscal year in the event a new budget is not adopted before July 1. South Carolina originally announced a deadline extension to June 1, but this was before the federal government moved its own deadline. On March 23, the state announced it was following the federal government’s example by postponing its filing and payment deadline until July 15. This announcement did not include sales and use taxes, which remain due on June 1, as per the earlier announcement. [Updated 3/25 with sales tax note, 3/24 with filing extension update, and 3/23 with budget developments .]

South Dakota

The legislature wrapped up its business March 12 but is expected to return to the Capitol for a veto session March 30. Gov. Kristi Noem (R) has spoken on the coronavirus situation and the steps the state is taking to address it. Legislators on both sides of the aisle have said they believe the state has enough funding to respond appropriately to the coronavirus.

Tennessee

On March 20, Tennessee legislators passed a FY 2021 budget that scaled back many of Gov. Bill Lee’s (R) education spending priorities, instead dedicating $150 million for COVID-19 response efforts, adding $575 million to the rainy day fund, and appropriating an addition $30 million for the Tennessee Emergency Management Agency’s response to the tornadoes that devastated Nashville and other parts of the state earlier this month. After passing the budget, legislators adjourned for the rest of the spring but hope to return June 1 to tackle other legislative priorities.

Tennessee has extended the filing and payment deadline for franchise and excise taxes from April 15 to July 15 in response to the coronavirus, but to date has not extended the payment or filing deadline for the Hall tax, which applies to interest and dividend income. However, for certain taxpayers affected by the recent tornadoes, Tennessee has extended the Hall income tax filing and payment deadlines to July 15. [Updated 3/25 with franchise and excise tax filing extensions, 3/24 with details on tornado-related tax relief, and 3/20 with details on budget passage and adjournment.]

Texas

The legislature is not in session in 2020, but various committee hearings have been suspended that were scheduled for March and April. Gov. Greg Abbott (R) declared a State of Disaster, freeing up funding to respond to the coronavirus. The Comptroller has decided against extending deadlines for the filing or payment of state and local sales taxes, hotel taxes, alcoholic beverage taxes, and motor vehicle rental taxes, among others. Texas does not levy individual or corporate income taxes but does levy gross receipts taxes on businesses. [Updated 3/24 with Comptroller’s announcement.]

Utah

Utah’s regular legislative session wrapped up last week as originally scheduled after policymakers rushed to pass legislation that allows them to meet in later special or interim sessions, and by electronic means if necessary. A subsequent special session is expected sometime this spring to respond to the coronavirus crisis and increase funding for education. Utah follows federal tax filing schedules, so filing and payment deadlines are extended through July 15. 

Vermont

The state legislature on March 13 made the decision to suspend its legislative session until March 24 due to the coronavirus. Before recessing, the House passed an emergency response package to the coronavirus outbreak, but the Senate adjourned before taking up the bill. The Senate reconvened March 24, and the House March 25, to finalize the legislative package, which includes a temporary expansion of eligibility for unemployment benefits.  

The state followed the IRS in moving income tax filing and payment deadlines from April 15 to July 15. The Vermont Department of Taxes has also provided temporary relief to businesses by waiving penalties and interest for late filing and payment of the Meals and Rooms Tax and the Sales and Use Tax. Instead of filing and remitting these taxes on March 25 and April 25, businesses may wait to do so until May 25. Chief Fiscal Officer Steve Klein has said these tax deadline extensions will result in a revenue shift of approximately $145 million from this fiscal year to the next. [Updated 3/26 with COVID-19 response legislative developments and 3/24 with filing extension.]

Virginia

The General Assembly adjourned before states began to undertake robust responses to the coronavirus outbreak. Now, some legislators are calling for a special session to enact emergency legislation in response to the crisis. The General Assembly passed a $135 billion biennial budget that raised taxes to increase heath care, education, transportation, and other spending. The state has $2 billion in financial reserve funds leading into FY 2021. The administration has granted 60-day extensions of expired driver licenses, ID cards, and vehicle registrations, and has waived the one-week waiting period to access state unemployment insurance.

Gov. Ralph Northam (D) announced that he has requested an extension of the payment deadline for individual and corporate income taxes to June 1. However, the filing deadline remains unchanged, and interest will accrue, so he encouraged taxpayers who could do so to pay by the original deadline. Businesses impacted by COVID-19 can request to defer their March 20 sales tax payments to April 20. The Department will waive penalties for businesses whose requests are granted.

