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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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May 8, 2013

Incentives Watch: New Markets Opened as Congress and Arkansas Make Tax Credit Announcements

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

States Allow Filing and Payment Extensions for Boston Marathon Victims

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...

May 7, 2013

State Tax Snapshot: What are Your Hottest Emerging State Tax Issues?

Each 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

Weekly Round-Up: Is Florida Dialing Up a Sales Tax Rate Hike?

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

Sales Tax Slice: This Weekend – Fast Horses, Fancy Hats, Margaritas… and Sales Tax?

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 gate.

May 1, 2013

Incentives Watch: A Mason-Dixon Line for Renewable Energy Tax Credits?

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

Expert Insight: State Tax Pros Weigh in on BBNA 2013 State Tax Survey Results

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

State Tax Snapshot: NFL Draft and Taxes—Does it Pay to be Number Two?

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

Weekly Round-Up: The Emergence of the Virtual Tax Base Spurs States to Aggressively Pursue Revenues

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

Sales Tax Slice: Death by a Thousand Cuts to a Tax-Free Internet?

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

Incentives Watch: International Trade Dispute Flares Up Over State Solar Credits

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

It’s 2013, Do You Know What Your Annually Adjusted State Tax Bracket Is?

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

State Tax Snapshot: Tokers, Smokers, and Fuming Pro Golfers

Bloomberg.com recently updated its annual slideshow, “ Most & Least Taxing States 2013 ,” which highlights the odd and noteworthy in state taxation.   Much of state tax policy appears to be...

April 19, 2013

Weekly Round-Up: Two New Wisconsin Tax Statutes May Not Pass Constitutional Muster

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

Sales Tax Slice: Replacing Income Tax with Expanded Sales Tax Is in Lawmakers’ Playbooks, But Is it a Winning Idea for Tax Reform?

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 additional services.

April 17, 2013

Incentives Watch: Taxpayers Need to Be Aware of Tax Credit Decertification and Clawback Provisions

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

Weekly Round-Up: Comptroller Explains Why a Move Towards Combined Reporting Is Unlikely in Maryland [Free Access to BNA Premium Content]

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

Incentives Watch: California Enterprise Zone Hiring Credit Changes Are Coming So Employers Must Be Prepared

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

State Tax Snapshot: In the Digital Age, Snitches Retain Place in Property Tax Enforcement Arsenals

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

Weekly Round-Up: States Aim to Enact Taxpayer Friendly Budgets

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

Incentives Watch: Amateur Sports Tax Credits – Madness or a Winning Idea?

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

Expert Insight: How MTC’s Proposed Compact Changes Will Impact Multistate Businesses

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

State Tax Snapshot: Non-U.S. Based Entities Must Navigate Varying Income Tax Treatment Among States

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

Weekly Round-Up: Is the Physical Presence Standard for Income Tax Nexus 'Bankrupt'?

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

Sales Tax Slice: New York Upholds Amazon Law, Offers Few Insights on Solicitation Activities

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

Incentives Watch: Film Tax Credits Retain Starring Role, Despite Mixed Reviews

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

Expert Insight: COST's Hot State Tax Topics in 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

State Tax Snapshot: Is Your Trust Subject to State Tax? It Depends

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

Weekly Round-Up: Why California’s Tax Policies Are Hindering R&D Job Creation

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

Sales Tax Slice: Are Flying Trapeze Artists Subject to Sales Taxes?

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

Incentives Watch: When Claiming Tax Credits, the ‘Small Print Can Taketh Away’

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

Expert Insight: State Taxation of Cloud Computing and Sutherland Survey Results

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

State Tax Snapshot: Web Servers Can Trigger Sales Tax Nexus

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

Weekly Round-Up: South Carolina DOR Official Explains Why a Loss in Court Was a Win for the State [Free Access to BNA Premium Content]

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

Incentives Watch: Will Lawmakers ‘Be Prepared’ to Give the Girl Scouts A Tax Exemption or Are Chances Thin (Mint)?

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

Expert Insight: Bright Line Rule or More Flexible Standard for Trailing Nexus?

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

State Tax Snapshot: Telecommuters Performing Non-Market Activities Can Trigger Nexus

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

Weekly Round-Up: You've Got to Be Kidd-ing Me! The Distinction Between “Temporary” and “Indefinite” Employment

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

Incentives Watch: Property Tax Exemptions Deemed Unconstitutional By Tennessee’s Attorney General

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

State Tax Snapshot: Why States Want to Know Where Your Web Server Is

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. Commonplace...

