The Bloomberg BNA SALT Blog is a forum for practitioners and Bloomberg BNA editors to share ideas, raise issues, and network with colleagues about state and local tax topics. The ideas presented here are those of individuals and Bloomberg BNA bears no responsibility for the appropriateness or accuracy of the communications between group members.
July 29, 2014
by Rishi Agrawal
In 2013, Wisconsin quadrupled the Historic Rehabilitation Tax Credit in the state from 5 percent to 20 percent of qualified expenditures through Wisconsin Act 20 in July and Wisconsin Act 62 ...
July 28, 2014
The annual Advanced State and Local Tax Institute at Georgetown University Law Center is fast approaching (Aug. 7 and 8). This
year’s Institute is organized into four themed segments:...
July 25, 2014
“An onslaught of complaints from
residents about fraudulent solicitation activity has pushed state legislatures
to create laws that require charities and other organizations to register...
July 24, 2014
exchanges under I.R.C. § 1031 are considered exempt transactions for income tax
purposes. However, the sales and use tax consequences of like-kind exchanges
may be a trap for the...
July 23, 2014
Governors across the country are facing budgetary tensions
that pit cuts to public pensions against raised property taxes. The chief
executives of Illinois, Pennsylvania and New Jersey have all...
It’s now legal to smoke pot in Colorado. Who would be the
least likely people to make a legal challenge to this state of affairs? Marijuana
advocates, you say? You’re right! A group of prominent...
While most states generally conform to the federal tax code, nearly all of the jurisdictions diverge from the Internal Revenue Code in some key areas. Identifying these areas of nonconformity can...
July 22, 2014
In the past month, Louisiana and Massachusetts passed legislation for tax amnesty programs, which give taxpayers a “fresh start” by greatly reducing or eliminating penalties and/or interest on past...
July 21, 2014
The Michigan legislature recently passed S.B. 327, enacted
June 24, 2014, which requires the Michigan Department of Treasury to issue
standards for the fair and courteous treatment of taxpayers by...
July 18, 2014
Companies and their employees face many deterrents to
telecommuting, such as the system currently in place for taxing the income of
multi-state employees, Nicole Belson Goluboff, author of The...
July 17, 2014
by Michael Kerman
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
by Rebecca Helmes
Fannie Mae and Freddie Mac are playing legal Whac-A-Mole
with state and local governments’ claims of the mortgage giants’ transfer tax
liability—and the mortgage giants are winning. The idea...
July 15, 2014
Starting in 2015, Maryland will gradually raise its $1 million estate tax exemption until it matches the federal estate tax exemption, which is estimated to be $6 million in 2019. Supporters of...
July 14, 2014
Corporations operating in more than one state must generally allocate
nonbusiness income to the state in which they are based and apportion business
income to the states in which they do...
July 11, 2014
One of the take away lessons that Ed Lazere, executive director of the D.C. Fiscal Policy
Institute, learned from his work on
the D.C. Tax Revision Commission was to listen to his instincts...
July 10, 2014
year 16 states, predominantly in the Southeast, will offer tax holidays on
items ranging from emergency preparedness equipment, to back-to-school
supplies, to energy efficient products....
July 9, 2014
by Annabelle Gibson
After years of hard work and vigorous debate, advocates of
medical marijuana can finally celebrate a victory in New York. Or did all the
hard work go up in smoke? New York Gov....
The difference between
residential and commercial assessments in New York City will likely grow as the
City Council adopted Mayor Bill de Blasio’s Fiscal
Year 2015 budget June 25....
July 8, 2014
With many states creating their own incentives to lure the film industry away from Hollywood, California felt it needed to make major changes in order to keep the film industry in its traditional...
July 7, 2014
Several states have recently enacted
legislation that will cut their corporate income tax rates. Proponents of these
measures argue that tax relief is necessary to remain competitive with...
July 4, 2014
Tax claims alleged by
whistle-blowers remain constant, fueling the conversation as to whether states
should bar qui tam tax claims from False Claim Acts. In this week’s
issue of the...
July 3, 2014
It's no surprise that a laundry list of items that qualify for
Illinois' sales and use tax exemption for machinery and equipment
used in farming includes tractors, combines, bailers, irrigation
equipment, cattle and poultry feeders, and excludes improvements to
real estate such as fences, barns, roads, grain bins and silos.
But, as what may seem a surprising request, one nonprofit
organization requested guidance from the Illinois Department of
Revenue as to whether nursery stock, such as fruit- and nut-
producing trees, qualify as exempt farming equipment.
July 2, 2014
The Arizona Department of Revenue’s decision to tax leased
solar panels has solar energy advocates, solar panel companies and lessees of
solar panels in less-than-sunny moods over their new...
Vermont has a reputation as a haven for campers and other enthusiasts
who love the outdoors. But in corporate planning circles it is known as a
paradise for companies that choose to self-insure...
July 1, 2014
The American film industry is virtually synonymous with Hollywood, but in recent years, other states have been luring film and television productions away from California. Now, 39 states and Puerto...
June 30, 2014
by Melissa Fernley
It is generally the taxpayer’s obligation to request a
refund of any overpayment of taxes. However, two recent developments suggest
that some jurisdictions are taking divergent positions on this...
June 27, 2014
The challenge in Gillette
relates more to states that do not provide the taxpayer the option to elect the
Compact's three-factor apportionment formula or which have insisted that a
June 26, 2014
by Ean Hamilton
amusement parks or sporting events are popular ways to spend time with the
family during the summer months, but ticket prices seem to rise a bit more each
In a quest for efficiency, reduced cost and independence from paper, each year more states are following the Internal Revenue Service’s lead and requiring employers to remit all income tax...
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
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
by Kathleen Caggiano
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
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
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
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
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
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
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
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
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 . ...
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
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.
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
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
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
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
proposed solution to improve gun safety is the manufacture and sale of “smart
June 4, 2014
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...
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...
June 3, 2014
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
June 2, 2014
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...
May 30, 2014
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...
May 29, 2014
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
May 28, 2014
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...
May 27, 2014
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...
May 23, 2014
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...
May 22, 2014
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.”
May 21, 2014
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...
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”...
May 20, 2014
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...
May 19, 2014
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...
May 16, 2014
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
May 15, 2014
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...
May 14, 2014
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...
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...
May 13, 2014
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,...
May 12, 2014
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
May 9, 2014
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...
May 8, 2014
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.
May 6, 2014
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...
May 5, 2014
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...
May 2, 2014
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...
May 1, 2014
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
April 30, 2014
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...
April 29, 2014
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...
Extras on Excise: Is the Colorado Marijuana Tax Lawsuit a Party Foul?
Sales Tax Slice: Does Like-Kind Exchange Treatment Match Up?
Corporate Close-Up: Hot Enough? MTC Compact Controversy to Broil at Georgetown SALT Conference
Incentives Watch: The Rise, Fall and Rise Again of Wisconsin’s Historic Rehabilitation Credit
Weekly Round-Up: States No Longer Feeling ’Charitable’ About Charities Asking Residents for Money