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Sales Tax Slice: Click-through Nexus - The Most Efficient Way to Increase Revenue without Raising Taxes?

Almost seven years ago New York became the first state to require Internet retailers to collect sales and use tax based on “click-through” advertising by in-state affiliates. Since then, 15 states have sought additional revenues by enacting similar requirements, and Louisiana may be next.


Sales Tax Slice: Varying Treatment of Walk-in Bathtubs Illustrates States’ Struggle to Achieve Uniformity

“Is a walk-in bathtub taxable?” Even for sellers unrelated to bathtubs or the health-care industry, understanding the general issue that this question raises can help ensure that a company complies with state sales tax laws and avoids taking a bath at tax time.


Extras on Excise: Get Ready Colorado – Lower Marijuana Taxes May Be Coming

Get ready Coloradans! The Colorado General Assembly passed a bill on May 6 that would ask voters to exempt marijuana revenues from the state’s Taxpayer Bill of Rights (TABOR) and would lower the special sales tax rate on marijuana. The bill is meant to address the potential refund of an estimated $58 million in retail marijuana tax revenue under TABOR.


Individual Income Tax Insights: Federal Legislation to Provide Nonresident Employees and Employers a Pass from State Income Taxes

The Mobile Workforce State Income Tax Simplification Act of 2015 is a bipartisan bill currently pending before Congress, aimed at providing a 30-day exempt period from a state’s income tax for nonresi-dent employees temporarily conducting business in a state.


Corporate Close-Up: Indiana Budget Corporate Creates Credits and Amnesty

Indiana Gov., Mike Pence, signed H.B. 1001, the State Biennial Budget Bill, enacting a new corporate income tax credits and requiring a future tax amnesty program.


New Rules Proposed Regarding When Income Derived from the Minerals and Natural Resources Industry is Qualifying Income for Publicly Traded Partnerships

The IRS issued proposed regulations, REG-132634-14, 80 Fed. Reg. 25970 (5/5/15), because of an increase in requests for private letter rulings that income for support services provided to businesses engaged in activities in the minerals and natural resource industry is qualifying income.  The requests involved publicly traded partnerships, which are taxed as corporations unless 90% or more of the partnership’s gross income is “qualifying income.” Qualifying income is generally passive-type income, such as interest, dividends, and rent.  However, under §7704(d)(1)(E), qualifying income also includes income and gains derived from the (1) exploration, (2) development, (3) mining or production, (4) processing or refining, (5) transportation, or (6) marketing of minerals or natural resources.  Under the proposed regulations, each of these six activities (“section 7704(d)(1)(E) activities”) is defined and listed as a “qualifying activity,” i.e., an activity that would generate qualifying income.


Weekly Round-Up: Nexus, Market-Based Sourcing, Taxation of Pass-Throughs Debated by Top Experts

2015-05-11 As the Multistate Tax Commission (MTC) and several states have adopted a market-based approach to sourcing receipts from certain services and intangibles, prominent state tax practitioners and government officials at the Bloomberg BNA annual Roundtable May 4 debated the extent to which t


Extras on Excise: Nebraska Attempts to Join the Parade of States Raising Gas Taxes, But Governor Says No

Bucking the recent trend of states raising gas taxes to fund needed transportation upgrades, Nebraska Gov. Pete Ricketts (R) vetoed a bill that would have increased his state’s gas tax rate mere hours after he received it from the legislature.


Property Tax Post: Florida Taxpayer Scores A Victory On Retroactivity

With much uncertainty for taxpayers in the field of retroactive application of tax laws, and many courts siding with the tax administrators, one taxpayer in Florida recently scored a victory in the retroactivity realm (Stanburg v. Panama Commons LP, No. 1D14-1671 (Fla. Dist. Ct. App. April 8, 2015).


Incentives Watch: States Continue to Look at the Value of Credit Programs

We’ve all heard the truism, “one man’s trash is another man’s treasure,” but what does it really mean? Is this just a simple way of saying it is possible that what one person finds to be valueless another finds invaluable? Was the phrase meant to illustrate that everything is a matter of perspective? Regardless of the intention behind the phrase, states are discovering a new meaning.


Corporate Close-Up: Show Me Your Customers—Missouri Adopts Market-Based Sourcing for Sales of Services and Intangibles

With the signature of Gov. Jay Nixon (D) on May 6, Missouri joined an increasing number of states that take a market-based approach to sourcing receipts from sales of services and intangibles. [S.B. 19, enacted May 6, 2015]


Sales Tax Slice: Will the Prospect of a Federal Remote Vendor Law Spur States to Conform to SSUTA?

If enacted the Marketplace Fairness Act (MFA) would allow those states that are members of the Streamlined Sales and Use Tax Agreement (SSUTA) to require remote sellers to collect their sales tax.


Property Tax Post: Is NYC’s 421-a Program Necessary for Affordable Housing Development, or Merely a Give-Away to Luxury Apartment Owners?

The expiration of New York City’s largest housing program is looming on June 15. As that date nears, the long-running debate over the utility program is heating up, with tenants on one side clamoring to abolish it, and real estate developers warning that without it, construction projects will become too expensive to undertake.


Extras on Excise: Colorado Pledges Allegiance to a New Kind of Happy Hour (Taxes Apply!), While Other States Align Forces with Prohibition

Two forces are forming. Their creeds cannot be reconciled. Their supporters pursue different agendas. But will it be powdered alcohol prohibition or proliferation that dominates the land?


Extras on Excise: Pennsylvania and California Considering iGaming, But Will Feds Stop Them in Their Tracks?

Legislators in Pennsylvania and California are pushing to legalize interactive gaming (iGaming) in each state. iGaming is the conduct of gambling games using the internet and other communications technology.


Corporate Close-Up: Another One Bites the Dust? North Dakota Repeals MTC Compact Election

Fourteen states claimed to be party to the Mulitstate Tax Compact, six of which (including North Dakota) claimed to conform to all materials provisions of the MTC, according to  Bloomberg BNA’s 2015 Survey of State Tax Departments.


Sales Tax Slice: Vermont Might Tax Candy—Good & Plenty State Revenues, But Determining What Counts Could Cause Stomach Aches

In a move that could give stomach aches to Vermont’s confectioners and children alike, that state’s lawmakers are eying whether to start taxing sales of candy and soft drinks.


Individual Income Tax Insights: Off-Field Victory for NFL Players Seeking Jock Tax Refunds from Cleveland, Ohio

Hunter Hillenmeyer, former Chicago Bears linebacker, and Jeffrey Saturday, former Indianapolis Colts center, were victorious in the Supreme Court of Ohio’s arena on April 30. The court granted their requests for refunds of jock taxes paid to Cleveland for football games played against the Browns in previous years.


Weekly Round-Up: Inside the New York Budget Bill: 2015-2016 Budget Enacted

New York Governor Andrew Cuomo recently enacted several pieces of legislation impacting the 2015–2016 budget.


Incentives Watch: Some States Winding Up Their Wind Credits

According to the titular song from the Rodgers and Hammerstein musical, Oklahoma is where the wind comes sweeping down the plain. Unfortunately for energy producers hoping to levy that fabled wind into tax credits, wind incentives may soon be coming to an end in Oklahoma.


Corporate Close-Up: Is Sourcing the New Nexus?

For years, “nexus,” which is a state’s constitutional authority to require an out-of-state corporation to pay income tax, was a gray area that yielded few clear answers.


Weekly Round-Up: How to Actively Manage Compliance Issues in a New York Sales Tax Audit

An audit can be an intimidating process, fraught with detailed requirements and nuanced tax law, sometimes taking on a life of its own.


Sales Tax Slice: D.C. Soaks YMCA Swimmers, Forgoes Revenue from Poolside Loungers

Last week, D.C. published regulations interpreting the district’s recent expansion of its sales tax base to include previously nontaxable services. Beginning Oct. 1, the district extended its sales tax to a motley assortment of services: bottled water delivery, bowling alley and billiard parlor services, car washing, carpet and upholstery cleaning, rug repair, health club services, self-storage and tanning.


Extras on Excise: Will 2015 Bring Severance Tax Changes in Ohio and Pennsylvania?

A few states—notably, Pennsylvania and Ohio—have debated this year whether or how to impose severance tax on the oil and gas industry. Will any change actually come?


Individual Income Tax Insights: 2015 State Tax Amnesty Update

A handful of states have either enacted or are considering legislation that creates tax amnesty programs for a limited period of time in 2015. Tax amnesty programs offer qualified taxpayers leniency with regard to the penalties assessed based on their outstanding tax liability.


Property Tax Post: Can Property Tax Credits Be an Oasis for Those in Food Deserts?

The Maryland Legislature enacted S.B. 541 last week, which authorizes the Mayor and City Council of Baltimore City to grant a property tax credit against the personal property tax imposed on personal property of a supermarket that completes certain construction and is located in a “food desert retail incentive area.”


Corporate Close-Up: New York 2015 Budget Adds New Tax Credits, Clarifies 2014 Reforms

For the second time in two years, New York has enacted budget legislation in AB 3009/SB 2009 that includes corporate tax reform. Governor Andrew Cuomo signed the Budget Bill into law on April 13, 2015. The act includes new tax credits for qualifying employers and clarifies elements of the 2014 corporate tax reforms.


Weekly Round-Up: Retroactivity Revisited: Has Anything Changed?

The U.S. Supreme Court's decision in United States v. Carlton turned 20 last year, but the core issue within the case, the constitutionality of retroactive tax legislation, remains embattled.


Sales Tax Slice: Aspiring New York Yacht Purchasers, Your Ship Has Come In!

Wealthy New Yorkers might soon see some new faces at the local yacht club. Starting in June, New York will limit the sales tax it charges on expensive large boat purchases, entering the state into a competition that now includes Florida, Maryland, and other coastal states.


“High” Taxes—States Continue to Look to Marijuana to Generate Revenue

As Colorado and Washington continue to experiment with legalized marijuana, state lawmakers’ attention has turned to preserving the new revenues and tweaking tax provisions. Meanwhile, at least nine other state legislatures this year have considered proposals to legalize and tax marijuana sales.


Incentives Watch: ‘Credits Corner’-Updates and Insights on Developments From Alabama to Wyoming

The state tax credits landscape is continually changing. Credits Corner the first of a semi-regular installment of Credits examines several proposed and newly enacted tax credits, and includes commentary from Mark Nachbar, a principal at Ryan LLC., specializing in providing multijurisdictional income tax and credit and incentive services.


Corporate Close-Up: States Adopt ‘Shockingly’ Different Characterizations of Electricity

Is electricity tangible or intangible property? The answer can depend on which state you ask. A recent Oregon decision contradicts the position of two other states.


Weekly Round-Up: Viewing Recent Prepaid Card Policy Changes From an Unclaimed Property Perspective

Closed and open loop cards, gift cards, merchandise return cards, promotional cards - these are all types of prepaid cards that can be considered unclaimed property under state law.


Sales Tax Slice: Kansas to Disaster Relief Workers: “You Were Never Here.”

Last week, Kansas enacted a use tax law under which disaster relief workers temporarily entering the state are considered not to be physically present within it. The effect of the law is to exempt from use tax property brought into the state by these workers. While the legislature might have simply stated that such property is exempt from use tax, it instead accomplished this result by deeming disaster relief workers to not be physically present within the state.


Property Tax Post: For Big-Box Retailers, a Tale of Two ‘Dark Stores’

In Indiana, far from the limelight now held by that state’s controversial “religious freedom” law, the tax community is abuzz about real estate valuation methods, proposed legislation, and the so-called “dark store theory.” At issue: how to value big-box retail stores and other large commercial properties for property tax purposes.


Extras on Excise: E-Cigarettes Play Roadrunner to State Tax Bills’ Wile E. Coyote as Some Legislatures Adjourn, But That’s Not All, Folks!

Though 2015 started with a bang with several state legislators filing e-cigarette tax bills, the sound being made so far is “Meep! Meep!” as e-cigarettes evade the Acme anvil of legislation.


Individual Income Tax Insights: Decades-Long Audit Saga Now Focused on California FTB’s Immunity

For the second time in a 22 year-long saga, the California Franchise Tax Board (FTB) filed a petition for writ of certiorari with the U.S. Supreme Court on March 23 in regard to its battle with Gilbert Hyatt, an inventor of computer technologies, over an audit.


Corporate Close-Up: Will Factor Presence Thresholds Withstand Judicial Challenge?

Nexus policies based on a threshold of activity within a jurisdiction are gaining acceptance across several jurisdictions, including California, New York and Ohio. But there has yet to be a definitive ruling on whether the provisions satisfy commerce clause requirements.


Sales Tax Slice: Assault Continues Against Sales Tax Holiday Policy

Spring has arrived.  With it, a new round of state sales tax holidays.  And, as usual, a policy debate that pits consumer sentiment and political will against recent economic research.


Weekly Round-Up: The Potential of the Due Process Clause in State Taxation

The landscape of state taxation has changed significantly since the Quill decision in 1992, and recent developments have led to a renewed interest in protections the Due Process Clause may afford to taxpayers.


Extras On Excise: Are Online Travel Companies Winning the Fight Over Hotel Taxes?

The longtime battle between state and local governments and online travel companies (OTCs) over the proper tax base for hotel occupancy taxes rages on in 2015, with a recent Hawaii Supreme Court decision and pending decisions in two other popular tourist destinations, California and Florida. Also, legislators in Maryland are considering legislation that could end the debate over what OTC revenue is taxable there.


Property Tax Post: Keep An Open Mind About Open Space Property Tax Exemptions

What is the value of preserved open space? That is the question addressed in an article featured in the New York State Bar Association Journal this month, written by David Wilkes, a partner at Huff Wilkes LLP, and Glenn Hoagland, Executive Director of the Mohonk Preserve, a conservation area in the Appalachian Mountains north of New York City.


Incentives Watch: Time for a Re-Write on Film Credits?

Louisiana produced more films than any other state in 2013, according to Film L.A. Inc., but will that era soon be coming to a close?


Corporate Close-Up: Is Tax Amnesty a Trend for 2015?

Tax amnesty programs will launch in two states in 2015 with more jurisdictions likely to follow if pending legislation is any guide.


Weekly Round-Up: Remote Seller Sales & Use Tax Collection: Online Sales; Marketplace Fairness; Act Now

Remote seller state sales and use tax collection and compliance is a significant and increasing economic issue for state and local jurisdictions.


Sales Tax Slice: GameStop’s Gift Card Practices Allowed to Play on in Louisiana

Retailers may preserve the tax benefit of Louisiana’s trade-in deduction by adding customer trade-in credits to store gift cards, an appellate court ruled last week for GameStop.


Extras on Excise: Illinois’ Self-Procurement Tax on Captives—Will It Be Repealed the Second Time Around?

If you don’t succeed, try, try again. The Illinois General Assembly is taking this message to heart and is trying again to repeal a self-procurement tax on premiums paid to out-of-state captive insurance companies. The tax went into effect in January after an attempt at repeal failed last fall.


Individual Income Tax Insights: What’s in a Name? Taxable Income, Federal Court Finds

Based on recent U.S. Tax Court rulings, it seems that taxpayers should not only rely on how a refundable state tax credit is classified at the state level; rather, it is necessary to consider the controlling federal interpretation as to whether it will be deemed federal taxable income.


Corporate Close-Up: Are Corporate Income Taxes Politically Viable?

As first reported by the Daily Tax Report’s Chris Marr, Alabama’s Republican Governor, Robert Bentley, recently made headlines when he proposed $541 million in tax increases, including combined corporate reporting, to help fund a budget shortfall and infrastructure programs in the fiscally conservative state.


Weekly Round-Up: 24 Months Through the Crystal Ball - Emerging Trends in State and Local Taxation

For businesses operating across state lines, state taxation is like standing with one foot on each of two logs in a flowing river: even during calm periods, staying above water is a challenge, David A. Fruchtman, chair of Rimon P.C.'s State and Local (Subnational) Taxation practice, writes in this week’s issue of the Bloomberg BNA Weekly State Tax Report. And these are not calm times, he notes.


Sales Tax Slice: ‘Pwnage’ or Game Over?—States Are Slow to Address Taxation of Virtual Goods

As sales of virtual goods climb each year, it appears that states could be missing out on imposing sales or use tax on a significant revenue source.


Extras on Excise: For Powdered Alcohol, States Disagree on Stepping Up to the Bar

Powdered alcohol: It’s the perfect way to improve an afternoon hike, or as many state lawmakers fear, for teens to get hurt by snorting it between Pre-Cal and AP World History. So is it ready to be taxed and regulated, or will policymakers ban it?


Incentives Watch: Debate Rages On Over Scholarship Tax Credits as Legal Challenges Continue to Fall Short

Quality education, just as quality cars or clothes, comes with a price. Low- to moderate-income families who live in areas with underperforming public schools are often at a distinct disadvantage because they can’t afford private school tuition.


Weekly Round-Up: Inside the New York Budget Bill: Proposed Sales Tax Amendments

Governor Andrew Cuomo recently proposed the 2015-2016 New York State Executive Budget Bill, which includes many significant revenue measures.


Property Tax Post: A Sickening Assessment? Drug Store Chains, Counties Battle Over Property Taxes

2015-03-16 A company that is listed at number 37 on the Forbes 500 , with a market value of $90 billion, $72 billion in annual revenues, and $2.4 billion in annual profit, might be an attractive target for a property tax assessment. But Walgreens appears to be working hard to change that perception. The co


Sales Tax Slice: CSX II--The Litigation Engine that Could (or Couldn’t)

Last week the U.S. Supreme Court issued its ruling in CSX II resolving circuit splits on two issues related to discrimination claims under the Railroad Revitalization and Regulation Reform (“4-R”) Act.


Extras on Excise: Controversy Bubbling Up in Ohio Over Underground Storage Tank Fees

When drivers put gas in their tanks, they might not think about exactly how much of the per-gallon cost of fuel goes toward taxes, or that those charges are often made of several components.


Individual Income Tax Insights: Will Puerto Rico’s Potential Value Added Tax Fall Flat Before It Is Even Implemented?

Puerto Rico’s legislature is in the process of holding public hearings before deciding whether to adopt the governor’s proposed bill, H.B. 2329, which would replace the sales and use tax with a value added tax (VAT) on April 1.


Corporate Close Up: Maryland Finds ConAgra Brands Lacked Economic Substance Separate from Parent

The Maryland Tax Court upheld a corporate income tax assessment against ConAgra Brands Inc., finding that the subsidiary lacked economic substance separate from its parent.


SURVEY: Reporting Adjustments to State Tax Revenue Departments

Bloomberg BNA, the Council On State Taxation and Marilyn Wethekam (Horwood, Marcus & Berk Chartered) are seeking input from practitioners on the issues taxpayers should be aware of when reporting adjustments from tax authorities such as the Internal Revenue Service.


Weekly Round-Up: Dèjà Vu on Main Street - How History Repeats Itself in a Virtual World

In today's world, one state's in-state seller is another state's remote seller and the products and services sold may not have a physical world equivalent.


Sales Tax Slice: Satellite Providers’ Discriminatory Tax Argument Loses Again

Tennessee joins the list of states, now including Ohio, North Carolina, and Kentucky, to conclude that preferential sales tax treatment for cable providers over satellite providers is disparate treatment but does not amount to an unconstitutional discrimination.


Extras on Excise: State Legislators Would Like to Buy the World a Coke . . . But Only From Licensed Sellers Who’ll Collect Taxes on It

There have been a large number of state excise tax bills targeting soft drinks over the past few years, but so far none of the states have been successful.


Property Tax Post: Pennsylvania Legislature Mulls Eliminating Residential Property Tax

Pennsylvania Gov. Tom Wolf announced plans to focus on reducing the property tax burden and to offset the loss of revenue for schools through statewide funding, from the natural gas production tax, personal income tax and sales tax. Pennsylvania joins several other states, like Kansas, Texas and Washington, that are looking to reform their property tax and school funding approaches.


Corporate Close Up: Unclaimed Property Law Update: Initiative Mulls Treatment of Gift Cards, Securities

The Uniform Law Commission’s (ULC) Drafting Committee debated the treatment of unredeemed gift cards and tried to reach consensus over defining “holder” for purposes of securities, at the  Feb. 27th and 28th meeting in Washington, D.C.


Incentives Watch: Tax Consultants Question California Contingency Fee Disclosure

As the deadline looms for another round of California Competes tax credit applications, demand is certainly going to outpace the supply of available credits.


Extras On Excise: Will Opponents of the Texas Franchise Tax Finally Be Granted Their Repeal?

Texas state legislators are pushing to revamp the business franchise tax in the current legislative session, and Gov. Greg Abbott (R) followed suit in his State of the State address, proposing $2 billion of franchise tax relief for the 2016-2017 biennium.


Individual Income Tax Insights: States Warn Taxpayers of Significant Increase in Fraudulent Returns

Imagine submitting your state return only to be told the state has already processed and issued your refund. Is it a simple matter of forgetfulness? Doubtful. Fraud is the more likely culprit, and such an alarming occurrence has been a reality for hundreds of taxpayers already this year.


Weekly Round-Up: Recent Developments to Delaware’s Unclaimed Property Law

Although not technically taxes, unclaimed property liability and compliance have become significant and oftentimes expensive concerns for those who pay business taxes.


Property Tax Post: When Property Taxes Give You a New Roommate

We’ve all heard of split-level houses, but what about split-ownership houses? Involuntary split-ownership. That’s the position a Connecticuter /New Yorker finds herself in, thanks to a property tax flub by her bank.


Sales Tax Slice: Blurred Lines Between Janitorial and Like Services Complicate Taxability

When conducting a multistate analysis of services subject to sales tax, janitorial and similar services often present some unique distinctions.


Corporate Close Up: Massachusetts and Other States Offer Amnesty to Raise Revenue

States often offer amnesty to taxpayers as a way of raising a significant amount of revenue in a short period of time. Since 1982, according to records kept by the Federation of Tax Administrators, there have been 121 amnesty periods established by 46 states, the District of Columbia and New York City. Three-quarters of those jurisdictions have conducted programs more than once. Massachusetts will add one more to the list as a result of recent legislation.


Weekly Round-Up: Key Tax Issues Likely to Be Shaped by New Vision and Leadership in the 2015 Texas Legislative Session

The 84th Regular Session of the Texas Legislature recently commenced, and it's already clear that changes in the leadership—Governor and Comptroller—are making a difference in decision making.


Sales Tax Slice: When Does the Provision of Utility Service Become Manufacturing?

In an apparent effort to test the limits of state manufacturing exemptions, public utility companies have been increasing their claims under these exemptions in recent years.


Extras on Excise: Will Legal Marijuana Be Coming to D.C.? – The District’s Battle for Legal Pot

With only days remaining before Initiative 71 is projected to become law, District of Columbia officials continue to fight to fully legalize, regulate and tax marijuana sales within the District.


Property Tax Post: Apple Must Conduct Foreign Trade to Benefit From Foreign Trade Zone

Apple Inc. may be reaping the benefits of a Foreign Trade Zone (FTZ) property tax benefit in Arizona without actually conducting any foreign trade there, according to a report in the Phoenix Business Journal.


Incentives Watch: The Good, the Bad, and the Costly

The old saying goes, “you need to spend money to make money.” Well, for a handful of states that conventional wisdom alone might not be enough anymore. When it comes to awarding tax credits, states want to know just how much they need to spend and what they stand to make for their trouble.


Weekly Round-Up: Massive E-Filing Fraud Delays Income Tax Refunds Nationwide

After reports of suspicious activity in at least 19 states, TurboTax has temporarily turned off service in all states, Bloomberg BNA State Tax Law Editor Radha Mohan and Bloomberg BNA correspondents Tripp Baltz, Michael Bologna, Martha Kessler, Nora Macaluso, Chris Marr, and Mark Wolski write in this week’s issue of the Weekly State Tax Report.


