State Tax Knowledge Update (59 items) - February 7, 2018

The following are state tax and business developments I have curated since January 6th, and posted in the LEVERAGE SALT LinkedIn group:

Some of the items may be on the same state/issue/topic, but they are from different sources which may give you a broader perspective to help your company or client.

1. Online Travel Company Liable for Maryland Sales Tax

2. Corporate Close-Up: The Texas Comptroller Ruled that Wireless Voice and Data Services are Performed in Texas when a Customer Accesses Those Services in Texas--Is It Market-Based Sourcing?

3. Many State Tax Incentives Are Now Taxable Due to Federal Tax Reform

4. California Proposes Bill to Counter Federal Limit on SALT Deduction

5. Remote Retailers Must Notify Online Purchasers of Louisiana Use Tax

6. Pennsylvania Requires Addback for Federal Bonus Depreciation

7. Fourth quarter 2017 state and local tax developments

8. State implications of federal tax reform - international business

9. Twenty-Five States Face Revenue Shortfalls in 2018

10. FEDERAL TAX REFORM AND THE STATES - great resource from the National Conference of State Legislatures

11. 2017 State Policy Review: Taxation

12. THE SKINNY ON THE 2017 MTC SALES TAX AMNESTY PROGRAM AND HOW IT AFFECTS AMAZON FBA SELLERS - this is an interesting video to watch (even now).

13. Top Tax Strategies for California Businesses in 2018

14. U.S. Supreme Court to Review Bid to Collect Internet Sales Tax

15. New Hampshire Department of Revenue Administration Announces Business Tax Rate Reductions

16. Michigan Department of Treasury Discusses New Law Permitting Alternate Method of Dispute Settlement and Resolution for Certain Tax Liabilities

17. Ohio Department of Taxation Launches Amnesty Program that Runs through February 15 and Permits Potential Waiver of 100 Percent Penalties and 50 Percent Interest

18. Pennsylvania DOR Announces that Non-Participation Penalty Assessments from 2017 Amnesty Program are Coming Soon

19. Alabama DOR Issues Proposed Amended Rules on NOL Carryforwards, Federal Conformity, and Revised Filing Due Dates

20. Florida DOR Issues Administrative Rule Changes Reflecting 2017 Law on Return Filing and Payment Due Dates

21. US Supreme Court Denies Taxpayer Request to Review Florida Supreme Court Holding

22. Louisiana DOR Reminds that Certain Remote Retailers Must Issue Annual Information Notices and File Statements

23. Washington DOR Issues CPI-Adjusted Substantial Nexus Bright Line Nexus Thresholds for Business and Occupation Tax Purposes

24. Remote Businesses Might Become Subject to Hawaii Tax

25. New Jersey Enacts Corporate HQ Credit

26. Illinois Proposes Tax on Investment Management Service Businesses

27. Federal Tax Act Affects Minnesota Taxpayers

28. Illinois Responds to SALT Deduction Limit

29. Alaska Governor Seeks Support For Payroll Tax

30. Missouri Governor’s Plan for Tax Reform

31. Tax Law Prompts S Corps to Examine Their Structures: A Primer

32. Idaho State Tax Commission Discusses How Recently Enacted Federal Tax Reforms May Affect State Income Taxation

33. Michigan Court of Appeals Holds that Receipts from Law Firm Services are Sourced on a Market-Based Methodology for City of Detroit Income Tax Purposes

34. Colorado DOR Issues Updated Compliance Guidance on Some Remote Seller Notice and Reporting Requirements

35. Texas Comptroller Revises Administrative Rule 3.308 Computers – Hardware, Software, Services, and Sales

36. Washington DOR Issues Proposed Expedited Regulatory Amendments Reflecting 2017 Legislation that Expands B&O Economic Nexus

37. Multistate Tax Considerations of the Federal Tax Reform International Tax Provisions

38. What the Tax Cuts and Jobs Act Means for States – A Guide to Impacts and Options

39. Key Lessons for States as They Determine Responses to the Federal Tax Bill

40. 2018 Tax policy outlook

41. NYC Receipts Allocation Reflects Employees and Consultants

42. State Tax Conformity: Revenue Effects

43. Tax Reform Moves to the States: State Revenue Implications and Reform Opportunities Following Federal Tax Reform

44. January Tax Retrospective: Congress Acts, States React

45. Tax reform provides federal and state credits and incentives opportunities

46. New York releases FY 18-19 budget proposal

47. California Competes tax credit program - More than $55 million in tax credits available

48. You’re Invited: COST, Bloomberg Tax and McDermott Will & Emery to Host Post-Oral Argument Roundtable Discussion

49. Oregon DOR Issues Final Market-Based Sourcing Rule

50. Pennsylvania DOR Discusses New Law that Imposes Information Reporting and Notice Requirements on Some Remote Sellers Including Marketplace Facilitators

