WEEKLY ROUND-UP: MARKET-BASED SOURCING, SALES AND USE TAX REPORTING MODEL RULES AND OTHER PREDICTIONS FOR WHAT’S COMING IN 2017

 Highlights from the 12/16/16 issue of the Weekly State Tax Report:

  • Koskinen to States: Clarity Coming on New Partnership Regime
    States struggling with uncertainty over the new federal partnership audit regime may want to adopt a wait-and-see approach as federal officials clean up the rules, according to the Internal Revenue Service chief.
  • Colorado Online Tax Law on Hold Despite Supreme Court Ruling
    Colorado hasn't enforced its online sales tax reporting and notice law on out-of-state electronic commerce retailers since the law took effect in 2011, but that could change in light of recent rulings by federal appellate courts.
  • More States Move to Market-Based Sourcing, Warts and All
  • More states will likely be adopting market-based sourcing in 2017 to determine which companies should pay what in income taxes, though criticism of the approach lingers.
  • States May Turn to Multistate Tax Group's Reporting Model
    The Multistate Tax Commission will likely consider breathing new life into its model sales and use tax reporting and notice statute now that Colorado's law has been upheld, the commission's general counsel said.
  • Three Prominent State and Local Tax Practitioners' Outlook on What's Ahead in 2017
    Bloomberg BNA recently asked three prominent state and local tax thought leaders about changes they see on the horizon for 2017.
  • Groups Offer Model Law on Federal Partnership Adjustments
    Tax policy groups proposed amendments to the Multistate Tax Commission's model state law for reporting federal audit adjustments in response to concerns arising out of the new federal partnership audit regime.
  • Alabama to Push Online Tax Bill After High Court Clears Way
    Alabama's tax commissioner said she will ask the state Legislature to consider a Colorado-style reporting and notice requirement for out-of-state retailers that don't collect and remit the state's use tax on remote sales.

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

  • Texas Comptroller of Public Accounts Affirms Mixed Beverage Gross Receipts Tax Assessment, Finds Taxpayer Fails to Show Audit Error
  • Arkansas Department of Finance and Administration Partially Sets Aside Proposed Assessment, Finds Taxpayers Abandoned Domiciles in Arkansas During Tax Year
  • Tennessee State Board of Equalization Reduces Subject Property's Value Upon Finding Taxpayer's Presentation Convincing
  • Utah Tax Commission Adopts Enacted Rule Concerning Sales to United States Government and Instrumentalities

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 …  

Alabama: Domestic Production Activities Deduction Limitation based on Federal, not Alabama, Taxable Income by KPMG

West Virginia Supreme Court – Use tax credit available for sales tax paid to other states and their municipalities by PwC

Compiled by Lauren E. Colandreo