STATE TAX KNOWLEDGE UPDATE (54 ITEMS) - APRIL 11, 2018

The following are state tax and business developments I have curated since March 13th, 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. Idaho Enacts Tax Reform Legislation

2. Washington Revises Nexus Rules

3. California Issues Notice Regarding Processing Docketed Protests

4. Vermont Gives Income Tax Nexus Examples

5. Wyoming Exempts Cryptocurrencies

6. New Idaho Law Generally Updates State Conformity to IRC and Selectively Updates Conformity to Some Federal Tax Code Provisions and Decouples from Others

7. Idaho State Tax Commission Grants Taxpayer Request for Use of Alternative Apportionment Method on Gain from Sale of LLC Interest

8. North Carolina DOR Explains Classification as a Holding Company for Franchise Tax Purposes and Qualifying for 150K USD Tax Liability Cap

9. Receipts from Service Contracts Must be Sourced In-State for CAT Purposes Because Underlying Property Tied to Services is Located in Ohio

10. Vermont Department of Taxes Issues Nexus Bulletin Including List of Nexus-Creating Activities

11. Case Challenging Economic Presence Administrative Rule is On Hold Pending the Outcome of US Supreme Court Litigation Involving Quill Physical Presence Standard in Tennessee

12. Washington DOR Issues Regulatory Amendments Reflecting 2017 Legislation that Expands Business and Occupation Tax Economic Nexus Provisions

13. State Tax Reform Opportunities and Challenges: The STAR Partnership

14. Business Income Tax Collections FF(3.19.2018)

15. Emergency Regulations Adopted for Appeals From CDTFA

16. Preliminary CA Report on IRC Conformity Revised

17. New York Allows Withdrawal of Group Election in Some Cases

18. California Releases Summary of 2017 Federal Legislation

19. Utah Enacts Tax Rate Cuts, Single Sales Factor Apportionment

20. Florida Enacts IRC Conformity, Rate Reduction

21. Virginia Court Confirms “Subject to Tax” Exception Decision

22. Individual Income Insights: Highlights of the ABA and IPT Advanced Income Tax Conference in New Orleans

23. Extras on Excise: U.S. Supreme Court to Decide Whether to Review Loudoun County BPOL Case, Possibly Adding a Second Major State Tax Case to its Docket

24. New York allows withdrawal of certain combined elections by June 1

25. Florida updates conformity to IRC; rate reduction possible

26. New Florida Law Updates State Conformity to IRC, Extends Bonus Depreciation Decoupling, and Includes Contingent Corporate Income Tax Rate Reductions

27. New Georgia Law Decouples from 2017 Tax Reform Act’s GILTI Provisions

28. New Idaho Law Generally Updates State Conformity to Federal Bipartisan Budget Act of 2018

29. Illinois DOR Discusses Recently Enacted Federal Tax Reforms - Specifically State Reporting Requirements Involving the New Foreign Income Deemed Repatriation Transition Tax

30. New Jersey Tax Court Reaffirms that Tech Company Foreign Source Income that is Not Taxable for Federal Purposes is Not Taxable under CBT

31. Memo Explains Limited-Time Withdrawal Procedure from Some Commonly Owned Group Elections in New York

32. Utah New Law Permits Corporations to Pay Tax on IRC Sec 965 Deferred Foreign Income in Installments, Lowers Corporate Tax Rate, and Expands Mandated Single Sales Factor Apportionment

33. Virginia Supreme Court Holds that Intercompany Royalty Payments Must be Taxed in Another State to Qualify for Subject-to-Tax Addback Exception Once More

34. New Idaho Law Imposes Remote Seller Click-Through Nexus Provisions

35. Indiana New Law Provides that Remote Access Software is Not Subject to Tax

36. Louisiana Trial Court Holds that Online Marketplace Facilitator Must Collect Local Sales and Use Taxes on Third-Party Retailer Online Sales

37. Arizona Changes Multistate Service Provider Apportionment Rules

38. Illinois Proposes Addition Adjustment for FDII and GILTI

39. Alabama Changes Income Tax Filing Thresholds

40. Oklahoma Caps Personal Itemized Deductions

41. Florida Enacts Tax Rate Reductions and Modifications

42. COST: Tennessee Testimony on Federal Tax Reform Conformity

43. New Hampshire’s Internet Sales Tax Fight Continues

44. New Wisconsin Law Updates State Conformity to IRC and Couples and Decouples from Various Provisions of the 2017 Federal Tax Reform Act

45. New Utah Law Revises Certain Single Sales Factor Apportionment Method Provisions

46. New Ohio Law Updates State Conformity to IRC

47. New York City Memo Explains Limited-Time Withdrawal Procedure from Some Commonly Owned Group Elections

48. New Arizona Law Includes Sales from Intangibles in Defining Multistate Service Providers that May Elect Use of Special Sales Factor Sourcing Provisions

49. Louisiana: Online marketplace provider required to collect sales tax

50. Legislative Session Review: Wisconsin

51. Wisconsin Tackles IRC Conformity

52. Arizona Updates IRC Conformity

53. Kentucky Governor Vetoes Major Tax Legislation

54. Corporate Close-Up: Alabama Pass-Through Entity Owners, Rejoice! Why You May be Entitled to a Refund for The 2013 Through 2017 Tax Years

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.

New Year, New Legislative Sessions and the MTC

I hope your new year is going well. State tax legislative sessions are beginning and talks of crazy tax hikes (Illinois), and imposing sales taxation collection obligations on remote retailers is commencing (Wyoming). Some may even try to eliminate the corporate income tax (Missouri).

The Multistate Tax Commission continues its Sec. 18 Regulatory Project. According to the MTC, the Section 1 and 17 workgroups have identified a list of issues that may need to be addressed by the Uniformity Committee in light of changes to Article IV (UDITPA) adopted by the Commission in 2014 and 2015. The list includes (but is not limited to) the following:

•  Address the possible distortion that could be caused by the exclusion of functional receipts from the definition of “receipts” for purposes of the receipts factor in certain circumstances.
• Consider exceptions to the definition of “receipts,” which now excludes receipts from securities and hedging, where these receipts might represent “transactional” receipts for certain taxpayers (e.g. brokers) as well as how possible distortion might be avoided (e.g. churning of investments).
• Consider whether receipts from factoring of receivables should ever be included in the receipts factory.
• Address any situations where general population data, used under the draft Section 17 sourcing rules, might result in distortion and what methods might be used to address that distortion.
• Consider whether there needs to be a “de minimis rule” for sourcing of receipts in certain instances so that the taxpayer may use a proxy for sourcing, or possibly throw out those receipts from the factor.
• Address regulations that might be needed to interpret and implement the amendments to Article IV, Section 18 made by the Commission in 2015.
• Consider other special industry rules that might be necessary.

In addition to the technical matters we deal with, I hope your career is moving in the direction you desire. If not, remember, action over intention. Can't get a different result by doing the same thing over and over again.