Sales Tax Slice: Will Tax Holidays Encourage Greener Appliance Choices?

Maryland is among what appears to be a growing number of states using sales tax holidays to encourage greener purchases.  At least half a dozen others, including Texas, Virginia, Florida, Missouri, North Carolina, and Georgia, have offered such holidays, allowing consumers to purchase Energy Star-certified products tax-free for as much as one weekend per year.


Property Tax Post: The Idea of Pied-à-Terre Taxes Are Catching On In Unaffordable American Cities, But Will They Solve Anything?

San Francisco has become the latest major U.S. city to consider imposing additional taxes upon absentee owners of pied-à-terre homes. County Supervisor Eric Mar plans to introduce a bill in the upcoming legislative session “to address the issue of residential real estate hoarding by out of town buyers,” as he explains it.


Extras on Excise: Will State Legislatures Pass Gas Tax Hikes This Year?

Many state legislative sessions are in full swing now, and several states are considering increasing their gas tax—despite its traditional unpopularity with constituents.


Individual Income Tax Insights: Illinois Awaits Federal Green Light for Automatic IRA Program

 Illinois is the first state requiring employers who do not currently offer retirement plans to automatically enroll their employees in Roth IRAs under the Illinois Secure Choice Savings Program Act. The law takes effect June 1.


Corporate Close Up: Delaware Substantially Revises Administration of Unclaimed Property Audits

Recently enacted Delaware legislation significantly revised the administration of Delaware’s unclaimed property laws by placing several limitations on unclaimed property audits performed by outside contractors and amending the administrative appeals process. [S.B. 11, enacted 1/29/15]


Weekly Round-Up: Proposed Property Tax on Nonprofits Sparks National Debate

As municipalities continue to face budgetary shortfalls, Gov. Paul LaPage's (Me-R) proposal to permit communities to tax nonprofit organizations has sparked a nationwide debate, Bloomberg BNA State Tax Law Editor Radha Mohan writes in this week’s issue of the Weekly State Tax Report.


Sales Tax Slice: Should Soil Decontamination Services be Treated as Taxable “Processing”?

In total, 45 U.S. states tax retail sales of tangible personal property.  To put typical retail sales in which tangible personal property is sold in its final useable form on equal footing with transactions involving tangible personal property processing, the majority of these states also tax processing or similar services.


Extras on Excise: Airbnb Stands and Delivers (Hotel Occupancy Taxes to Local Governments)

In recent years, the “sharing economy” has proven popular with people seeking quality alternatives to pricier, more regulated market choices. Lyft spares you the shame as legions of cab drivers pass you by.


Property Tax Post: Legoland California to County Treasurer—Play Well

Legoland California, a 128-acre theme park in Carlsbad, Calif. geared toward LEGO enthusiasts is accusing the San Diego County treasurer and tax collector of not playing well, according to an article in the San Diego Union Tribune.


Incentives Watch: Boeing Tax Credits Don’t Fly with Unions

Let this figure roll around in your head for a minute: $8.7 billion. It’s the approximate gross domestic product of Malta and the amount that PetSmart was recently sold for. In late 2013, Boeing received $8.7 billion in tax incentives from Washington state, the largest ever tax incentive from a state government. Two of Boeing’s labor unions, however, are now saying that those tax credits should have some prerequisites.


Property Tax Post: Is the U.S. Property Tax System Exacerbating Income Inequality?

Some argue that using local property taxes as the primary source of education funding creates a situation in which poor districts with low property values inevitably create a lower funding base than wealthier districts with high property value.


Corporate Close Up: Recent Cases Illustrate Trend Toward Retroactive Application of Laws

Tax laws that are applied retroactively or interpretations of laws applied retroactively can be a big concern for taxpayers. It can be the difference between obtaining a refund and owing large sums to the state (which ultimately will include penalties and fees).


Weekly Round-Up: States Reluctant To Raise Taxes in 2015

As states ring in the New Year, there is hope that the slow progress that characterized the states’ fiscal health in 2014 will continue in 2015, Bloomberg BNA State Tax Law Editor Radha Mohan writes in the 2015 State Tax Outlook.


Extras on Excise: The New Gross Receipts Tax - A San Francisco Treat?

As San Francisco continues to transition to a gross receipts tax on businesses and away from its payroll expense tax, will city businesses suffer or will they flourish?


Individual Income Tax Insights: U.S. Supreme Court to Decide Constitutionality of Same-Sex Marriage at the State Level

This year will likely be one for the history books, as the U.S. Supreme Court has decided to rule on: (1) whether all states must allow same-sex marriage ceremonies within their borders, and (2) whether same-sex marriages performed in states recognizing such unions must also be recognized by states that do not — two issues the court before has consistently refused to consider.


Corporate Close-Up: Tax Reform on the Horizon for New York City

New York City’s corporate tax system has long been a font of controversy within the business community. Its arcane nature, lack of significant reforms and failure to conform to the state of New York’s tax system have caused distress for years to corporate taxpayers. However, New York recently implemented sweeping reforms at the state level for corporate tax


Sales Tax Slice: Wal-Mart to Defend Sales Tax Practices in Federal Court?

In a case filed by two customers on behalf of themselves and a yet-uncertified class of others similarly aggrieved, Wal-Mart may be forced to defend its Ohio sales tax refund practices in federal court.


Weekly Round-Up: Property Tax Reform Takes Center Stage in 2015 Legislative Sessions

Using the momentum from recent victories, Gov. Ottor (R-Idaho), Gov. Branstad (R-Iowa), Gov. LePage (R- Me.), Gov. Dayton (D- Minn.) and Gov. Walker (R-Wis.) all made promises to continue to reform property taxes in their state of the state or inaugural addresses, Bloomberg BNA State Tax Law Editor Radha Mohan writes in this week’s issue of the Bloomberg BNA Weekly State Tax Report.


Property Tax Post: Revenue from Keystone XL Pipeline Only XL in a Few States

After this week’s State of the Union address, debate over the Keystone XL Pipeline has already begun to grow.


Extras on Excise: Vapor (Product Tax Revenue) Is Getting in State Lawmakers’ Eyes This Legislative Session

E-cigarette tax legislation took a hit last year when all but one of the numerous state e-cigarette tax proposals failed. However, while only the North Carolina General Assembly voted in favor of taxing e-cigarettes in 2014, these tax bills are still popular considerations for both state and local governments.


Incentives Watch: Creation or Retention, How Should States Incentivize Their Jobs?

The old saying, “a bird in the hand is worth two in the bush,” is just another way of saying that possessing the thing you covet is more valuable than having to look for it. Although this seems like common sense, opinions on the matter differ, especially when the conversation turns from birds to jobs.


Sales Tax Slice: Missouri Supreme Court Denies Manufacturing Exemptions for Items Used in Construction

Missouri’s manufacturing exemptions do seem to lend themselves to a broad interpretation, but this week’s decisions suggest that the state’s Supreme Court may be reluctant to support too expansive a reading of their applicability.


Weekly Round-Up: Income Sourcing Guidance from Pennsylvania, Massachusetts Bear Striking Similarities

Receipts from sales of services must be sourced to the location of the customer, Pennsylvania’s Department of Revenue clarified in an information notice.


The High Points of Marijuana Legalization and Taxation—What to Expect in 2015

Last year was all about marijuana legalization—and those efforts will likely continue in 2015. But where will it be legalized next? What kind of taxes are imposed in states where it is legal? Here is a quick review of some of the high points of marijuana legalization and taxation.


Property Tax Post: How Will Plummeting Oil Prices Impact Property Taxes?

Jurisdictions around the county that receive significant revenue from property taxes on oil and gas are feeling the squeeze of uncertainty as oil prices continue to fall.


Incentives Watch: Taxpayers Devour Entire Annual Allocation of Scholarship Tax Credits by New Year’s Day

Despite the debate over whether scholarship tax credit programs are constitutional, there is no doubt that they are popular programs. Georgia’s cap of $58 million, allocated to its qualified education expense tax credit, was used up by January 1.


Corporate Close-Up: Second Delaware Corporation Challenges Unclaimed Property Liability in Federal Court

Another Delaware corporation, Osram Sylvania, Inc., filed suit in federal court to stop the state from collecting an estimated unclaimed property liability of more than $2.2 million.


Weekly Round-Up: The Potential Impact of Declining Oil Prices on the Budget in Texas

In this week’s issue of Bloomberg BNA’s Weekly State Tax Report, Paul Stinson, Bloomberg BNA's correspondent in Austin, Texas, interviewed Texas Senator-Elect Paul Bettencourt (R) about the fundamental problems with the property tax in Texas, and the chances for margin tax reform in the upcoming legislative session.


Property Tax Post: States Begin Providing Guidance on Property Tax for Same-Sex Couples

In the wake of courts striking down same-sex marriage bans in several states, tax agencies have provided a lot of guidance regarding how same-sex couples should file their income tax returns. Yet there has been little guidance on how these rulings affect property taxpayers.


Extras on Excise: Will 2015 Be the Year of Gas Tax Reform?

Gas prices are the lowest they have been since 2009. Will state and federal policymakers seize on this opportunity to increase gas taxes when motorists have a little extra cash in their pockets?


Incentives Watch: Cuomo Vetoes Brownfield Extender Bill in New York

Last week, New York Gov. Andrew Cuomo vetoed an extender bill for the tax credit available under the Brownfield Cleanup Program.


Corporate Close-Up: New Year, New Rates

When the clock hit midnight on Jan. 1, 2015, many corporations had more to celebrate than the start of a new year. For taxpayers in eight states, 2015 brings significantly lower corporate tax rates.


Extras on Excise: Virginia Is Part of the Cigarette Smuggling Problem, But Also Part of the Solution?

Due to having one of the lowest state excise taxes for cigarettes—$0.30 for a pack of 20 cigarettes—Virginia is a very popular source for smugglers who purchase large quantities of cigarettes and then sell them illegally in states with higher taxes.


Wage Withholding Woes: Payroll Prepares for a New Year as States Release 2015 Information

The end of the year is an eventful time in payroll, and 2014 is no exception, with income tax withholding across the states seeing several changes in the coming year.


Corporate Close-Up: South Carolina Rejects Alternative Apportionment for CarMax

The South Carolina Supreme Court recently handed taxpayers an important victory against the imposition of alternative apportionment formulas by state tax authorities.


Individual Income Tax Insights: Some States Still Disallowing Joint Returns by Same-Sex Married Couples

Not all married, same-sex taxpayers will be able to file joint state returns for the 2014 tax year, leaving them restricted to filing separately or unsure as to their appropriate filing status.


Weekly Round-Up: Special Report - Experts Make Predictions, Analyze Impact of ‘Wynne’

Within an hour after the U.S. Supreme Court heard oral arguments for Md. Comp. of the Treas. v. Wynne on Nov. 12, leading experts on both the government and taxpayer side of the issue...


Extras on Excise: The Great E-Cigarette Debate Continues within State Legislatures

Are e-cigarettes tobacco products or not tobacco products? That is what state legislatures are asking themselves as they consider proposals to enact taxes on electronic cigarettes and other...


Incentives Watch: Wrigley Receives Rehabilitation Credits While Incentives Sunset in the Tar Heel State

After so many years of frustration, the Chicago Cubs have something to look forward to other than the signing of star pitcher Jon Lester: federal historic rehabilitation tax credits for Wrigley...


Corporate Close-Up: More States Providing for Electronic Filing for C Corporations, Passthrough Entities

An increasing number of states across the country are either allowing or requiring electronic filing for corporate entities. Last week the Indiana Department of Revenue announced that they now offer electronic filing for S corporations.


Weekly Round-Up: States Test the Limits on Taxing Pass-Throughs, Nexus

States have become more aggressive in applying the business tax concept of nexus to pass-through entities, Bloomberg BNA State Tax Law Editor Michael Kerman writes in this week’s issue of the...


Property Tax Post: New Jersey Throws More Money at Atlantic City and It’s Casinos; Will It Be Enough to Save Them?

Two New Jersey State senators—Senate President Steve Sweeney (D) and Sen. James Whelan (D)---have come up with a plan to stabilize Atlantic City’s struggling casinos after a string of closures...


Extras on Excise: Learning the ABCs of Liquor Privatization and Taxes

In Virginia, the push to privatize state liquor stores has ebbed and flowed over the years, most recently gaining traction during the administration of former Gov. Bob McDonnell (R), whose...


Incentives Watch: Will Louisiana’s Film Industry End Up as a Box Office Flop?

While film tax credits are attractive tax incentive tools for state revenue departments to implement, it is not always clear whether they fulfill their intended purpose of raising state revenue. The...


Corporate Close-up: Website Access, Intangibles & More, Oh My! Florida Addresses Sourcing of Various Receipts

Receipts from products and services delivered or submitted over the Internet to the taxpayer’s online database or interactive network, the conversion of data, the administration of premium...


Weekly Round-Up: The Tax Costs of Today’s ‘Sharing Economy’

The “sharing economy” involves matching up owners of latent high value assets with customers in need of those assets, such as a car ride, a room to sleep, or a neighbor's lawn mower, Christopher...


Sales Tax Slice: Are Local Taxes Creating Compliance Issues for Businesses?

An increasing number of municipalities are enacting new taxes and stepping up enforcement to drive economic development goals.  This adds an extra layer of compliance issues for multistate corporations that must now contend with more local tax jurisdictions in addition to state jurisdictions.


Extras on Excise: The Roads Might Be Frightful This Holiday Season, But Will Your Gas Taxes Be Comparably Delightful?

The price of gas is dropping, so get ready for holiday visitors as more people hit the road and take advantage of the lower prices. But when prices decrease, does that mean gas taxes decrease,...


Property Tax Post: Montana Estate Owner Seeks Reduced Property Value Because Property is 'Overbuilt'

A California real estate investor who owns the priciest home in the state of Montana is seeking to have his assessed value reduced to $9.8 million, despite the property’s hefty $59 million...


Incentives Watch: Are Film Tax Credits Merely a ‘House of Cards?'

What is the value of entertainment? Ten cents to the dollar, according to a report on Maryland’s production activity credit recently released by the Maryland Department of Legislative Services. ...


Window for “Best Case” Scenario Closed; Delayed Passage

The House is expected to vote sometime this week to renew the tax extenders package through the end of this year. The timing of the extender package may still post serious issues for state tax administrators.


Property Tax Post: Municipal Consolidation May Not be the Route to Lower Property Tax Bills, Rutgers Study Says

State and local governments across the country—especially those with high property taxes—have been toying with the idea of municipal consolidation to create efficiencies in city services and to...


Incentives Watch: Georgia Tops List of Best Business Climates for Second Year in a Row

For the second year in a row, Georgia topped the list of Site Selection ’s annual ranking of state business climates. Louisiana also made huge strides, placing second on list, up from sixth place...


Corporate Close-Up: Rhode Island’s New Combined Reporting Regime

Taxpayers and tax practitioners planning for 2015 should be aware that Rhode Island has overhauled its corporate tax regime for tax years beginning on or after Jan. 1, 2015. The Rhode Island...


Weekly Round-Up: The Relevance of the E.U.’s New VAT Approach for U.S. Sales Tax Systems

In 2015, the European Union's new approach for administration and sourcing of value-added tax on business to consumer sales of telecommunications, broadcasting and electronic services begins,...


Sales Tax Slice: Federal Remote Vendor Collection Requirement Faces Year-End Battle

In recent years, there has been a nationwide debate on whether to subject online retailers to state and local sales tax. This concept has gained favor with business group coalitions such as the ...


Property Tax Post: Will Noise over Property Tax Reform Lead to Action in Texas?

Texas has recently been awash in proposed changes to its property tax system from newly-elected legislators, the newly-elected Lieutenant Governor, local officials, and public policy...


Former High Court Clerk Predicts Narrow Win for Taxpayer in Wynne Case

The U.S. Supreme Court’s decision in Maryland Comp. of the Treas. v. Wynne will likely be a narrow victory for the taxpayer, predicted a former clerk to a high court justice at a Nov. 12 panel...


Corporate Close-Up: The Burden of California’s Taxes and Fees on Limited Liability Companies

The limited liability company, or LLC, has become a popular form for organizing a business.  Using an LLC generally avoids the double layer of taxation encountered with a corporation while...


Weekly Round-Up: An Update on the ULC's Drafting Committee to Rewrite the 1995 Uniform Unclaimed Property Act

On Nov. 8-9, the Uniform Law Commission's (ULC) Drafting Committee to rewrite the 1995 Uniform Unclaimed Property Act met for a second time in Washington, D.C., to advance its consideration...


Extras on Excise: Sin Taxes Coming for Marijuana and Sugary Beverages

Be on the lookout for new taxes on your favorite products, as excise taxes featured prominently in the November 2014 election and voters decided to enact new taxes on products such as...


Voters in Three States Approve Homestead Tax Breaks for Veterans, Surviving Spouses

Voters in Louisiana, Oklahoma and Virginia overwhelmingly approved state constitutional amendments establishing or expanding homestead exemptions for veterans and their surviving spouses. [Oklahoma,...


Corporate Close-Up: Will Pass-Through Entity Owners Get Full Credit for Taxes Paid to Other States?

On Wednesday, Nov. 12, the U.S. Supreme Court will hear the oral arguments in Maryland State Comptroller v. Wynne , in which the Maryland Comptroller is seeking to overturn a Maryland high...


Weekly Round-Up: 2014 Election - Voters Approve Taxing Soda, Marijuana, and Millionaires

Voters across the country took part in Nov. 4 elections to cast their votes on questions ranging from imposing a “millionaire tax” to legalizing marijuana. On the income tax front, in...


Sales Tax Slice: South Carolina Tax Treatment of Hurricane Rental Insurance Blows off Course from Other Southern States

Tourism is the number one industry in South Carolina, responsible for more than $17 billion in spending and employing more than 200,000 people, approximately 10 percent of the state’s...


Property Tax Post: Robert De Niro to Ulster County, New York’s Property Assessment: “You Talkin’ to Me?”

Robert De Niro and his personal Riverside Trust are not coming across as goodfellas to the 5,800 residents of the city of Gardiner in upstate New York. De Niro’s trust, which owns the property, is...


Extras on Excise: Does Massachusetts’ Rejection of Inflation-Adjusted Gas Tax Have National Implications?

Yesterday Massachusetts voters repealed a 2013 law that indexed the commonwealth’s gas tax to inflation each year.  At a time when gas tax revenues have been falling fast and policymakers are...


Wage Withholding Woes: States Generally Conform to Federal Tax Treatment of Severance Pay But a Few Make Their Own Rules

Although most states conform to the federal tax treatment of severance pay, a handful of states have differing regulations. Under the Internal Revenue Code, employer payments to employees...


Corporate Close Up: More to Learn From New York’s Corporate Tax Reform

New York recently added to its Corporate Tax Reform frequently asked questions (FAQs) portion of its website to clarify questions created by the reform.  The new FAQs deal with combined...


Extras on Excise: Cigarette Trafficking and Tobacco Tax Evasion—Strict Enforcement Efforts Are Producing Results

Law enforcement officials in at least three states have been strictly enforcing laws on cigarette trafficking and tobacco tax evasion, prompting the arrests of several suspected cigarette...


Property Tax Post: Can Property Tax Relief Be Tailored to Limit Ill Effects of Gentrification?

Unlike those in most major cities, homeowners in Charleston, South Carolina do not face the same property tax increases when their neighborhoods gentrify, writes David Slade of the ...


Individual Income Tax Insights: ‘Gifts’ Prove Taxing for the Retiring Derek Jeter

As baseball season will soon reach its conclusion, gift-giving season awaits in the batter’s box. Before the next pitch is thrown it is worth considering what constitutes a tax-free gift versus...


Corporate Close-Up: As Unclaimed Property Report Due Dates Creep Closer, California and Other States Issue Guidance to Make Filing Less Frightening

For most people, the end of October means Halloween is quickly approaching. For unclaimed property holders, it serves as a reminder that a different, but sometimes equally scary, date is...


Weekly Round-Up: An Analysis of the Ninth Circuit's FedEx Case and Its Lessons for Tax Practitioners

Abraham Lincoln reportedly asked, “If you call a dog's tail a leg, how many legs does a dog have?” His answer was, “Four. Calling a dog's tail a leg does not make it a leg.”  This is...


Sales Tax Slice: This Just Inn: Wyoming Joins Other States in Requiring OTCs to Remit Tax on Full Price of Hotel Rooms

In recent years, states have become increasingly critical of the business model used by online travel companies (“OTCs”), specifically in relation to collecting tax on the discounted price of...


Sales Tax Slice: It’s a Lock: Self-Service Key-Cutting Machines in Kiosks Not Exempt in Florida

In recent years, there have been an increasing amount of self-service kiosks in some of America’s largest retailers. MinuteKEY are the makers of the world’s first ever self-service, fully...


Extras on Excise: Margin Tax Referendum Pits Business Against Education in Nevada

When the nation goes to the polls on Nov. 4, in addition to voting for Congressional representatives, state legislators, and others, Nevada voters will be asked to vote yea or nay to a 2...


Wage Withholding Woes: Employer-Provided Benefits for Same-Sex Married Employees Become Nontaxable in 13 States

Same-sex marriage became legal in 13 states in October, after the U.S. Supreme Court's Oct. 6 refusal to hear several states' same-sex marriage ban petitions. The court let stand decisions from...


Incentives Watch: New York Proposes Music Production Tax Credit to the Tune of $60 Million

From the New York Philharmonic to the now-closed punk rock club CBGB, New York’s impact on music history is undeniable, and now some lawmakers want to ensure the future is also bright for New York’s...


An Invitation to Test Bloomberg BNA’s State Tax Planning and Provision Software

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...


Weekly Round-Up: An In-Depth Look at State Tax Relief on Foreign Income

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 president...


Property Tax Post: Tax Relief or Adequate School Funding? One Group Says ‘Yes’ to Both

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...


Extras on Excise: Marijuana Legalization—Coming to a State Near You?

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...


Sales Tax Slice: What an Oar Deal! Rhode Island Exempts Paddleboards as Vessels

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 . ...


Individual Income Tax Insights: California Disallows Donald Sterling's Deduction for Clippers' Fine

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...


Weekly Round-Up: The Erosion of the States' Tax Base—A Whopper of a Problem?

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...


Sales Tax Slice: As Bitcoin Goes Mainstream, More States Are Providing Tax Guidance

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.


Extras on Excise: Will Big Brother Soon Track Your Car For Tax Purposes?

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?  The California...


Property Tax Post: Oh Shucks! Seven-Year Corn Prices Means High Property Taxes for Farmers

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 agricultural...


Death & Taxes: Bloomberg BNA’s 2014 Trust Nexus Survey Reveals Significant Issues for Unsuspecting Practitioners, Particularly Double Taxation

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...


Corporate Close-Up: Resolution of 13-Year Old Refund Claim is Right in the Instructions

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...


Weekly Round-Up: Amici Filed in Wynne Case Envision Doomsday Scenarios

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...


Sales Tax Slice: Did Arizona’s Online Cigarette Tax ‘Break’ Go Up in Smoke?

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 cigarette purchases.  ...


Extras on Excise: Strip Clubs Swing and Miss - Stripper Taxes Survive State Court Challenges

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...


Property Tax Post: Are Property Taxes Exacerbating Western States’ Water Woes?

In 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...


Wage Withholding Wisdom: Ruling on FedEx Independent Contractors May Have State Tax Implications

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...


Individual Tax Insights: Survey Says, In a Fair State Tax System Higher Income Households Should Pay More

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 John...


Sales Tax Slice: Shopping on Amazon Will Get More Expensive for Residents in Two More States

"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. 


Weekly Round-Up: Outgoing Chair of the Utah State Tax Commission Is a Fan of the MTC

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...


For The Love of Money: States Rely on Aggressive Tax Collection Strategies to Boost Their Budgets

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 them...


