Sub. H. B. No. 519 Summary

• Automatically grants six-month filing extensions for municipal income tax returns to taxpayers who request federal income tax extensions, with extended due date of the 15th day of the tenth month after the taxable year ends.

• Allows taxpayers to request six-month extensions for municipal returns even without federal extensions, which tax administrators must grant if requested by the original due date.

• Limits late-filing penalties for municipal tax returns to a maximum of $25 per month (capped at $150 total) and requires abatement or refund of penalties for first-time filing failures after the taxpayer files the return.

• Prohibits tax administrators from sending inquiries or notices regarding extended returns before the taxpayer files or before the extended due date, with reimbursement required for taxpayer's reasonable response costs if violated.

• Applies to tax returns required to be filed for taxable years ending on or after January 1, 2022.