Weekly Round-Up: Electronic Commerce and State Tax Reform

Highlights from the 3/13/17 through 3/17/17 issues of the Daily Tax Report: State :

  • Multistate Tax Group Assessed $73M in Corporate Income Audits
    Audits completed by the Multistate Tax Commission's Joint Audit program through Jan. 31 proposed assessment amounts of $73,580,903 for corporate income tax audits and $562,880 for sales and use tax audits. The assessment amounts for audits finished between July 1, 2016, and Jan. 31 were included in a report by Keith Getschel, director of the MTC Joint Audit Program, during the MTC's winter committee meetings in San Diego, Calif.
  • Big Impact on States Seen From Federal Tax Reform
    Any significant tax reform at the federal level would have a big impact on state taxes, a specialist in state and local taxes said March 10. A “difficult process” would ensue for states if Congress adopts something like the House Republican tax reform blueprint before a “new equilibrium” emerges, said Harley Duncan, managing director and state and local tax leader in KPMG LLP's Washington national tax practice.
  • Online Tax Reporting Bill Moves to Alabama Governor
    Out-of-state sellers could be required to report their sales into Alabama and notify customers of use-tax obligations under legislation that now awaits the signature of Gov. Robert Bentley (R). S.B. 86, which won final passage in the Legislature March 14, would authorize the Alabama Department of Revenue to implement sales tax reporting and notification rules. The reporting requirements likely would be similar to a Colorado law that recently survived a constitutional challenge, which the U.S. Supreme Court declined to review in December.
  • Amazon to Collect Sales Tax in Hawaii
    Amazon confirmed March 15 that it will begin collecting sales tax on items sold in Hawaii. That leaves two states with statewide sales taxes—Idaho and Maine—in which the e-retail behemoth doesn't have agreements to collect.
  • Alabama Bank Income Tax Bill Deviates From Multistate Model
    Alabama's tax treatment of bank income would diverge from a national model policy that raised industry concerns under legislation moving through the statehouse. H.B. 263, which the House approved by unanimous vote on March 15, would revise the rules for apportionment of multistate bank income for the purposes of Alabama's financial institutions excise tax. The bill goes next to the Senate for consideration, where it's expected to pass.

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

  • New Jersey Division Of Taxation Issues Technical Bulletin Concerning Addback Of Other State's Taxes
  • New York Department Of Economic Development Adopts Emergency Amendments To Rules On Empire Zones Reform
  •  Virginia General Assembly Enacts Law Extending Expiration Date Of Motion Picture Production Tax Credit
  • Georgia Department Of Revenue Issues Policy Bulletin Concerning Sales And Use Tax Exemption For Nonprofit Volunteer Health Clinics And Nonprofit Health Centers
  •  Iowa Department Of Revenue Publishes Tax Credits Contingent Liabilities Report

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 …  

Facts & Figures 2017: How Does Your State Compare? by the Tax Foundation

Pennsylvania – 2017 Tax Amnesty Program by PwC

Compiled by Chreasea Dickerson