Property Tax Post: New York City Considering Property Tax Surcharge For Luxury Pied-a-Terres

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...


California Approves $330 Million in Film Credits, While Other States’ Credits End Up on Cutting Room Floor

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...


Corporate Close-Up: A NJ Tax Amnesty by Any Other Name Would Have the Same Outcome

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...


Weekly Round-Up: San Francisco: The City That Knows How…to Tax?

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 Thacher,...


Sales Tax Slice: Nevada goes “all in” with Tesla Motor Tax Abatements

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...


Property Tax Post: Hong Kong is the Best, Pennsylvania and Puerto Rico are the Worst --COST, IPTI Scorecard Says

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...


Extras on Excise: Pennsylvania’s Tax on Medicaid MCOs—An Example of What Not to Do?

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...


Individual Tax Insights: High Court to Consider Hearing Constitutional Challenges Against Same-Sex Marriage Bans

Although Windsor 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. ...


Corporate Close-Up: Michigan Legislature Responds to IBM Ruling

This past 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...


Weekly Round-Up: Sales Tax ‘Gotchas’ – When Reading the Tax Code Is Not Enough

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...


Sales Tax Slice: Public Shaming Becomes More Prevalent in States’ Tax Collection Arsenals

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. 5 th , the board released...


Extras on Excise: Will Part of California’s Cap-and-Trade Program Become a Backdoor Gas Tax?

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...


Property Tax Post: Could Land Banks Solve Cities’ Poor Collection Rates on Blighted Properties?

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...


Incentives Watch: The Separation of Church and State Ignites Litigation Involving Scholarship Tax Credits

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...


Corporate Close-Up: With Upsurge in M&As, Varying State Tax Laws Pose Traps for the Unwary

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...


Weekly Round-Up: The Unintended Consequences of Capping Property Tax Growth

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 in this...


Sales Tax Slice: Virginia Dodges ITFA, Taxes Internet Activation and Reactivation Fees

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...


Extras on Excise: The Difference Between a ‘Tax’ and ‘Fee’ and Why It Matters

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...


Property Tax Post: San Francisco is the Latest City to Encourage Urban Farming

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. ...


Wage Withholding Woes: When Disasters Strike, Some States Ease Withholding Burdens for Recovery Work

After 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...


Death & Taxes: Your Twitter Account Might Live Longer than You—An Estate Tax Attorney Explains Why This Is a Problem and What States Need to Do to Better Address It

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...


Weekly Round-Up: Texas Two-Step - How to Qualify for the State’s New R&D Incentives

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...


Sales Tax Slice: Tax Amnesty Programs: A Win-Win for Both Taxpayers and Revenue Departments?

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...


Extras on Excise: Marijuana Producers, States Struggle with Prohibition of Business Deductions

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...


Property Tax Post: Casino Closings Will Cut Atlantic City’s Property Tax Base by Billions

“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...


Incentives Watch: Federal Criminal Defendants Feel the ‘Sting’ of Louisiana Film Tax Credits

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...


Corporate Close-Up: States Allow Companies to ‘Have it Your Way’ in Fight to Retain Business

Burger 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...


Weekly Round-Up: U.S. Supreme Court Cases, Federal Bills, Other Hot Issues Analyzed in Special Report

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...


Sales Tax Slice: Philadelphia’s Tax Hand Stops at Strip Clubs’ Velvet Ropes

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...


Property Tax Post: Property Taxes Account for Lion’s Share of Business Tax Revenues by Wide Margin

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 ...


Extra on Excise: New York’s Cigarette Strike Force to the Rescue

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...


Individual Tax Insights: Audits Are Another Off-Field Headache for Athletes and Their Advisors

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...


Wage Withholding Woes: Taxation Thresholds for Temporary Nonresident Workers Trip Employers

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...


Corporate Close-Up: Did the California Franchise Tax Board Paint with Too Broad a Brush in Legal Ruling 2014-01?

A recent California Franchise Tax Board legal ruling 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...


Weekly Round-Up: The Next Wild Frontier of Sales Tax

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...


Sales Tax Slice: Will the Internet Tax Freedom Act Prohibit States From Taxing the ‘Internet of Things’?

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...


Property Tax Post: Processor Giant Intel Corp. Enters $100 Billion Incentive Agreement to Invest in Oregon

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,...


Extras on Excise: Washington Keeps Coffers Closed, Denies B&O Tax Refund to Health Care Providers

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...


Incentives Watch: The Impact of Military Reduction and the Need for Veteran Credits

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...


Corporate Close-Up: Is Rhode Island Tax Overhaul a Mixed Blessing for Corporations?

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,...


Weekly Round-Up: One Practitioner’s Fight Against Kentucky’s Revenue Department for Case Records

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,...


Michigan Voters Approve Proposal 1: Will This Prove to be a Fair Deal for Local Governments?

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...


Extras on Excise: Is “Vaping” Better than Smoking? The E-Cigarette Debate

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...


Death & Taxes: The $35 Million Question Philip Seymour Hoffman’s Estate Leaves Behind

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...


Corporate Close-Up: MTC Renews Policy Statement on Tribal-State Tax Issues

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...


Weekly Round-Up: MTC Adopts Market-Based Sourcing, Amends UDITPA's Other Apportionment Rules

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...


Sales Tax Slice: The MFA and ITFA Combined: A Match Made in Heaven or Love on the Rocks?

Tax Legislation Personals: Federal sales tax collection bill seeks long-term relationship with other bill addressing Internet transactions. Only serious suitors need apply.


Extras on Excise: Do Interstate Surplus Lines Insurance Clearinghouses Share the Same Membership-Struggles as the Streamlined Sales Tax Agreement?

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...


Property Tax Post: Outing Delinquent Taxpayers—Bernard Hopkins and the “Dirty Dozen”

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 lose...


Wage Withholding Wisdom: Income Tax Reciprocity Can Ease Withholding Woes But Varies by State

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...


Incentives Watch: The Rise, Fall and Rise Again of Wisconsin’s Historic Rehabilitation Credit

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 ...


Corporate Close-Up: Hot Enough? MTC Compact Controversy to Broil at Georgetown SALT Conference

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:...


Weekly Round-Up: States No Longer Feeling ’Charitable’ About Charities Asking Residents for Money

“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...


Sales Tax Slice: Does Like-Kind Exchange Treatment Match Up?

Like-kind 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...


Property Tax Post: Governors Struggle to Strike Balance between Property Taxes and Pensions

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...


Extras on Excise: Is the Colorado Marijuana Tax Lawsuit a Party Foul?

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...


Wage Withholding Wisdom: Got a Ticket to Ride? It Might Be Subject to State Tax

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...


Individual Tax Insights: Amnesty on the Horizon in Louisiana and Massachusetts

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...


Corporate Close-Up: Michigan Taxpayers Have a New Sword in Fight Against Aggressive Auditors

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...


Weekly Round-Up: Why State Taxation Is Hampering the Evolution of a Mobile Workforce

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...


Property Tax Post: The Business Personal Property Tax 'Apocalypse' is Here Again

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...


Extras on Excise: Mortgage Giants Are Winning on Transfer Tax Litigation—Will Their Victories Continue?

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...


Death & Taxes: An Interview with Maryland’s Comptroller on the State’s Increased Estate Tax Exemption

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...


Corporate Close-Up: Is 'Business Income' a Concept That Defies Definition?

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...


Weekly Round-Up: Serving on the D.C. Tax Revision Commission – One Commissioner's Insights

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...


State Tax Slice: Louisiana Retailers Get a Break on Membership Fees for Tax-Free Shopping Program for International Visitors

This 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....


Extras on Excise: No Lighting Up, and Other High Regulations Under New York’s Smokeless Medical Marijuana Law

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....


Property Tax Post: New York, California Wrestle With Who Should Bear Property Tax Burden

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....


Incentives Watch: A Look at the Proposed Changes to California’s Film and Television Production Credit, Part 2

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...


Corporate Close-Up: State Tax Relief Arrives--Will it be Effective?

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...


Weekly Round-Up: Qui Tam Tax Claims Are Bad Tax Policy, a 'Perversion of Justice'

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...


Sales Tax Slice: Fruit Trees as Exempt Farm ‘Equipment’?

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.


Property Tax Post: Arizona’s Taxation of Leased Solar Panels Lights Up Controversy

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...


Extras on Excise: States Amend Insurance Laws in Captivating Race with Vermont

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...


Incentives Watch: A Look at the Proposed Changes to California’s Film and Television Production Credit, Part 1

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...


Corporate Close-Up: Due a Tax Refund? Better Ask

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...


Weekly Round-Up: Crowell's Conversations – Missouri Does Not Expect to Be Faced With “Gillete”-type Challenge

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 taxpayer...


Sales Tax Slice: Summer Tax Hike Is No Concert in the Park

Concerts, 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 year.


States Seek Freedom from Paper by Requiring EFT for Income Tax Withholding

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...


Property Tax Post: Criticism of Food Network’s Semi-Homemade Host Are Only Semi-Fair

New York Governor Andrew Cuomo and his girlfriend, Sandra Lee, host of TV cooking show “Semi-Homemade,” faced criticism recently after Lee declined to allow the local property tax assessor to...


Extras on Excise: Yoga Is No Sin and Other Lessons from D.C.’s Budget Debate

The District of Columbia Council is adopting many of the D.C. Tax Revision Commission’s recommendations to overhaul the city’s tax code—including the controversial “yoga tax” or “wellness tax”...


Individual Tax Insights: Examining State Income Taxes From Roots to Revenue

The Tax Foundation recently released a map  of state and local individual income tax collections across the United States, and it presents some interesting facts about individual income taxes. ...


Corporate Close-Up: Should CEO Compensation Determine Corporate Income Tax Rates?

California senators are reconsidering a bill ( S.B. 1372 ) which would set corporate income tax rates according to the ratio between CEO salaries and median worker pay. Right now,...


Weekly Round-Up: Stakes High in Few California SBOE Cases Involving Ex Parte Communications

Unfettered ex parte communications with State Board of Equalization members about pending appeals are one feature of a California tax administration system that is unlike any other in the U.S.,...


Sales Tax Slice: Up, Up, and Away with Tax on Sky Diving Air Transportation Services?

South Dakota recently joined several other states in making it official that those brave enough to skydive will not be taxed on the air transportation services used to get them high in the sky.


Property Tax Post: South Carolina Expands Property Tax Protection for Vacation Rentals

South Carolina made it easier for homeowners to rent out their homes for extra income without losing the benefits of a reduced property tax assessment rate for primary residences when...


Extras on Excise: D.C.’s Proposed Assessment—A Test Case for Funding Exchanges Under ACA?

The District of Columbia and other states that established insurance exchanges under the Affordable Care Act (ACA), were aided by federal funds for the first few years. But the ACA requires...


Incentives Watch: Giving Credits Where Credits Are Due in New Jersey

Train passengers coming into New Jersey from the south often note the famous sign on the Lower Trenton Bridge declaring that “Trenton Makes The World Takes.” The slogan initially referred to...


Corporate Close-Up: State Designated Tax Havens – A Boon or Bane of Globalization?

The world has become a smaller place for some of the most well-known companies as well as taxing jurisdictions that are seeking to collect what they believe is their fair share of revenue....


Weekly Round-Up: Are States Backing Away From Sales Tax Holidays?

In recent years, the economic impact of sales tax holidays has been widely debated, according to a new special report in this week’s issue of the Bloomberg BNA Weekly State Tax Report . ...


Sales Tax Slice: Is Tennessee’s Drone Exemption at Odds with FAA Ban?

When most people hear the term "drone," they envision a futuristic military device operated in an overseas war zones. But drones, formally known as Unmanned Aerial Vehicles (UAVs), have a growing application in the civilian market in the United States. Models have been designed and built for a variety of uses, including film, agriculture, power line and pipeline inspection, police work and firefighting. UAVs are viewed by many as the new frontier of aviation. States are starting to take notice of this new technology and make adjustments to their tax policy.


NYC Finance Commissioner Jiha Eyes Property Tax Reform for the Big Apple—Is the State Far Behind?

Jacques Jiha, newly appointed to his position as Commissioner of the New York City Department of Finance by Mayor Bill de Blasio, has his sights set on property tax reform. Specifically, Jiha...


Extras on Excise: High-Octane Gas Tax Debates and Maneuvers Fuel Reforms

Georgia drivers are getting a preemptive tax break this summer, after Georgia Gov. Nathan Deal (R) recently issued an executive order suspending a gas tax increase scheduled for July 1. ...


Incentives Watch: Tax Incentives and Professional Sports – We Are One?

The 2014 World Cup kicks off this week with the opening match between Brazil and Croatia on Thursday.  This highly anticipated event only comes around every four years, so football fans across the...


Corporate Close-Up: Mississippi’s New Alternative Apportionment Rule - the Status Quo or a Step in the Right Direction?

When sourcing receipts for corporate income tax purposes, a growing minority of states are shifting the methodology they use from cost of performance to market-based sourcing. As the trend...


Weekly Round-Up: The Case for Qui Tam Tax Claims

Many state and local tax practitioners say qui tam tax claims—a whistleblower law that allows private citizens who allege tax fraud to sue on the government's behalf—should be excluded from...


Sales Tax Slice: Exemption for ‘Smart Gun’ Parts May Signal Legislation Waiting in the Chamber

One proposed solution to improve gun safety is the manufacture and sale of "smart guns."


Major Airlines Take Off to L.A. Superior Court Seeking Property Tax Refunds

Several of the largest U.S. airlines, including American Airlines, United Airlines, Southwest Airlines and Airtran Airways, filed suit in the California Superior Court for Los Angeles County May...


Extras on Excise: Is Cannabis Commerce Destined to Remain Cash Only?

Recreational marijuana use is now legal in Colorado, but traditional financial institutions have not been opening their doors to the marijuana industry because marijuana remains illegal at the...


Tax Woes for Same-Sex Couples Extend Beyond Income Tax Filing Issues

With the recent court rulings in Oregon and Pennsylvania and with Illinois legislation that went into effect in June, 44 percent of the U.S. population now live in places that...


Corporate Close-Up: Will the Wynne Decision Result in a Windfall for Pass-Through Entity Owners?

Corporate Close-Up:   Will the Wynne Decision Result in a Windfall for Pass-Through Entity Owners?   Individual partners and S corporation shareholders who earn income from the...


Weekly Round-Up: Listen, Learn, Help, and Lead -- A Formula for Tax Reform Success?

Restructuring the code to lower tax rates and encourage investment in our state was a big step forward in the effort to recruit industry, and over the next year we will learn quite a bit more...


Sales Tax Slice: Are Taxes on Services Going Mainstream?

Some services will be more expensive in the District of Columbia if a budget measure that has preliminary approval passes in coming months.   D.C. Council, the District of Columbia’s lawmaking...


Extras on Excise: Running Out of Gas Tax?

New Hampshire drivers will soon pay more per gallon in gas tax, and in return their Interstate 93 widening project will be funded, along with other highway projects.   On the heels of several...


Incentives Watch: U.S. Supreme Court Grants Cert in Tax Credit Case Involving County Taxes

The U.S. Supreme Court granted certiorari today in a state case, Maryland Comp. of the Treas. v. Wynne, dealing with the availability of a credit against state tax, but not county tax, for taxes paid...


Weekly Round-Up: The Case for Independent Tax Tribunals

In the past few years, several states have made their tax tribunals independent by separating them from their revenue departments. In this week’s issue of the Bloomberg BNA Weekly State...


Sales Tax Slice: Is a Foggy Future on the Horizon for 'the Internet of Things'?

When the announcement of an even slicker or faster smart phone, tablet or computer hits the airwaves, right when you thought you had finally figured out how to use your current device, you can't help but to shake your head and think "wow, technology is advancing too fast."


NHL Players Score an Exemption from Tennessee’s “Jock” Tax

National Hockey League (NHL) players scored big in Tennessee last month when the legislature enacted H.B. 1134, which exempts NHL players from Tennessee’s $2,500 per game occupational privilege...


New Jersey Court Kicks New York Red Bulls’ Property Tax Exemption Out of Bounds

The New York Red Bulls recently lost their property tax appeal in New Jersey, and owe the town of Harrison nearly $3 million in back taxes. Like the New York Jets and the New York “Football”...


Transfer Tax Tidbits: The Pick-Up Tax v. The Stand-Alone Tax: What Does the Future Hold?

Some estate tax changes have happened recently that taxpayers should be aware of for planning purposes.   In particular, some states have been busy repealing their pick-up taxes, which are tied...


Corporate Close-Up: New Tool Yields Quick Answers to IRC Conformity Questions

The starting point for computing taxable income in most states begins with federal taxable income. But the extent to which the states conform to the Internal Revenue Code varies widely. Some...


Weekly Round-Up: The Impact of New York’s Sweeping Tax Legislation

On March 31, 2014, Gov. Andrew Cuomo signed into the law the most significant New York state corporation franchise tax reforms in nearly four generations, Russell Banigan, Kenneth Jewell and...


Sales Tax Slice: Does Bake-at-Home Pizza Slice Away at the SSUTA?

Pizza is the easy crowd pleaser when dinner time rolls around, but the tax on it?   Not so simple.   How much thought goes into how your pizza is taxed?   If the last few weeks are any...


Trouble in Paradise Valley--An Arizona Town's Parcel Tax Ignites Debate

An Arizona town ruffled feathers when it enacted a local ordinance raising a “parcel tax” based on property values to fund local fire services. Because the town bypassed the ordinary procedures...


Extras on Excise: Debate Over Soft Drink Tax Continues to Fizz in States

Soft drinks have been linked to ills such as diabetes, high blood pressure and obesity.   To combat this, states like California and Illinois are considering legislation that would...


Incentives Watch: Tax Credit Highlights From New York’s 2014-2015 Budget Plan

With the enactment of its FY2014-2015 budget , New York made several key changes related to tax credits.  New tax credits were enacted, such as the Musical and Theatrical Production Tax Credit,...


State Tax Snapshot: How Much Weight Should Informal Guidance From Tax Departments Receive?

Each year, Bloomberg BNA sends questions to all of the state revenue departments seeking to shed light on the gray areas of state tax.   They are compiled and published in the annual Survey of...


Weekly Round-Up: Do Varied State Approaches to Sales and Use Tax on Remote Sales Warrant Federal Action?

As Internet purchasing continues to flourish and states adopt their own related tax policies, varying approaches are bound to develop based on the diversity of interests, values and...


Sales Tax Slice: Are States Whistling the Wrong Tune on Qui Tam Lawsuits?

Whistle Blower laws allow private individuals and companies with inside knowledge of fraud against the government to sue the offender on the government's behalf, as authorized by False Claim Acts (FCAs), with qui tam provisions.


Extras on Excise: Not Just Blowing Smoke—FDA, States Moving Toward E-Cigarette Regulation

If electronic cigarettes become more common and popular, will they face the same kind of regulation as tobacco products?   The Food and Drug Administration (FDA) recently announced its...


State Tax Snapshot: A Dozen States Say Click-Through Nexus Applies, Despite Absence of Legal Authority

Tax officials in 12 states and the District of Columbia say that their jurisdiction adopts a click-through nexus policy under which it requires sales and use tax collection from...


Weekly Round-Up: Is New York's New Factor Presence Nexus Standards Vulnerable to Constitutional Challenge?

The recent passage of New York's budget bill will add New York to the list of jurisdictions that assert a threshold for triggering income tax nexus over taxpayers when that part of the...


Sales Tax Slice: Will Other Florida Retailers Get a Boost Now That Amazon Is Collecting Florida Sales Tax?

Amazon started collecting sales tax on its Florida sales today—does that mean that particular customer base will purchase less from the online retail giant?   If the results of a recent...


Incentives Watch: Calling All ‘Angels’ -- Kentucky Seeks to Lure Investors

Many states offer income tax credits to investors in various small businesses – specifically, startup technology businesses.  This tax credit is an incentive to help struggling startups get seed...


Extras on Excise: Status of State Gas Tax Reform in Limbo Due to Election Year And Other Concerns

As April draws to an end, it feels like an appropriate time to revisit and assess the status of those proposed gas tax reforms that captured our attention in 2013 and early this year (or captured...


State Tax Snapshot: COST Supports MTC Hearing Officer Pomp’s Suggested Apportionment Revisions

The MTC announced in March that they would not be accepting the recommendations of MTC Hearing Officer Richard Pomp.   In response, the Council on State Taxation (COST) circulated an...


Weekly Round-Up: Crowell's Conversations - Washington’s B&O Tax Is Not Going Anywhere Soon

There has always been talk about tax reform in Washington, but revenue from the Business & Occupation tax is second only to the sales tax and so for it to change would really take some...


Still Hazy After All These Years? State Tax Policies Lag Behind New Business Models, Service-Based Economy, Bloomberg BNA Survey Finds

State tax policies need to be updated to better address new business models such as cloud computing, as well as a change that began long ago--the nation’s shift toward a service-based economy,...


Incentives Watch: A Sharp Decline in Growth of U.S. Wind Energy Production Predicted If Federal Production Tax Credit Not Renewed

In this interview, Gwendolyn Bredehoeft, an operations research analyst at the U.S. Energy Information Administration, discusses wind energy production in the United States.  In particular, Ms....


Extras on Excise: Marijuana Festivities in Colorado Gives Other States the Whiff of Cash

Ever wonder about the tax consequences on 420 (April 20 th ) in a state that legalizes recreational marijuana?  The term “420” originated as a code word used by a group of high school kids in...


Weekly Round-Up: How Non-Profits Can Avoid an Expensive Sales and Use Tax Surprise

In the last few years there have been some notable sales and use tax assessments made on non-profits, and this has caught both administrators of these organizations and those who sell to them by...


Sales Tax Slice: A Preview of Service Providers’ Nexus-Creating Activities from Bloomberg BNA’s Annual 50-State Survey

When do services create nexus?   Each year Bloomberg BNA asks state revenue officials to clarify their states’ approaches to the gray areas of state tax law and publishes the answers in its ...


Incentives Watch: State Tax Credits Enacted That Cover Gamut of Taxpayer Interests

Many states are concluding their respective legislative seasons by passing numerous tax credit bills, among other things.  Various tax credits are being enacted from A (adoption tax credits) to V...


Extras on Excise: Do Declining Severance Tax Revenues Await States at Finish Line in Race to the Bottom?

Oil and gas tax revenues have made big news in the past several years as more states are experimenting with hydraulic fracturing.   At the same time, some states such as Alaska have lowered...


Weekly Round-Up: Are States Pushing the Limits of Trust Taxation?

As states more aggressively seek to impose taxes on trusts, some practitioners may question whether the states are exceeding their constitutional authority, Thomas W. “TJ” Aldous Jr., a partner...


Sales Tax Slice: New Cloud Computing Section Highlights Upcoming Bloomberg BNA 2014 Survey of State Tax Departments

In recent years, cloud computing has emerged as a conundrum for state tax departments and practitioners alike.   In the past, businesses would typically provide software purchases via tangible...


Incentives Watch: Best Practices for Evaluating State Economic Development Incentives Being Developed As Part of Pew Initiative

In this interview, Jeff Chapman, Manager of the Economic Development Tax Incentives Project at The Pew Charitable Trusts, discusses the recently launched Business Incentives Initiative.  The Pew...


Extras on Excise: Do Tax Revenue Jackpots Follow Legalizing Online Gambling?

Successful gambling, as the Kenny Rogers song says, requires participants to “know when to hold ‘em, know when to fold ‘em, know when to walk away and know when to run.”   It’s the last clause...


State Tax Snapshot: Factor Presence Nexus Standards Fail to Provide Clarity, Practitioners Say

The New York budget bill, signed into law on March 31, includes an economic nexus standard , effective for tax years beginning on or after Jan. 1, 2015, which is based on a specified...


Weekly Round-Up: New York’s Overhaul of Tax System Receives Mixed Reviews

New York’s fiscal year 2014-15 state budget signed April 1 contains, according to Gov. Andrew Cuomo (D), provisions for “cutting and simplifying business taxes,” and calls for “the most...


