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.
August 21, 2014
Taxes on real, personal, and utility property owned by
businesses accounted for the largest share of state and local business tax
receipts by a wide margin, according to an August 2014 study ...
August 20, 2014
Extra on Excise: New
York’s Cigarette Strike Force to the Rescue What does a state do when it is losing tax revenue from
tobacco trafficking and other forms of cigarette tax evasion? In New...
August 19, 2014
In addition to facing so-called "jock taxes in multiple states, [160 Daily Tax Report H-1, 8/19/14] professional athletes face another challenge: audits. Changes to federal returns often require...
States vary widely on treatment of nonresident employees working temporarily within a jurisdiction. Employers need to pay special attention to whether their employees travel outside their resident...
August 18, 2014
A recent California Franchise Tax Board
clarifies when an out-of-state corporate member of an LLC is doing business in California on the basis of the LLC's activity in the...
August 15, 2014
The next wave of digital innovation is telematics, or the "Internet of Things" and represents one of the fastest growing sectors of the Internet and our economy,Michael T. Dillon, Esq., founder and...
August 14, 2014
by Ean Hamilton
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
by Michael Kerman
Processor and semiconductor giant Intel Corp. entered a Strategic
Investment Program Agreement Aug. 11 with Washington County, Oregon’s
second-largest county, located just outside Portland,...
Washington health care providers appealing the rejection of
their refund requests for business and occupation (B&O) taxes were turned
back again in a decision
by the Appeals...
August 12, 2014
As massive reductions in military spending progress due to budget restraints, a large scale reduction in active duty servicemen and women is on the horizon as reported by U.S. News & World...
August 11, 2014
On June 19, Rhode Island’s Governor
signed the state’s 2015 fiscal year budget
bill . The bill calls for a complete reform of how C-corporations are taxed
in Rhode Island,...
August 8, 2014
Mark F. Sommer, a state tax practitioner, sought pleadings in a
property tax case from the Kentucky Department of Revenue via the Kentucky Open
Records Act, and was met with a blanket denial,...
August 7, 2014
On Tuesday Michigan voters went to the polls to vote on
whether to approve the Legislature’s 2012 plan to phase out personal property
taxes. At 10 p.m., the Associated Press declared the...
August 6, 2014
by Annabelle Gibson
Electronic cigarettes (e-cigarettes) have been the go-to product this legislative season for state legislatures looking to raise revenue while protecting consumer health. At the heart of the...
August 5, 2014
As Jane Austen began once, “it is a truth universally acknowledged, that a single man in possession of a good fortune, must be in want of a wife.” This famous line may not be so far off, since...
August 4, 2014
The Multistate Tax Commission has voted to renew their policy statement regarding tax agreements between states and Native American tribes. The resolution to renew the policy was approved...
August 1, 2014
Member states of the Multistate Tax Commission voted to adopt market-based sourcing and other long-awaited revisions to Article IV of the Multistate Tax Compact, which contains the Uniform Division...
July 31, 2014
Tax Legislation Personals: Federal sales tax collection bill seeks long-term relationship with other bill addressing Internet transactions. Only serious suitors need apply.
July 30, 2014
by Rebecca Helmes
States trying to collect premium tax on surplus lines/non-admitted
insurers face difficulties similar to those that they face when trying to
collect sales and use tax on remote sales—figuring out...
Tax bills go out, and the deadline to pay property taxes
passes. A small, or maybe ridiculously
large , percentage of taxpayers don’t pay their bills, and the taxing jurisdictions
When withholding taxes for employees who work in one state but live in another, employers should be careful to examine the states’ relationships. Reciprocity agreements are often made between...
July 29, 2014
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
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
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
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
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...
Corporate Close-Up: Is Rhode Island Tax Overhaul a Mixed Blessing for Corporations?
Incentives Watch: The Impact of Military Reduction and the Need for Veteran Credits
Weekly Round-Up: One Practitioner’s Fight Against Kentucky’s Revenue Department for Case Records
Extras on Excise: Washington Keeps Coffers Closed, Denies B&O Tax Refund to Health Care Providers
Property Tax Post: Processor Giant Intel Corp. Enters $100 Billion Incentive Agreement to Invest in Oregon