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April 16, 2014

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...

April 15, 2014

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...

April 11, 2014

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...

April 10, 2014

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...

April 9, 2014

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...

April 8, 2014

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...

April 7, 2014

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...

April 4, 2014

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...

April 3, 2014

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...

April 2, 2014

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...

April 1, 2014

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...

March 31, 2014

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...

March 28, 2014

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...

March 27, 2014

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...

March 26, 2014

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...

March 25, 2014

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...

March 24, 2014

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 ...

March 21, 2014

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...

March 20, 2014

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 .  ...

March 19, 2014

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...

March 18, 2014

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...

March 17, 2014

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...

March 14, 2014

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....

March 13, 2014

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...

March 12, 2014

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...

March 11, 2014

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...

March 10, 2014

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...

March 6, 2014

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 ...

March 5, 2014

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...

March 4, 2014

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...

February 28, 2014

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...

February 27, 2014

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...

February 26, 2014

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...

February 25, 2014

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...

February 24, 2014

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...

February 21, 2014

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...

February 20, 2014

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...

February 19, 2014

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...

February 18, 2014

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...

February 18, 2014

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...

February 14, 2014

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...

February 13, 2014

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...

February 12, 2014

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...

February 11, 2014

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...

February 10, 2014

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...

February 7, 2014

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...

February 6, 2014

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.

February 5, 2014

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...

February 4, 2014

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...

February 4, 2014

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 ...

February 3, 2014

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...

January 31, 2014

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...

January 30, 2014

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...

January 28, 2014

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 ....

January 27, 2014

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...

January 24, 2014

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...

January 23, 2014

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...

January 22, 2014

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...

January 21, 2014

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...

January 17, 2014

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...

January 15, 2014

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...

January 14, 2014

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...

January 13, 2014

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...

January 10, 2014

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...

January 9, 2014

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...

January 8, 2014

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,...

January 7, 2014

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....

January 6, 2014

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...

January 3, 2014

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...

January 2, 2014

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...

December 30, 2013

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...

December 27, 2013

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...

December 26, 2013

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...

December 23, 2013

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....

December 20, 2013

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...