Sales Tax Slice: How Much Revenue Do States (Really) Lose From Remote Sales?

The exact amount of tax revenues that states are unable to collect from online retailers is unclear.   This is so whether measured in the amount of foot traffic in stores or dollar amounts...


Incentives Watch: New York’s Innovation Hot Spot Program Expected to Incubate Startup Businesses

In March, the New York Department of Taxation and Finance issued a technical memorandum explaining the various tax benefits available to certain in-state startup businesses under the New York...


Extras on Excise: Online Travel Company Litigation Continues to Capture Our Attention

As we close the book on the first quarter of 2014, it feels like an appropriate time to take a step back and review how online travel company litigation has shaken out thus far.   For nearly a...


State Tax Snapshot: U.S., Russia, China, Elon Musk: California and the Future of Private Space Flight

The California agency that administers property taxes is supporting legislation that would exempt rocket ship parts and fuel. The move would mark a reversal from the state’s current practice and...


Weekly Round-Up: New York Lawmakers Consider Complete Restructuring of Corporation Franchise, Bank Taxes

New York Gov. Andrew Cuomo (D) has proposed sweeping corporate and bank tax changes during this legislative session. In this week’s Bloomberg BNA Weekly State Tax Report , Kendall...


Sales Tax Slice: The House Really Does Always Win - Las Vegas Casino Purchases Airplanes, Escapes Sales and Use Taxes

Most people have probably heard the popular phrase, “the house always wins.”   Indeed, it’s often paired with the familiar and belated advice, “you should have quit while you were ahead.”   The...


Incentives Watch: Practitioner Analyzes Proposed Tax Credit Changes in New York’s Budget Bill

In the “ Inside the New York Budget Bill” series, Maria Eberle, Lindsay LaCava and Leah Robinson, partners at McDermott Will & Emery LLP, examine various aspects of the proposed 2014-2015...


Extras on Excise: A Spring Break Travel Guide to Sin Taxes

There are as many ways to relax during spring break as there are destinations. Most destinations have special taxes aimed at the activities that tourists are most likely to engage in. Whether...


State Tax Snapshot: Are ‘Selfies’ the Latest Weapon in New York’s Residency Wars?

The hip techno blog Mashable rarely devotes space to state tax controversies. But apparently the story of a Philadelphia-based architect’s efforts to avoid being taxed as a New York resident ...


Weekly Round-Up: Wide Variability in Tax Policy Among States, Annual Tax Foundation Report Says

States diverge greatly in the type and amount of taxes they collect, according to the Tax Foundation's annual report that compiles and ranks everything from states' tax rates and revenue...


Sales Tax Slice: Where Is the Substantial Nexus Threshold for Imposing Tax on Services?

Each year Bloomberg BNA asks state revenue officials to clarify their states’ approaches to the gray areas of state tax law and publishes the answers in its Survey of State Tax Departments .  ...


Incentives Watch: Economic Development Director Discusses Alaska’s Booming Mining Industry and Exploration Tax Credit

Guest blogger, Joe Jacobson, who is the Director of the Division of Economic Development in the Department of Commerce, Community and Economic Development, gives an overview of Alaska’s vibrant...


Extras on Excise: Electric Vehicles – High Mileage Cream Puffs or Freeloading Road Hogs?

As environmentalists and car purchasers push for greater fuel economy and sustainable energy usage, more and more motor vehicles are built to run longer on less  fuel, or none at all.  That’s...


State Tax Snapshot: MTC Uniformity Committee Declines to Adopt Pomp’s Recommendations

The Uniformity Committee of the Multistate Tax Commission is recommending its own proposed amendments on apportionment and sourcing provisions over those of MTC hearing officer, Professor Richard...


Weekly Round-Up: Nexus Standards for Flow-Through Entities Under Michigan's New CIT

With the enactment of the Corporate Income Tax (CIT), Michigan leads the states with an aggressive nexus standard with respect to flow-through entities and their nonresident owners, Lynn A....


Incentives Watch: Regulations Require Franchise Tax Board Review of Businesses’ Books under California Competes Tax Credit Program

The California Governor's Office of Business and Economic Development (GO-Biz) adopted emergency regulations implementing the new California Competes tax credit program.  The regulations apply from...


Sales Tax Slice: At Congressional Hearing, Witnesses and Lawmakers Flesh Out MFA Concerns, Debate “Origin Sourcing”

Roughly one week after an early March snowstorm swept through Washington, once again crippling a city infamous for its weather-related (over)reactions, the House Judiciary Committee finally held...


Extras on Excise: Colorado Is Rolling in Marijuana Money

Colorado is raking it in from marijuana sales—to the tune of more than $3.5 million in taxes and fees in January alone, the state reported this week.   About $2 million of that is from new...


State Tax Snapshot: New York Residency - Does Any Part of a Day Really Count?

While challenges to New York's definition of a “statutory resident” have been abundant, none of those challenges have directly focused on what it means to spend a “day” in New York, Maria...


Sales Tax Slice: Does Congress Have Time to Consider Alternatives to the Marketplace Fairness Act?

The House Judiciary Committee will finally hold a hearing to discuss imposing sales tax on remote sales on March 12.   But the focus will be alternatives to the Marketplace Fairness Act ...


Incentives Watch: Some States Win Praise for Evaluating Tax Incentive Programs

Maryland, Vermont and Washington have instituted methods aimed at determining whether their state tax incentives are functioning as intended and meeting their original goals and objectives, according...


Extras on Excise: Nevada and Delaware Bet on Virtual Poker’s Popularity – Interstate Agreement Offers Path for Others to Legalize Online Gambling

Legalized gambling as a means of generating state tax revenue has been historically controversial.   On the one hand, gambling can be a highly addictive and costly habit.   On the other hand, it...


Weekly Round-Up: Congress Considers Income Tax Nexus Bill in the ‘Shadow of Ground Hog Day’

In the movie “Ground Hog Day,” an arrogant weatherman must repeat the same day over and over until he re-examines his life and adopts a different outlook.     Ground Hog Day fell on...


Sales Tax Slice: The $61 Million Deal - The District of Columbia and Online Travel Companies Reach Historic Settlement Over Unpaid Hotel Taxes

About a month from now, Washington D.C. will play host to tens of thousands of tourists intent on taking in the magnificence of the cherry blossoms in peak bloom.   While they are there, many of...


Incentives Watch: Tax Credit Specialist Compares New California Competes Tax Credit to Old Enterprise Zone Program

In this interview, Max Shenker, Vice President of Tax Credit Co., compares the California Competes Tax Credit and other new incentives to the state’s former Enterprise Zone program.  The California...


Extras on Excise: Why Riding a Bike Could Prove Taxing in More Ways Than One

As people get ready to take out their bikes this spring, they may have to take out their wallets as well. As more state and local jurisdictions are adding bike lanes, they are also entertaining...


State Tax Snapshot: Productive 'Conversations' Between Attorneys, State Tax Officials

As the constant drum beat of state tax litigation will attest, the dealings between state tax agency officials and taxpayer advocates can be acrimonious. It would be easy to conclude that the...


Weekly Round-Up: The State Tax Treatment of U.S. Expats

Taxpayers who move in and out of the country should fully consider the state tax consequences of living and working abroad, Mary Beth Lougen, of American Expat Tax Services, explains in this...


Sales Tax Slice: Remote Seller Nexus—Should States or Congress “Make the Sausage?”

On Thursday, the Multistate Tax Commission talked with stakeholders about a draft of their model statute for remote seller sales and use tax nexus.   By the end of the call the group’s current...


Incentives Watch: Will California Be Able to ‘Compete’ With Other States As a Result of New Tax Credit?

In this interview, Kish Rajan, Director of the California Governor’s Office of Business and Economic Development (GO-Biz), discusses the new California Competes Tax Credit program, which is...


Extras on Excise: Are Fannie Mae and Freddie Mac Off Limits for Transfer Taxes?

In states that impose real estate transfer taxes, people generally do not get a pass on paying them – except, according to several recent court cases, mortgage giants Fannie Mae and Freddie Mac...


State Tax Snapshot: Texas Lowers Revised Franchise Tax Rate, But Further Complicates Calculation

With the goal of raising revenue, Texas reformed its franchise tax effective in 2008, from a tax based on net capital or net income (earned surplus) to one based on taxable margin, which is...


Weekly Round-Up: Minimizing Compliance Risks in Home-Rule States

Operating in home-rule states and avoiding catastrophic sales tax compliance scenarios is possible. But   taxpayers need to engage in due diligence to mitigate the additional risk, Michael...


Sales Tax Slice: Iowa Lawmakers Construct Time Machine to Remedy Faulty Statute

In 2008, when the Iowa Legislature enacted S.F. 2400, specifically section 60, the intention was to exempt sales-tax exempt transactions from the state’s 5 percent equipment tax.   The legislation...


Incentives Watch: Farm Bill, Along With State Tax Credits, Encourage More Land Conservation Easements

On February 7th, President Obama signed the 2014 Farm Bill, which, among other things, supplements conservation tax credits and incentives offered at the state level.  To learn more about how the...


Extras on Excise: Recreational Marijuana—Which State Is Next to Reap Tax Benefits?

There are two states in the United States that have legalized marijuana for recreational purposes, Colorado and Washington. The road to approval was a highly debated one but one thing is...


State Tax Snapshot: Colorado, Idaho, and D.C. Issue Guidance on Same-Sex Filing Rules

U.S. Attorney General Eric Holder announced Feb. 8 th at a Human Rights Campaign gala that the Justice Department would be taking additional steps to ensure that same-sex couples will be...


Weekly Round-Up: States Go Rogue – Pushing the Boundaries of Nexus

With action and clarity lacking from Congress and the U.S. Supreme Court, states have been emboldened to experiment with the legal boundaries of nexus, marking a new “wild west” in state laws...


Sales Tax Slice: “Amazon Laws” Come in a Variety of Flavors

While Congress drags its feet on enacting a law like the Marketplace Fairness Act, which would give qualifying states clearer taxing authority over remote vendors, several states have taken matters into their own hands by enacting so-called "Amazon" or "click-through nexus" laws.


Incentives Watch: Tax Court Case Could Be ‘Gateway’ to More Historic Rehabilitation Projects in States Offering Tax Credits, Says Practitioner

The U.S. Tax Court recently issued its decision in Gateway Hotel Partners LLC v. Commissioner of Internal Revenue.  The court determined that two of the transfers of Missouri historic preservation...


Expert Insight: Limiting Exposure - Why Holders Should Understand the Importance of Federal Preemption in Unclaimed Property Law

Federal preemption of state unclaimed property law is continually evolving, as Congress and federal courts continue to shape this area of law. In this guest post, Brenda R. Mayrack, owner of ...


Extras on Excise: After a Volatile 2013, State Lawmakers Remain at Odds on Gas Tax Policies

Editor's Note: This blog post is the first in a series by Bloomberg BNA's Christopher Young on 2014 state gas tax reform and similar developments. From potholes to cement cracks, visual...


State Tax Snapshot: Can’t Buy Me Love?

It would be reasonable to think that happy and harmonious times would be ahead for state lawmakers in 2014. For the first time since the Great Recession, the states are experiencing relative...


Weekly Round-Up: Illinois Puts an End to Popular Tax Avoidance Strategy

In the aftermath of a 2013 Illinois Supreme Court decision, Hartney Fuel Oil Co. v. Hamer , 2013 IL 115130, concluding that a seller incurs retailers' occupation taxes in the local...


Will a U.S. Supreme Court Decision on Due Process Kill Economic Nexus?

The U.S. Supreme Court recently decided a due process and jurisdiction case that clarifies where a defendant could be subject to suit.    The implications of the ruling and recent other high...


Extras on Excise: State Tax Treatment of E-Cigarettes is in the Vapors

Fifty years after the U.S. Surgeon General’s first report announcing the detrimental effects of smoking tobacco on the health of Americans, many people continue to ignore the warnings ....


State Tax Snapshot: Why the Super Bowl Team States are Seeing Green

In addition to their snowy mountains, the two contenders for Super Bowl XLVIII have another thing in common, legal recreational marijuana. Both, Colorado and Washington have legalized the use of...


Weekly Round-Up: Fiscal Forecast Improves in 2014, but Uncertainties Lie Ahead

In 2014, many states will continue to emerge from the lingering financial hardships of the Great Recession, Renee Bartoli, Melissa Fernley, Rebecca Helmes, Michael Kerman, and...


Sales Tax Slice: It’s Hit the Fan! The Portable Toilet Rental and Human Waste Disposal Industry Is Relevant, At Least Temporarily

As the dust settles from an eventful 2013, it was anybody’s guess which topic would dominate the early 2014 sales tax headlines.   As January winds down, an unlikely underdog has emerged from a...


Incentives Watch: State Tax Incentives Make The Council of State Government’s Top 5 List of Economic Policy Issues for 2014

Tax incentives ranked fourth in The Council of State Governments’ Top 5 Issues for 2014:  Fiscal and Economic Policy , according to a recent blog post by the organization.  In particular, the...


Extras on Excise: Is Gambling the Tax Cash Cow That States Want It to Be?

Long gone are the days when Las Vegas was one of the only legal gambling outlets in the nation.   Most states now allow some form of gambling, from bingo to slots to table games, and a few...


Weekly Round-Up: The Response to ‘Gillette’ in 2013

If 2012 could be considered the year of Gillette , 2013 may best be remembered as the year in which state courts, legislatures and taxpayers began to respond to Gillette in preparation for the...


Incentives Watch: Practitioner Spells Out the Upside of New Jersey’s GrowNJ Program

In this interview, Daniel Effron, a tax partner at accounting firm Marcum LLP in Philadelphia, discusses some of the opportunities created by the revamped GrowNJ program. While the...


Extras on Excise: Is Fracking Shaking Up the Severance Tax World?

In the severance tax world, there are two kinds of states – those that have depended on oil and natural resource tax revenue for years, and the rest that are just starting to reap significant...


State Tax Snapshot: Another Win for Taxpayers on Nexus for Inter Vivos Trusts

Illinois could not constitutionally tax the income of an inter vivos trust originally formed under Illinois law, but later removed to Texas, because all of the trust's business and property were...


Weekly Round-Up: Navigating New York’s ‘Cloudy’ Sourcing Rules

New York State's tax law and regulations concerning receipts sourcing were drafted during the mercantile economy and have not been updated to address the technology changes now prevalent...


Sales Tax Slice: Remote Sales, Cloud Computing, Services Likely to Dominate Debate in 2014

What does 2014 have in store for sales tax?   The Marketplace Fairness Act, cloud computing, and taxation of services are among the big issues to watch this year, according to state tax experts...


Incentives Watch: Tax Credit Highlights for ESPN’s SportsCenter

The New Year signals a time of inner reflection and change – whether it be starting a new year’s resolution or getting back into the swing of things at work. Yet, sometimes, the more things change,...


Same-Sex Marriage Filing Update: Idaho, New Jersey, South Carolina

Since the IRS released Rev. Rul. 2013-17 , which allowed married same-sex couples to file joint federal tax returns, the states have been scrambling to release their own administrative guidance....


State Tax Snapshot: Unanswered Questions in the 'Wild West' of Click-Through Nexus

Bloomberg BNA’s Daily Tax Report put out a special report today detailing the status of click-through nexus laws in the several states that have enacted legislation to collect sales tax...


Weekly Round-Up: Are State Revenue Estimates Driving the Legalization of Marijuana?

Slightly more than half the states that have authorized the use of medical marijuana impose a tax on sales of the substance, but the amount of revenue generated so far has been low and has...


Sales Tax Slice: What Do the 2013 Tax Rate Changes Tell Us About the Future?

The beginning of a new year means reviewing the prior year’s important developments as a means of predicting what lies ahead.    In 2013, a handful of states passed legislation mid-year...


State Tax Snapshot: The Top 3 Corporate Income Tax Developments in 2013

The world of multistate corporate income tax in 2013 was focused on questions surrounding the Multistate Tax Compact in the wake of California’s 2012 Gillette decision, the continued shift...


Weekly Round-Up: Unsure of Whether to Settle or Litigate? Use a Decision Tree

Decision trees are devices which can serve to diagram the uncertainties accompanying the alternatives of “settle” or “litigate,” Michael H. Salama and Katelyn E. Godfrey, both with The Walt...


Sales Tax Slice: A Year in Review

As 2013 draws to an end, it’s natural to reminisce about such an eventful year.   Indeed, 2013 had many noteworthy events – a royal birth, a new pope, and a third (THIRD!?) Red Sox World Series...


State Tax Snapshot: Could Bans on Shariah Law Raise Tax Issues?

The United Kingdom recently announced its plans to become the first country outside the Muslim world to sell a Shariah-compliant bond as soon as next year. Meanwhile, several states in the U.S....


Weekly Round-Up: Due Process Takes Center Stage at NYU SALT Conference

As business transactions continue to move online and involve affiliates based in other locations, or are conducted using out-of-state pass-through entities, geographical borders can appear blurry at...


Sales Tax Slice: 2013 Saw Four More States Jump onto Click-Through Nexus Bandwagon Despite Mixed Judicial Success

This year was another year in which states did not have federal guidance on “click-through” nexus provisions, so they continued to make their own.   Four states – Kansas, Maine, Minnesota and...


Incentives Watch: Enough Credit? A Look Back at Significant Developments in 2013

As the year comes to a close, it’s always nice to take a look back at the important state tax credit issues that arose during the past 12 months.  The year started out with the ‘ fiscal cliff ’...


State Tax Snapshot: COST’s Best and Worst of State Tax Administration

Maine and Ohio each earned an “A,” while California and Louisiana each received a “D –” in the Council On State Taxation’s fifth  Scorecard on Tax Appeals & Procedural Requirements . The...


Weekly Roundup: Bloomberg BNA Honors Paul Frankel with Latcham Award for Distinguished Service in State and Local Tax

Paul Frankel, senior counsel with Morrison and Foerster's State and Local Tax Group and former Chairman of Bloomberg BNA's State and Local Advisory Board, received the 2013 Franklin C. Latcham Award...


Sales Tax Slice: An Expensive Inventory Material Handling System Apparently Did Not Increase Property Value - Thus Installation Is Not Exempt

Burlington Coat Factory Warehouse missed out on a sales tax refund of $396,568.56 in New Jersey because it was unable to provide sufficient evidence to prove that the installation of a pricey inventory material handling system in its warehouse was a capital improvement, and thereby did not qualify for an exemption.   Burlington Coat Factory Warehouse v. New Jersey Dir. of Taxn. , N.J. Super. Ct. App. Div., No. A-0535-11T3, 11/26/13.

 


Incentives Watch: Lights, Camera, Alaska – A Look at The Last Frontier’s Film Tax Credit Program

In this interview, Joe Jacobson, Director of the Division of Economic Development in the Department of Commerce, Community, and Economic Development, discusses Alaska’s film tax credit and its...


Weekly Round-Up: New Jersey DOT Chief Is All Ears on Proposed Market-Based Sourcing Rules

The New Jersey Division of Taxation is taking comments on the proposed market-based sourcing rule for services set to go into effect in 2014 "very seriously", Michael Bryan, Director at the New...


Sales Tax Slice: Illinois Supreme Court Dissects and Deduces on the ‘Source’ of Confusion

In Illinois, sourcing for the local retail occupation taxes is no longer fixed exclusively by the place of order acceptance.   In other words, just because a retailer accepts an order for goods or...


Incentives Watch: State Tax Credits – The Gift that Keeps on Giving?

It’s time to celebrate the holiday season.  While everyone is searching for the perfect gifts for loved ones, states are busy fulfilling wishes too.  There’s those startups in New York; amateur...


State Tax Snapshot: U.S. Supreme Court Declines to Hear Click-Through Nexus Case on ‘Cyber Monday’

On the day after Thanksgiving weekend, millions of people flock to their computers and engage in electronic commerce.   It’s Cyber Monday and shoppers (almost instinctively and impulsively) scour...


Weekly Round-Up: Virginia Real Property Tax Assessment Procedure—Potential Pitfalls for the Unwary

Article X of the Constitution of Virginia requires all property in Virginia-real and personal, tangible and intangible-to be taxed at its fair market value unless the property is exempt from...


Incentives Watch: Will State Tax Incentives Survive an Adverse International Ruling?

The effectiveness of tax credits given by states to various businesses in order to attract them to their particular jurisdiction has been an ongoing issue of debate.  It is important to remember,...


State Tax Snapshot: Will Growing Revenues from Hard Cider Sales Become the ‘Apple’ of States’ Eye?

Consumers are increasingly turning to hard cider as an alternative to wine and beer. The fact that hard cider is gluten free is also helping to fuel the drink’s popularity.  As hard cider becomes...


Weekly Round-Up: Will More States Climb Aboard the Gift Tax Bandwagon?

With demands to balance budgets, minimize debt, and support public programs, states are exploring strategies to create new revenue by expanding the footprint of taxation, John O. McManus, the...


Sales Tax Slice: Colorado Voters Approve “High”er Sales Tax Rate for Recreational Marijuana

Colorado’s recreational marijuana users will pay sales tax at a higher rate than the state imposes on other items, once Colorado permits retail sales to begin in January.   At the beginning...


Incentives Watch: Georgia, North Carolina, and Texas Take Top Honors in Annual Ranking

In Site Selection ’s annual ranking of state business climates, Georgia took first place this year, according to the magazine’s article .  North Carolina came in second followed by Texas and...


Proposed Tax on Resident Trusts Should Be Replaced With Throwback Rule, NYSBA Tax Section Says

The New York State Bar Association Tax Section released a report November 18 th which outlined its continued disapproval of a 2010 proposal to eliminate the income tax exemption for non-grantor...


State Tax Snapshot: Which Will Survive--the Internet Tax Freedom Act or Click-Through Nexus Laws?

“This town ain’t big enough for the both us.” The phrase is essential dialogue in most western movies. It also seems to describe the current relationship between click-through nexus laws and the...


Weekly Round-Up: Wisconsin Offers Amazon Millions in Incentives

Wisconsin will provide $7 million in state tax credits to Amazon.com following the online retailer's commitment to construct a 1-million-square-foot distribution facility in Kenosha, Bloomberg BNA...


Sales Tax Slice: Not Owning, Knowing How to Use a Computer Is Reasonable Cause Not to File Returns and Pay Electronically

The Massachusetts Commissioner of Revenue would not budge when it came to giving an unincorporated small-business owner and operator, with a 20-year exemplary tax record, a break on not complying with its electronic-filing mandate, but was forced to back down following a ruling by the Massachusetts Appellate Tax Board. Cocco v. Massachusetts Comr. Of Rev. , Mass. App. Tax Bd., Nos. C310367, C311626, C314426, 10/30/13.


Sales Tax Slice: Amazon and Overstock on the U.S. Supreme Court’s Calendar…for Conference.

Less than one month after the New York State Department of Taxation and Finance filed its reply brief in opposition to Overstock.com Inc. and Amazon.com LLC's petitions for writ of certiorari  in the U.S. Supreme Court, a conference has been scheduled in the Court for Nov. 26, 2013.


Incentives Watch: Film Tax Credit Garners Rave Reviews, Blockbuster Returns in Georgia

In this interview, Lee Thomas, Division Director of the Georgia Film, Music & Digital Entertainment Office, discusses the impact of Georgia’s film tax credit on the state’s economy. As one of...


Weekly Round-Up: California FTB’s Chief Counsel Dishes on the Gray Areas of Taxation in the Golden State

In the absence of federal tax reform, efforts to remove some of the complexities or anomalies in California tax law have become more complicated by the adoption of Proposition 26 in 2010, Jozel...


Sales Tax Slice: A Long,Strange Trip? Figuring Out Tax on Online Travel Company Transactions

Online travel companies (OTCs) have simplified travel arrangements down to a couple clicks of a mouse.   Indeed, websites such as Expedia, Orbitz, Priceline, and Travelocity, among others, are a...


