The Bloomberg BNA SALT Blog is a forum for practitioners and Bloomberg BNA editors to share ideas, raise issues, and network with colleagues about state and local tax topics. The ideas presented here are those of individuals and Bloomberg BNA bears no responsibility for the appropriateness or accuracy of the communications between group members.
September 19, 2014
On September 11, Nevada and Tesla Motors entered into a multi-billion
dollar agreement that has potentially significant economic implications for the
state as well as manufacturing industries in...
September 18, 2014
Hong Kong merited the highest grade (an A-) of all the
countries and sub national jurisdictions evaluated in a scorecard
recently released by the Council On State Taxation (COST) and...
September 17, 2014
by Annabelle Gibson
States’ use of health care-related taxes has
been on the rise in recent years, as states look to satisfy the rising costs of
Medicaid programs and capitalize on matching federal funds. But...
September 16, 2014
solved some of the disparity same-sex married couples face with taxes at the
federal level, particularly with joint tax filings and the federal estate tax,
problems remain. ...
September 15, 2014
July the Michigan Supreme Court handed down one of the more controversial
recent rulings in state corporate income tax in IBM v. Dept. of Treasury. The Court ruled that IBM was...
September 11, 2014
In sales tax circles, a “Gotcha” is an unexpected outcome usually
from an audit that seems illogical and counterintuitive, Katherine Gauntt, an
Engagement Manager in the SALT Center of...
by Ean Hamilton
It’s that time of year again… the
time when California’s most delinquent sales and use tax offenders are publicly
outed by the California State Board of Equalization. On Sept. 5th, the board released...
September 10, 2014
by Rebecca Helmes
Several years ago, the California Legislature approved a
cap-and-trade program aimed at cutting greenhouse gas emissions to 1990 levels
by 2020. It already applies to some industries, but in...
by Michael Kerman
Detroit missed the mark on its projected property tax
collections for the fourth quarter of FY 2014, ending in June 2014, by nearly
90 percent. The city collected only $6.7 million of an...
September 9, 2014
Education and taxes have historically been
interlocked. Traditionally, taxes were collected to help fund public school
systems. However, states that offer scholarship tax credits are turning the...
September 8, 2014
There has been a noted upsurge mergers and
acquisitions in 2014 both worldwide and in the U.S. In terms of structuring these deals for U.S. federal tax purposes, one of the
most common forms...
September 5, 2014
Many states using a form of
modified fair market value in their property tax calculations have enacted
property tax cap laws, Bloomberg BNA State Tax Law Editor Michael Kerman writes
Many states have wrestled with defining what types of services are
protected by the Internet Tax Freedom Act’s (IFTA) prohibition against taxes on
Internet access. This month, Virginia issued...
September 3, 2014
The difference between a tax and a fee generally turns on
the use of the revenue. Is the revenue
meant to raise money that can be used to defray the general costs of
government? It’s a tax. Is...
Do you want to save money for growing
tomatoes in the city? Or for reducing urban blight? Reducing transportation
emissions? Next week you can do just that if you live in San Francisco.
floods, hurricanes, earthquakes and other natural disasters, the last thing on
people’s minds may be payroll or tax issues, but employers affected by
disasters and those responding to...
September 2, 2014
In this interview, Suzanne Brown Walsh, chairwoman for the ULC committee that drafted the Uniform Fiduciary Access to Digital Assets Act (UFADAA) offers an inside look into the development of the...
August 29, 2014
Taxpayers with significant
operations in Texas may benefit from new research and development incentives
put into place by the state, Giles B.
Sutton, a partner at McGuireWoods LLP in...
August 28, 2014
Tax amnesty programs, offered occasionally
by state revenue departments, are often a big relief to taxpayers. They are beneficial to taxpayers because for a
short period of time, most tax amnesty...
August 27, 2014
In an effort to provide marijuana businesses with some tax
relief, last year Washington state decoupled from I.R.C. § 280E—a federal tax statute that has been the thorn
in the side of marijuana...
“The center of the Boardwalk. The heart of the action.” Not
anymore. By mid-September, three Atlantic City casinos will close, clearing a
whopping $2 billion from the city’s already shrinking tax...
August 26, 2014
by Rishi Agrawal
Although most people do not connect crime to tax credits, the fact is that tax credits can be worth millions of dollars. And when that much money is involved, it shouldn’t surprise us that the...
August 25, 2014
by Melissa Fernley
King is in talks to acquire Tim Horton’s , the iconic Canadian donut shop, a
merger which would result in one of the world’s largest fast-food companies.
However, upon buying Tim...
August 22, 2014
Aug. 22 — Leading state tax practitioners recently offered their candid thoughts and insights on major state tax developments at Bloomberg BNA's annual Roundtable event in Washington, D.C. A...
August 21, 2014
State and local municipalities often seek to fill
their coffers by expanding the application of their sales and use taxes. Facing
mounting deficits, city councilmembers in Philadelphia have been...
