Weekly Perspective: Taking a Closer Look at New Tax Rules in Massachusetts and New York


 

The 4/29/16 issue of the Weekly State Tax Report includes an in-depth analysis of the shift from cost of performance to market-based sourcing in Massachusetts and the draft regulations issued by New York addressing its new combined reporting laws. 

In Massachusetts' Move to Market Sourcing, Catherine A. Battin and Richard C. Call, partners in in McDermott Will & Emery's state and local tax practice, and Joanna Troy, an associate also in McDermott Will & Emery's state and local tax practice, review the old UDITPA-like cost of performance sourcing regime and examine the new market-based sourcing statute for receipts from sales other than sales of tangible personal property. The article also examines the department's new regulation—which contains multiple throwout provisions, an approximation provision and a compliance safe harbor. Additionally, Battin, Call and Troy consider sourcing provisions in the regulation related to digital goods and services, software transactions and income from intangibles as well as other provisions.

In Five Things You Need to Know About the New York State Draft Combined Reporting Regulations, Maria P. Eberle and Lindsay M. LaCava, partners in the law firm of Baker & McKenzie LLP, discuss the five things that taxpayers should know about the draft regulations on combined reports issued by the New York State Department of Taxation and Finance to implement the extensive corporate franchise (income) tax reform that was generally effective for tax years beginning on or after Jan. 1, 2015. 

Continue the discussion on Bloomberg BNA’s State Tax Group on LinkedIn: What challenges will taxpayers face when applying these rules? 

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