Incentives Watch: Fate of the Production Tax Credit Hangs in the Balance as Debate Continues

Congress is once again getting pressure from both sides to do something with the production tax credit.  The production tax credit equals up to 2.3¢ per kilowatt hour of electricity produced from...


State Tax Snapshot: Ruling Brings Alternative Apportionment Controversy into Sharper Focus

Richard Pomp, the hearing officer for the March 28 public session regarding a proposal to change allocation and apportionment provisions in the Multistate Tax Compact, released his report Oct....


Weekly Round-Up: The State and Local Tax Implications of Potential Federal Tax Reform

Congressional tax writers have long been talking about tax reform and have been holding hearings, establishing bipartisan working groups and soliciting recommendations and proposals from fellow...


Sales Tax Slice: Will the MFA Turn Multistate Sales Tax Compliance Into a Pumpkin?

Pumpkins are everywhere this time of year – front porches, supermarkets, and on your child/cat/dog in the form of a costume.   Those who live in states with sales tax likely paid tax on those...


Incentives Watch: State Publications Explain New Tax Credits in 2013

The Maryland Comptroller’s Office recently issued its latest Revenews bulletin , which highlights important tax information in the state.  The bulletin offers information regarding what is new...


State Tax Snapshot: 2014 BBNA Survey to Address Sales Tax Nexus for Service Providers

Each year Bloomberg BNA asks state revenue officials to clarify their states’ approaches to the muddier areas of state tax law and publishes the answers in April in its Survey of State Tax...


Weekly Round-Up: ‘Click Through’ Nexus Law Struck Down in Illinois

The Illinois Supreme Court affirms a circuit court decision voiding the state's "Amazon tax," finding that the federal Internet Tax Freedom Act (ITFA) preempts Illinois from imposing a prohibited,...


Incentives Watch: Tax Credit Packages Sign of “Woeful Business Tax Climate,” Tax Foundation Report Says

The Tax Foundation recently released its 2014 State Business Tax Climate Index , which ranks all 50 states based on their tax systems.  Certain tax credit deals offered by some states appear to...


State Tax Snapshot: Should Businesses No Longer Foot the Bill for Homeowners’ Property Tax Savings?

Property tax is the most burdensome tax most business have to pay, accounting for 36.5 percent of businesses’ state and local tax burdens, according to Fred Nicely, of the Council On State...


Weekly Round-Up: Amicus Briefs Support Online Retailers on Issue of New York Internet Sales Tax

Several organizations have filed amicus briefs encouraging the U.S. Supreme Court to grant writs of certiorari to Overstock.com Inc. and Amazon.com LLC in their challenge to the New York Court of...


Sales Tax Slice: ‘Nothing Personal’ -- Health Reports Are Not a Taxable Information Service, New York Advises

In most states, services are exempt from sales and use tax unless specifically designated as taxable by statute. A minority of states subjects “information services” to tax. But the types of...


Incentives Watch: States Vie with Foreign Countries in Luring Film Productions, Tax Credit Specialists Say

While the United States remains the key spot for filming television series, foreign countries are aggressively competing more and more for U.S.-based productions. At the same time, foreign producers...


Weekly Round-Up: Revenue Departments' Cloudy Minds Lead to Inappropriate Assessments on Cloud Computing Services

Several state revenue departments are taking approaches that are clearly inconsistent with their state laws to reach conclusions that cloud computing services are subject to tax, Arthur R. Rosen,...


A Windy City Windfall? Amusement Tax Applies to Permanent Seat Licenses for Bears Games, Court Rules

The Chicago Amusement Tax applies to sales and subsequent transfers of permanent (or personal) seat licenses (PSLs) to Chicago Bears football games, the Illinois Appellate Court recently ruled in ...


Incentives Watch: Move Over Wind Energy, There’s a New (Solar Energy) Sheriff in Town

Solar energy continues to grow.  In fact, solar photovoltaic plants are projected to add about 36.7 gigawatts of solar energy in 2013, whereas wind farms are project to add only 35.5 gigawatts,...


Keeping Pass-Through Earnings from Passing Through the State: Composite Returns and Withholding

As more and more interstate pass-through entities enter the business landscape, states have had to review their mechanisms for collecting tax from pass-through members who earn income attributable...


State Tax Snapshot: Does the Marketplace Fairness Act Satisfy Due Process Requirements?

T he U.S. Senate’s passage of the Marketplace Fairness Act in May was an important milestone toward the enactment of legislation granting states the authority to collect sales or use taxes...


Weekly Round-Up: Hotel Occupancy Tax Dispute Heats Up

State interest in a contentious, costly dispute pitting online travel companies (OTCs) like Expedia Inc. and Travelocity.com LP against cities, counties and states is likely to increase, following a...


Sales Tax Slice: Will the U.S. Supreme Court Hear New York’s Amazon Case?

October marks the beginning of the U.S. Supreme Court’s new court calendar, and the Council On State Taxation (COST) wants New York’s Amazon ruling to be part of this year’s docket.  ...


Incentives Watch: States Offer Incentives to Encourage Taxpayers to “Plug-In” to Electric Vehicles

National Plug-In Day occurred on September 29th this year.  The annual event is designed to encourage the use of electric cars, as well as plug-in hybrid vehicles, by drivers across the country....


COST Report Slams Delaware, Praises Massachusetts and Virginia for Unclaimed Property Policies

The Council on State Taxation (COST) released their report “The Best and Worst of State Unclaimed Property Laws,” an updated version of the popular unclaimed property “scorecard” initially...


State Tax Snapshot: Runner-Up to Toilet Seat Museum Gets Property Tax Exemption in Nebraska

Carhenge, the Number 2 “Wackiest Attraction” in America in 2009, behind only San Antonio’s toilet seat museum, recently had its educational exemption from property taxes upheld by the...


Weekly Round-Up: State Level Filing Complications for Same-Sex Couples

One of the most notable opinions from the U.S. Supreme Court this year was its decision in United States v.   Windsor , No. 12-307 (June 26, 2013), which struck down section three of the Defense...


Sales Tax Slice: MFA Lacks Enforcement Mechanism Against Non-Complying States

Under the current version of the proposed federal Market Place Fairness Act, before a state is granted the authority to require remote sellers to collect and remit sales and use taxes on sales...


Incentives Watch: Will the Fine Print Cast a Cloud Over Your Solar Energy Credit?

Don’t let the prospect of basking in the warm glow of a solar energy credit force you out in the cold as a result of failing to understand a state’s qualification requirements. Eligibility for a...


State Tax Snapshot: Some Counterintuitive Insights on Tax Rankings

Recently, the Tax Foundation released data about the migration of personal income between states.   New York, California, Illinois, New Jersey, and Ohio had the greatest total loss of...


Weekly Round-Up: States Begin Issuing Individual Income Tax Filing Guidance for Same-Sex Couples

States have begun issuing individual income tax filing guidance for same-sex couples, Bloomberg BNA State Tax Law Editor Melissa Fernley writes in this week's issue of the Weekly State Tax Report ....


Sales Tax Slice: Will Goodlatte’s Basic Principles on Remote Sales Tax Drive the MFA Toward Passage, or Cause It to Stall?

House Judiciary Committee Chairman Rep. Bob Goodlatte (R-Va.) released his priorities for remote sales tax legislation yesterday, and they don’t exactly match up with the Marketplace Fairness Act...


Incentives Watch: The Governor Wants Companies in Other States to Mess With Texas

“When you grow tired of Maryland taxes squeezing every dime out of your business, think Texas,” the radio advertisement on Maryland radio stations suggests at regular intervals. The ad is part of...


Colorado DOR Says Timing of Nonfiler Guidance Was Coincidental

In last Friday’s Weekly Round-Up (Sept. 13), we posed the question of whether a Colorado DOR blog post and a court ruling were related. By Monday, a spokesperson for the tax agency told Bloomberg...


State Tax Snapshot: Wind Turbines and Walking Trails Cause Property Taxpayers’ Headaches

Two recent property tax cases demonstrate that taxpayers must be aware of what they need to prove when challenging their property tax assessments. In the first case, Andersen v. Falmouth Board of...


Weekly Round-Up: Did Court Win Trigger Colorado DOR's Blog Post Aimed at Nonfilers?

Nine days after receiving a favorable ruling in federal court over the constitutionality of a Colorado law imposing reporting and notice requirements on out-of-state e-commerce and other vendors,...


Incentives Watch: States Auction Off Tax Credits to Raise Revenue

Incentives Watch: States Auction Off Tax Credits to Raise Revenue States are increasingly turning to tax credit auctions to raise funds for various projects. Maryland, for example, was one of the...


State Tax Snapshot: Single-Party Control Has Uneven Effect on Tax Reform

Many believed that the stage was set for significant tax reform following the 2012 election, which saw a single party wrest control of both chambers of the legislature as well as the governor's...


Weekly Round-Up: Planning for the Enactment of Marketplace Fairness

Assuming the Marketplace Fairness Act is enacted, many companies may find themselves required to register and collect sales taxes in states where they have little tax experience, Michael Miller of...


While Same-Sex Couples Celebrate, States May Spoil the Party

Couples who marry in a state that recognizes same-sex marriage are now recognized as married for federal tax purposes regardless of their current state of residence, according to recent guidance...


Incentives Watch: Tax Incentive Deals Draw Scrutiny in Governors’ Races

Tax incentives have always been the subject of controversy, but now they are expected to become a topic of debate during the gubernatorial elections next year, reports a Bloomberg BNA Daily Tax...


Weekly Round-Up: Compact Will Survive ‘Gillette’ Controversy, Alabama’s Tax Commissioner Says

Although Gillette  may have immediately caused some concern about the Multistate Tax Compact, there has never been any doubt about the long term benefits being a member has for a state, Julie...


Incentives Watch: Space Incentives Encourage Race to the Final Frontier

The race to space continues, but this time it’s for vessels carrying tourists to outer space. Space tourism is becoming increasingly popular as more people want to travel into the great unknown and...


Bloomberg BNA Launches Major State Tax Expansion

B loomberg BNA has launched a major expansion of its state tax product offerings . At a time when state taxes continue to grow in complexity and importance, Bloomberg BNA has added must-have...


State Jurisdictional Rules on Taxing Trusts Present Planning Opportunities, Traps for Unwary, BBNA Special Report Finds

The varying patchwork of state standards for taxing trust income can result in unexpected liabilities for the unwary, a new special report by Bloomberg BNA finds. Some factors that the states use...


Sales Tax Slice: Will Taxpayers Be Entitled to Refunds if Cook County Use Tax is Invalidated?

Taxpayers seemingly scored a victory on July 24, when the Cook County Circuit Court granted a preliminary injunction enjoining the enforcement of the county’s non-titled personal property use tax....


Incentives Watch: Illinois Sweetens Tax Break for Hiring Ex-Offenders

State tax credits are available for hiring certain employees, including individuals formerly imprisoned or “ex-offenders.” These tax credits are meant to encourage certain employers to hire...


State Tax Snapshot: Legislative Rate Changes Give Taxpayers a $1.3 Billion Tax Cut

State tax policies developed during the 2013 legislative session have resulted in a net $1.3 billion tax cut for taxpayers, according to a recent report by the National Conference of...


Weekly Round-Up: NCSL Puts the Pressure on Online Travel Companies

The National Conference of State Legislatures (NCSL), the principal advocacy organization for state legislators, unanimously approved a resolution calling on states to consider legislation that...


Incentives Watch: Brownfields Are Becoming Hotbeds of Renewable Energy Generation

When one hears the word “brownfield,” most people think of contaminated sites that have little to no value and should be avoided. However, these sites are increasingly becoming locations for...


States say MTC-ya to the Multistate Tax Compact in Hedge Against Gillette

Members of the Multistate Tax Compact are falling like dominos . In March, South Dakota withdrew from the Compact.   In April it was Utah.   Minnesota left in May.   Oregon left in June,...


State Tax Snapshot: MTC Looking Into Joint State Transfer Pricing Audit Program

Joe Huddleston, executive director of the Multistate Tax Commission, said recently that he hopes to have a concrete proposal for a joint transfer pricing audit program in time for the MTC's...


Weekly Round-Up: Automatic Tax Refunds—A Growing Trend?

The idea of returning taxes to taxpayers is a growing trend, and some states are changing their refund procedures, issuing new policies and developing new electronic systems that track each...


Sales Tax Slice: Why the MFA’s Free Software Might Be a Costly Proposition

The best things in life are free, goes the old refrain.   That’s certainly true of love, joy, and laughter.   But what about sales tax software provided to remote sellers courtesy of the ...


Incentives Watch: Back to (Private) School? Tuition Tax Credits Under Scrutiny Yet States Continue to Enact Them

An increasing number of states are enacting tax incentives designed to allow certain students to enroll in private schools. Most of these incentives are targeted towards low-income students...


State Tax Snapshot: Unclaimed Property Lurks Beneath Delaware’s Business Friendly Surface

Delaware has long enjoyed its reputation as a business friendly state in which most businesses choose to incorporate. In fact, nearly half of all corporations are incorporate there, according to a...


Weekly Round-Up: Tax Commissioners Describe Tight Budgets, Avoidance Schemes, Distrustful Legislators

In an effort to enforce tax codes, state tax agencies must battle against increasingly sophisticated tax avoidance schemes, flat budgets, outdated laws, and a chilly relationship with legislatures,...


Incentives Watch: State Film Tax Credits Receive Mixed Reviews

Are film tax credits a waste of taxpayer dollars or an effective means of attracting a lucrative industry to a state? The reviews on film credits are mixed. While a Louisiana audit noted that it had...


Detroit Offers Object Lesson in the Fiscal Policy Effects of Going Bust

As the largest American city to ever file for bankruptcy, all eyes will be on Detroit as the courts and the media dissect its fiscal policies.   One such policy will be the city’s treatment of...


State Tax Snapshot: Navigating or Avoiding State Tax Audits in the Wake of Increased Use of the Sham Doctrine

“The legal right of a taxpayer to decrease the amount of what otherwise would be his taxes, or altogether avoid them, by means which the law permits, cannot be doubted.”   - Gregory v....


Weekly Round-Up: The Hidden Impact of Amnesty Penalties

Numerous important developments in state tax law occurred over the past year, including apportionment, particularly with respect to the Multistate Tax Compact and nexus, Craig B. Fields and Ted W....


Incentives Watch: Are Enterprise Zones the First Casualty of State Tax Reform?

After the 2012 elections, there were 36 states in which the executive branch and both chambers of the legislature are controlled by the same party. Following the elections, the general consensus was...


New BBNA App Offers Expert Tax Research. Wherever. Whenever.

BBNA subscribers can now stay connected to the Bloomberg BNA Tax and Accounting Center, any time and from anywhere with our new Tax Center App! This free app provides comprehensive, on-the-go...


Why Some Pass-Through Entities Might Miss Out on the MTC Compact Election Debate

The debate surrounding apportionment formulas is reaching a fever pitch as the California Supreme Court considers Gillette and the MTC reevaluates section IV of the Multistate Tax Compact, which...


State Tax Snapshot: University of Michigan “Charity Dorm” Denied Charitable Use Exemption

Last week, the Michigan Court of Appeals upheld the Michigan Tax Tribunal’s denial of a charitable-institution property tax exemption to Telluride Association Inc., a nonprofit organization...


Weekly Round-Up: Whistle-Blower Lawsuit? Not in My State

Tim Barfield, Executive Counsel at the Louisiana Department of Revenue, is not interested in setting policy through litigation. He is also not a fan of policy-setting litigation that doesn't get...


Incentives Watch: Tax Credits – An Oft-Criticized Tool States Can’t Live Without

Questions have long lingered over the effectiveness of tax credits and incentives, but the states can’t seem to live without them. Rhode Island recently enacted legislation that provides for a...


Do Virtual Economies Pose a Real-World Threat to States?

Bitcoin, the rapidly growing electronic currency, caused the GAC to issue a report last week, urging the IRS to provide guidance on this new “ cryptocurrency .” There’s even less state...


State Tax Snapshot: Identifying Nexus Creating Activities for Trusts

A trust with a resident trustor person who created the trust) would, by itself, create sufficient nexus to subject a trust to an income-based tax or filing requirement in 62 percent of the...


Weekly Round-Up: Contemplating a World Without the Multistate Tax Compact or MTC

Currently, taxpayers face a fair amount of complexity in deciding whether to make the Multistate Tax Compact election on a state tax return, Brian Murphy, Giles Sutton, Jamie C. Yesnowitz, Dale...


Sales Tax Slice: Attention Shoppers – A Sales Tax Holiday is Occurring in a State Near You

Your kids may have just finished school for the summer, but it’s time to start devising your back-to-school shopping plan.   A break from sales taxes may come as a welcome respite for consumers...


Incentives Watch: Iowa Focuses on Agricultural Tax Incentives

Iowa has been busy enacting various agriculture-related tax incentives recently. In H.B. 599, the tax credit used to encourage the transfer of agricultural assets to qualified beginning farmers has...


State Tax Snapshot: Property Tax Exemptions for Churches, Temples, and….Yoga Studios?

All 50 states and the District of Columbia offer some form of property tax exemption for properties used for religious worship and education. While many aspects of these exemptions are common...


Weekly Round-Up: State Guidance on the Application of I.R.C. §382

Although sometimes overlooked by taxpayers and tax professionals, the state tax consequences of an I.R.C. §382 ownership change, including whether any particular state requires apportionment of the...


State Tax Snapshot: Nexus? It Can Depend on Who You Ask

Owning or leasing cars for sales representatives in California is an activity that is sufficient to trigger income tax nexus, the state's Franchise Tax Board said in the 2013 Bloomberg BNA...


Weekly Round-Up: Amending Returns in the Wake of “Windsor”

The U.S. Supreme Court’s finding in United States v. Windsor that the Defense of Marriage Act (DOMA) was unconstitutional will affect tax returns that same-sex couples have...


Sales Tax Slice: State Standards Vary in Determining Affiliate Nexus Based on Related Parties

Bloomberg BNA’s annual 2013 Survey of State Tax Departments highlighted the different approaches states take in determining affiliate nexus based on an out-of state corporation’s dealings with a...


Incentives Watch: States Enact New Market Credits as U.S. Mulls Permanent Adoption

Many states have been enacting new markets tax credits lately. This is particularly interesting in light of the fact that Congress is debating whether to make the federal new markets tax credit...


Unknotting Windsor: The Potential State Tax Implications of the Same-Sex Marriage Decisions

The Supreme Court is expected to release its ruling on United States v. Windsor and Hollingsworth v. Perry this Thursday morning.   Awaiting the decision, Bloomberg BNA interviewed Nicole...


Expert Insight: Recent MTC Trends, States Begin to Respond to 'Gillette'

Two weeks ago, in Anheuser-Busch v. Michigan Dept. of Treas. (No. 11-85-MT), the Michigan Court of Claims ruled that multistate taxpayers are entitled to apportion their Michigan income under...


State Tax Snapshot: Bitcoin May Add to States’ Digital Property Tax Headaches

As the “cryptocurrency” bitcoin continues to grow—as of April, it was estimated that bitcoin was more valuable than the entire stocks of currency of 20 countries—concerns are also growing...


Weekly Round-Up: Colorado DOR's Top Brass Discuss Pot, Sales Tax, and 'Gillette'

Contingent-fee audits may be popular in other states, but not in Colorado, John Vecchiarelli, Senior Director of Taxation at the Colorado Department of Revenue, told Walt Nagel, Don Griswold, and...


Incentives Watch: Practitioner Weighs Pros and Cons of “Tax-Free New York” Proposal

In this interview, Daniel Effron, a tax partner at accounting firm Marcum LLP in Philadelphia, discusses the pros and cons of New York Governor Andrew Cuomo’s proposed “NY tax-free program.” On...


Expert Insight: Codification of Economic Substance—The “Apple” of States’ Eyes?

The recent congressional hearings regarding Apple's tax planning strategies highlighted some of the methods the company is using to reduce its federal tax burden.   Last year, a story in the New York Times focused on the company's strategy for avoiding taxes in California and several other states. http://www.nytimes.com/2012/04/29/business/apples-tax-strategy-aims-at-low-tax-states-and-nations.html?pagewanted=all


State Tax Snapshot: Nexus, Addback Statutes, and the Sham Transaction Doctrine

“We pay all the taxes we owe. Every single dollar,” Apple Chief Executive Officer Timothy Cook told the Senate Permanent Subcommittee on Investigations last month. “We don't depend on tax...


Weekly Round-Up: New York Taxpayer Scores Victory in Residency Audit War

Accomplishing what to many observers is an impossible feat, taxpayers Gordon and Jennifer Cooke convinced the New York Division of Tax Appeals that they were domiciliaries of the Hamptons, despite...


Sales Tax Slice: With MFA Stalled, States Supply Own Answers for Remote Sellers

It has been a busy legislative year for sales and use taxes, and it’s not over yet.   The House Judiciary Committee has not put the Marketplace Fairness Act (MFA) on its hearing calendar.   ...


Incentives Watch: Land Conservation Tax Credit Amended in Colorado to Improve Application Review Process

Colorado’s Land Conservation Appreciation Week was June 3-9, 2013. Land conservation is of particular importance to Coloradans, and the state offers a tax credit designed to encourage the donation...


Weekly Round-Up: Credits and Incentive Programs in Florida Face a Three-Year Report Card

Credits and incentives related to economic development in Florida now face a three-year rotating review schedule to ensure the programs are providing effective results, according to a new article by...


Incentives Watch: Commuter Tax Credits Give Employers Incentive to Offer Trip Reduction Programs

Many employers offer commuter benefit programs to their employees; benefits may include transit passes, carpooling reimbursement, or cash-in-lieu of parking. In fact, many states, including...


Owed a Tax Refund? Ohio and Other States Want to Let You Know

Every year, taxpayers anxiously await their refund checks. Opening the mailbox to find that watermarked envelope, tearing apart those pre-perforated tabs, and basking in the glow of your $2,700 ...


State Tax Snapshot: Nexus for Telecommuting Employees Is Unfair, Webinar Attendees Say

It’s not fair for an out-of-state company to be deemed to have income tax nexus with a jurisdiction based on the in-state presence of a single telecommuting employee who performs back office...


Weekly Round-Up: Are Soda Taxes 'the Real Thing' in Curbing Obesity?

States are taxing sugary drinks but taxing sugary drinks does not necessarily increase healthful diets, Scott Drenkard of the Tax Foundation argues in this week's issue of the Weekly State Tax...


Sales Tax Slice: To Contest Local Assessments Learn ‘Where Bodies Are Buried,’ Look to State Law

Taxpayers can face special challenges when they deal with local sales and use tax assessments.   So what is the best action a practitioner could take in challenging local sales and use tax...


Incentives Watch: When Life Gives You Lemons (in the Form of Trash), Make Lemonade (in the Form of Energy)

“When life gives you lemons, make lemonade” – this could be the motto of countries around the world that are taking their residents’ garbage and turning it into useful energy. It’s a lesson that some...


There's Gold in That Thar Treasury: Budget Surpluses Across the Country

North Dakota’s coffers are overflowing.   So much money is coming into the state that the legislature has cut $1.1 billion in income taxes and agricultural and commercial property taxes.   This...


Weekly Round-Up: SST Board Begins Laying Groundwork to Implement Online Sales Tax Legislation

While Congress considers the online sales tax provisions of the Marketplace Fairness Act (S. 743), the leading proponent of the idea is already at work addressing implementation for states in the...


Sales Tax Slice: State Tax Pros Voice Concerns Over U.S. Online Sales Tax Legislation

The Marketplace Fairness Act (S. 743) cleared a significant legislative hurdle when the Senate approved it a few weeks ago, but its prospects for passage remain uncertain now that it is pending in...