Virginia is among a handful of states that does not follow the typical April 15 federal tax filing deadline but instead has its own separate state filing deadline, which is typically May 1. This year, Virginia has extended its income tax filing and payment deadline to July 15. [Updated 3/25 with filing extension and typical filing deadline, and 3/20 with income and sales tax payment information.]

Washington

The 60-day legislative session wrapped up earlier this month. Lawmakers approved the use of $200 million from the state’s rainy day fund for the coronavirus outbreak, with $175 million of that going to the public health system and the rest to a special unemployment fund for affected businesses and workers. Some proposed spending has been pared back so that the state reserves can continue to grow.

The Washington Department of Revenue announced it will, upon request, provide extensions for filing and payment of taxes due during the state of emergency, which began February 29 and currently has no set end date. Filing and payment extensions will be granted to businesses for business and occupation (B&O) taxes and real estate excise taxes, among others. [Updated 3/23 with tax extensions.]

West Virginia

The 60-day legislative session ended as originally scheduled on March 7 with passage of a budget for fiscal year 2021. The budget included an amendment dedicating $2 million in existing Department of Health and Human Services resources to create a Public Health Emergency Response Fund to respond to the coronavirus outbreak.

Wisconsin

The Wisconsin State Assembly adjourned for the year earlier this month, and the Senate previously was scheduled to wrap up between March 24 and 26 but has canceled the scheduled floor period due to the coronavirus outbreak. Gov. Tony Evers (D) sought the legislature repeal a one-week waiting period for unemployment insurance benefits that is part of state law. However, with the legislature not meeting because of the coronavirus outbreak, the governor announced an emergency executive order waiving the one-week waiting period without a legislative vote. The governor has proposed depositing half of the current budget surplus, (about $409 million) into the rainy day fund, with the rest dedicated to education, while legislative Republicans have proposed using some of the surplus for a $250 million tax cut. At an impasse, the surplus remains uncommitted. Without any action, by default, half of the surplus will go into the rainy day fund. The rest will go to the general fund and be available when the discussions begin on the next biennial budget next January. Leaders in the Senate and Assembly did agree to call an extraordinary legislative session later this spring. Wisconsin follows federal tax filing schedules, so filing and payment deadlines are extended through July 15. [Updated 3/24 to clarify filing deadline.]

Wyoming

The budget session of the state legislature ended last week and the one tax measure passed was a 5 percent statewide lodging tax, estimated to raise $18 million a year. Both chambers also agreed to a plan capping withdrawal from the Legislative Stabilization Reserve Account, the state’s rainy day fund, at $150 million.  

The District of Columbia

The D.C. Council unanimously passed an emergency bill March 17, which took effect upon passage, allowing the DC Office of Tax and Revenue (OTR) to offer tax relief to retail businesses and hotels. It also allows the Council to meet and vote remotely. As an emergency bill, it is temporary in nature, does not require the approval of Congress, and will expire after 90 days.

On March 20, OTR announced property tax deferrals for hotels and sales tax deferrals for all other vendors that file sales taxes on a quarterly or monthly basis. Hotel property taxes for the first half of 2020 are now due June 30, and sales and use taxes (for businesses that are not hotels) are due July 20, although the March 20 and April 20 filing deadlines still stand, and the May 20 filing and payment deadline (for the April sales tax period) also still stands.

On March 23, Mayor Bowser announced an extension in the DC income tax filing and payment deadline from April 15 to July 15. This extended deadline applies to the filing of individual and fiduciary income tax returns, partnership tax returns, franchise tax returns, and any associated tax payments.

Mayor Muriel Bowser (D) has also directed $7.5 million from the Contingency Cash Reserve Fund (4 percent of the previous fiscal year’s general fund expenditures less debt service cost) for purchases related to the coronavirus outbreak. The District also has an Emergency Cash Reserve Fund (2 percent of the previous fiscal year’s general fund expenditures less debt service cost). Chief Financial Officer Jeffrey DeWitt says the rainy day fund is at $1.43 billion, equivalent to 60 days of funding in case of recession or other downturn, and there is a well-funded unemployment insurance trust fund. An extension also was granted for Mayor Bowser to submit the 2021 budget, from mid-March to early May. [Updated 3/23 with updated tax filing and payment deadlines.]