Weekly Round-Up: Congressional Attention to Sales Tax Issues, MTC Compact Litigation Carries On

 Highlights from the 9/23/16 issue of the Weekly State Tax Report:

  • A Primer: The Congressional Battle Over Digital Sales Tax
    States and retailers hope Congress will break its pattern of inaction on online sales tax authority before wrapping up for the year. But it's anyone's guess whether legislators will find the time or the momentum.
  • California Business Return Due Dates Now Match Federal Law
    Tax return filing deadlines for C corporations and partnerships in California will conform to recent federal changes under a bill signed by Gov. Jerry Brown (D). Brown signed A.B. 1775 by Assemblyman Jay Obernolte (R), which moves the filing deadline for C corporations to the 15th day of the fourth month after the close of the taxable year from the 15th day of the third month following the close of a taxable year.
  • House Passes Mobile Workforce Bill Curbing State Income Tax
    The House passed legislation that would prohibit states from imposing income tax obligations on nonresident employees working for a de minimis period in their borders. Under the Mobile Workforce State Income Tax Simplification Act (H.R. 2315), passed by voice vote, states can't assess income tax liability on nonresidents conducting business in the state for 30 or fewer days each year.
  • Oregon High Court Hears Argument Over Multistate Tax Compact
    The Multistate Tax Compact is a binding contract that doesn't permit piecemeal modification or repeal of compact provisions, Health Net Inc. argued before the Oregon Supreme Court. During oral arguments, the health-care company tracked its briefing challenging the lower Oregon Tax Court's decision that ruled the state's single-sales factor apportionment formula superseded the compact's three-factor apportionment election.
  • Lockheed Martin To Retain, Expand Presence in Connecticut
    Lockheed Martin Corp. will receive up to $220 million in financial incentives from Connecticut in exchange for retaining and increasing jobs at Sikorsky Aircraft. Lockheed Martin said it reached a deal with the state, which will run until 2032, to grow the helicopter manufacturer's employment to 8,000.
  • Michigan AG Seeks to Intervene in IBM Tax Compact Case
  • Michigan Attorney General Bill Schuette (R) vigorously disputed IBM's contention that he lacks clear authority to challenge a July court ruling that handed “Big Blue” a refund of $6 million in its long-running tax dispute with the Michigan Department of Treasury.

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

  • Kansas Department of Revenue Issues Private Letter Ruling on Ending Two-Factor Apportionment Election Prior to End of 10-Year Period
  • California State Board of Equalization Proposes Rule Concerning Retail Stock of Cigarettes and Tobacco Products
  • Virginia Tax Commissioner Finds Taxpayer is a Virginia Domiciliary Resident, Grants 30 Days to Submit Income Tax Returns
  • North Carolina Property Tax Commission Revises County Tax Commission's Decision, Grants Taxpayer's Late Application for Property Tax Disability Exclusion
  • Kentucky Board of Tax Appeals Reverses Department of Revenue's Ruling, Finds Intangible Personal Property is Not Subject to Sales Tax

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…

Supporters of Measure 97 Mislead On Corporate Taxes by The Tax Foundation

Louisiana – Service revenue sourced to where service was performed, for years prior to 2016; court rejects Department’s market-sourcing position by PwC

Compiled by Lauren E. Colandreo