Incentives Watch: Coastal States’ Pearls of Wisdom – Take Advantage of Our Oyster Tax Credits

It’s that time of year again when the weather gets warmer and people crave fresh seafood, including oysters. After eating some oysters, why not recycle their shells? If you do, you can get a tax...


State Tax Snapshot: The Income Tax Consequences of Allowing Workers to Telecommute

Alternative work arrangements that allow a worker to telecommute from home can offer significant benefits to both the employee and employer. For the employee, working at home can eliminate time...


Weekly Round-Up: A Closer Look at How States Will Treat Series LLC Employment Taxes

Despite a request by the IRS for input on proposed regulations for series limited liability companies, states have yet to decide how they will treat series LLCs for state employment tax purposes,...


Sales Tax Slice: The Nexus Bandwagon – Who’s on Board for Change?

While many of us have been fixated on tracking and discussing the merits of the Marketplace Fairness Act , sales and use tax nexus developments have surfaced in West Virginia, Kansas, New Mexico, and Colorado.


Incentives Watch: With Data Breaches on the Rise, Maryland Offers Tax Credit for Investing in Cybersecurity Industry

Security breaches are becoming more pervasive. According to the Privacy Rights Clearinghouse , there have been 3,735 public data breaches since 2005, which has resulted in 607,781,515 breached...


Expert Insight: Brian Strahle on Blogging, Creativity, and Coping with SALT Celebrity

In this “Expert Insight” we interview Brian Strahle, author of the popular state tax blog LEVERAGE | SALT.   Strahle shares his (often humorous) perspective on what it’s like to write a blog,...


State Tax Snapshot: Lost in the Clouds- Should Purchasing Cloud Computing Services Trigger State Nexus?

BBNA asked state and local tax practitioners' for their opinions on whether purchases of cloud computing services should create nexus for either the purchaser or the seller.  Now that several practitioners have provided their responses, the answer is a resounding, "Well, it raises a lot of questions," but an equally resounding, "No."


Weekly Round-Up: Maryland Blurs Boundaries Between Constitutional Nexus and Unitary Business Principle

Recently, the already murky waters surrounding nexus were further muddied when a Maryland court asserted nexus using a theory we deem the "unitary business nexus principle," which seems to combine...


Sales Tax Slice: Will Complying with the Marketplace Fairness Act Take the Wind Out of Your Company’s “Sales?”

The Marketplace Fairness Act passed the Senate on May 6 and is heading to the House, where it is likely to face stiffer opposition.   While its fate remains uncertain, one of the few things remote...


Incentives Watch: New Markets Opened as Congress and Arkansas Make Tax Credit Announcements

New markets tax credits are designed to encourage investment in low-income communities across the country. In fact, the U.S. Treasury’s Community Development Financial Institutions Fund recently...


States Allow Filing and Payment Extensions for Boston Marathon Victims

April 15 th is a stressful day for many people in the United States. Agonizing over last-minute tax returns and sprinting to the post office to ensure timely postmarks, taxpayers are harried and...


State Tax Snapshot: What are Your Hottest Emerging State Tax Issues?

Each year, the Bloomberg BNA Survey of State Tax Departments asks tax agency officials from each state to indicate their positions on a wide variety of emerging tax issues. The 2013 survey...


Weekly Round-Up: Is Florida Dialing Up a Sales Tax Rate Hike?

Taxpayers in Florida might see an increase in their state sales tax as part of an overhaul of the state’s communications services tax, Marshall Stranburg, Executive Director of the Florida...


Sales Tax Slice: This Weekend – Fast Horses, Fancy Hats, Margaritas… and Sales Tax?

Many of us are ready for the excitement of the 139 th running of the Kentucky Derby at Churchill Downs and celebrations for Cinco de Mayo this coming weekend, but let's take a moment to make sure everyone has chosen the right hat and freshen up on a few relevant sales tax considerations before sprinting out of the gate.


Incentives Watch: A Mason-Dixon Line for Renewable Energy Tax Credits?

The Civil War ended long ago. Confederate currency never caught on, but there are still a few things that are unique to the South: those accents, an abundance of Waffle Houses, and a lack of...


Expert Insight: State Tax Pros Weigh in on BBNA 2013 State Tax Survey Results

In analyzing the results of the 2013 Survey of State Tax Departments , Bloomberg BNA looked to prominent state tax experts   across the country for their perspectives. This Expert Insight...


State Tax Snapshot: NFL Draft and Taxes—Does it Pay to be Number Two?

On April 25, as football fans everywhere were eagerly awaiting the start of the 2013 NFL Draft, ESPN “Insider” Adam Schefter tweeted an anecdote interesting for NFL fans and tax gurus alike:   ...


Weekly Round-Up: The Emergence of the Virtual Tax Base Spurs States to Aggressively Pursue Revenues

Many states said they would find nexus as a result of the presence of internet servers, telecommuting employees, and transactions involving non-U.S. entities, Bloomberg BNA's 13th annual Survey of...


Sales Tax Slice: Death by a Thousand Cuts to a Tax-Free Internet?

If your business uses an “affiliate” based in another state to garner online sales, must you collect sales or use tax there? Some states use “affiliate” or “click-through” nexus laws to require...


Incentives Watch: International Trade Dispute Flares Up Over State Solar Credits

When most people think of state tax credits, they think of them in terms of their benefits for various taxpayers operating in the United States. However, state tax credit programs have received...


It’s 2013, Do You Know What Your Annually Adjusted State Tax Bracket Is?

State individual income tax rates can affect all sorts of behavior during the tax year, such as where the taxpayer chooses to carry on business, or where he chooses to live. Annual indexed changes...


State Tax Snapshot: Tokers, Smokers, and Fuming Pro Golfers

Bloomberg.com recently updated its annual slideshow, “ Most & Least Taxing States 2013 ,” which highlights the odd and noteworthy in state taxation.   Much of state tax policy appears to be...


Weekly Round-Up: Two New Wisconsin Tax Statutes May Not Pass Constitutional Muster

Similarities between some provisions of Wisconsin law and certain statutes recently struck down by appellate courts in California and Oklahoma should give taxpayers some pause, William D....


Sales Tax Slice: Replacing Income Tax with Expanded Sales Tax Is in Lawmakers’ Playbooks, But Is it a Winning Idea for Tax Reform?

Efforts to reform tax codes are in full swing following the 2012 election, which saw a single party wrest control of both chambers of the legislature in many states. One reform tactic that has found its way into lawmakers' playbooks in several states is replacing the income tax with an expanded sales tax that applies to additional services.


Incentives Watch: Taxpayers Need to Be Aware of Tax Credit Decertification and Clawback Provisions

Many state tax credit programs include procedures for revoking a taxpayer’s certification for a tax credit when the taxpayer does not meet the program’s requirements, such as hiring a certain number...


Weekly Round-Up: Comptroller Explains Why a Move Towards Combined Reporting Is Unlikely in Maryland [Free Access to BNA Premium Content]

The appointment of David Roose, who is familiar to big corporate taxpayers because of his work on revenue estimating, as the new Deputy Comptroller is not an indication that the state is moving...


Incentives Watch: California Enterprise Zone Hiring Credit Changes Are Coming So Employers Must Be Prepared

A PricewaterhouseCoopers webcast on April 10 discussed the impact proposed regulations will have on businesses seeking the California Enterprise Zone Hiring Credit. These regulations will go into...


State Tax Snapshot: In the Digital Age, Snitches Retain Place in Property Tax Enforcement Arsenals

They may not top the FBI’s Ten Most Wanted list, but significant rewards are being offered for reporting them to the proper authorities.   We’re talking about property tax cheats, of course. ...


Weekly Round-Up: States Aim to Enact Taxpayer Friendly Budgets

Although New York recently made headlines for upholding the constitutionality of the internet tax, the state was also in the news for enacting its 2013-14 budget legislation, described as a...


Incentives Watch: Amateur Sports Tax Credits – Madness or a Winning Idea?

It’s that time of year again – March Madness is coming to an end and Tax Day is almost here. After so many bracket-destroying upsets, prospects are fast diminishing for an office-pool windfall a...


Expert Insight: How MTC’s Proposed Compact Changes Will Impact Multistate Businesses

The latest round of proposed amendments (Dec. 6, 2012) to Article IV of the Multistate Tax Compact would make a number of significant changes affecting businesses with income in more than one...


State Tax Snapshot: Non-U.S. Based Entities Must Navigate Varying Income Tax Treatment Among States

Conducting business across international borders is a commonplace occurrence in today's economy as a result of the expansion of global markets, the Internet, and other recent technological...


Weekly Round-Up: Is the Physical Presence Standard for Income Tax Nexus 'Bankrupt'?

Oregon's recent efforts to impose corporate excise tax on a bank holding company for the income earned by its subsidiaries doing business in Oregon fails, Robert Willens, president of the tax and...


Sales Tax Slice: New York Upholds Amazon Law, Offers Few Insights on Solicitation Activities

After New York’s trial court upheld the state’s “Amazon” law against constitutional challenges in 2009, several states followed suit by adopting similar laws aimed at imposing nexus on remote...


Incentives Watch: Film Tax Credits Retain Starring Role, Despite Mixed Reviews

Tentative budget provisions in New York contain funds aimed at luring the Tonight Show back to the state, according to recent news reports . This might be good news for Jimmy Fallon, who is rumored...


Expert Insight: COST's Hot State Tax Topics in 2013

In this Expert Insight, we speak with Ferdinand Hogroian and Fred Nicely from the Council on State Taxation (COST) about the issues they expect to be “hot topics” in 2013.  COST is a nonprofit...


State Tax Snapshot: Is Your Trust Subject to State Tax? It Depends

Trust and estate tax planners can rest assured that there are seven states that do not impose income tax on trusts ( Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming). But...


Weekly Round-Up: Why California’s Tax Policies Are Hindering R&D Job Creation

As one of just a few states that impose a sales tax on manufacturing and R&D equipment,  California imposes higher equipment costs on its manufacturers, which may drive them out of state,...


Sales Tax Slice: Are Flying Trapeze Artists Subject to Sales Taxes?

States are continually looking for ways to raise revenues. One source of state revenue that is often overlooked by the public is taxes on admissions and services. But determining which types of admission charges or services are subject to tax can be a "high-wire act" on its own because these tend to vary from state to state.

 


Incentives Watch: When Claiming Tax Credits, the ‘Small Print Can Taketh Away’

As the old saying goes: the big print “giveth,” the fine print “taketh away.” The same holds true for state tax credits. In many cases, the tax incentives aimed at encouraging activities, such as...


Expert Insight: State Taxation of Cloud Computing and Sutherland Survey Results

Sutherland Asbill & Brennan LLP recently conducted a survey on the taxation of cloud computing, available at http://www.sutherland.com/files/upload/CloudComputingSurveyResults.pdf ....


State Tax Snapshot: Web Servers Can Trigger Sales Tax Nexus

Sales tax nexus can be triggered by an out-of-state corporation that leases space on a third party’s web server located within their borders, several states have indicated in the preliminary...


Weekly Round-Up: South Carolina DOR Official Explains Why a Loss in Court Was a Win for the State [Free Access to BNA Premium Content]

One of the most important cases to have come out of South Carolina is Media General, Milton Kimpson, General Counsel to the South Carolina Department of Revenue, explains in this installment of...


Incentives Watch: Will Lawmakers ‘Be Prepared’ to Give the Girl Scouts A Tax Exemption or Are Chances Thin (Mint)?

It’s that time of year again – Girl Scout cookies are back! While entering the local supermarket to get groceries or grabbing a coffee at Starbucks, you’ve probably encountered the stand filled with...


Expert Insight: Bright Line Rule or More Flexible Standard for Trailing Nexus?

In this “Expert Insight,” we   interview Thomas Shimkin, director of the Multistate Tax Commission’s National Nexus Program. In the interview, Shimkin discusses why he believes trailing nexus...


State Tax Snapshot: Telecommuters Performing Non-Market Activities Can Trigger Nexus

Income tax nexus could result for an out-of-state corporation with a single telecommuter in a jurisdiction performing activities such as payroll or computer coding, according the...


Weekly Round-Up: You've Got to Be Kidd-ing Me! The Distinction Between “Temporary” and “Indefinite” Employment

With the sluggish economy and the extensive rebuilding along the East Coast as a result of Hurricane Sandy, construction workers are traveling far and wide to find jobs and take advantage of...


Incentives Watch: Property Tax Exemptions Deemed Unconstitutional By Tennessee’s Attorney General

Tennessee’s Attorney General recently issued another opinion that calls into question the legal validity of the state’s use of property tax incentives to encourage economic development, reports a...


State Tax Snapshot: Why States Want to Know Where Your Web Server Is

As use of the internet and other forms of technology continue to proliferate, state income tax nexus policies regarding the location of web servers seem to becoming more relevant. Commonplace...


Weekly Round-Up: California - The Perfect Storm for Tax Reform?

California has had a flurry of recent activity, leaving taxpayers unsure of what lies next. Recent developments in the state include Proposition 30 (raising income and sales tax rates), Proposition...


Sales Tax Slice: Will Federal Remote Collection Authority Impact Tax on Gas on Virginia’s Highways?

State transportation funding and federal legislation aimed at providing authority for states to impose sales and use collection requirements on remote sellers seem unrelated, unless you’re in Virginia. Virginia’s latest transportation bill sets tax rates on gas based on anticipated revenue from online retailers.


Incentives Watch: State Film Tax Credit Programs Give Starring Role to ‘Loan-Out Companies’

While much of world was transfixed on the annual Oscar Awards last Sunday and reacting to wins by stars, such as Daniel Day-Lewis and Anne Hathaway, the states have been busily refining their film...


State Tax Snapshot: What are the Burdens of Proof for Alternative Apportionment Regimes?

Eleven states have no written guidance available on when a taxpayer or a jurisdiction can invoke or require an alternative apportionment formula, according to the results of the 2011 and 2012...


Weekly Round-Up: Iowa, Virginia Take Opposite Positions on Conformity to Federal Bonus Depreciation

Iowa and Virginia both recently updated their state tax codes to include references to the version of the Internal Revenue Code that includes amendments made under the American Taxpayer Relief...


Sales Tax Slice: Treatment of ‘No Sales Tax States’ Is Latest Obstacle to Remote Collection Authority

Sens. Mike Enzi (R-Wyo.), Richard Durbin (D-Ill.), and Lamar Alexander (R-Tenn.) introduced the Marketplace Fairness Act (S. 336) on Feb. 15, according to a recent story in BBNA's DailyTax Report...


Incentives Watch: Angels on High (or Low)? Effectiveness of Investor Credits Examined

New Jersey recently enacted a refundable angel investor credit that allows companies and individuals to receive a credit for for up to 10 percent of a qualified investment in an emerging technology...


Weekly Round-Up: DC Revenue Chief Counsel Talks Transfer Pricing and Combined Reporting in Exclusive Interview [Free Access to BNA Premium Content ]

Bloomberg BNA is pleased to introduce a new column in our Weekly State Tax Report , Crowell's Conversations, in which members of Crowell & Moring's state tax team sit down with high ranking...


Sales Tax Slice: Are State Sales Tax Regimes Going the Way of Mail on Saturday?

Following a $15.9 billion loss in the past year, the U.S. Postal Service announced plans to discontinue Saturday deliveries for everything except packages. A major part of the U.S. Postal Service's financial woes stem from the rise of email over traditional letters and the increased popularity of package deliveries from internet transactions. The emergence of the World Wide Web has also had a negative impact on state coffers.


Incentives Watch: Governor Christie Battles Superstorms, Fitness Mavens, and New Jersey Neighborhood Revitalization Credits

Whether it’s dealing with Superstorm Sandy or comments about his weight, New Jersey Governor Chris Christie has been in the news a lot lately. Most recently, with regard to state tax credits, the...


State Tax Snapshot: 24 Jurisdictions to Weigh Tax on Accounting Services in 2013, AICPA Says

Nearly 60 percent of executives believe that expanding the sales tax base to include various services would have the greatest impact on their business, according to survey results recently...


Weekly Round-Up: Restrictions on Marriage Create a Cumbersome Tax Filing Environment for Same-Sex Couples [Free Access to BNA Premium Content]

The Supreme Court will enter the debate over same-sex marriage, having agreed to hear two cases challenging state and federal laws that define marriage to include only unions of a man and a woman ...


Incentives Watch: States Turn to Sunset Dates, Clawback Provisions to Guard Against Abuse, Wasteful Spending

One way states guard against abusive practices with respect to tax credit programs is to impose certain safeguards, such as spending caps or sunset provisions. Recently, Virginia State Senator Chap...


State Tax Snapshot: Does 86-272 Protection Apply to Foreign Commerce?

At least a dozen states extend the income tax protections afforded under federal Pub. L. No. 86-272 to interstate sales of tangible personal property to corporations organized under the laws...


Weekly Round-Up: Election Results Set the Stage for Structural Change in Many States [Free Access BNA Premium Content included with Blog Post]

Following the 2012 elections, a single party, either Democrat or Republican, fully controls both the executive and legislative branches of 35 state governments—23 are controlled by Republicans and...


Sales Tax Slice: ‘Happy Holidays’ to Purchasers of Energy Efficient Appliances, Weather Preparedness Items

An annual tradition in many states, is the sales tax holiday for clothing and school supplies, most often held in August. Some states also offer other tax holidays - for hurricane supplies, energy-efficient appliances, and even firearms.


Incentives Watch: Taxpayer Awareness of Both Federal and State Earned Income Tax Credits Needed

The Internal Revenue Service and the nation celebrated the Earned Income Tax Credit (EITC) Awareness Day last week. The spotlight was on the federal EITC, as the Internal Revenue Service used the day...


State Tax Snapshot: Is Single-Party Control the Perfect Storm for Tax Reform?

When viewed through the prism of partisan control, the states and federal government have become mirror images of one another. Control of the U.S. House and Senate remains divided between...


Weekly Round-Up: Delaware’s New Unclaimed Property VDA Program Targets Noncompliant Companies

The “door is open” for Delaware's new unclaimed property voluntary disclosure agreement program which is being implemented by the Secretary of State and differs significantly from the old VDA...


Sales Tax Slice: Should Online Travel Companies Collect Tax on Full Price of Rooms?

While the recent cold snap and snowy conditions that spread across the country may have inspired you to explore online travel company websites for getaway deals, a federal judge in Texas has had both eyes fixed on online travel companies (OTCs) and their bid to overturn a 2009 decision in favor of 173 cities in Texas.


Incentives Watch: Attorney Offers Brighter Perspective on State Tax Credits

State tax incentives have taken a beating lately in the mainstream media, but they continue to be an important tool for revitalizing the economy, said Scott M. Susko, an attorney with McDermott Will...


Expert Insight: California’s Proposition 26 and IRC Conformity

California’s adoption of Proposition 26 in November 2010 has a created a great deal of uncertainty for individuals and businesses subject to tax in the state. A lingering question in California...


Weekly Round-Up: How to Defend Against New York Residency Audits

New York places a strong emphasis on residency audits, the result of which can be the taxation of an individual's income from all sources rather than only from New York sources, Richard W. Genetelli...


Sales Tax Slice: Governors’ Addresses Signal Sales Tax Policy Priorities in 2013

January is State-of-the-State Address season in which governors announce their plans for 2013 - including proposed   changes to their tax systems. The following is a discussion of sales tax changes proposed by the governors that are likely to be included in this year's budget proposals.

 


Incentives Watch: States Turn to ‘Green Banks’ to End Funding Drought for Renewable Energy Projects

The American Taxpayer Relief Act of 2012, extended several federal renewable energy credits for another year. However, with the constant uncertainty surrounding federal tax credits, along with severe...


Expert Insight: States Wrestle with the Inheritance and Estate Tax (A Real Mess Inherited)

In this "Expert Insight," attorney and estate planner Alan Gassman discusses the fiscal cliff legislation's elimination of the state estate tax credit.  Gassman explains the impact on the many...


State Tax Snapshot: Should Taxes Be Used to Deter Behaviors?

An oil company moved one of its drilling rigs from Alaska waters despite reports of a gathering storm. During the trip, the rig broke free from its tugboat in stormy seas on Dec. 31 and...


Weekly Round-Up: Assessing the Fiscal Cliff Compact's Impact on the States [free access to premium content]

The American Taxpayer Relief Act of 2012 (ATRA), which President Obama signed into law Jan. 2 leaves intact most of the business tax breaks such as bonus depreciation that first took effect under...


Sales Tax Slice: Feeling the Sales Tax Burn on Your Gym Membership?

Ten days ago when many of us celebrated the new year with resolutions to exercise more often or improve physical fitness, it's likely that sales taxes were not a factor impacting the choice of mechanism for implementing these life-improving changes. However, and in addition to general excitement over the season of freshly-minted gym membership cards and first-time reservations with enthusiastic fitness trainers, health and fitness clubs must be motivated to comply with differing state rules for sales taxes imposed on these transactions.


Incentives Watch: Fiscal Cliff Legislation Temporarily Bolsters Renewable Energy Industry

The American Taxpayer Relief Act of 2012 (ATRA), known as the “fiscal cliff legislation,” extends several federal renewable energy tax credits, including the production tax credit under section 45...


Expert Insight: The State Tax Treatment of Series LLCs

In this “Expert Insight,” well-known tax attorney and BNA Multistate Tax Advisory Board member Bruce Ely answers our questions about the emergence of Series LLCs and the questions surrounding the...


State Tax Snapshot: State Death Tax Credit Is Tossed Over the Fiscal Cliff

For the most part, the American Taxpayer Relief Act of 2012 (ATRA), which President Obama signed into law Jan. 2, will maintain the status quo for the states.  This is primarily because many key...


Weekly Round-Up: A Lack of Clear Standards for Alternative Apportionment

Alternative apportionment can be invoked in California when the inclusion of receipts from an activity qualitatively different from the taxpayer's principal business leads to substantial...


Sales Tax Slice: 7 States Out of Compliance With Streamlined Sales and Use Tax Agreement

The Streamlined Sales and Use Tax Governing Board began in March 2000 as an effort to find solutions for the complexity in state sales tax systems resulting from the U.S. Supreme...


Incentives Watch: Renewable Energy Tax Credits Expected to Continue to Grow in 2013

The New Year brings a fresh start to us all. In particular, the wind industry is having a really good year so far, as the production tax credit was extended for all wind energy projects starting...


Weekly Round-Up: Assessing Taxpayer Risks While Gillette Litigation Continues to Unfold

In Gillette Co. et al. v. California Franch. Tax Bd.,  t he California Court of Appeal held that the formula under the Multistate Tax Compact for allocating and apportioning income remains...


Sales Tax Slice: Massachusetts Is Latest State to Strike Deal With Amazon

As states are becoming more aggressive in their pursuit of additional revenue from sales made over the Internet, online retailers are increasingly facing the prospect of sales tax collection...


Incentives Watch: Weighing Federal New Markets Tax Credit’s Impact at State Level

As the end of the year looms (or the world, if you follow the Mayan calendar), certain tax credits are in danger of expiring if Congress does not act soon to extend them. One expired credit is the...


State Tax Snapshot: Trailing Nexus Can Be a Lingering Problem in Some States

Nexus, which generally refers to the threshold of contact that must exist between a taxpayer and a state before the state has jurisdiction to tax the taxpayer, has long been a gray area for...


Weekly Round-Up: The Multistate Tax Compact on Trial

On Nov. 13, the California Franchise Tax Board filed a petition with the California Supreme Court requesting review of the California Court of Appeal's decision in Gillette Co. v. Franchise Tax...


Sales Tax Slice: Voluntary Disclosure Could Pave the Way to a Fresh Start

The dawn of a new year signals a time to begin anew and leave behind the cares and bad habits of the previous year. In the state tax arena, the opportunity for a fresh start goes beyond New Year's resolutions.   Many states offer voluntary compliance programs aimed at providing favorable treatment to taxpayers that voluntarily disclose the nonpayment or underpayment of sales or use tax obligations.