Taxes on real, personal, and utility property owned by
businesses accounted for the largest share of state and local business tax
receipts by a wide margin, according to an August 2014 study ...
August 20, 2014
Extra on Excise: New
York’s Cigarette Strike Force to the Rescue What does a state do when it is losing tax revenue from
tobacco trafficking and other forms of cigarette tax evasion? In New...
August 19, 2014
In addition to facing so-called "jock taxes in multiple states, [160 Daily Tax Report H-1, 8/19/14] professional athletes face another challenge: audits. Changes to federal returns often require...
States vary widely on treatment of nonresident employees working temporarily within a jurisdiction. Employers need to pay special attention to whether their employees travel outside their resident...
August 18, 2014
A recent California Franchise Tax Board
clarifies when an out-of-state corporate member of an LLC is doing business in California on the basis of the LLC's activity in the...
August 15, 2014
The next wave of digital innovation is telematics, or the "Internet of Things" and represents one of the fastest growing sectors of the Internet and our economy,Michael T. Dillon, Esq., founder and...
August 14, 2014
Although the taxability of telematics or the "Internet of Things" is cloudy, early predictions have been made as to how states will classify and tax it. Some of the predictions hinge on a federal...
August 13, 2014
Processor and semiconductor giant Intel Corp. entered a Strategic
Investment Program Agreement Aug. 11 with Washington County, Oregon’s
second-largest county, located just outside Portland,...
Washington health care providers appealing the rejection of
their refund requests for business and occupation (B&O) taxes were turned
back again in a decision
by the Appeals...
August 12, 2014
As massive reductions in military spending progress due to budget restraints, a large scale reduction in active duty servicemen and women is on the horizon as reported by U.S. News & World...
August 11, 2014
On June 19, Rhode Island’s Governor
signed the state’s 2015 fiscal year budget
bill . The bill calls for a complete reform of how C-corporations are taxed
in Rhode Island,...
August 8, 2014
Mark F. Sommer, a state tax practitioner, sought pleadings in a
property tax case from the Kentucky Department of Revenue via the Kentucky Open
Records Act, and was met with a blanket denial,...
August 7, 2014
On Tuesday Michigan voters went to the polls to vote on
whether to approve the Legislature’s 2012 plan to phase out personal property
taxes. At 10 p.m., the Associated Press declared the...
August 6, 2014
Electronic cigarettes (e-cigarettes) have been the go-to product this legislative season for state legislatures looking to raise revenue while protecting consumer health. At the heart of the...
August 5, 2014
As Jane Austen began once, “it is a truth universally acknowledged, that a single man in possession of a good fortune, must be in want of a wife.” This famous line may not be so far off, since...
August 4, 2014
The Multistate Tax Commission has voted to renew their policy statement regarding tax agreements between states and Native American tribes. The resolution to renew the policy was approved...
August 1, 2014
Member states of the Multistate Tax Commission voted to adopt market-based sourcing and other long-awaited revisions to Article IV of the Multistate Tax Compact, which contains the Uniform Division...
July 31, 2014
Tax Legislation Personals: Federal sales tax collection bill seeks long-term relationship with other bill addressing Internet transactions. Only serious suitors need apply.
July 30, 2014
States trying to collect premium tax on surplus lines/non-admitted
insurers face difficulties similar to those that they face when trying to
collect sales and use tax on remote sales—figuring out...
Tax bills go out, and the deadline to pay property taxes
passes. A small, or maybe ridiculously
large , percentage of taxpayers don’t pay their bills, and the taxing jurisdictions
When withholding taxes for employees who work in one state but live in another, employers should be careful to examine the states’ relationships. Reciprocity agreements are often made between...
July 29, 2014
In 2013, Wisconsin quadrupled the Historic Rehabilitation Tax Credit in the state from 5 percent to 20 percent of qualified expenditures through Wisconsin Act 20 in July and Wisconsin Act 62 ...
July 28, 2014
The annual Advanced State and Local Tax Institute at Georgetown University Law Center is fast approaching (Aug. 7 and 8). This
year’s Institute is organized into four themed segments:...
July 25, 2014
“An onslaught of complaints from
residents about fraudulent solicitation activity has pushed state legislatures
to create laws that require charities and other organizations to register...
July 24, 2014
exchanges under I.R.C. § 1031 are considered exempt transactions for income tax
purposes. However, the sales and use tax consequences of like-kind exchanges
may be a trap for the...
July 23, 2014
Governors across the country are facing budgetary tensions
that pit cuts to public pensions against raised property taxes. The chief
executives of Illinois, Pennsylvania and New Jersey have all...
It’s now legal to smoke pot in Colorado. Who would be the
least likely people to make a legal challenge to this state of affairs? Marijuana
advocates, you say? You’re right! A group of prominent...
