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August 28, 2014

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...

August 27, 2014

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...

August 27, 2014

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...

August 26, 2014

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...

August 25, 2014

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...

August 22, 2014

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...

August 21, 2014

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...

August 21, 2014

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 ...

August 20, 2014

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...

August 19, 2014

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...

August 19, 2014

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...

August 18, 2014

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...

August 15, 2014

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...

August 14, 2014

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...

August 13, 2014

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,...

August 13, 2014

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...

August 12, 2014

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...

August 11, 2014

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,...

August 8, 2014

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,...

August 7, 2014

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...

August 6, 2014

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...

August 5, 2014

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...

August 4, 2014

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...

August 1, 2014

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...

July 31, 2014

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.

July 30, 2014

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...

July 30, 2014

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...

July 30, 2014

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...

July 29, 2014

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 ...

July 28, 2014

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:...

July 25, 2014

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...

July 24, 2014

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...

July 23, 2014

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...

July 23, 2014

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...

July 23, 2014

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...

July 22, 2014

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...

July 21, 2014

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...

July 18, 2014

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...

July 17, 2014

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...

July 16, 2014

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...

July 15, 2014

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...

July 14, 2014

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...

July 11, 2014

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...

July 10, 2014

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....

July 9, 2014

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....

July 9, 2014

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....

July 8, 2014

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...

July 7, 2014

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...

July 4, 2014

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...

July 3, 2014

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.

July 2, 2014

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...

July 2, 2014

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...

July 1, 2014

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...

June 30, 2014

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...

June 27, 2014

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...

June 26, 2014

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.

June 26, 2014

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...

June 26, 2014

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...

June 25, 2014

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”...

June 24, 2014

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. ...

June 23, 2014

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,...

June 20, 2014

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.,...

June 19, 2014

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.

June 19, 2014

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...

June 18, 2014

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...

June 17, 2014

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...

June 16, 2014

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....

June 13, 2014

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 . ...

June 13, 2014

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.

June 11, 2014

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...

June 11, 2014

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. ...

June 10, 2014

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...

June 9, 2014

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...

June 6, 2014

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...

June 5, 2014

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.”