 


Incentives Watch: With ROI in Doubt, Enterprise Zone Program Faces Budgetary Chopping Block

Most states offer some type of tax credit for businesses investing or creating jobs in economically depressed areas designated as enterprise zone. These incentives are meant to stimulate the local...


Expert Insight: Will Federal Remote Legislation Advance in the Final Weeks of the 112th Congressional Session?

In this Expert Insight, Sylvia F. Dion, owner of a state tax and employment tax consulting practice, analyzes the prospects so-called “remote seller” legislation being enacted by Congress...


State Tax Snapshot: Lack of Uniformity, Whistleblower Lawsuits Among Biggest Issues in Sales and Use Tax Arena

Bloomberg BNA's Assistant Managing Editor for State Tax, Steven Roll, recently participated in a virtual roundtable conducted by Accounting Today with other state tax experts, which addressed recent trends in sales and use tax issues.


 


Weekly Round-Up: Highlights of the New York University's 31st Institute on State and Local Taxation

This year marks the twentieth anniversary of the U.S. Supreme Court's decision in Quill Corp. v. North Dakota , and the Supreme Court has given every indication that it will not be taking any...


Sales Tax Slice: Revenue Department Holiday Wish Lists Include Use Tax Compliance, Will You Deliver?

This year's record-setting Cyber-Monday sales demonstrate the dramatic and continued increase in internet-based transactions. As many consumers are unaware that they may required to remit use tax, many state revenue departments have recently issued friendly reminders of consumer use tax collection obligations, especially relating to internet purchases.


Incentives Watch: Sour Economy Throws Harsh Light on Job Incentive Deals

The District of Columbia recently enacted a law giving LivingSocial certain real property tax and corporate income tax abatements, starting in 2015, for hiring and maintaining employees who are...


Expert Insight: The Tax Reform Possibilities of California's New Super Majority

The November 6 election resulted in significant voter-initiated statutory tax changes in California and set the stage for a super-majority of Democrats in both houses of the legislature in 2013. In...


State Tax Snapshot: And the Winner Is...

Each year, Bloomberg BNA presents the Latcham Award for Distinguished Service in State and Local Taxation. The award is named for Franklin C. La tcham, Advisory Board chair and founder of BNA...


Weekly Round-Up: Welcome to Washington State (Even if You Never Bother to Visit)

State and local tax lawyers are familiar with the physical presence nexus standard. However, with certain taxpayers, that familiarity is useless under Washington's new economic nexus standards...


Incentives Watch: Tax Credit Form Instructions Trump Regulations, State Finds

Many times states enact a tax credit, only to leave it to the departments of revenue to issue implementing regulations. So what happens when the department’s tax credit regulations contradict the...


State Tax Snapshot: Fiscal Cliff Would Yield Mixed Results for States

Because state tax codes are linked to the federal tax code in various ways, many of the expiring I.R.C. provisions that comprise the so-called fiscal cliff will have a mixed impact on state coffers, according to a recent report by the Pew Center on States .


Weekly Round-Up: Retroactive Tax Legislation: Where Is the Modesty?

Retroactive taxes generally must be limited to a modest period of retroactivity. However, with the U.S. Supreme Court's denial of cert.  in the Miller v. Johnson  and General Motors  cases,...


Incentives Watch: As Energy Credits Teeter on Fiscal Cliff, States Try to Hang On

At a time when many federal energy tax credits are about to expire as part of the so-called “fiscal cliff,” states are receiving even more pressure to support the alternative energy industry. ...


State Tax Snapshot: Will a Dive Off Fiscal Cliff Revive State Death Taxes?

If Congress and President Obama fail to strike a tax deal to avert the so-called “fiscal cliff,” taxpayers subject to the estate tax could leave their heirs facing both federal and state tax liabilities.


Weekly Round-Up: California Embarks on Bold Tax Policy Experiment (Again)

Along with its beautiful beaches, mountains, and movie stars, California also boasts the 9 th largest economy in the world. But after the 2012 elections, it is another of the Golden State’s...


Sales Tax Slice: Tax Planning for Turkey Day, Black (Thursday?) Friday, and Cyber Monday

With only days remaining to prepare for Thanksgiving, Black (Thursday?) Friday, and Cyber Monday, we should all take a few moments to mentally and physically prepare for the festivities, count our blessings, and be thankful for the sales and use tax guidance that has been so graciously provided by our state and local governments.  Without their forethought and attention to detail, we could spend all day trying to determine if, when, and how much tax applies to retail transactions.


Incentives Watch: Monetizing State Tax Credits? There’s an Exchange for That

State tax credits can be of no value to a company without income tax liability. As a result, many states are making “transferrable tax credits” available, which allow qualified companies that owe no...


Weekly Round-Up: Quill Safe Harbor Extends to Sales of Intangibles Through the Internet, Leading State Tax Experts Argue

From mail-order to the Internet, the Supreme Court refused in Quill  to break with Bellas Hess  and the novelties of Internet commerce in intangibles should not affect the precedent expressed in...


Sales Tax Slice: Colorado to Tax (Still Illegal) Marijuana Sales, Arkansas and California Approve Rate Hikes

The 2012 state elections included a vast array of tax measures, including a number of sales tax measures, including the approval of an excise tax on marijuana in Colorado.  Arizona voters rejected a bid to increase the state's sales tax by one percent. But sales tax hikes were approved in Arkansas and California.

 


Incentives Watch: Is Your Green Energy Credit Constitutional?

Federal and state constitutional clouds may linger over one of the main inducements offered to consumers and producers of alternative energy: state tax credits. Many tax credits are aimed at luring...


State Tax Snapshot: With FTB Set to Appeal Gillette, Practitioners Eye Opportunities

 In its petition to the California Supreme Court for review of the ruling in the Gillette case regarding apportionment of multistate income, the Franchise Tax Board will focus on findings in the appellate court's decision related to the impairment of contracts and rules for reenactment of state laws, Laura Mahoney reported for Bloomberg BNA's Daily Tax Report .


Weekly Round-Up: Chainbridge Under Fire…Again

Chainbridge Software LLC “unlawfully violated the fundamental purpose” of tax code Section 482 in a transfer pricing study it conducted for the District of Columbia, BP Products North America Inc....


Sales Tax Slice: Cleaning Up in Sandy's Wake

In the wake of Superstorm Sandy, businesses, homeowners, and governments from the Mid-Atlantic to New England are facing an enormous task of cleaning up, repairing, and rebuilding property. The state tax implications reach many different tax types, but one area in particular that frequently causes confusion is the application of sales and use tax to repair and installation services, and construction materials and services, especially for transactions involving contractors and subcontractors.


Incentives Watch: Solar Energy Receives Voter Support in the United States

It appears to be solar energy’s time to shine. Further solar energy development is supported by 92 percent of U.S. voters, according to a CleanEnergyAuthority.com article . The poll was conducted...


Weekly Roundup: How State Tax Departments Are Classifying Cloud Computing Transactions

“Cloud computing vendors and users should expect state sales and use tax treatment of cloud computing to continue to change and evolve, but clarity and uniformity may not be achievable in the...


Sales Tax Slice: Home Depot’s Big Win in Michigan Cuts Against the Grain

Can retailers claim a credit or deduction for the sales taxes paid on uncollectible transactions from retailer-issued credit cards? The majority of jurisdictions that have broached the subject have decided against the retailers.


Incentives Watch: Audits Probe Into Whether Credit Programs Are Effective

Whether state tax credits are effective, in terms of costs versus benefits to the state, is a constant source of debate. One way to answer this question is to see how effective the credit is in...


Telecommuting Tax Confusion: Why the Federal Proposal for a Uniform Nexus Standard for Multi-State Employees Won't Work

The Mobile Workforce State Income Tax Simplification is one of the most popular bills on the Hill today and would establish a uniform standard to determine whether an employee who works in...


Weekly Round-Up: The Perils of Allowing Employees to Telecommute

Telecommuting is increasingly becoming a common employment arrangement. Yet, despite the numerous advantages of telecommuting to both companies and employees, employers are hesitating to offer the...


Sales Tax Slice: Have Your Cake, And Eat It, Tax Exempt?

With grocery stores striving to meet the needs of increasingly busy families, the availability of prepared meals offered at grocery stores is on the rise. The broad spectrum of food preparedness levels is geared toward consumer convenience, but presents a tax-headache for businesses seeking to comply with differing state-drawn lines between nontaxable grocery items and taxable prepared foods.


Incentives Watch: Are Disinterested Consumers Killing the Electric Car?

Despite the availability of numerous tax credits and incentives, not to mention countless commercials and even movies about the industry itself, electric vehicle sales have yet to meet expectations....


State Tax Snapshot: 2013 BBNA State Tax Department Survey to Cover Additional Topics

The 2013 Bloomberg BNA Survey of State Tax Departments will cover additional topics concerning state taxation. The annual survey aims to provide answers to certain gray areas for which state tax departments typically offer little guidance. Each year, new queries are added to the questionnaires that are sent to state tax department officials in the fall.


Weekly Round-Up: Penalty May Come Swiftly in Wake of Gillette, But Refunds May Take Years

The California Franchise Tax Board warns corporate taxpayers facing an Oct. 15 deadline to file state income tax returns that they risk a 20 percent understatement penalty if they assign income to...


Incentives Watch: Renewable Energy Fuels Debate as Stakeholders Vie to Steer Policies

The debate over the future of renewable energy is burning bright as the federal wind energy production credit is set to expire in 2013 and energy policy has emerged as an issue in the presidential...


Weekly Round-Up: California Court Stands Firm on Gillette Decision With Only Razor Thin Tweaks

A state appellate court affirmed its own earlier ruling that California must allow corporate taxpayers to apportion multistate income based on a formula that tax administrators argued was repealed...


Incentives Watch: States Can’t Resist Luring Movie Industry, Despite Debate Over Benefits

California, North Carolina, and New York have all recently extended or enhanced tax credits aimed at the film industry, despite doubts raised over whether such incentives are worth the cost. The Tax...


Bloomberg BNA Tax Policy Summit: Post-Election Answers to “What Now”

"Taxmaggeden," new reporting requirements under "Obamacare," and competing tax reform initiatives are just some of the uncertainties or "what ifs" that await corporate tax professionals after the November elections.


Weekly Round-Up: Deal-of-the-Day Wins Approval from Streamlined Sales Tax Governing Board

The Streamlined Sales Tax Governing Board Inc. (SSTGB), at its annual meeting Sept. 20, adopted an interpretive rule (RP12013) that governs so-called “deal-of-the-day” vouchers, Bloomberg BNA...


Incentives Watch: Are State Tax Credits Offered to Big Businesses Good or Bad for the Economy?

Almost all states offer some sort of tax credit to lure companies to their jurisdiction with the hope that new jobs and business will be created. Although legislators continue to enact more and more...


State Tax Snapshot: Procedural Issues Are Likely Obstacle for Online Sales Tax Bills

With three proposals pending in Congress to grant states authority to collect sales tax from remote retailers, it seems that the prospect of enacting such a measure has never been better.


Weekly Round-Up: Sixth Circuit Decision Marks Another Victory for Online Travel Firms

Online travel companies (OTCs) like Hotels.com L.P., Expedia Inc. and Priceline.com Inc. do not owe occupancy taxes on the mark-up they charge customers who book hotel rooms on their internet...


Incentives Watch: States Are Laboratories of Democracy for Biotech Credits

In absence of a federal tax credit for investing in biotech companies, many states have filled the void by offering generous incentives for investing in qualified startups. A federal bill that...


State Tax Snapshot: Will Unclaimed Property Be a 'First Priority' for the U.S. Supreme Court?

Two petitions for certiorari regarding unclaimed property disputes are pending before the U.S. Supreme Court.  Both cases arise from controversial amemdments made to New Jersey’s escheat statutes in...


Weekly Round-Up: Kansas Mud? State Attempts to ‘Clarify’ its Treatment of Reimbursement Costs

In a decision that addresses the complications of how to compute sales and use tax, the Kansas Court of Appeals scrutinized the state's taxing statutes to clarify that reimbursement of travel...


Incentives Watch: A Constitutional Cloud Lingers Over States’ Amazon Deals

Rather than continue to resist collecting sales tax in some jurisdictions, Amazon has brokered deals in some states in which the state agrees to defer imposing tax in exchange for the internet...


State Tax Snapshot: Do You Know Where Your Web Server Is?

Compliance requirements arising from the location of internet servers are among the most challenging issues to resolve, nearly a third of the tax executives polled by KPMG LLP said in a recent survey . This problem is made worse by another main finding of the survey: most tax professionals are generally not included in discussions with top management of other departments in their organizations to provide tax perspectives on cloud initiatives.

 


Weekly Round-Up: Are Taxing Authorities Holding Your SALT Planning Captive?

Captive insurance companies, which enjoy certain tax advantages under state law, lately have made their appearance in corporate structures as a means of preserving tax benefits that would not...


Incentives Watch: States Encourage Businesses to Hire With Job Creation Credits

Delaware has enacted legislation related to job creation credits in the state. In S.B. 271 , Delaware expands eligibility for the New Economy Jobs Credit program to employers relocating at least...


Weekly Round-Up: A Closer Look at Medicaid Expansion Under the Affordable Care Act

With the Republican National Convention wrapping up and the Democratic National Convention set to begin, voters are hearing drastically different perspectives on Obamacare. In this week’s...


State Tax Snapshot: Where Do Obama and Romney Stand on BATSA?

One of the few things on which both parties seem to agree is the need for significant tax reform. While much of the attention is on federal issues, neither President Obama nor Mitt Romney has said where he stands on pending federal bills that would bring about fundamental changes in state taxation.


Incentives Watch: Solyndra Who? New York Makes a Big Bet on Solar Energy

New York Gov. Andrew M. Cuomo (D) recently signed three pieces solar energy bills that are part of the NY-Sun Initiative. The legislation provides $107 million in incentives to encourage taxpayers...


Weekly Round-Up: The Continuing Impact of the Gillette Decision

During a Bloomberg BNA [BBNA] webinar this week , the implications of the California Court of Appeal decision in Gillette were discussed by Kendall L. Houghton , Matthew...


Incentives Watch: Employers Get a Boost with Enactment of Numerous Tax Credits for Hiring Veterans

Delaware recently enacted a new tax credit for hiring recent combat veterans. The credit, known as the Veterans' Opportunity Credit, is available to any business that hires a qualified veteran on or...


State Tax Snapshot: The Rise of Whistleblower Lawsuits

Jack Trachtenberg, counsel at Sutherland Asbill & Brennan LLP, talks with Bloomberg Law's Spencer Mazyck about the application of the False Claims Act in state taxation and the growing...


Weekly Round-Up: California Court Reconsiders Its Ruling on Apportionment, Multistate Tax Compact

On its own motion, a state appellate court said it will revisit its July 24 ruling that California must allow taxpayers to apportion multistate...


Incentives Watch: As Children Go Back to School, Scholarship Tax Credits Make It Easier for Them

More and more states are enacting income tax credits for taxpayers that make contributions to certain scholarship programs. With states facing revenue shortfalls and the tightening of school budgets,...



Weekly Round-Up: State Tax Experts Converge at Annual Georgetown Conference

State tax officials and practitioners from 37 states gathered at Georgetown University Law Center for two days to present and discuss current and evolving state and local tax issues, Bloomberg BNA...


Incentives Watch: Small Breweries Given Tax Break in New York

New York’s Governor recently signed legislation creating an income tax credit for certain small breweries in the state. In order to qualify for the credit, the brewery must produce no more than 60...


Weekly Round-Up: The Aftermath of the Gillette Decision

Bloomberg BNA Tax Law Editor Erin McManus, in this week’s issue of the Weekly State Tax Report , takes a closer look at the impact of Gillette Co. v. Franchise Tax Board , No. A130803 (Cal. Ct....


Incentives Watch: Back to School Means Back to Sales Tax Holidays, But Are They Worth It?

It’s that time of year again – the end of summer signals back to school for many families.   And it also signals the start of various sales tax holidays, as many states offer various sales tax...


State Tax Snapshot: States Reaping Benefits of Deferring Sales Tax for Amazon

Since 2011, Amazon has entered into agreements with several states. Under the typical agreement, Amazon promises to locate facilities within a jurisdiction in exchange for the state's agreement to defer sales tax collection until a future tax year. These agreements would be supplanted or preempted if federal legislation is enacted.


Weekly Round-Up: California Franchise Tax Board Suffers a Setback

In a loss for the California Franchise Tax Board, the three-judge panel of the state Court of Appeal said the tax agency cannot deny Gillette and five other corporate taxpayers the right to use the...


Incentives Watch: New York Businesses Denied Empire Zone Credits Due to Lack of Valid Business Purpose

In the past few weeks, New York has denied Empire Zone tax credits to taxpayers because they failed the valid business purpose test. The valid business purpose test requires that a company have a...


State Tax Snapshot: Prominent Experts to Analyze Hottest Trends at BBNA Roundtable

Leading state tax experts will convene at the Bloomberg BNA State Tax Advisory Board Roundtable to discuss the most important recent developments and trends in state taxation. The event will be held August 6 in conjunction with the Georgetown Advanced State and Local Tax Institute


Weekly Roundup: What's in Store for the MTC?

California's quick repeal of the Multistate Tax Compact to protect the state from a huge revenue loss in the Gillette case leaves in doubt the strength of the Multistate Tax Commission, with the viability of the compact threatened by a taxpayer win.

 


Incentives Watch: District of Columbia Offers Tax Breaks to Keep LivingSocial in the Area

LivingSocial is about to get a break in the nation’s capital – a tax break to be specific. A bill, known as the Social E-Commerce Job Creation Tax Incentive Act of 2012, was passed by the District...


State Tax Snapshot: A Threat to the Multistate Tax Commission Compact?

California recently enacted legislation (S.B. 1015) to withdraw from the Multistate Tax Commission Compact. Meanwhile, the state’s intermediate appellate court will soon issue a decision on whether the Compact’s provision affording a taxpayer the ability to elect a three-factor apportionment formula is binding on member states absent an express withdrawal from the compact.


Weekly Roundup: Obama Health Care Reform, Bane or Boon to the States?

Debate ensues on the fiscal impact of ObamaCare on the states, with o fficials from some states saying that the Medicaid expansion will be too costly for their states, and policy analysts claiming to the contrary--that the expansion will actually reduce state and local government costs for uncompensated care to the uninsured and offset some or possibly all of the states' increased Medicaid costs .


Incentives Watch: Pennsylvania Attempts to Lure Shell Plant with Attractive Tax Incentives

Pennsylvania enacted a new resource manufacturing tax credit in H.B. 761 , which has been the subject of much debate. The credit is meant to encourage Shell Chemical LP to build a petrochemical...


State Tax Snapshot: Still Reading State Tax Tea Leaves After Obamacare Decision

The issues before the U.S. Supreme Court in the Obamacare case included federal powers under the U.S. Commerce Clause, the federal government’s power to strip funds from states that balk at new requirements, and the Anti-Injunction Act. Before the decision, it seemed that the high court’s ruling might affect state tax jurisprudence.


Weekly Roundup: Time to Declare Independence from Sales Tax?

While efforts to prevent the further erosion of the sales tax base continue to fizzle, the VAT may offer the fireworks needed to revive state finances. The VAT certainly has been a mainstay in Europe, with the OECD having released this week a discussion draft of commentary on VAT neutrality. Perhaps now is time to look toward Europe, not in terms of 18th century enlightenment, but in terms of 21st century VAT.


State Tax Snapshot: Sales Tax Holidays

Sales tax holidays started in 1980, when Michigan and Ohio briefly experimented with tax breaks on automobiles. New York revived the tax holiday in 1997, with a temporary tax break on clothing priced up to $500. The tax break was intended to fight the tide of shoppers crossing into New Jersey and other neighboring states with lower sales taxes.


Weekly Roundup: Supreme Court Decision on Health Care: How are the States Likely to Respond?

On Thursday, the U.S. Supreme court ruled on the constitutionality of the Patient Protection and Affordable Care Act, upholding the law's individual mandate as a valid exercise of Congress's...


Incentives Watch: New Hampshire First to Add Thermal Energy to Renewable Portfolio Standard

All “thermal” eyes were focused on New Hampshire this week, as it became the first state to add thermal energy to its electric renewable portfolio standards (RPS). An electric renewable portfolio...


State Tax Snapshot: Prospects of Federal Bills Granting Authority to Collect from Remote Retailers

Judging from a presentation from government and business stakeholders at the Federation of Tax Administrators annual meeting last week, it seems that the states are on the verge of being granted the authority to collect sales tax from remote retailers. Also, a poll on Bloomberg BNA's State Tax LinkedIn group shows unanimous agreement that Congress is likely to enact such legislation by the end of 2013.


Weekly Roundup: Remote Sellers' Top 10 Sales Tax Issues

With pending federal legislation to provide states complying with simplification requirements with the authority to require remote sellers to collect sales tax, the time to begin establishing centralized registration systems and clear guidance as to "what is and is not taxable," has clearly come.


Incentives Watch: Fate of Louisiana Alternative Fuel Vehicle Credit Still Up in the Air

Louisiana’s tax credit for alternative fuel vehicles is in limbo at the moment because Governor Bobby Jindal rejected emergency regulations related to the credit on June 14. The emergency...


State Tax Snapshot: Gift Cards Targeted for Escheat Enforcement

Gift cards are exempt from unclaimed property reporting requirements in many states. In states where gift cards are subject to escheatment, a three-to-five year presumed abandonment period applies. But a growing minority of states are stepping up their efforts to subject unredeemed gift card amounts to escheatment.  


Weekly Round-Up: The Evolution of Deal-of-the-Day Vouchers

State tax department guidance on the tax treatment of social media coupons such as Groupon or LivingSocial has evolved from treating the vouchers in the same manner as a gift certificate to treating the vouchers as a cash discount, state tax experts participating in a June 12 Bloomberg BNA Webinar said.


Incentives Watch: Louisiana Enacts Slew of New Incentives for Businesses

Louisiana has recently enacted a number of new incentive programs for businesses. One incentive, the Corporate Headquarters Relocation Program, provides a rebate of 25 percent of costs related to the...


State Tax Snapshot: 2012 Personal Income Tax Rate Changes

With most state legislative sessions drawing to a close, jurisdictions are generally following the trend that began last year of avoiding tax increases, and in some cases, cutting taxes as revenues begin to climb back to pre-recession levels.


Weekly Round-Up: States Find Unclaimed Property Closes Revenue Gaps

While most states have avoided raising raise taxes over the past year, many jurisdictions are eyeing alternative sources of revenue such as unclaimed property. One advantage to this approach is that it generally avoids media scrutiny. Until it doesn’t -- as discovered by Delaware and New Jersey.


Incentives Watch: Small Businesses Seek Access to Renewable Energy Incentives

As states offer more and more renewable energy tax incentives, small businesses are seeking to take advantage of the situation by getting into the renewable energy business.


State Tax Snapshot: 5 Innovative Developments in State Taxation

It would be reasonable to assume that progress in tax administration is stagnating due to partisan bickering in Congress and state legislatures. But new administrative practices recently adopted by some states are examples of how certain jurisdictions are still fulfilling their roles as laboratories of democracy.


Weekly Round-Up: Another State Strikes a Deal with Amazon

The online giant Amazon.com will begin collecting sales tax on purchases made by New Jersey residents in exchange for state help in building Amazon facilities. Amazon's collection of sales tax begins on July 1, 2013, or if earlier, the effective date of federal legislation that would give states the power to enforce collection of sales tax from online sales.


Incentives Watch: Another State Makes a Deal With Amazon.com Regarding Sales Tax Collection

Amazon.com recently entered into a deal with New Jersey to begin collecting sales taxes on purchases made by state residents in exchange for help in building facilities in the state, according to an article in Bloomberg BNA Daily Tax Report .


