Weekly Round-Up: Federal Changes Influencing Future of State Tax Law


 Highlights from the 1/27/17 issue of the Weekly State Tax Report:

  • Overstock, Others Will Report, Not Collect Colorado Tax
    Two major internet retail companies said they will comply with Colorado's reporting and notice law, but won't go further to collect and remit the state's sales and use taxes on remote sales.
  • Freeze of Partnership Audit Rules Delays Clarity for States
    States seeking administrative guidance on the new federal partnership audit regime will have to wait a little longer. White House Chief of Staff Reince Priebus released a memorandum to the heads of executive departments and agencies instructing them, among many directives, to withdraw those regulations submitted to the Office of the Federal Register but not yet published in the Federal Register.
  • Obamacare Repeal May Cost States Billions of Dollars
    Governors, health-industry advocates and other state-level officials are beginning to put a price on the Affordable Care Act's repeal—and it's in the billions. Estimates reflect deep losses for states such as California, Louisiana, Michigan, New Jersey, New York and Ohio.
  • Federal Tax Overhaul Would Force Major State Policy Decisions
    States will have big decisions to make around business taxes and deductions of companies’ capital investments—as well as potential tax revenue windfalls—if the GOP's federal tax overhaul is enacted, attorneys predicted.
  • CEO Pay Targeted in San Francisco, Rhode Island
    San Francisco and Rhode Island are aiming business tax surcharges at companies with chief executive officers whose compensation is 100 times greater than their median worker's pay.
  • House Leaders Hint at Spring Push for Online Sales Tax Law
    Federal lawmakers are signaling they may soon circle back to a potential national solution that sets forth states’ right to collect sales taxes from remote retailers.

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

  • Florida Governor Proposes $618 Million Tax Cut Package
  • Colorado Department of Revenue, Marijuana Enforcement Division, Adopts Emergency Rules Concerning Retail Marijuana
  • Idaho State Tax Commission Affirms Notice of Deficiency Determination, Finds Taxpayer Not Eligible for Foreign Earned Income Exclusion
  • Minnesota Department of Revenue Issues Income Tax Fact Sheet Regarding Subtractions, Credits and Extensions for Military Personnel
  • Florida Court of Appeals Grants Exemption, Finds Parcel Used for Aviculture Qualifies for Agricultural Exemption

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 …  

Legal Alert: Transmission Partnership Not Deemed Includible in Consolidated Return and Allowed To Collect Income Tax Allowance in its Rates by Sutherland Asbill & Brennan LLP

Massachusetts: Taxpayer was Considered a Manufacturer Required to Use Single-Sales Factor Formula by KPMG

Compiled by Lauren E. Colandreo