51. South Carolina: ALJ Denies DOR Motion for Injunction – Holds that Online Marketplace Provider is Not Required to Collect Tax on Third-Party Sales During Pendency of Case

52. Pennsylvania DOR Announces Immediate Effectiveness of 2017 Legislative Amendments Involving NOL Limitations

53. Montana DOR Discusses How Recently Enacted Federal Tax Reforms May Affect Some State Income Taxation

54. Minnesota DOR Discusses How Recently Enacted Federal Tax Reforms May Affect Some State Income Taxation

55. South Dakota Updates IRC Conformity Date

56. New Hampshire Joins Internet Sales Tax Fight

57. Ohio Amnesty Program Ends February 15

58. Oklahoma Governor Proposes Budget with Numerous Tax Changes

59. Tax Reform Friday: From Coast to Coast, Federal Tax Reform Involves State Taxation Policy

The above represents 'general curating' of state tax developments into one spot. If you still feel overwhelmed by the volume of state tax developments, please consider my 'custom curating' service. Meaning, clients hire LEVERAGE SALT to daily curate state tax developments relating to a specific industry, state(s), tax type and issue. You can make it as granular as you prefer. This allows you to reduce information overload, and only get the information you need to help your clients or company. This service is provided on a fixed-fee or subscription basis. Contact me at strahle@leveragesalt.com.

State Tax Knowledge Update (30 Items)- October 16, 2017

The following are state tax and business developments I have curated since October 2nd, and posted in the LEVERAGE SALT LinkedIn group:

Some of the items may be on the same state/issue/topic, but they are from different sources which may give you a broader perspective to help your company or client.

1. South Dakota Petitions US Supreme Court for Opportunity to Overturn Quill

2. California Expands Tax Amnesty Program

3. Rhode Island Tax Amnesty Program Highlighted

4. Goodwill Was Business Asset for California’s Deemed Water’s Edge Election

5. New CA Apportionment Regulation for Space Transport Companies

6. Law schools need to introduce social learning. Accounting and tax programs do as well.

7. California expands its voluntary disclosure program to include certain flow-throughs

8. Third quarter 2017 state and local tax developments

9. 9 facts about pass-through businesses

10. Taxpayer Challenges Department Authority to Adjust NOL Carryforward, When NOL Was Generated in Tax Years Otherwise Closed by Statute

11. GOP Corporate Tax Reform Proposals Hold State Tax Implications

12. Urgency for State Model on Partnership Audit Adjustments

13. Coalition Firm on State Tax Deduction Amid Compromise Talks

14. Sales Tax Slice: Federal Tax Reform Likely to Affect Sales Tax As Well

15. How AI Impacts the Tax Function

16. South Dakota v Wayfair: Three Maps

17. Tax Bill Momentum Tied to Deal on State and Local Deduction

18. Tax Reform Timetable Could Be Tricky For States

19. Current Economic Conditions of States

20. Eversheds Sutherland SALT Shaker: September 2017 Digest

21. In the Matter of Product of Conagra Foods Ingredient Co., New Mexico Administrative Hearing Office, Dkt. No. 17-39, September 15, 2017

22. DAILY SALES TAX COLLECTION SYSTEM COULD COST MASSACHUSETTS BUSINESSES $1.2 BILLION

23. Comments to Massachusetts DOR re. Accelerated Sales Tax Remittance

24. MTC National Nexus Program Online Marketplace Seller Voluntary Disclosure Initiative Has Been Extended Through November 1

25. Minnesota DOR Explains Impact of Recent State Supreme Court Decision - Inclusion of Foreign Disregarded Entity Income and Apportionment Factors on Combined Return

26. Portland City Administrative Rule Implements New Business Income Tax Surcharge Based on Pay Differentials between CEOs and Median Employees

27. Texas Comptroller Issues Amended Administrative Rule Reflecting Revised Policy on Combined Group Franchise Tax Extensions

28. District of Columbia OTR Discusses Taxation of Digital Goods

29. Wyoming DOR Announces that it Cannot Enforce New Economic Nexus Law Imposing Remote Seller Tax Collection Responsibilities During Pendency of Legal Action

30. Gift Season is Upon Us, But It's a Year-Round Concern

The above represents 'general curating' of state tax developments into one spot. If you still feel overwhelmed by the volume of state tax developments, please consider my 'custom curating' service. Meaning, clients hire LEVERAGE SALT to daily curate state tax developments relating to a specific industry, state(s), tax type and issue. You can make it as granular as you prefer. This allows you to reduce information overload, and only get the information you need to help your clients or company. This service is provided on a fixed-fee or subscription basis. Contact me at strahle@leveragesalt.com.

