Business Tax Policy: Short Tax Year Quarterly Estimated Payment

PCC Section 7.02.530 and MCC Section 12.530 provides a schedule for payment of estimated tax for tax filers required to make these payments. This schedule was designed under the assumption that the length of the tax year is a full year. Estimated payments are required for short tax years when the tax for the short year exceeds $1,000. The following schedule is provided as guidance for tax filers with a tax year of less than one year.

If the length of your tax year is 1 month:

• 1 payment equal to 100% of the prior year’s tax or 90% of the current year’s tax is due by the last day of the 1st month.

If the length of your tax year is 2 months:

• 1 payment equal to 100% of the prior year’s tax or 90% of the current year’s tax is due by the 15th day of the 2nd month.

If the length of your tax year is 3 months:

• 1 payment equal to 100% of the prior year’s tax or 90% of the current year’s tax is due by the 15th day of the 3rd month.

If the length of your tax year is 4 months:

• 1 payment equal to 100% of the prior year’s tax or 90% of the current year’s tax is due by the 15th day of the 4th month.

If the length of your tax year is 5 months:

• 1 payment equal to 25% of the prior year’s tax or 22.5% of the current year’s tax is due by the 15th day of the 4th month.
• 1 payment equal to 75% of the prior year’s tax or 67.5% of the current year’s tax is due by the 15th day of the 5th month.

If the length of your tax year is 6 months:

• 1 payment equal to 25% of the prior year’s tax or 22.5% of the current year’s tax is due by the 15th day of the 4th month.
• 1 payment equal to 75% of the prior year’s tax or 67.5% of the current year’s tax is due by the 15th day of the 6th month.

If the length of your tax year is 7 months:

• 1 payment equal to 25% of the prior year’s tax or 22.5% of the current year’s tax is due by the 15th day of the 4th month.
• 1 payment equal to 25% of the prior year’s tax or 22.5% of the current year’s tax is due by the 15th day of the 6th month.
• 1 payment equal to 50% of the prior year’s tax or 45% of the current year’s tax is due by the 15th day of the 7th month.

If the length of your tax year is 8 months:

• 1 payment equal to 25% of the prior year’s tax or 22.5% of the current year’s tax is due by the 15th day of the 4th month.
• 1 payment equal to 25% of the prior year’s tax or 22.5% of the current year’s tax is due by the 15th day of the 6th month.
• 1 payment equal to 50% of the prior year’s tax or 45% of the current year’s tax is due by the 15th day of the 8th month.

If the length of your tax year is 9 months:

• 1 payment equal to 25% of the prior year’s tax or 22.5% of the current year’s tax is due by the 15th day of the 4th month.
• 1 payment equal to 25% of the prior year’s tax or 22.5% of the current year’s tax is due by the 15th day of the 6th month.
• 1 payment equal to 50% of the prior year’s tax or 45% of the current year’s tax is due by the 15th day of the 9th month.

If the length of your tax year is 10 months:

• 1 payment equal to 25% of the prior year’s tax or 22.5% of the current year’s tax is due by the 15th day of the 4th month.
• 1 payment equal to 25% of the prior year’s tax or 22.5% of the current year’s tax is due by the 15th day of the 6th month.
• 1 payment equal to 25% of the prior year’s tax or 22.5% of the current year’s tax is due by the 15th day of the 9th month.
• 1 payment equal to 25% of the prior year’s tax or 22.5% of the current year’s tax is due by the 15th day of the 10th month.

If the length of your tax year is 11 months:

• 1 payment equal to 25% of the prior year’s tax or 22.5% of the current year’s tax is due by the 15th day of the 4th month.
• 1 payment equal to 25% of the prior year’s tax or 22.5% of the current year’s tax is due by the 15th day of the 6th month.
• 1 payment equal to 25% of the prior year’s tax or 22.5% of the current year’s tax is due by the 15th day of the 9th month.
• 1 payment equal to 25% of the prior year’s tax or 22.5% of the current year’s tax is due by the 15th day of the 11th month.

Note: Any portion of a month is considered a full month.

7-8-2009                             Sue Klobertanz
________________         ____________________________________
Date                                    Director, Revenue Bureau

Adopted: 4/12/1996
Revised: July 2009