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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.

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October 4, 2013

Weekly Round-Up: Hotel Occupancy Tax Dispute Heats Up

State interest in a contentious, costly dispute pitting online travel companies (OTCs) like Expedia Inc. and Travelocity.com LP against cities, counties and states is likely to increase, following a...

October 3, 2013

Sales Tax Slice: Will the U.S. Supreme Court Hear New York’s Amazon Case?

October marks the beginning of the U.S. Supreme Court’s new court calendar, and the Council On State Taxation (COST) wants New York’s Amazon ruling to be part of this year’s docket.  ...

October 2, 2013

Incentives Watch: States Offer Incentives to Encourage Taxpayers to “Plug-In” to Electric Vehicles

National Plug-In Day occurred on September 29th this year.  The annual event is designed to encourage the use of electric cars, as well as plug-in hybrid vehicles, by drivers across the country....

October 1, 2013

COST Report Slams Delaware, Praises Massachusetts and Virginia for Unclaimed Property Policies

The Council on State Taxation (COST) released their report “The Best and Worst of State Unclaimed Property Laws,” an updated version of the popular unclaimed property “scorecard” initially...

September 30, 2013

State Tax Snapshot: Runner-Up to Toilet Seat Museum Gets Property Tax Exemption in Nebraska

Carhenge, the Number 2 “Wackiest Attraction” in America in 2009, behind only San Antonio’s toilet seat museum, recently had its educational exemption from property taxes upheld by the...

September 27, 2013

Weekly Round-Up: State Level Filing Complications for Same-Sex Couples

One of the most notable opinions from the U.S. Supreme Court this year was its decision in United States v.   Windsor , No. 12-307 (June 26, 2013), which struck down section three of the Defense...

September 26, 2013

Sales Tax Slice: MFA Lacks Enforcement Mechanism Against Non-Complying States

Under the current version of the proposed federal Market Place Fairness Act, before a state is granted the authority to require remote sellers to collect and remit sales and use taxes on sales...

September 25, 2013

Incentives Watch: Will the Fine Print Cast a Cloud Over Your Solar Energy Credit?

Don’t let the prospect of basking in the warm glow of a solar energy credit force you out in the cold as a result of failing to understand a state’s qualification requirements. Eligibility for a...

September 23, 2013

State Tax Snapshot: Some Counterintuitive Insights on Tax Rankings

Recently, the Tax Foundation released data about the migration of personal income between states.   New York, California, Illinois, New Jersey, and Ohio had the greatest total loss of...

September 20, 2013

Weekly Round-Up: States Begin Issuing Individual Income Tax Filing Guidance for Same-Sex Couples

States have begun issuing individual income tax filing guidance for same-sex couples, Bloomberg BNA State Tax Law Editor Melissa Fernley writes in this week's issue of the Weekly State Tax Report ....

September 19, 2013

Sales Tax Slice: Will Goodlatte’s Basic Principles on Remote Sales Tax Drive the MFA Toward Passage, or Cause It to Stall?

House Judiciary Committee Chairman Rep. Bob Goodlatte (R-Va.) released his priorities for remote sales tax legislation yesterday, and they don’t exactly match up with the Marketplace Fairness Act...

September 18, 2013

Incentives Watch: The Governor Wants Companies in Other States to Mess With Texas

“When you grow tired of Maryland taxes squeezing every dime out of your business, think Texas,” the radio advertisement on Maryland radio stations suggests at regular intervals. The ad is part of...

September 17, 2013

Colorado DOR Says Timing of Nonfiler Guidance Was Coincidental

In last Friday’s Weekly Round-Up (Sept. 13), we posed the question of whether a Colorado DOR blog post and a court ruling were related. By Monday, a spokesperson for the tax agency told Bloomberg...

September 16, 2013

State Tax Snapshot: Wind Turbines and Walking Trails Cause Property Taxpayers’ Headaches

Two recent property tax cases demonstrate that taxpayers must be aware of what they need to prove when challenging their property tax assessments. In the first case, Andersen v. Falmouth Board of...

September 13, 2013

Weekly Round-Up: Did Court Win Trigger Colorado DOR's Blog Post Aimed at Nonfilers?

Nine days after receiving a favorable ruling in federal court over the constitutionality of a Colorado law imposing reporting and notice requirements on out-of-state e-commerce and other vendors,...

September 11, 2013

Incentives Watch: States Auction Off Tax Credits to Raise Revenue

Incentives Watch: States Auction Off Tax Credits to Raise Revenue States are increasingly turning to tax credit auctions to raise funds for various projects. Maryland, for example, was one of the...