State Tax Knowledge Update (27 items)- October 2, 2017

The following are state tax and business developments I have curated since September 21st, and posted in the LEVERAGE SALT LinkedIn group:

Some of the items may be on the same state/issue/topic, but they are from different sources which may give you a broader perspective to help your company or client.

1. PRACTICE AND PROCEDURE: STATES KEEP TAXPAYERS AFLOAT BY PROVIDING TAX RELIEF FOR HARVEY AND IRMA VICTIMS

2. Cuomo Announces New Amazon Office in New York City will Create 2,000 Jobs

3. Whole Foods Told To Pay $3.5M On Add-Backs Per NY Tax Law

4. California holds IPM on withholding for pass through entities

5. State Tax Developments: Captives

6. Wisconsin Eliminates Alternative Minimum Tax

7. Alaska 80% DRD for dividends received from 80 20 company

8. State sales tax could be costing Nashville tech jobs

9. Multistate Insider: Local Policy Digest

10. California Governor Signs Cleanup Legislation Related to Restructuring of State BOE and New OTA

11. Virginia Governor Reminds that Amnesty Program Has Begun

12. New York Extends Gramm-Leach Bliley Transition Rules for Certain New York City Financial Institutions

13. New York City Tax Appeals Tribunal Requires Taxpayer to Recognize Property Gain on Final Tax Return

14. Taxpayer Asks US Supreme Court to Review Florida Supreme Court Holding Which Held that Taxing Satellite Services Versus Cable TV Services at Different Rates is Constitutionally Valid

15. Amended Oklahoma Rules Reflect Remote Seller and Affiliate Nexus Provisions

16. South Dakota Supreme Court Affirms that Remote Seller Economic Nexus Law is Unconstitutional

17. Wisconsin Governor Signs Budget Bill with Various Tax Law Changes Including Updated State Conformity to IRC, Revised Sourcing and Apportionment Provisions, and NOL Limitations

18. Proposed Alabama Amended Rule Reflects New Law that Includes Loans and Credit Card Receivables in Property Factor for FIET Purposes

19. California FTB Chief Counsel Ruling Addresses Impact of Recorded Goodwill for Deemed Water-Edge Election Business Assets Test

20. New Mexico AHO Holds in Taxpayer Favor that Interest Income from Payment-in-Kind Notes is Nonbusiness Income Allocable Out-of-State

21. North Carolina Supreme Court Affirms that Taxpayer Cannot Claim Interest Deduction for Market Discount Income on Discounted US Bonds

22. Illinois Appellate Court Holds that Internet Retailer Lacks Substantial Nexus and Thus Not Liable for Use Tax

23. Massachusetts Supreme Judicial Court Affirms that Wholesale Distributor Must Collect and Remit Tax on Goods Sold to Out-of-State Retailers in Drop Shipment Scenarios

24. Holders Beware: Delaware Department of State Notices to be Mailed in Two Weeks!

25. Why Does Missouri Want a Gross Receipts Tax?

26. Ohio’s Commercial Activity Tax: A Reappraisal

27. State and Local Tax Aspects of Republican Tax Reform Framework

The above represents 'general curating' of state tax developments into one spot. If you still feel overwhelmed by the volume of state tax developments, please consider my 'custom curating' service. Meaning, clients hire LEVERAGE SALT to daily curate state tax developments relating to a specific industry, state(s), tax type and issue. You can make it as granular as you prefer. This allows you to reduce information overload, and only get the information you need to help your clients or company. This service is provided on a fixed-fee or subscription basis. Contact me at strahle@leveragesalt.com.

State Tax Knowledge Update (37 items) - Sept 21, 2017

The following are state tax and business developments I have curated since September 12th, and posted in the LEVERAGE SALT LinkedIn group:

Some of the items may be on the same state/issue/topic, but they are from different sources which may give you a broader perspective to help your company or client.

