Weekly Round-Up: Goodlatte's Digital Tax Plan Possibly Buoyed by Florida Brief; Import-Export Tax Idea Presents State Constitutional Pitfalls


Highlights from the 02/10/17 issue of the Weekly State Tax Report :

  • State Corporate Income Tax: Rate Isn't Top Issue of Concern
    Companies may be more concerned with how states collect corporate income taxes than with the exact rate. Still, Arizona, Indiana, New Mexico, North Carolina and the District of Columbia will lower rates this year in an attempt to lure businesses and jobs.
  • Goodlatte's Digital Tax Plan Possibly Buoyed by Florida Brief
    Proponents of Rep. Robert Goodlatte's (R-Va.) proposal for a national framework allowing states to collect sales tax from remote retailers may have found ammunition from the unlikeliest of sources. In a response brief before the U.S. Supreme Court, the Florida Department of Revenue invoked the divisive 1992 decision in Quill Corp. v. North Dakota, 504 U.S. 298 to support its call for the high court to reject a florist's recent petition for review.
  • Wait for Federal Partnership Audit Rules, California Advised
    California tax officials weighing whether to conform to new federal rules for partnership audits should wait until the rules are more certain, a representative of the Council On State Taxation told them. California will need legislation if it wants to audit and impose tax at the partnership level, and Franchise Tax Board officials said they don't want to be caught without that authority when the new federal rules take effect, because the state could lose a significant amount of revenue.
  • Import-Export Tax Idea Presents State Constitutional Pitfalls
    States could run afoul of the Constitution by following a federal border-adjustments plan advocated by House Speaker Paul Ryan (R-Wisc.) to tax imports and exempt exports. The commerce clause, and even the equal protection clause, could factor in how states respond to whatever bill is finally presented by Ryan and other congressional members.
  • Partnership Audit Bill Surfaces in Georgia
    Georgia has become the third state to introduce legislation arising out of the new federal partnership audit regime. Sponsored by Reps. David Knight (R), Brett Harrell (R) and Bruce Williamson (R), H.B. 283 largely tracks the new law governing federal audits of partnership entities.
  • Tennessee Online Retailer Rule Sparks First Challenge
    A recently issued Tennessee rule requiring the collection and remittance of sales taxes by large online retailers has been administratively challenged by NetChoice and the American Catalog Mailers Association.

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

  • New Jersey Tax Court Grants Motion For Partial Summary Judgment, Finds Division Of Taxation's Increase Of Taxpayer's Allocation Factor Incorrect
  • Connecticut Department Of Revenue Services Issues Informational Publication Regarding Income Tax Withholding Requirements For Connecticut Employees
  • Iowa Legislature Enacts Law Concerning State School Foundation Program
  • Alabama Department Of Revenue Announces 2017 Severe Weather Preparedness Sales Tax Holiday Set For February 24 26

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 …  

Colorado trial court– Economic nexus for IP company; alternative apportionment must include the IP company’s property and payroll by PwC

New York: You Reap What You Sew: Sewing Services Subject to Tax by KPMG

Compiled by Lauren E. Colandreo