Weekly Round-Up: Efforts to ‘Kill Quill’ Continue


Highlights from the 3/3/17 issue of the Weekly State Tax Report :

  • What if Federal Online Sales Tax Rules Don't Change? A Primer
    What would happen if the current brick-and-mortar standard for sales taxes continues to survive in an increasingly web-based world? The lightning rod is the U.S. Supreme Court's decision in Quill Corp. v. North Dakota, 504 U.S. 298 (1992), which forbids states from imposing sales tax collection obligations on remote retailers without a physical presence in-state. States have launched a growing “kill Quill” campaign against the 25-year-old constraint over the past two years, adopting increasingly aggressive measures with the hope of convincing the high court to overturn its precedent.
  • End of an Era: State Tax Legend Paul Frankel Dies
    A light has gone out in the state and local tax world with the passing of one of its most preeminent and beloved practitioners. Paul H. Frankel, affectionately dubbed the “godfather of state and local taxation,” died early Feb. 28 at his home in New Jersey.
  • Utah Senate OKs Reporting Bill for Some Online Sellers
    The Utah Senate gave tentative approval to a bill (S.B. 83) imposing notice and reporting requirements on certain out-of-state sellers that don't collect and remit sales and use tax on remote sales.
  • Mississippi Lawmakers Abandon Online Sales Tax Bill
    Mississippi's final bill expanding sales taxation to out-of-state retailers died in a Senate committee Feb. 28. H.B. 480, would have expanded nexus—otherwise known as “sufficient physical presence” for purposes of sales tax liability—to include “economic nexus,” which would capture those taxpayers that make $250,000 or more in annual sales in Mississippi.
  • Bid for San Francisco Income Tax Fails
    San Francisco voted down a resolution late Feb. 28 that would have asked the California Legislature to change state law so that localities could impose local corporate and personal income taxes.
  • Indiana Appellate Court Holds Religious Freedom No Defense to Criminal Tax Evasion
    Indiana's Religious Freedom Restoration Act (RFRA) cannot be used as a defense by an individual charged with tax evasion, according to the Indiana Court of Appeals in Tyms-Bey v. Indiana, No. 49A05-1603-CR-439, 2017 BL 10320 (Ind. Ct. App. Jan. 13, 2017). The case is the first of its kind—a challenge arguing that Indiana's criminal tax law violated the state's RFRA.

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

  • California Franchise Tax Board Announces Dates for Acceptance of Applications for California Competes Tax Credit
  • Colorado Department of Revenue Schedules Stakeholder Work Group to Discuss Possible Revisions to Several Sales Tax Rules
  • Idaho State Tax Commission Proposes Amending Certain Property Tax Administrative Rules on Homeowner's Exemption and Property Tax Reduction Program
  • Indiana Department of Revenue Issues Tips for Filing State Tax Returns
  • New York Department of Taxation and Finance Publishes Frequently Asked Questions on Corporate Tax Reforms
  • Washington Department of Revenue Appeals Division Denies Petition, Finds Imposition of Business and Occupation Tax on Receipts from Insurance Carriers Allowed

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 …  

D.C. to Enact Remaining Tax Cuts After Projection of Large Recurring Surplus by the Tax Foundation

Colorado – Use Tax Notice and Reporting Law to be Enforced Starting July 1, 2017 by PwC

Compiled by Chreasea Dickerson