1. VA sourcing rules constitutional IPA where work performed

2. AL group may use NOLs generated before consolidated election

3. State Rundown 9/13: The Year of Unprecedented State Budget Impasses Continues

4. Comments on South Dakota’s Challenge to Quill

5. Domestic tax quarterly webcast series: a focus on state tax matters

6. South Dakota Supreme Court – Sales tax economic nexus provisions unconstitutional; appeal to US Supreme Court expected

7. Virginia Denies Alternative Market Approach for Sourcing Sales

8. South Dakota Supreme Court Rules in Favor of Remote Retailers; Next Step US Supreme Court?

9. Florida Provides Guidance Regarding Sourcing of Services for Income Tax Purposes

10. Pennsylvania Department of Revenue Attempts to Tax Information Retrieval Services: An Overview of Letter Ruling SUT-17-002

11. Foxconn Tax Credit Package Enacted in Wisconsin

12. Zapper Fraud Case Results in Mandatory Real-Time Monitoring

13. INDIVIDUAL INCOME INSIGHTS: CHECKING UP ON CHECKOFFS

14. CORPORATE CLOSE-UP: VIRGINIA COURT DENIES CORPORATION USE OF ALTERNATIVE METHOD OF APPORTIONMENT

15. PROPERTY TAX POST: ARE STATES TAKING THEIR TAKINGS POWER TOO FAR?

16. CORPORATE CLOSE-UP: ILLINOIS (FINALLY!) FINALIZES MARKET-BASED SOURCING REGULATIONS

17. INDIVIDUAL INCOME TAX INSIGHTS: INCOME TAX CONSEQUENCES OF NONRESIDENT TELECOMMUTING

18. CORPORATE CLOSE-UP: THE FTB’S SMALL CAP SOLUTION TO ALLEGED FINANCIAL AND NON-FINANCIAL COMBINED REPORTING APPORTIONMENT DISTORTION

19. CORPORATE CLOSE-UP: DELAWARE CONTINUES DEVELOPING UNCLAIMED PROPERTY RULES

20. State Tax Filing Relief for Victims of Hurricanes Harvey and Irma

21. Examining the Potential Tax Implications of Streaming Video Distribution

22. Alabama Appellate Court Affirms that Certain Separate Company NOL Carryforwards Can Be Claimed on Consolidated Return

23. New Delaware Law Includes Retroactive Tax Law Changes for Series Captive Insurance Companies

24. Illinois Tax Tribunal Holds that Insurance Premium Financing Subs Must File as Part of Combined Return for Financial Organizations

25. New Mississippi Law Allows Department of Revenue to Contract with Third-Party Auditors on a Contingent Fee Basis

26. Proposed Regulations Reflect Recent Montana Law Changes that Expand Waiver of Composite Return or Withholding for Domestic Second-Tier Pass-Through Entities

27. Pennsylvania Trial Court Finds NOL Cap is Unconstitutional

28. Tennessee DOR Issues Chart and Examples Depicting Apportionment Calculations Under Various Elections

29. Virginia Circuit Court Denies Alternative Apportionment Request and Upholds Validity of Standard Cost-of-Performance Method to Apportion Income from Subscription-Based Services

30. Massachusetts DOR Finalizes New Regulation Adopting Bright Line Nexus for Some Remote Sellers

31. Proposed Amended Ohio Rule Addresses Bad Debts, Assignment of Accounts Receivables, and Financing Companies

32. Illinois DOR Proposes Use Tax Nexus Standards for Trade Show Retailers

33. DON'T MISS the 24th Annual Paul J. Hartman SALT Forum

34. 2017 Oregon Legislative Tax Update

35. How Much Does Your State Collect in Corporate Income Taxes Per Capita?

36. REMINDER: Supreme Court to Consider West Virginia Tax Credits Case

37. Maine: 2017 Legislative Changes

The above represents 'general curating' of state tax developments into one spot. If you still feel overwhelmed by the volume of state tax developments, please consider my 'custom curating' service. Meaning, clients hire LEVERAGE SALT to daily curate state tax developments relating to a specific industry, state(s), tax type and issue. You can make it as granular as you prefer. This allows you to reduce information overload, and only get the information you need to help your clients or company. This service is provided on a fixed-fee or subscription basis. Contact me at strahle@leveragesalt.com.