Weekly Round-Up: Sales Tax Treatment of Deal-of-the-Day Stumps SST Governing Board

All states, including the 21 states that fully adopt the Streamlined Sales Tax Agreement, exclude “cash discounts” and “seller's coupons” from the definition of sales price, but complexities arise with respect to “manufacturer's coupons,” especially when this paradigm is applied to social media coupons and other types of emerging discount transactions, Roll and Swann explain.


Incentives Watch: Is New Jersey’s Solar Initiative a Victim of its Own Success?

New Jersey is a leader in the use of solar energy, second only to California in terms of installations and installed capacity, according to New Jersey’s Clean Energy Program . But now, New...


State Tax Snapshot: Growing Minority of States Adopt Factor Presence Nexus Standards

State tax departments continue to show a broad and growing acceptance of “economic nexus” theories for purposes of income tax nexus determinations, according to Bloomberg BNA’s 2012 Survey of...


Weekly Round-Up: Is Arizona Going Against the Grain on the Use Tax Liability Reporting?

Arizona recently repealed a year-old requirement for a statement of use tax liability for online purchases on a taxpayer's income tax return, according to a story in this week’s issue of...


Incentives Watch: New Film Credit Study Examines Benefits and Costs of State Programs

The effectiveness of state tax incentive programs requires the attraction of film productions that would have not otherwise been filmed there, according to a recently released study by Ernst...


State Tax Snapshot: Some States Don’t Issue, Release Private Letter Rulings

Some states do not issue private rulings at all, while others do not make them available to the public, according to a panel discussing the transparency obligations of state and local government at the American Bar Association’s Tax Section Meeting in Washington, D.C., May 11.


Cloudy with a Chance of Nexus: Bloomberg BNA Webinar to Analyze 2012 Survey of State Tax Departments

The results of Bloomberg BNA's 2012 Survey of State Tax Departments will be analyzed by state tax policy experts on both sides of the nexus debate in "Cloudy with a Chance of Nexus," a Bloomberg BNA Webinar to be offered from 12:30 to 2 p.m. on May 17.


Incentives Watch: Wind Industry Growth Strong Despite Uncertainty Over Federal Production Tax Credit’s Fate

Controversy around the federal production tax credit continues as the clock ticks down to the end of 2012, when the credit is currently set to expire.


State Tax Snapshot: Different Amazon Laws Meet Similar Fate

States have adopted different approaches to attempting to require remote vendors such as Amazon to collect sales or use tax. Two of these approaches suffered a blow recently after a federal...


Weekly Round-Up: The Beginning of the End for Amazon Laws?

Amazon Laws took two major hits recently. Last week, an Illinois state court judge sided with the electronic marketing industry in its challenge to the state's so-called Amazon tax law, ruling April 25 that the law violates the Constitution and federal rules governing electronic commerce, Bloomberg BNA correspondent Michael Bologna reported.


Incentives Watch: Alabama Seeks to Attract Data Centers By Offering Enhanced Incentives

Alabama recently passed legislation aimed at attracting data centers to the state. With the enactment of H.B. 154 , known as the Alabama Data Processing Center Economic Incentive Enhancement Act, the state is positioning itself to become a very desirable spot for data centers to locate to within the country.


State Tax Snapshot: States Differ in Characterizing, Sourcing Cloud-Computing Receipts

States differ in the manner in which they characterize and source receipts arising from fees paid by in-state customers to access an out-of-state corporation's software via a third-party's cloud infrastructure, according to the Bloomberg BNA 2012 Survey of State Tax Departments .


Weekly Round-Up: Sales Tax Nexus Takes Center Stage

An Illinois state court judge sided with the electronic marketing industry in its challenge to the state's so-called Amazon tax law, ruling April 25 that the law violates the Constitution and federal rules governing electronic commerce, Bloomberg BNA correspondent Michael Bologna writes in the Daily Tax Report .


Incentives Watch: Unique Health Enterprise Zone Program Created in Maryland

Maryland enacted legislation, S.B. 234, that establishes a process for designating health enterprise zones in the state. The legislation provides various credits and incentives to certain health care practitioners working in those zones.


State Tax Snapshot: Bloomberg BNA Survey Addresses Sales, Income Tax Nexus Cloud Computing, Deal-of-the-Day Vouchers

2012 04 23 In Bloomberg BNA's 12th annual Survey of State Tax Departments, we asked many questions aimed at clarifying each state's positions on the gray areas of corporate income and sales and use tax



Incentives Watch: More Consumers Eligible for Colorado’s Innovative Motor Vehicle Credit

The number of hybrid cars purchased last month jumped dramatically from 34,000 in March 2011 to 52,000 in March 2012. This number sets a record for the hybrid vehicle market.


State Tax Snapshot: Kentucky, Ohio, and Texas to Grant Tax Amnesty in 2012

For 2012, amnesty programs will be offered in Kentucky, Ohio, and Texas.


Weekly Round-Up: Another Week, Another Amazon Law

Virginia recently joined other states this year by enacting a so-called “Amazon Law,” creating a presumption of nexus for certain out-of-state dealers, with the effective date of the provisions dependent upon federal legislation.


Incentives Watch: West Virginia and Other States Establish Tax Credits For Coal Companies

Despite the popularity of renewable energy, more and more states are enacting tax credits that benefit the coal industry.   For example, Alabama recently expanded its capital tax credit to include investments in the coal mining industry.   


State Tax Snapshot: Use Tax Notification Requirements in Doubt After Colorado Law Struck Down

In Direct Marketing Association v. Huber , No. 1:10-CV-01546-REB-CBS (D. Colo. March 30, 2012), a federal judge in Colorado struck down as unconstitutional the state's reporting requirements imposed on out-of-state vendors that sell to Colorado consumers but do not collect and remit state sales and use taxes. The decision could provide ammunition for remote sellers to challenge use tax notice requirements imposed by other states.


Weekly Round-Up: The Battle Rages On Over Contingent-Fee Transfer Pricing Audits

Chainbridge Software LLC, a Fairfax, Va., contractor that conducts state transfer pricing studies with a patented method of analysis, is at the center of a multistate controversy in which taxpayers have been pushing back hard-not only against massive assessments arising from the contractor's work, but also against the very practice of hiring third parties to conduct such studies.


Incentives Watch: States Offering Tax Credits for Employers Hiring Recently Deployed Veterans

More and more states are enacting income tax credits for recently deployed veterans.   In Alabama, for example, legislation was enacted that establishes a tax credit for small businesses hiring recently deployed veterans and for recently deployed veterans starting up their own businesses in the state.  


State Tax Snapshot: (Most) States Not to Blame for Tax Pain at Gas Pump

Gas taxes are levied at a fixed rate per gallon in 36 states, according to ITEP. The result is that the same number of cents are collected per gallon regardless of price fluctuations. “State gas taxes are a less significant part of families’ household budgets than they have been in eighty years,” ITEP reported.


Weekly Round-Up: States Outlaw Zappers, a New Variation on ‘Hidden Cash Register’ Trick

A customer pays cash for her order of soup, salad, and steak at a restaurant. When the restaurant is audited for sales tax liability, the steak order has disappeared from the restaurant’s records. What happened to it? Chances are the transaction was “zapped” or deleted from the restaurant’s receipts through the use of data suppression software.


Incentives Watch: California Guidance Issued on Research and Development Credit

The California Franchise Tax Board recently issued guidance that clarifies when a taxpayer can claim the research and development credit based on California's definition of gross receipts.   


State Tax Snapshot: Apple Dividend Shines Spotlight on Federal, State Capital Gains Treatment

Nearly all the states tax capital gains at the same rate as ordinary income. But some jurisdictions offer deductions, exclusions, or credits related to such income.


Weekly Round-Up: The Myriad of State Tax Issues Facing Groupons

Groupon and LivingSocial are arguably the biggest and most widely subscribed to web-based "deal-of-the-day" discount coupon programs. [For those closely following this developing trend, keep an eye out for Bloomberg BNA's 2012 Survey of State Tax Departments, set to be issued in late April, which will offer an in-depth look at each state's tax treatment of these social media coupons.] 


Incentives Watch: States Offering a Variety of Incentives to Attract Data Centers

Nebraska recently enacted a bill that offers tax incentives, including sales and use tax refunds and personal property tax exemptions, to companies that build large data centers in the state.


State Tax Snapshot: Expiration of Bonus Depreciation, Enhanced Expensing

2012 03 19 Key federal tax breaks set to expire in 2012 include bonus depreciation (I.R.C. §168(k)) and increased first year asset expensing (I.R.C. §179). The end of these enhanced deductions at the federal level


Weekly Round-Up: Food for Thought

Food, specifically the sales tax treatment of food, seems to be on the minds of many state officials these days.


Incentives Watch: Virginia Encourages Telework by Offering Tax Credit, Adopting Taxpayer-Friendly Nexus Policy

Telework has enabled many companiesto allow more employees to work from home. Some advantages to this include less traffic and strain on the environment.


State Tax Snapshot: Can Telecommuting Trigger Corporate Income Tax Nexus?

The presence of a single employee telecommuting from New Jersey is enough to subject an out-of-state corporation to the state's Corporation Business Tax, the New Jersey Superior Court, Appellate Division held in Telebright Corp. v. New Jersey Div. of Taxn. , N.J. Super. Ct. App. Div., No. A-5096-09T2 (March 2, 2012) .


Weekly Round-Up: New Jersey’s Aggressive Stance on Telecommuters

The presence of a single employee telecommuting from New Jersey is enough to subject an out-of-state corporation to the state's Corporation Business Tax, according to a new decision issued by the New Jersey Superior Court, Appellate Division.


Incentives Watch: Tax Foundation State Comparison Study Plays Down Effectiveness of Tax Incentives

A new Tax Foundation study, called Location Matters: A Comparative Analysis of State Tax Costs on Business, analyzed the costs of doing business in each of the 50 states and examined the economic impact of five types of tax incentives, including new job credits, investment credits, research and development credits, payroll withholding tax rebates, and property tax abatements.


State Tax Snapshot: Arizona Joins Growing List of Market-Based Sourcing States

Arizona recently enacted legislation (S.B. 1046) allowing corporate taxpayers the option of sourcing income to the state based on sales into its market. In doing so, the state joins a growing minority of jurisdictions that have adopted a market-based method for sourcing ( i.e. , determining which state is entitled to tax) multistate transactions involving the sale of services or intangibles.


Weekly Round-Up: New Jersey Backtracks From Controversial TAM

A new technical advisory memorandum on advance pricing agreements , Technical Advisory Memorandum TAM-2012-1, was issued by the New Jersey Division of Taxation to clear up taxpayer confusion arising from an earlier TAM, and not to reflect a change in tax policy, a senior state official told Bloomberg BNA reporters Erin McManus and Dolores Gregory.


Incentives Watch: Are Transferable Tax Credits Going to Become a Thing of the Past?

There has been a lot of interest lately regarding the transferability of tax credits.   Last week, we mentioned how the Obama administration is trying to persuade corporations to invest in clean energy, despite the end of a grant program that paid developers for unused credits.   As a result, clean energy investors are now going to need to rely even more on the tax equity market.


State Tax Snapshot: More States Likely to Jump on Affiliate Nexus Bandwagon in 2012

After a brief lull in 2010, when no states enacted an affiliate nexus provision, 2011 saw Arkansas, Connecticut, Illinois, and Vermont all adopt such a law. Meanwhile, California enacted an affiliate nexus law last year only to repeal it after it struck a deal with Amazon in which the law would be revived if a federal solution is not reached by September 2012.


Weekly Round-Up: Michigan's New Corporate Income Tax Leaves Many Questions Unresolved

Michigan’s new corporate income tax (CIT) took effect Jan. 1, 2012 and replaces the Michigan business tax (a combination gross receipts, net income tax), which replaced the single business tax (value added tax) in 2008. About 30 years before that, the single business tax replaced a corporate income tax.


Bloomberg BNA Survey: Clean Energy Tax Equity Partner Arrangements

The Obama administration is attempting to persuade U.S. corporations about the benefits of investing in clean energy in an effort to support the renewable energy industry after a government grant program expired, according to recent news reports.


Weekly Round-Up: What Obama’s Budget Proposal Will Mean for States

As legislative sessions kick into high gear, some states have updated their conformity to the Internal Revenue Code. Meanwhile, President Obama has released his proposed budget for 2013, which contains some key tax changes that could affect state coffers.


Incentives Watch: Impact of State Wind Incentives Questioned, as Federal Credit Set to Expire

With the federal tax credit for wind power set to expire at the end of 2012, industry representatives have said that they are hesitant to move forward on future projects before the incentive is in place for future tax years.


State Tax Snapshot: Many States Say Affiliate Nexus Is Already in Tax Code

Over the past few years, several states have enacted laws imposing “affiliate” or “click-through” nexus on online vendors with associates located within their borders. These states are Arkansas, Connecticut, Illinois, New York, North Carolina, and Rhode Island. A provision enacted by Vermont last year takes effect after 15 other states have adopted click-through nexus.


Weekly Round-Up: North Carolina, D.C. Tackle Combined Reporting Issues

Combined reporting has been a hot topic in North Carolina after the state enacted a 2011 law that aimed to place restrictions on the revenue department’s power to require combined income tax returns.


Incentives Watch: It’s Electric!

Judging by news reports, it would appear that electric vehicles have been embraced by both policymakers and consumers. Some lawmakers have looked to the cars as a means of responding to the threat of global warming and the need to wean the United States off foreign oil. Electric vehicle tax credits and incentives are offered by a number of states, including Arizona, California, Colorado, Maryland, Oregon, Pennsylvania, Rhode Island, South Carolina, and Utah.


State Tax Snapshot: A New Rationale for Volunteer Nexus

Tennessee may impose sales and use taxes on mail order and online sales made by Scholastic Book Clubs Inc., the state’s Court of Appeals ruled recently. The court found that the Missouri-based vendor that enlists in-state teachers to facilitate sales to school children had sufficient connections with Tennessee’s schools and teachers to establish substantial nexus under the U.S. Commerce Clause.


Weekly Round-Up: Pennsylvania Gives Online Retailers a Temporary Reprieve

The deadline for online businesses and other remote sellers with a physical presence in Pennsylvania to begin collecting state sales tax has been extended until Sept. 1 by the Pennsylvania Department of Revenue, according to a report in this week's issue of Bloomberg BNA's Weekly State Tax Report.


Incentives Watch: Lights, Camera, Too Much Action?

I, for one, enjoy watching famous actors filming a scene down the street, but does it mean that states should continue to offer film tax credits, considering the tremendous budget challenges they face nowadays?


State Tax Snapshot: The Most Important Nexus Cases You’ve Never Heard Of

Three important nexus rulings discussed at a recent Bloomberg BNA State Tax Advisory Board Roundtable most likely did not show up on the radar screens of many state tax practitioners. This is so even though two of the decisions were from the U.S. Supreme Court and one was from the U.S. Second Circuit Court of Appeals.


Weekly Round-Up: Tax Debtors in California Beware

A joint collective effort by the Franchise Tax Board and Board of Equalization that posts on the Internet a list of the state’s 250 largest unpaid state tax debtors has generated over $100 million since its inception, a press release by the FTB states.


Incentives Watch: Here Comes The Sun

New Jersey is leading the pack when it comes to providing solar incentives to various businesses. In fact, companies as far away as California are heading East to take advantage of New Jersey’s solar incentive program, according to a recent article in The Sacramento Bee.


State Tax Snap Shot: Keeping Tabs on State Legislatures

January has arrived, which means states throughout the country are convening their regular legislative sessions. The beginning of the year also marks an important time for state tax practitioners because effective compliance planning often requires tracking the changes that the different jurisdictions make to their state tax codes.


Weekly Round-Up: The Outlook for Federal E-Commerce Tax Legislation in 2012

Stakeholders are hopeful for an opportunity to advance federal legislation in 2012 that would allow states to require online and remote retailers to collect and remit state sales taxes despite a bleak outlook in Congress and tough opposition on a small business exemption, Liz White writes in this week's issue of the  Weekly State Tax Report .


Incentives Watch: New Year, New Credits

With a new year comes the vow to make resolutions.  This year, a number of states have already vowed to focus on offering new credits and incentives to entice businesses to their jurisdictions.


Weekly Round-Up: Indiana Scores a Deal With Amazon.com

Indiana reached an agreement with Amazon.com on the collection of Indiana sales tax on internet purchases, a  press release issued by Governor Mitch Daniels states .


Weekly Round-Up: Gifts Cards Lie at Heart of Washington Nexus Finding

An out-of-state mail-order retailer has substantial nexus with Washington based on its relationship with an in-state affiliate that sold gift cards to customers, distributed the out-of-state company's catalogs, and assisted the out-of-state company's customers, the Appeals Division of the Washington Department of Revenue finds.


Weekly Round-Up: No Tax Hikes on Horizon (Except for N.Y. Millionaires)

The past year saw most states keep their tax rates the same,reduce them ( e.g., Indiana ),or implement major reforms ( e.g. Michigan ). Two major exceptions were  Connecticut  and  Illinois , which both enacted tax increases.


Weekly Round-Up: The Tax Conundrum That Is Cloud Computing

This is the world of cloud computing—where activities that are rapidly moving to the web are also falling through the cracks of a sales tax regime crafted for a Depression-era manufacturing economy.


Weekly Round-Up: Illinois Reverses Its Position on Tax Treatment of Civil Unions

The Illinois Department of Revenue, according to a department official, has reached an agreement with civil rights organizations that will permit same-sex couples in civil unions to file their state income tax returns jointly, BNA staff correspondent Michael Bologna reports.


Weekly Round-Up: Michigan Taxpayers Prepare for State’s New Tax Regime

In Michigan, beginning Jan. 1, 2012, what is old becomes new again as, on that date, a corporate income tax (CIT) goes into effect, Patrick R. Van Tiflin, a partner with Honigman, Miller, Schwartz & Cohn LLP, writes in this week's issue of the  Weekly State Tax Report .


Weekly Round-Up: The Tax Mess Confronting Facebook’s New Data Center in Oregon

Oregon's Department of Revenue stirred up a political maelstrom by telling social networking giant Facebook that the department can assess global intangibles at its new data center in central Oregon's economically depressed high-desert country, Paul Shukovsky, a staff correspondent with BNA, reports in this week's issue of the  Weekly State Tax Report .


Weekly Round-Up: The Outlook for a Federal Solution to the Online Sales Tax Dilemma

Under California's A.B. 155, a new state law that required online retailers to collect sales tax was repealed retroactively to the June 28 date of enactment. But that law (ABX 28) will go back into effect Sept. 15, 2012, if no federal solution is enacted by July.


Weekly Round-Up: Film Tax Credits Suffer Setbacks in Iowa, and Beyond

A Polk County, Iowa, District Court judge has sentenced the former director of the Iowa Film Office to two years' probation for his efforts to secure tax credits for a film company between 2008 and 2009, Mark Wolski writes in this week's issue of the Weekly State Tax Report.


Weekly Round-Up: Tax Research in the 21st Century

One of the biggest challenges in researching state tax issues today is that many jurisdictions often have not enacted laws or issued guidance on the tax treatment of certain types of business transactions, Megan Mahony, co-practice leader, Ryan National Tax at Ryan, LLC, writes in this week's issue of the  Weekly State Tax Report .


Weekly Round-Up: States Eye Unclaimed Property as a New Revenue Source

For cash-strapped states, unclaimed property has emerged as a hot new revenue source, and they are going after that money through a variety of means—cutting down dormancy periods, expanding the scope of unclaimed property laws, and hiring third-party auditors to review the books of property holders, according to attorneys Kendall L. Houghton and Maryann H. Luongo, both with Alston & Bird.


Weekly Round-up: 'Amazon Laws' Come Under Fire

2011-10-07 Friday, October 7, 2011 Weekly Round-up: "Amazon Laws" Come Under Fire Five states enacted so-called "Amazon" or "click-through nexus" laws in 2011, but a panel of state tax experts, speaking in an Oct. 5 BNA Tax & Accounting webinar, questioned the constitutionality of the laws and said they


Weekly Round-up: Amazon.com and California Formalize Their Bargain

2011-09-30 Amazon and California have struck a deal as Gov. Jerry Brown (D) signed a bill on Sept. 23 to repeal California's two-month-old online sales tax collection mandate until September 2012, BNA staff correspondent Laura Mahoney reports in this week's issue of the Weekly State Tax Report. In return,


Weekly Round-Up: The Tax Treatment of Online Vouchers

2011-09-23 The popularity of online vouchers, such as Groupon and LivingSocial, has caused tax departments in New York and Massachusetts to take note. New York, this past week, released a technical memorandum on the application of sales tax to these vouchers. In New York, the sale of certain vouchers by


Weekly Round-Up: Cash-Strapped States Push the Envelope With Economic Nexus

In an effort to expand their tax bases, many states desperately looking for cash are turning to "economic nexus" as a means of bringing more money into their coffers, Charolette Noel and Karen H. Currie, both with Jones Day argue.


Weekly Round-Up: Amazon.com and California Strike a Bargain

Legislative leaders in California have reached an agreement with Amazon.com and retailers late Sept. 7 in which Amazon.com would drop its referendum to repeal the new use tax collection law in exchange for a one-year delay in enforcement of the law.


Weekly Round-Up: California's Voluntary Compliance Initiative II

Facing a multi-million dollar budget deficit for its 2010-2011 fiscal year, California created the state's Voluntary Compliance Initiative II program, which legislators estimated would bring the state $270 million in revenue.


Weekly Round-Up: Facebook, Twitter, and LinkedIn…Law Firms Take Notice

The popularity of online social media has exploded recently, and many tax and accounting firms are taking a close look at the benefits of participating in "what has become a normal part of life for millions of people in their personal lives," according to a new article by Rusty Little of Dow Lohnes Price.


Weekly Round-Up: The Battle Between Amazon.com and California Turns Ugly

A group of nonprofits have banded together and are asking customers to boycott Amazon.com in an effort to get the company to "stop cheating California" by trying to derail the state's new sales tax law, the Associated Press is reporting .


Weekly Roundup: Hard Won Victory for Maryland Taxpayer May Prove Short-Lived

A recent Maryland Circuit Court decision, Wynne v. Maryland Comp. of the Treas., holding that the state's credit for state taxes paid provision violates the U.S. Commerce Clause is being challenged by Maryland's Comptroller of the Treasury.   At issue is whether the credit for taxes paid to


Weekly Roundup: Sales Tax Holidays ­ Poor Tax Policy?

2011-08-05 This week saw the release of a new report by the Tax Foundation, Sales Tax Holidays: Politically Expedient but Poor Tax Policy , which takes a closer look at whether sales tax holidays actually live up to all their hype.   "Sales tax holidays are based on poor tax policy and distract p


The Simplification of State Tax Laws

Tax Executives Institute, Inc. has issued a letter supporting the enactment of H.R. 1864, the Mobile Workforce State Income Tax Simplification Act of 2011. H.R. 1864 is a measure that is designed to "create a uniform standard for the taxation by states of income earned by employees who travel fo


Sales Tax Nexus…A Cautionary Tale

The American Institute of Certified Public Accountants (AICPA) recently released its CPA Firm Top Issues Survey that took a look at "significant challenges facing practitioners."  But Rian Wilhite, of Peisner Johnson & Company LLP, says the AICPA survey should have focused instead


Take Me Out to the Ballgame…

The most closely watched game these days is not taking place on any sports field but in California between the state and online retail giant Amazon.com.   At the heart of the controversy is a new law that would impose a use tax collection duty on Amazon under certain circumstances…


A Click-Through Nexus Debate and Other Developments

So-called "click-through nexus" or "Amazon laws" do not impose an unreasonable burden on interstate commerce, Connecticut's revenue services director Kevin Sullivan argued during a June 30 BNA Tax & Accounting webinar.