September 9, 2013

State Tax Snapshot: Single-Party Control Has Uneven Effect on Tax Reform

Many believed that the stage was set for significant tax reform following the 2012 election, which saw a single party wrest control of both chambers of the legislature as well as the governor's...

September 6, 2013

Weekly Round-Up: Planning for the Enactment of Marketplace Fairness

Assuming the Marketplace Fairness Act is enacted, many companies may find themselves required to register and collect sales taxes in states where they have little tax experience, Michael Miller of...

September 4, 2013

While Same-Sex Couples Celebrate, States May Spoil the Party

Couples who marry in a state that recognizes same-sex marriage are now recognized as married for federal tax purposes regardless of their current state of residence, according to recent guidance...

September 4, 2013

Incentives Watch: Tax Incentive Deals Draw Scrutiny in Governors’ Races

Tax incentives have always been the subject of controversy, but now they are expected to become a topic of debate during the gubernatorial elections next year, reports a Bloomberg BNA Daily Tax...

August 30, 2013

Weekly Round-Up: Compact Will Survive ‘Gillette’ Controversy, Alabama’s Tax Commissioner Says

Although Gillette  may have immediately caused some concern about the Multistate Tax Compact, there has never been any doubt about the long term benefits being a member has for a state, Julie...

August 28, 2013

Incentives Watch: Space Incentives Encourage Race to the Final Frontier

The race to space continues, but this time it’s for vessels carrying tourists to outer space. Space tourism is becoming increasingly popular as more people want to travel into the great unknown and...

August 26, 2013

Bloomberg BNA Launches Major State Tax Expansion

B loomberg BNA has launched a major expansion of its state tax product offerings . At a time when state taxes continue to grow in complexity and importance, Bloomberg BNA has added must-have...

August 23, 2013

State Jurisdictional Rules on Taxing Trusts Present Planning Opportunities, Traps for Unwary, BBNA Special Report Finds

The varying patchwork of state standards for taxing trust income can result in unexpected liabilities for the unwary, a new special report by Bloomberg BNA finds. Some factors that the states use...

August 22, 2013

Sales Tax Slice: Will Taxpayers Be Entitled to Refunds if Cook County Use Tax is Invalidated?

Taxpayers seemingly scored a victory on July 24, when the Cook County Circuit Court granted a preliminary injunction enjoining the enforcement of the county’s non-titled personal property use tax....

August 21, 2013

Incentives Watch: Illinois Sweetens Tax Break for Hiring Ex-Offenders

State tax credits are available for hiring certain employees, including individuals formerly imprisoned or “ex-offenders.” These tax credits are meant to encourage certain employers to hire...

August 20, 2013

State Tax Snapshot: Legislative Rate Changes Give Taxpayers a $1.3 Billion Tax Cut

State tax policies developed during the 2013 legislative session have resulted in a net $1.3 billion tax cut for taxpayers, according to a recent report by the National Conference of...

August 16, 2013

Weekly Round-Up: NCSL Puts the Pressure on Online Travel Companies

The National Conference of State Legislatures (NCSL), the principal advocacy organization for state legislators, unanimously approved a resolution calling on states to consider legislation that...

August 14, 2013

Incentives Watch: Brownfields Are Becoming Hotbeds of Renewable Energy Generation

When one hears the word “brownfield,” most people think of contaminated sites that have little to no value and should be avoided. However, these sites are increasingly becoming locations for...

August 13, 2013

States say MTC-ya to the Multistate Tax Compact in Hedge Against Gillette

Members of the Multistate Tax Compact are falling like dominos . In March, South Dakota withdrew from the Compact.   In April it was Utah.   Minnesota left in May.   Oregon left in June,...

August 12, 2013

State Tax Snapshot: MTC Looking Into Joint State Transfer Pricing Audit Program

Joe Huddleston, executive director of the Multistate Tax Commission, said recently that he hopes to have a concrete proposal for a joint transfer pricing audit program in time for the MTC's...

August 9, 2013

Weekly Round-Up: Automatic Tax Refunds—A Growing Trend?

The idea of returning taxes to taxpayers is a growing trend, and some states are changing their refund procedures, issuing new policies and developing new electronic systems that track each...

August 8, 2013

Sales Tax Slice: Why the MFA’s Free Software Might Be a Costly Proposition

The best things in life are free, goes the old refrain.   That’s certainly true of love, joy, and laughter.   But what about sales tax software provided to remote sellers courtesy of the ...

