Weekly Round-Up: Impact of National Politics and Federal Legislation on State Tax

Highlights from the 7/22/16 issue of the Weekly State Tax Report :

  • Debt-Equity Rules on States’ Radar, Though No Changes Yet
    States are in the early stages of determining how federal debt-equity rules will trickle down. However, some panelists at the New York University Summer Institute in Taxation sense that there may be little impact at the state level.
  • Trump, Kids Witnesses in New York Tax Scam Case
    Donald Trump and children Donald Jr. and Ivanka have been named as material witnesses in a suit related to an alleged New York tax scam.
  • Sprint Appeals New York Tax Secrecy Order
    Sprint's request to see Department of Taxation and Finance documents and communications involving competitors was denied by a New York state trial court on the grounds that the documents are protected by the state’s tax secrecy law. Sprint has appealed this decision to the state appeals court.
  • Dim Outlook for Bill Barring States’ Online Sales Tax Push
    On July 12, Wisconsin Rep. Jim Sensenbrenner introduced legislation that would codify the physical presence nexus standard of the 1992 Supreme Court decision in Quill. Strong state opposition to the bill is expected as a few states have enacted economic nexus standard and many have click-through or affiliate nexus provisions that would be pre-empted by the legislation should it become law.
  • Trump’s VP Candidate No Stranger to State Tax Overhaul
    Indiana Gov. Mike Pence, Trumps vice president candidate, is responsible for the largest tax cut in Indiana’s history. In 2013, Indiana passed legislation reducing the personal income tax rate. Later in 2014, Indiana passed legislation that would gradually reduce the corporate income tax rate.
  • Republicans Seek Reversal of Same-Sex Couples Tax Ruling
    The Republican Party’s official 2016 platform, adopted on July 18 by delegates at the Republican National Convention, advocates for the reversal of U.S. Supreme Court decisions regarding same-sex marriage.

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

  • Alabama Department of Revenue Publishes Updated Information on the Number of Individual Tax Returns Processed and Refunds Issued During 2016 for Tax Year 2015
  • California State Board of Equalization Issues Interest Rates for January to June 2017
  • Georgia General Assembly Enacts Law Allowing Modification of the Amount of Homestead Exemption Allowable from City of Decatur Ad Valorem Taxes
  • Indiana Department of Revenue Reminds Taxpayers Regarding Tax Warrant Expungement Request
  • Nebraska Department of Revenue Publishes 2015 Annual Report on Nebraska Tax Incentives to the Legislature
  • South Dakota Department of Revenue Announces Municipal Tax Changes Effective July 1, 2016

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…  

Pennsylvania budget expands sales tax base to include digital products, establishes amnesty, provides income tax filing guidance, and adds tax credits by PricewaterhouseCoopers LLP

North Carolina: New Law Requires DOR to Submit Proposed Market-Based Sourcing Administrative Rules; Includes Statutory Proposal Reflecting Market-Based Sourcing Principles by Deloitte


Compiled by Chreasea Dickerson