March 1, 2013

Weekly Round-Up: California - The Perfect Storm for Tax Reform?

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

Sales Tax Slice: Will Federal Remote Collection Authority Impact Tax on Gas on Virginia’s Highways?

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

Incentives Watch: State Film Tax Credit Programs Give Starring Role to ‘Loan-Out Companies’

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

State Tax Snapshot: What are the Burdens of Proof for Alternative Apportionment Regimes?

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

Weekly Round-Up: Iowa, Virginia Take Opposite Positions on Conformity to Federal Bonus Depreciation

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

Sales Tax Slice: Treatment of ‘No Sales Tax States’ Is Latest Obstacle to Remote Collection Authority

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

Incentives Watch: Angels on High (or Low)? Effectiveness of Investor Credits Examined

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

Weekly Round-Up: DC Revenue Chief Counsel Talks Transfer Pricing and Combined Reporting in Exclusive Interview [Free Access to BNA Premium Content ]

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

Sales Tax Slice: Are State Sales Tax Regimes Going the Way of Mail on Saturday?

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

Incentives Watch: Governor Christie Battles Superstorms, Fitness Mavens, and New Jersey Neighborhood Revitalization Credits

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...

February 11, 2013

State Tax Snapshot: 24 Jurisdictions to Weigh Tax on Accounting Services in 2013, AICPA Says

Nearly 60 percent of executives believe that expanding the sales tax base to include various services would have the greatest impact on their business, according to survey results recently...

February 8, 2013

Weekly Round-Up: Restrictions on Marriage Create a Cumbersome Tax Filing Environment for Same-Sex Couples [Free Access to BNA Premium Content]

The Supreme Court will enter the debate over same-sex marriage, having agreed to hear two cases challenging state and federal laws that define marriage to include only unions of a man and a woman ...

February 6, 2013

Incentives Watch: States Turn to Sunset Dates, Clawback Provisions to Guard Against Abuse, Wasteful Spending

One way states guard against abusive practices with respect to tax credit programs is to impose certain safeguards, such as spending caps or sunset provisions. Recently, Virginia State Senator Chap...

February 4, 2013

State Tax Snapshot: Does 86-272 Protection Apply to Foreign Commerce?

At least a dozen states extend the income tax protections afforded under federal Pub. L. No. 86-272 to interstate sales of tangible personal property to corporations organized under the laws...

February 1, 2013

Weekly Round-Up: Election Results Set the Stage for Structural Change in Many States [Free Access BNA Premium Content included with Blog Post]

Following the 2012 elections, a single party, either Democrat or Republican, fully controls both the executive and legislative branches of 35 state governments—23 are controlled by Republicans and...

January 31, 2013

Sales Tax Slice: ‘Happy Holidays’ to Purchasers of Energy Efficient Appliances, Weather Preparedness Items

An annual tradition in many states, is the sales tax holiday for clothing and school supplies, most often held in August. Some states also offer other tax holidays – for hurricane supplies, energy-efficient appliances, and even firearms.

January 30, 2013

Incentives Watch: Taxpayer Awareness of Both Federal and State Earned Income Tax Credits Needed

The Internal Revenue Service and the nation celebrated the Earned Income Tax Credit (EITC) Awareness Day last week. The spotlight was on the federal EITC, as the Internal Revenue Service used the day...

January 28, 2013

State Tax Snapshot: Is Single-Party Control the Perfect Storm for Tax Reform?

When viewed through the prism of partisan control, the states and federal government have become mirror images of one another. Control of the U.S. House and Senate remains divided between...

January 25, 2013

Weekly Round-Up: Delaware’s New Unclaimed Property VDA Program Targets Noncompliant Companies

The “door is open” for Delaware's new unclaimed property voluntary disclosure agreement program which is being implemented by the Secretary of State and differs significantly from the old VDA...

January 24, 2013

Sales Tax Slice: Should Online Travel Companies Collect Tax on Full Price of Rooms?

While the recent cold snap and snowy conditions that spread across the country may have inspired you to explore online travel company websites for getaway deals, a federal judge in Texas has had both eyes fixed on online travel companies (OTCs) and their bid to overturn a 2009 decision in favor of 173 cities in Texas.

