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.
October 20, 2014
BBNA Software will release the beta version of its State Corporate
Income Tax Planning and Provision system on November 3 rd. The beta version of the State Tax Planning and...
October 19, 2014
Figuring out how to prepare the
federal tax returns for people whose fiscal lives cross international borders
can be vexing and time consuming, Mary Beth Lougen, EA, the founder and
October 16, 2014
Property tax reform in Pennsylvania should be narrowly
tailored to provide relief to specific high tax districts instead of focusing
on broader approaches such as eliminating the tax entirely, the...
October 15, 2014
by Annabelle Gibson
Marijuana legalization has spread across the country this
year, as Colorado and Washington began the retail sale of marijuana for
recreational use, three states enacted medical marijuana...
by Michael Kerman
Paddleboards, the long, narrow
buoyant boards used to paddle across water, may now be exempt from sales and
use tax in Rhode Island, according to the Division of Taxation’s latest newsletter . ...
October 14, 2014
Recent legislation from California disallows deductions for fines paid by owners of professional
sports franchises imposed by those leagues on both personal and corporate
income tax returns for...
October 10, 2014
In the past 10 years, there has been a surge in corporate inversions,
with 47 companies engaging in these transactions between 2004 and 2014,
Bloomberg BNA State Tax Law Editor Radha Mohan...
October 9, 2014
by Ean Hamilton
The public perception of bitcoin is quickly
changing. Once regarded as the coin of the realm for cyber thieves, the virtual
currency is now accepted by big name retailers such as Overstock.com.
October 8, 2014
by Rebecca Helmes
Big Brother may already be listening in on your phone calls and
scanning your emails and texts—will he also soon track and tax your mileage as
a state gas tax replacement?
October 7, 2014
Most people stand to gain as the
U.S. economy slowly returns to pre-recession levels, with one notable
exception—farmers. Because the formula used to determine property taxes on
Double taxation of trust income is a very real problem. The issue arises because trusts are subject to state income taxes on their entire income when they are classified as resident trusts under a...
October 6, 2014
Virginia granted a refund claim more than 13 years after the
original tax return was due in Ruling of the Commissioner PD 14-168 on Sept. 12 th .
While this result might seem surprising, it...
October 3, 2014
Amici supporting both taxpayer Brian Wynne and
the Comptroller of Maryland each envision a doomsday scenario, but each side
sees a different type of doom. In this week’s issue of the Bloomberg...
October 2, 2014
Last week, AZ
Central reported that approximately 30,000 Arizona smokers are facing fines
and penalties from unpaid use and luxury taxes stemming from their online
October 1, 2014
Taxes imposed on live adult entertainment such as nude
dancing have withstood First Amendment challenges in Nevada and Texas. Opponents
of the tax argue that it unfairly discriminates against...
drought-plagued western states, the idea of repealing property taxes that flow
to water districts has been catching on, as illustrated by a recent report by the Utah Foundation, titled...
September 30, 2014
Determining whether a worker is an employee or an
independent contractor can be a tricky landscape for employers to navigate, and
recent federal court rulings regarding FedEx’s independent...
September 29, 2014
The results are in. Montana, Oregon and
South Carolina garnered high marks for the fairness of their state and local
tax systems, according to the results of a WalletHub study reported by
September 25, 2014
“Tax-free” shopping on Amazon.com will come to
an end in just a few days for Minnesota and Maryland residents, as the online
retailer will begin collecting sales tax on purchases made in both states
starting Oct. 1, 2014.
The MTC is very valuable, both from
a tax structure and a tax compliance point of view, R. Bruce Johnson, Outgoing Chair
of the Utah State Tax Commission, said in response to a question about...
September 24, 2014
At the San Gennaro Feast festival
held in Las Vegas in early September, uniformed revenue officers from the
Nevada Department of Taxation approached participating vendors and informed
New York City Mayor Bill de Blasio is considering a property
tax proposal that would impose a surcharge of up to 4 percent on “pied-a-terre”
residences owned by foreign owners, according to...
September 23, 2014
by Rishi Agrawal
Last week, in the shadow of the historic TCL Chinese Theatre in Hollywood, Gov. Jerry Brown signed legislation to increase California’s film tax credits to $330 million per year. California, which...
September 22, 2014
New Link New Jersey is offering a tax amnesty
program (though N.J. refuses to call it as such) running Sept. 17 through
Nov. 17, 2014. But this program is not called an amnesty because it...
September 19, 2014
San Francisco has been known as
“the city that knows how” because of its ability to rebuild and rebrand in the
wake of the devastation caused by the earthquake and fire of 1906, Alex
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
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...
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
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...
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
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...
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