Weekly Round-Up: MTC Moves Forward with Sourcing Language, Tesla Sells Millions in Tax Credits

Highlights from the 7/1/16 issue of the Weekly State Tax Report :

  • Tax Executives: States Wielding Too Much Taxing Power
    States should amend or abandon their tactics in seizing revenue through alternative sourcing methodologies or tax haven legislation, according to a leading group for in-house tax professionals.
  • Multistate Tax Compact Appeals Rejected By Michigan High Court
    In a sweeping rebuff of Multistate Tax Compact business tax election litigation, the Michigan Supreme Court refused consolidated appeals sought by more than 50 companies.
  • Tesla Sells Estimated $20M in Tax Credits to Vegas Casino
    Tesla Motors Inc. has sold transferable tax credits worth an estimated $20 million to a Las Vegas casino, the company confirmed.
  • Tax Opinion Fells $33B Energy Transfer-Williams Merger
    Energy Transfer Equity LP terminated its agreement to buy Williams Cos. after 18 months of negotiations, leaving Williams to carry on as a standalone company and Energy Transfer to seek other options for growth.
  • California Joins States to Test Taxing Miles Instead of Fuel
    The launch in California of a pilot program to test taxing motorists for miles driven rather than gasoline consumed is a sign that momentum is growing around the nation to find a replacement for the failing fuel tax that many consider an antique Model T in a Prius world.
  • Multistate Tax Committee Advances Language on Sourcing
    The Multistate Tax Commission's Uniformity Committee approved an alternative to its preference for retaining conditions in model rules under which taxpayers can prospectively change their methods for sourcing business income.

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 Announces Tax Amnesty Program Application Will be Open from June 30 through August 30, 2016
  • New York Department of Taxation and Finance Issues Advisory Opinion that Estate Not Required to File Amended Return for Asset Discovered Five Years after Original Return Filed
  • Louisiana Legislature Enacts Law Adding Various Exemptions and Exclusions for Certain Services and Property Subject to Sales and Use Tax
  • New Jersey Tax Court Reduces Property Valuation, Finding Taxpayer's Expert Presented Credible Comparable Leases as Evidence of Market Rents
  • Pennsylvania Board of Finance and Revenue Grants Petition, Finding Taxpayers Entitled to Additional Income Tax Credit for Tax Withheld by Employer
  • West Virginia State Tax Department Publishes FAQ on E-Cigarette Liquids Excise Tax

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…  

Michigan partnership withholding requirement repealed by PricewaterhouseCoopers LLP

South By Southwest: Texas Supreme Court Rejects Processing Exemptions for Oil Company by Sutherland SALT

Compiled by Lauren Colandreo