Weekly Round-Up: 24 Months Through the Crystal Ball - Emerging Trends in State and Local Taxation


For businesses operating across state lines, state taxation is like standing with one foot on each of two logs in a flowing river: even during calm periods, staying above water is a challenge, David A. Fruchtman, chair of Rimon P.C.'s State and Local (Subnational) Taxation practice, writes in this week’s issue of the Bloomberg BNA Weekly State Tax Report. And these are not calm times, he notes.

Fruchtman’s article discusses three significant trends that are expected to impact state taxpayers over the next two years.

One of the big trends, according to Fruchtman, is that the states will continue to push the limits of tax presence.

For example, a new South Dakota law permits wine to be shipped to in-state customers but requires the wine vendors to register with the revenue department, Fruchtman explains.

By requiring the vendor to register with the revenue department, the state can protect its tax base, Fruchtman writes. 

“Once a business registers with a department of revenue, the state may treat the business as being required to collect sales, use and other transaction taxes,” Fruchtman said.

Although this “boot-strapping” approach to create tax presence might be challenged, other states might enact similar laws in the next two years, Fruchtman explains.

For a complete look at this and other emerging trends, check out Fruchtman’s article here.

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

New York Department of Taxation and Finance Sets Interest Rates for All Tax Types for Period of April 1, 2015 to June 30, 2015

North Carolina Department of Revenue Publishes Sales and Use Tax Directive on Real Property Contracts

Texas Comptroller of Public Accounts Reminds Taxpayers That Franchise Tax Reports Are Due May 15

In other developments…

Federal Marketplace Fairness Act of 2015 legislation introduced, by PwC 

Film Tax Credits on the Chopping Block in Massachusetts, by the Tax Foundation

U.S. Tax Court Finds Refundable State Credits Result in Taxable Income, by McDermott Will & Emery

by Priya D. Nair 

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