Weekly Round-Up: 2016 Election Has State Tax Implications

Highlights from the 11/4/16 issue of the Weekly State Tax Report :

  • Clinton, Trump Silent on Tax Issues Gripping States

    Through this first in a series of articles, the Weekly State Tax Report examines state-side implications from the November U.S. elections, in addition to prominent state-side races and ballot initiatives.

  • ‘Gillette’ Taxpayers to Get Assessment Notices Soon

    Corporate taxpayers with pending refund claims related to the Gillette case, challenging California's apportionment formula, may get notices to resolve their claims in the next few months, the Franchise Tax Board said in new guidance. In FTB Notice 2016-03, the tax board said it will shift administrative protests and appeals to the State Board of Equalization on the issue back to active status for resolution in the normal course of business.

  • Linking Transportation Initiatives to Sales Taxes May Be Risky

    Denver's Regional Transportation District (RTD) agency knew it had to do something different to win approval of a funding boost, after voters nearly 20 years ago soundly rejected the “Guide the Ride” ballot initiative that would have raised sales taxes for developing light rail and other public transit options. RTD recycled the idea of a 0.4 percent sales tax hike in 2004 and renamed it “FasTracks.”

  • Election 2016: California May Veer Left in Votes on Bullets, Tax and Executions

    California voters, who've watched as Massachusetts and Colorado leaped ahead on causes such as gay marriage and legal marijuana, could restore its role as a laboratory of liberal policymaking with ballot measures to end capital punishment, boost taxes, require background checks to buy bullets and limit drug prices.

  • Election 2016: Elections Unlikely to Resolve Clash Over Online Sales Taxes

    What many have seen as a high-water mark in the “nexus war” over remote sales taxation may still not provide the stimulus needed to thrust Congress out of its two-decade silence on the issue. Paralyzed by divisions over the appropriate course of action, Congress has let stand the U.S. Supreme Court's opinion in Quill Corp. v. North Dakota, 504 U.S. 298 (1992), which prohibits states from imposing sales tax collection obligations on sellers without an in-state physical presence.

  • Harley-Davidson Sputters Out in Discriminatory Tax Case

    Harley-Davidson Inc.'s claims that California's mandatory combined reporting rules for out-of-state corporations are discriminatory don't outweigh the state's interest in preventing tax manipulation, a state trial court judge ruled (Harley-Davidson Inc. & Subsidiaries v. California Franchise Tax Bd., Cal. Super. Ct., No. 37-2011-00100846-CU-MC-CTL, minute order 10/31/16).

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

  • Florida Department of Revenue Publishes Table Containing Updated Index Price for Industrial Natural Gas

  • Nebraska Department of Revenue Issues Updated Nebraska Advantage Act Applications for 2016

  • New York Department of Taxation and Finance Publishes 2016 Property Tax Credit Checks

  • California State Board of Equalization Issues Publication Concerning Taxability of Common Drug Store Transactions

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…  

Top State Tax Ballot Initiatives to Watch in 2016 by the Tax Foundation

California – Guidance issued regarding processing of cases raising the Multistate Tax Compact election by PwC