Weekly Round-Up: The Fate of the Multistate Tax Compact; Streamlined Sales Tax Project Participation

Highlights from the 11/25/16 issue of the Weekly State Tax Report :

  • U.S. High Court Again Asked to Address Multistate Tax Compact

    Corporations want the U.S. Supreme Court to rule on retroactive taxation in cases challenging Michigan's retroactive repeal of the Multistate Tax Compact in 2014. Three petitions filed with the high court contest Michigan's retroactive repeal of the Multistate Tax Compact, in which the state reached back nearly seven years and incurred collective corporate tax liabilities allegedly exceeding $1 billion: (IBM Corp. v. Mich. Dep't of Treasury, U.S., cert. petition filed 11/16; Gillette Commercial Operations N. Amer. v. Mich. Dep't of Revenue, U.S., cert. petition filed 11/16; and Goodyear Tire & Rubber Co. v. Mich. Dep't of Revenue, U.S., cert. petition filed 11/16).

  • Tax Reciprocity With Pennsylvania Stands: Gov. Christie

    New Jersey Gov. Chris Christie (R) reversed course by announcing he will maintain a decades-old tax reciprocity agreement with Pennsylvania that was set to expire soon. Christie vowed in September to revoke the agreement Jan. 1, 2017, unless the Legislature took steps to reduce public employee and health insurance costs. The governor attributed his change of heart to new bipartisan legislation that streamlined the state's pharmacy benefit system.

  • Trump May Back States on Remote Sellers: NCSL Official

    President-elect Donald Trump has already shown support for state taxation of remote sales, which gives advocates some hope, according to Neal Osten, director of the National Conference of State Legislatures Washington office.

  • Streamlined Sales Tax Agreement Seeking More States

    The Streamlined Sales Tax Governing Board Inc. is seeing opportunity in several states that are adopting policies aligned with the Streamlined Sales and Use Tax Agreement, according to the head of the organization.

  • Las Vegas NFL Stadium Fumble? Oakland Bids to Keep Raiders

    The city of Oakland, Calif., is responding to efforts by Nevada officials to lure away its National Football League franchise, the Raiders, and relocate the team to Las Vegas. The city has begun a process with an investment group by which plans would be drawn up for a new Oakland stadium, in hopes that the Raiders would remain.

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

  • California State Board of Equalization Issues Special Notice on Record-keeping Requirements for Exempt Sales of Medical Marijuana Beginning November 9, 2016

  • Illinois Department of Revenue Adopts Amendments to Rules Concerning Filing of Unitary and Composite Returns

  • New York Department of Taxation and Finance Publishes PrompTax Sales Tax Payment Reminder for November 2016

  • Wisconsin Department of Revenue Issues Publication on Net Operating Losses for Individuals, Estates and Trusts

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…  

PwC Adviser Outlines State Consequences of Federal Debt Recharacterization by PwC

Ohio: State Supreme Court Upholds Constitutionality of Factor-Presence Nexus Test by KPMG


Compiled by Chreasea Dickerson