Individual Income Tax Insights: Get Ready for the State Chat Twitter Chat on Recent U.S. Supreme Court Decisions

On Sept. 24 at 2pm, Bloomberg BNA will be hosting a Twitter chat, U.S. Supreme Court Roundup: The State of State Tax, using the hashtag #SCOTUSSALT. The chat will talk about the state tax implications of major U.S. Supreme Court decisions in 2015, including Comptroller of Treasury of Md. v. Wynne, King v. Burwell and Obergefell v. Hodges.

We have assembled an expert panel to give their insight on these cases: Kelly Phillips Erb of Forbes, Joseph Henchman of the Tax Foundation, Jonathan E. Maddison of Sutherland Asbill & Brennan LLP and Kimberly Robinson of Bloomberg BNA.

Maryland Comptroller v. Wynne

On May 18, the U.S. Supreme Court ruled a Maryland tax scheme that did not provide a county tax credit for taxes paid to other jurisdictions was discriminatory. The case brought up several issues, but one of the more important takeaways is that the dormant commerce clause is alive and well, according to the Weekly State Tax Report.

The case has had repercussions for Maryland, which has already prepared to start issuing refunds. In addition, other states will also have to examine their tax schemes to ensure that they comply with the Wynne decision.

More information can be found in Bloomberg BNA’s special report on the Wynne case.

King v. Burwell

On June 25, the U.S. Supreme Court ruled that individuals were eligible for federal tax credits, provided by the Affordable Care Act (ACA), for purchasing their health care through an online exchange, whether the exchange was set up by the federal government or a state government.

In addition to the political implications and the effects of the case on employment law, the case has the potential to affect states. Had the ACA tax credits not been upheld, it could have created a situation where the federal tax credits were available to taxpayers in certain states but not others. However, Scalia pointed out in his dissent that, had the case been decided against the ACA tax credits, that it would have allowed states a greater involvement in the implementation of the ACA.

More information can be found in Bloomberg BNA’s special report on the King v. Burwell case.

Obergefell v. Hodges

On June 26, the U.S. Supreme Court ruled that same-sex marriage is legal in all 50 states. The decision has far-reaching tax implications, according to the Daily Tax Report. In states that previously did not recognize same-sex marriage, couples will no longer need to use differing procedures for filing their federal and state returns.

For same-sex married couples, the case has the potential to affect estate planning and sales, use and excise tax exemptions. In addition, the outcome of the case will affect state tax revenue. States have been swift in issuing guidance for same-sex married couples regarding their filing status for their state income tax returns. 

We hope that everyone will be able to join us for Thursday’s Twitter chat to discuss these three cases!

Continue the discussion on LinkedIn:  Do you have any questions that you would like to ask the panelists?