While most states generally conform to the federal tax code, nearly all of the jurisdictions diverge from the Internal Revenue Code in some key areas. Identifying these areas of nonconformity can...
July 22, 2014
In the past month, Louisiana and Massachusetts passed legislation for tax amnesty programs, which give taxpayers a “fresh start” by greatly reducing or eliminating penalties and/or interest on past...
July 21, 2014
The Michigan legislature recently passed S.B. 327, enacted
June 24, 2014, which requires the Michigan Department of Treasury to issue
standards for the fair and courteous treatment of taxpayers by...
July 18, 2014
Companies and their employees face many deterrents to
telecommuting, such as the system currently in place for taxing the income of
multi-state employees, Nicole Belson Goluboff, author of The...
July 17, 2014
On August 5, Michigan primary voters will see Proposal 1 on
the ballot, which would reallocate other tax revenues to help jurisdictions
that will lose revenue from the state’s phase-out of its tax...
July 16, 2014
Fannie Mae and Freddie Mac are playing legal Whac-A-Mole
with state and local governments’ claims of the mortgage giants’ transfer tax
liability—and the mortgage giants are winning. The idea...
July 15, 2014
Starting in 2015, Maryland will gradually raise its $1 million estate tax exemption until it matches the federal estate tax exemption, which is estimated to be $6 million in 2019. Supporters of...
July 14, 2014
Corporations operating in more than one state must generally allocate
nonbusiness income to the state in which they are based and apportion business
income to the states in which they do...
July 11, 2014
One of the take away lessons that Ed Lazere, executive director of the D.C. Fiscal Policy
Institute, learned from his work on
the D.C. Tax Revision Commission was to listen to his instincts...
July 10, 2014
year 16 states, predominantly in the Southeast, will offer tax holidays on
items ranging from emergency preparedness equipment, to back-to-school
supplies, to energy efficient products....
July 9, 2014
After years of hard work and vigorous debate, advocates of
medical marijuana can finally celebrate a victory in New York. Or did all the
hard work go up in smoke? New York Gov....
The difference between
residential and commercial assessments in New York City will likely grow as the
City Council adopted Mayor Bill de Blasio’s Fiscal
Year 2015 budget June 25....
July 8, 2014
With many states creating their own incentives to lure the film industry away from Hollywood, California felt it needed to make major changes in order to keep the film industry in its traditional...
July 7, 2014
Several states have recently enacted
legislation that will cut their corporate income tax rates. Proponents of these
measures argue that tax relief is necessary to remain competitive with...
July 4, 2014
Tax claims alleged by
whistle-blowers remain constant, fueling the conversation as to whether states
should bar qui tam tax claims from False Claim Acts. In this week’s
issue of the...
July 3, 2014
It's no surprise that a laundry list of items that qualify for
Illinois' sales and use tax exemption for machinery and equipment
used in farming includes tractors, combines, bailers, irrigation
equipment, cattle and poultry feeders, and excludes improvements to
real estate such as fences, barns, roads, grain bins and silos.
But, as what may seem a surprising request, one nonprofit
organization requested guidance from the Illinois Department of
Revenue as to whether nursery stock, such as fruit- and nut-
producing trees, qualify as exempt farming equipment.
July 2, 2014
The Arizona Department of Revenue’s decision to tax leased
solar panels has solar energy advocates, solar panel companies and lessees of
solar panels in less-than-sunny moods over their new...
Vermont has a reputation as a haven for campers and other enthusiasts
who love the outdoors. But in corporate planning circles it is known as a
paradise for companies that choose to self-insure...
July 1, 2014
The American film industry is virtually synonymous with Hollywood, but in recent years, other states have been luring film and television productions away from California. Now, 39 states and Puerto...
June 30, 2014
It is generally the taxpayer’s obligation to request a
refund of any overpayment of taxes. However, two recent developments suggest
that some jurisdictions are taking divergent positions on this...
June 27, 2014
The challenge in Gillette
relates more to states that do not provide the taxpayer the option to elect the
Compact's three-factor apportionment formula or which have insisted that a
June 26, 2014
amusement parks or sporting events are popular ways to spend time with the
family during the summer months, but ticket prices seem to rise a bit more each
In a quest for efficiency, reduced cost and independence from paper, each year more states are following the Internal Revenue Service’s lead and requiring employers to remit all income tax...
Corporate Close-Up: Is Rhode Island Tax Overhaul a Mixed Blessing for Corporations?
Incentives Watch: The Impact of Military Reduction and the Need for Veteran Credits
Weekly Round-Up: One Practitioner’s Fight Against Kentucky’s Revenue Department for Case Records
Extras on Excise: Washington Keeps Coffers Closed, Denies B&O Tax Refund to Health Care Providers
Property Tax Post: Processor Giant Intel Corp. Enters $100 Billion Incentive Agreement to Invest in Oregon