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.
June 19, 2013
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...
June 18, 2013
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
June 17, 2013
“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...
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...
June 13, 2013
by Rebecca Helmes
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. ...
June 12, 2013
by Kathleen Caggiano
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...
June 10, 2013
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...
June 5, 2013
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...
June 4, 2013
by Melissa Fernley
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 ...
June 3, 2013
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...
May 31, 2013
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...
May 30, 2013
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...
May 29, 2013
“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...
May 28, 2013
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...
May 24, 2013
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...
May 23, 2013
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...
May 22, 2013
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...
May 20, 2013
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...
May 17, 2013
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,...
May 16, 2013
by Christine Boeckel
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.
May 15, 2013
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...
May 14, 2013
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,...
May 13, 2013
by Michael Kerman
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
May 10, 2013
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...
May 9, 2013
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...
May 8, 2013
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...
May 7, 2013
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...
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...
May 3, 2013
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...
May 2, 2013
Many of us are ready for the excitement of the 139th
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
May 1, 2013
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...
April 30, 2013
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...
April 29, 2013
by Steven Roll
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: ...
April 26, 2013
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...
April 25, 2013
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...
April 24, 2013
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...
April 23, 2013
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...
April 22, 2013
Bloomberg.com recently updated its annual slideshow,
& Least Taxing States 2013 ,” which highlights the odd and noteworthy in
state taxation. Much of state tax policy
appears to be...
April 19, 2013
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....
April 18, 2013
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
April 17, 2013
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...
April 12, 2013
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...
April 10, 2013
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...
April 8, 2013
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. ...
April 5, 2013
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...
April 3, 2013
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...
April 2, 2013
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...
April 1, 2013
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...
March 29, 2013
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...
March 28, 2013
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...
March 27, 2013
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...
March 26, 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...
March 25, 2013
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...
March 22, 2013
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,...
March 21, 2013
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.
March 20, 2013
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...
March 19, 2013
Sutherland Asbill & Brennan LLP recently conducted a survey on the taxation of cloud computing, available at http://www.sutherland.com/files/upload/CloudComputingSurveyResults.pdf ....
March 18, 2013
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...
March 15, 2013
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...
March 13, 2013
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...
March 12, 2013
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...
March 11, 2013
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...
March 8, 2013
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...
March 6, 2013
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...
March 4, 2013
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.
March 1, 2013
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...
February 28, 2013
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.
February 27, 2013
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...
February 25, 2013
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...
February 22, 2013
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...
February 21, 2013
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...
February 20, 2013
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...
February 15, 2013
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...
February 14, 2013
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.
February 13, 2013
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...
Sales Tax Slice: With MFA Stalled, States Supply Own Answers for Remote Sellers
State Tax Snapshot: Nexus, Addback Statutes, and the Sham Transaction Doctrine
Weekly Round-Up: New York Taxpayer Scores Victory in Residency Audit War
Incentives Watch: Land Conservation Tax Credit Amended in Colorado to Improve Application Review Process
Expert Insight: Codification of Economic Substance—The “Apple” of States’ Eyes?