August 7, 2013

Incentives Watch: Back to (Private) School? Tuition Tax Credits Under Scrutiny Yet States Continue to Enact Them

An increasing number of states are enacting tax incentives designed to allow certain students to enroll in private schools. Most of these incentives are targeted towards low-income students...

August 5, 2013

State Tax Snapshot: Unclaimed Property Lurks Beneath Delaware’s Business Friendly Surface

Delaware has long enjoyed its reputation as a business friendly state in which most businesses choose to incorporate. In fact, nearly half of all corporations are incorporate there, according to a...

August 2, 2013

Weekly Round-Up: Tax Commissioners Describe Tight Budgets, Avoidance Schemes, Distrustful Legislators

In an effort to enforce tax codes, state tax agencies must battle against increasingly sophisticated tax avoidance schemes, flat budgets, outdated laws, and a chilly relationship with legislatures,...

July 31, 2013

Incentives Watch: State Film Tax Credits Receive Mixed Reviews

Are film tax credits a waste of taxpayer dollars or an effective means of attracting a lucrative industry to a state? The reviews on film credits are mixed. While a Louisiana audit noted that it had...

July 30, 2013

Detroit Offers Object Lesson in the Fiscal Policy Effects of Going Bust

As the largest American city to ever file for bankruptcy, all eyes will be on Detroit as the courts and the media dissect its fiscal policies.   One such policy will be the city’s treatment of...

July 29, 2013

State Tax Snapshot: Navigating or Avoiding State Tax Audits in the Wake of Increased Use of the Sham Doctrine

“The legal right of a taxpayer to decrease the amount of what otherwise would be his taxes, or altogether avoid them, by means which the law permits, cannot be doubted.”   - Gregory v....

July 26, 2013

Weekly Round-Up: The Hidden Impact of Amnesty Penalties

Numerous important developments in state tax law occurred over the past year, including apportionment, particularly with respect to the Multistate Tax Compact and nexus, Craig B. Fields and Ted W....

July 24, 2013

Incentives Watch: Are Enterprise Zones the First Casualty of State Tax Reform?

After the 2012 elections, there were 36 states in which the executive branch and both chambers of the legislature are controlled by the same party. Following the elections, the general consensus was...

July 24, 2013

New BBNA App Offers Expert Tax Research. Wherever. Whenever.

BBNA subscribers can now stay connected to the Bloomberg BNA Tax and Accounting Center, any time and from anywhere with our new Tax Center App! This free app provides comprehensive, on-the-go...

July 23, 2013

Why Some Pass-Through Entities Might Miss Out on the MTC Compact Election Debate

The debate surrounding apportionment formulas is reaching a fever pitch as the California Supreme Court considers Gillette and the MTC reevaluates section IV of the Multistate Tax Compact, which...

July 22, 2013

State Tax Snapshot: University of Michigan “Charity Dorm” Denied Charitable Use Exemption

Last week, the Michigan Court of Appeals upheld the Michigan Tax Tribunal’s denial of a charitable-institution property tax exemption to Telluride Association Inc., a nonprofit organization...

July 22, 2013

Weekly Round-Up: Whistle-Blower Lawsuit? Not in My State

Tim Barfield, Executive Counsel at the Louisiana Department of Revenue, is not interested in setting policy through litigation. He is also not a fan of policy-setting litigation that doesn't get...

July 17, 2013

Incentives Watch: Tax Credits – An Oft-Criticized Tool States Can’t Live Without

Questions have long lingered over the effectiveness of tax credits and incentives, but the states can’t seem to live without them. Rhode Island recently enacted legislation that provides for a...

July 16, 2013

Do Virtual Economies Pose a Real-World Threat to States?

Bitcoin, the rapidly growing electronic currency, caused the GAC to issue a report last week, urging the IRS to provide guidance on this new “ cryptocurrency .” There’s even less state...

July 15, 2013

State Tax Snapshot: Identifying Nexus Creating Activities for Trusts

A trust with a resident trustor person who created the trust) would, by itself, create sufficient nexus to subject a trust to an income-based tax or filing requirement in 62 percent of the...

July 12, 2013

Weekly Round-Up: Contemplating a World Without the Multistate Tax Compact or MTC

Currently, taxpayers face a fair amount of complexity in deciding whether to make the Multistate Tax Compact election on a state tax return, Brian Murphy, Giles Sutton, Jamie C. Yesnowitz, Dale...

July 11, 2013

Sales Tax Slice: Attention Shoppers – A Sales Tax Holiday is Occurring in a State Near You

Your kids may have just finished school for the summer, but it’s time to start devising your back-to-school shopping plan.   A break from sales taxes may come as a welcome respite for consumers...

