Weekly Round-Up: Changing Nexus Landscape in Digital Economy; More MTC Litigation

Highlights from the 7/8/16 issue of the Weekly State Tax Report :

  • E-Retailers, Congress Feel Heat From States' Digital Tax Frenzy
    States are gaining steam in the fight to recover lost sales tax revenue. Four states have enacted sales tax nexus legislation thus far in 2016. 
  • Top E-Retailers, States Battle in Evolving Digital Tax Amazon
    E-retailers and other remote sellers face difficult and costly choices when responding to changing sales tax notification and collection requirements. 
  • Major Tax Groups, Businesses Ask Supreme Court to Review ‘Gillette'
    Nine amicus briefs, from corporations and tax groups such as COST and the Tax Foundation were filed with the Court June 30, asking them to overturn the decision in Gillette. 
  • Sprint's Data Request Denied in New York Tax Case
    Sprint’s request to see Department of Taxation and Finance documents and communications involving competitors was denied by a New York state trial court on the grounds that the documents are protected by the state’s tax secrecy law. 
  • Oregon High Court to Decide Fate of Multistate Tax Compact
    The Oregon Supreme Court is set to hear oral arguments this fall to decide whether the state’s single-sales factor apportionment formula superseded the three-factor apportionment election provided by the MTC. 
  • Louisiana Has Highest Average Sales Tax: Tax Foundation
  • According to the Tax Foundation, Louisiana’s combined state and local sales tax rate of 9.99 percent is the highest in the country.   

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

  • California Enacts Legislation to Replace References to “Husband” and “Wife” with “Spouse Throughout Various Personal Income Tax Statutes
  • Colorado Issues Local Sales and Use Tax Changes
  • Illinois Extends Sunset Date for Privilege Tax on Medical Cannabis Cultivation
  • Kansas Department of Revenue Publishes 2016 Legislative Summary
  • Montana Department of Revenue Announces that Owners of Property Destroyed by Natural Disaster May Qualify for Tax Relief
  • Vermont Department of Taxes Provides Relief to taxpayers Affected by Certain Commercial Vendor Software Errors

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…  

Delaware’s unclaimed property audits, including estimation methodology, violate substantive due process by PricewaterhouseCoopers LLP

New York Issues Two Advisory Opinions Regarding Surplus Lines Insurance by Sutherland SALT

Compiled by Chreasea Dickerson