Weekly BNA Insights: Recent Guidance Published by South Carolina and Michigan

From the Weekly State Tax Report:

South Carolina Department of Revenue Wishing for Rain?

The South Carolina Department of Revenue recently issued S.C. Draft Revenue Ruling No. 16-XX, which details the department’s positions on whether particular activities create corporate income tax nexus. The draft ruling covers a wide variety of nexus issues and contains numerous provisions that appear to expand the scope of economic nexus in South Carolina.

The draft ruling was published on May 11 and the department solicited public comments through June 1, 2016.

Arthur R. Rosen, Partner at McDermott Will & Emery and Hayes R. Holderness, Visiting Assistant Professor at the University of Illinois College of Law, discuss two of the activities expanding nexus, issuing credit cards and providing remote access to software, proposed by the South Carolina draft ruling in their article, available here.

Michigan Department of Treasury's New Acquiescence Policy: A Model for Other States

Earlier this year, the Michigan Department of Treasury announced its new acquiescence policy with respect to certain court decisions affecting state tax policy. This policy closely mirrors the Internal Revenue Service’s policy to announce whether it will “acquiesce” to non-binding adverse court decisions.

Beginning with its May 2016 quarterly newsletter, the department will publish a list of final (i.e., unappealed), non-binding, adverse decisions, and announce its acquiescence or non-acquiescence with each decision.

Alysse McLoughlin, Partner at McDermott Will & Emery and Nicole R. Ford, Associate at McDermott Will & Emery, discuss the benefits of Michigan’s policy in their article, available here (subscription required). Or sign up for a free trial to the Weekly State Tax Report.