July 10, 2013

Incentives Watch: Iowa Focuses on Agricultural Tax Incentives

Iowa has been busy enacting various agriculture-related tax incentives recently. In H.B. 599, the tax credit used to encourage the transfer of agricultural assets to qualified beginning farmers has...

July 8, 2013

State Tax Snapshot: Property Tax Exemptions for Churches, Temples, and….Yoga Studios?

All 50 states and the District of Columbia offer some form of property tax exemption for properties used for religious worship and education. While many aspects of these exemptions are common...

July 3, 2013

Weekly Round-Up: State Guidance on the Application of I.R.C. §382

Although sometimes overlooked by taxpayers and tax professionals, the state tax consequences of an I.R.C. §382 ownership change, including whether any particular state requires apportionment of the...

July 1, 2013

State Tax Snapshot: Nexus? It Can Depend on Who You Ask

Owning or leasing cars for sales representatives in California is an activity that is sufficient to trigger income tax nexus, the state's Franchise Tax Board said in the 2013 Bloomberg BNA...

June 28, 2013

Weekly Round-Up: Amending Returns in the Wake of “Windsor”

The U.S. Supreme Court’s finding in United States v. Windsor that the Defense of Marriage Act (DOMA) was unconstitutional will affect tax returns that same-sex couples have...

June 27, 2013

Sales Tax Slice: State Standards Vary in Determining Affiliate Nexus Based on Related Parties

Bloomberg BNA’s annual 2013 Survey of State Tax Departments highlighted the different approaches states take in determining affiliate nexus based on an out-of state corporation’s dealings with a...

June 26, 2013

Incentives Watch: States Enact New Market Credits as U.S. Mulls Permanent Adoption

Many states have been enacting new markets tax credits lately. This is particularly interesting in light of the fact that Congress is debating whether to make the federal new markets tax credit...

June 25, 2013

Unknotting Windsor: The Potential State Tax Implications of the Same-Sex Marriage Decisions

The Supreme Court is expected to release its ruling on United States v. Windsor and Hollingsworth v. Perry this Thursday morning.   Awaiting the decision, Bloomberg BNA interviewed Nicole...

June 25, 2013

Expert Insight: Recent MTC Trends, States Begin to Respond to 'Gillette'

Two weeks ago, in Anheuser-Busch v. Michigan Dept. of Treas. (No. 11-85-MT), the Michigan Court of Claims ruled that multistate taxpayers are entitled to apportion their Michigan income under...

June 24, 2013

State Tax Snapshot: Bitcoin May Add to States’ Digital Property Tax Headaches

As the “cryptocurrency” bitcoin continues to grow—as of April, it was estimated that bitcoin was more valuable than the entire stocks of currency of 20 countries—concerns are also growing...

June 21, 2013

Weekly Round-Up: Colorado DOR's Top Brass Discuss Pot, Sales Tax, and 'Gillette'

Contingent-fee audits may be popular in other states, but not in Colorado, John Vecchiarelli, Senior Director of Taxation at the Colorado Department of Revenue, told Walt Nagel, Don Griswold, and...

June 19, 2013

Incentives Watch: Practitioner Weighs Pros and Cons of “Tax-Free New York” Proposal

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

Expert Insight: Codification of Economic Substance—The “Apple” of States’ Eyes?

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

State Tax Snapshot: Nexus, Addback Statutes, and the Sham Transaction Doctrine

“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...

June 17, 2013

Weekly Round-Up: New York Taxpayer Scores Victory in Residency Audit War

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

Sales Tax Slice: With MFA Stalled, States Supply Own Answers for Remote Sellers

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

Incentives Watch: Land Conservation Tax Credit Amended in Colorado to Improve Application Review Process

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

Weekly Round-Up: Credits and Incentive Programs in Florida Face a Three-Year Report Card

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

Incentives Watch: Commuter Tax Credits Give Employers Incentive to Offer Trip Reduction Programs

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

Owed a Tax Refund? Ohio and Other States Want to Let You Know

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

State Tax Snapshot: Nexus for Telecommuting Employees Is Unfair, Webinar Attendees Say

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

Weekly Round-Up: Are Soda Taxes 'the Real Thing' in Curbing Obesity?

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

Sales Tax Slice: To Contest Local Assessments Learn ‘Where Bodies Are Buried,’ Look to State Law

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

Incentives Watch: When Life Gives You Lemons (in the Form of Trash), Make Lemonade (in the Form of Energy)

“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

There's Gold in That Thar Treasury: Budget Surpluses Across the Country

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...