Weekly Round-Up: Highlights from the MTC’s Annual Meetings and NYU’s Summer Institute in Taxation


Highlights from the 7/29/16 issue of the Weekly State Tax Report :

  • Multistate Tax Group OKs Language on Changing Sourcing Method
    The Executive Committee of the Multistate Tax Commission approved model language to require taxpayers to give notice when they prospectively change their method for sourcing business income.
  • Is Congress Violating States' Taxing Power?
    Was passage of the Permanent Internet Tax Freedom Act yet another example of congressional overreach in preempting states' taxing power? During the Multistate Tax Commission's annual meeting, two prominent state and local practitioners mulled this question and offered competing perspectives on Congress' scope of authority to preempt state tax laws.
  • Uber, Lyft, Peer-to-Peer Providers Present Thorny Tax Issues
    Uber Technologies Inc., Airbnb Inc. and other peer-to-peer companies present growing tax gap problems for the IRS and states. The tax gap is growing because on-demand service providers such as Lyft Inc. and TaskRabbit are “a growing part of the economy,” said Annette Nellen, director of San Jose State University's graduate tax program, during the MTC's annual meetings.
  • To Curb Profit Shifting, States Eye Transfer Pricing Training
    Against the backdrop of the Internal Revenue Service crackdown on profit shifting overseas, states are amplifying efforts to target a field of sophisticated intercompany transactions that hide taxable income. State tax administrators attending the New York University Summer Institute in Taxation discussed the importance of refining skills in scrutinizing transfer pricing.
  • Rift Grows in Congress on Digital Sales Tax Proposal for States
    Practitioners see a schism growing in Congress related to opposing proposals to limit states' taxing jurisdiction over remote retailers. During the New York University Summer Institute in Taxation, a panel characterized Rep. Jim Sensenbrenner's (R-Wis.) latest online sales tax bill as a “complete turnaround from the marketplace fairness bills that have been introduced in the Senate.”
  • IBM Wins Relief in Tax Compact Dispute with Michigan
    International Business Machines Corp. could finally get some relief in its long-running tax dispute with the Michigan Department of Treasury following an appeals court ruling that directs the state to honor a 2014 judgment by the Michigan Supreme Court.

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

  • New Hampshire Department of Revenue Adopts Rule Concerning Voluntary Disclosure Program
  • Indiana Department of Revenue Discusses Inheritance Tax as Indiana's First Major Tax
  • Colorado Department of Revenue Proposes Amendments and Additions to Retail Marijuana Code
  • Illinois General Assembly Enacts Law Regarding Certification of Enterprise Zone
  • New York Supreme Court, Appellate Division Reverses Supreme Court's Judgment, Finds Taxpayer Not Entitled to Property Tax Exemption
  • Louisiana Department of Revenue Announces Sales Tax Discount on August 5th & 6th for Louisiana Shoppers

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…  

Ohio: Staffing Services Did Not Constitute Taxable Employment Services by KPMG LLP

Wisconsin: State Supreme Court Rejects Constitutional Challenges to the Application of a Reduced Interest Rate by KPMG LLP

Compiled by Lauren E. Colandreo