Weekly Round-Up: State Tax Litigation in New York, South Dakota, Massachusetts and California

Highlights from the 8/19/16 issue of the Weekly State Tax Report :

  • Proctor & Gamble to Supreme Court: Focus on Tax Compact Terms
    Taxpayers in the Gillette case urge the U.S. Supreme Court to focus on the terms of the Multistate Compact rather than the actions of the member states.
  • E-Retailers, South Dakota Agree: Strike Digital Sales Tax
    Although e-retailers and South Dakota agree that the recently enacted nexus regime violates federal law, they do not agree on what forum should rule on the issue. 
  • Refunds Possible After Massachusetts Loan Securitizer Case
    Financial institutions commercially domiciled outside of Massachusetts that have purchased loans from an affiliate or third party may be able to claim a refund based on sourcing rules for interests in property. 
  • Tax Bill Fizzles, California Olympians Owe Medal Bonus
    A California tax bill that would exempt bonuses paid to Olympic athletes from state income tax was stalled by the Senate Appropriations Committee.
  • My Pillow Pays $1.1M to Settle New York Qui Tam Case
    A Minnesota sleep-products company settles False Claims Act case relating to liability for knowingly failing to collect and remit sales taxes on sales made online or by phone to New York customers. 
  • Transfer Pricing Cases Top Multistate Tax Group’s Agenda
    A two-day closed training session hosted by the MTC State Intercompany Transaction Advisory Service will focus on arms-length pricing issues. The training will feature state tax administrators highlighting issues and deliberating over real world examples.  

Some notable developments from the State Tax Developments Tracker –Bloomberg BNA’s tool for monitoring important developments in all the states:

  • Arizona Department of Revenue Announces Tax Recovery Program from Sept. 1, 2016 through Oct. 31, 2016
  • Hawaii Department of Taxation Issues E-Service Information for Online Filing Options
  • Indiana Department of Education Submits Budget Request on Behalf of Indiana Schools, Taxpayers
  • Nebraska Department of Revenue Releases Update on 2016 Personal Property Value, Exempt Value, and Compensating Exemption Factor for Centrally Assessed Property
  • South Dakota Governor Announces State of South Dakota and Tribes Reach New Tax Agreements 

For more information about this and other state tax issues, sign up for a free trial of the Bloomberg BNA Premier State Tax Library.

In other developments…  

Pennsylvania revises existing tax credit and incentive programs and enacts new tax credits effective for fiscal years beginning July 1, 2017 by PricewaterhouseCoopers LLP

California: Chief Counsel Ruling Addresses Throwback; Application of Public Law 86-272  by KPMG LLP

Compiled by Chreasea Dickerson