Qualifying hospitals, managed care organizations, and accountable communities of health may claim a B&O tax deduction for certain Medicaid incentive payments as follows.
A hospital can take a deduction if it meets one of the following:
Intended audience: Senior living communities.
Beginning July 23, 2023, the value of meals furnished to independent living tenants of senior living communities as part of their rental agreement is not subject to sales or use tax when there is no separate charge for the meals. However, senior living communities must still pay B&O tax on the fair selling price of such food, drink, and meals under the service and other activities B&O tax classification or under the classification which otherwise applies to that community.
Effective July 23,2023, the value of food, drinks, meals furnished to tenants of senior living communities as part of their rental agreement are not subject sales or use tax when charges for such food, drinks, meals are not separately stated. However, the value of such meals is subject to business and occupation (B&O) tax under the Service and Other Activities classification.
Intended audience: Businesses operating contests chance and parimutuel wagering.
Effective July 1, 2023, the tax rate imposed on businesses operating Contests of Chance ($50,000 a year or greater) increases from 1.63% to 1.7% through June 30, 2024, and 1.76% thereafter. The tax rate imposed on businesses engaging in Parimutuel Wagering increases from from .13% to .20% through June 30, 2024, and .26% thereafter.
Gambling Contests of chance (less than $50,000 a year)
Intended audience: Sellers of aviation fuel.
Starting July 1, 2023, a new worksheet and new lines codes will be available on the excise tax return for sellers of aviation fuel. These lines codes will be used to report the amount of aviation fuel reported under the local sales/use, petroleum products, hazardous substance, and oil spill prevention/response tax classifications.
Intended audience: Small businesses.
Beginning with filing periods that start on or after January 1, 2023, the business and occupation (B&O) tax credit for small businesses increases.
For businesses that report 50% or more of their income under Service and Other Activities, Gambling Contests of Chance, For Profit Hospitals, and/or Scientific R&D, the maximum credit increases to $160 per month.
For all other B&O tax classifications, the maximum credit increases to $55 per month.
Intended audience: Community development financial institutions such as community development banks, credit unions, and venture capital funds.
A person who makes contributions to the Equitable Access to Credit Program administered by the Department of Commerce is eligible for a business and occupation (B&O) tax credit, subject to certain limitations.
A person who makes contributions to the Equitable Access to Credit Program can claim this B&O tax credit. You do not need to apply for this B&O tax credit.
Skip to main content