January 23, 2013

Incentives Watch: Attorney Offers Brighter Perspective on State Tax Credits

State tax incentives have taken a beating lately in the mainstream media, but they continue to be an important tool for revitalizing the economy, said Scott M. Susko, an attorney with McDermott Will...

January 22, 2013

Expert Insight: California’s Proposition 26 and IRC Conformity

California’s adoption of Proposition 26 in November 2010 has a created a great deal of uncertainty for individuals and businesses subject to tax in the state. A lingering question in California...

January 18, 2013

Weekly Round-Up: How to Defend Against New York Residency Audits

New York places a strong emphasis on residency audits, the result of which can be the taxation of an individual's income from all sources rather than only from New York sources, Richard W. Genetelli...

January 17, 2013

Sales Tax Slice: Governors’ Addresses Signal Sales Tax Policy Priorities in 2013

January is State-of-the-State Address season in which governors announce their plans for 2013 – including proposed  changes to their tax systems. The following is a discussion of sales tax changes proposed by the governors that are likely to be included in this year’s budget proposals.  

January 16, 2013

Incentives Watch: States Turn to ‘Green Banks’ to End Funding Drought for Renewable Energy Projects

The American Taxpayer Relief Act of 2012, extended several federal renewable energy credits for another year. However, with the constant uncertainty surrounding federal tax credits, along with severe...

January 15, 2013

Expert Insight: States Wrestle with the Inheritance and Estate Tax (A Real Mess Inherited)

In this "Expert Insight," attorney and estate planner Alan Gassman discusses the fiscal cliff legislation's elimination of the state estate tax credit.  Gassman explains the impact on the many...

January 14, 2013

State Tax Snapshot: Should Taxes Be Used to Deter Behaviors?

An oil company moved one of its drilling rigs from Alaska waters despite reports of a gathering storm. During the trip, the rig broke free from its tugboat in stormy seas on Dec. 31 and...

January 11, 2013

Weekly Round-Up: Assessing the Fiscal Cliff Compact's Impact on the States [free access to premium content]

The American Taxpayer Relief Act of 2012 (ATRA), which President Obama signed into law Jan. 2 leaves intact most of the business tax breaks such as bonus depreciation that first took effect under...

January 10, 2013

Sales Tax Slice: Feeling the Sales Tax Burn on Your Gym Membership?

Ten days ago when many of us celebrated the new year with resolutions to exercise more often or improve physical fitness, it's likely that sales taxes were not a factor impacting the choice of mechanism for implementing these life-improving changes. However, and in addition to general excitement over the season of freshly-minted gym membership cards and first-time reservations with enthusiastic fitness trainers, health and fitness clubs must be motivated to comply with differing state rules for sales taxes imposed on these transactions.

January 9, 2013

Incentives Watch: Fiscal Cliff Legislation Temporarily Bolsters Renewable Energy Industry

The American Taxpayer Relief Act of 2012 (ATRA), known as the “fiscal cliff legislation,” extends several federal renewable energy tax credits, including the production tax credit under section 45...

January 8, 2013

Expert Insight: The State Tax Treatment of Series LLCs

In this “Expert Insight,” well-known tax attorney and BNA Multistate Tax Advisory Board member Bruce Ely answers our questions about the emergence of Series LLCs and the questions surrounding the...

January 7, 2013

State Tax Snapshot: State Death Tax Credit Is Tossed Over the Fiscal Cliff

For the most part, the American Taxpayer Relief Act of 2012 (ATRA), which President Obama signed into law Jan. 2, will maintain the status quo for the states.  This is primarily because many key...

January 4, 2013

Weekly Round-Up: A Lack of Clear Standards for Alternative Apportionment

Alternative apportionment can be invoked in California when the inclusion of receipts from an activity qualitatively different from the taxpayer's principal business leads to substantial...

January 3, 2013

Sales Tax Slice: 7 States Out of Compliance With Streamlined Sales and Use Tax Agreement

The Streamlined Sales and Use Tax Governing Board began in March 2000 as an effort to find solutions for the complexity in state sales tax systems resulting from the U.S. Supreme...

January 2, 2013

Incentives Watch: Renewable Energy Tax Credits Expected to Continue to Grow in 2013

The New Year brings a fresh start to us all. In particular, the wind industry is having a really good year so far, as the production tax credit was extended for all wind energy projects starting...