17 State Tax and Business Developments You May Want to Know - Sept 5, 2017

The following are state tax and business developments I have curated since August 26th, and posted in the LEVERAGE SALT LinkedIn group:

1. NC market discount income from US govt bonds is not interest

2. CORPORATE CLOSE-UP: THE FTB’S SMALL CAP SOLUTION TO ALLEGED FINANCIAL AND NON-FINANCIAL COMBINED REPORTING APPORTIONMENT DISTORTION

3. COST, EY & State Tax Research Institute Study: Total State and Local Business Taxes (fy16)

4. Oregon revenue online educational services sourced faculty costs

5. State Rundown 8/31: Modernizing Taxes is Sometimes a Sprint, Sometimes a Marathon

6. Oral Arguments Heard in South Dakota’s Challenge to Quill

7. Net Operating Loss Carryforward & Carryback Provisions by State

8. Indiana Files Lawsuit to Defend Out-Of-State Sales Tax Law

9. Amended Colorado Regulations Address Combined and Consolidated Filing and Apportionment

10. Massachusetts DOR Issues Technical Information Release on Policy Change Regarding Treaty-Exempt Income

11. Oregon Tax Court Explains that Only Direct Costs are Relevant in Determining Where Greater Proportion of Costs of Performance Was Incurred

12. Indiana Attorney General Responds to Suit Filed by Trade Groups Regarding Enforcement of New Remote Seller Economic Nexus Law

13. Limited-Time Voluntary Disclosure Program for Out-of-State Sellers Having Click-Through Nexus Runs through November 21 in New Jersey

14. Rhode Island Division of Taxation Explains New Information Reporting and Notice Requirements on Some Remote Sellers - Including Marketplace Facilitators

15. Seattle high-income resident income tax enacted

16. Texas appellate court upholds subcontractor exclusion while reversing and remanding on COGS methodology

17. VA Supreme Ct rules subject to tax exception post apportionment

The above represents 'general curating' of state tax developments into one spot. If you still feel overwhelmed by the volume of state tax developments, please consider my 'custom curating' service. Meaning, clients hire LS to daily curate state tax developments relating to a specific industry, state(s), tax type and issue. You can make it as granular as you prefer. This allows you to reduce information overload, and only get the information you need to help your clients or company. This service is provided on a fixed-fee or subscription basis. Contact me at strahle@leveragesalt.com.

'AS IF' the Seller Had A Physical Presence

The Governor of South Dakota signed SB 106 on March 22, 2016. The law requires any seller selling tangible personal property, products transferred electronically, or services for delivery into South Dakota, who does not have a physical presence in the state to remit sales tax 'as if the seller had a physical presence' in the state. For this new requirement to apply, the seller must meet one of two criteria in the previous calendar year or the current calendar year:

1. The seller's gross revenue from sales into South Dakota exceeds $100,000; or
2. The seller has 200 or more separate transactions in South Dakota;

The law applies to sales made on or after May 1, 2016.

BEWARE

If you disagree with South Dakota's new law, you can voluntary comply and request a refund. However, the law explicitly provides that no claim will be granted on the basis that the taxpayer lacked a physical presence in the state.

IMMINENT HARM

In the new law, South Dakota states that the inability to effectively collect sales or use tax from remote sellers is "seriously eroding the sales tax base," "causing revenue losses" and "imminent harm" through the "loss of critical funding for state and local services."

South Dakota asserts that their revenue loss is more problematic because the state has no income tax.

WANT U.S. SUPREME COURT TO RECONSIDER QUILL

South Dakota also states in its new law that the U.S. Supreme Court has an urgent need to reconsider Quill and the physical presence requirement. The law provides that the legislature recognizes that the enactment of this law places remote sellers in a complicated position because existing constitutional doctrine calls this law into question. In other words, South Dakota is enacting an unconstitutional law to create a case to litigate with the hopes of overturning Quill.

The law states that the Legislature intends to clarify that the obligations created by this law would be stayed by the courts until the constitutionality of the law is clearly established by a binding judgment.

WARNING: ENFORCEMENT OF PROVISIONS CURRENTLY BARRED

As the state tax group at McDermott Will & Emery reported in their INSIDE SALT blog, two declaratory judgment suits have been filed which now bars the enforcement of the provisions until the litigation is resolved. The plaintiffs are trade associations representing catalog marketers and e-commerce retailers.

The bottom line is that remote retailers can breathe easy for a moment and do not have to comply with this new law while we wait for the courts to decide. For more details, read the INSIDE SALT post.