Weekly Round-Up: Nevada Mellow with Marijuana Sales, While Other States Experience Pain from Federal Health Care Rules

 Highlights from the 3/27/17 through 3/31/17 issues of the Daily Tax Report: State:

  • States May Eye Health Care Flop as Harbinger on Tax Reform
    States might look to the House stumble on the American Health Care Act as an indicator of just how much Congress can change the tax code this year.
  • Delaware Budget ‘Reset’ Eyes More Corporate Taxes
    Delaware will tweak corporate franchise taxes, eliminate itemized deductions on personal income and hike tobacco taxes under a budget “reset” proposed by Gov. John Carney (D) March 23.
  • California Tax Board Practices Violate State Law, Audit Says
    Elected members of the California State Board of Equalization intervene in daily operations of the tax agency, use tax staff to promote personal events and threaten senior managers with dismissal if they don't go along, according to an audit obtained by Bloomberg BNA.
  • IBM Blasts Michigan's Arguments on Retroactive Tax Law
    IBM Corp. flatly rebutted Michigan's contention that a retroactive change in state tax law was about “legislative clarification” in its reply brief to the U.S. Supreme Court.
  • Nevada Weighs Earlier Start to Marijuana Sales, Taxation
    A measure (S.B. 302) that would speed up implementation of Nevada's recreational-use marijuana law—as well as enforce higher taxes—is working its way through the Legislature.
  • Infamous Illinois Whistle-Blower Loses Wine Tax Case
    Prolific tax whistle-blower Stephen B. Diamond couldn't convince an Illinois appellate court to side with him in another action brought under the Illinois False Claims Act.
  • Ohio Seeks Rehearing in ACA Tax Challenge
    The state of Ohio filed a petition March 29 asking a federal appeals court to rehear its lawsuit challenging the Affordable Care Act's transitional reinsurance program, a taxing mechanism set up to reimburse some health insurers for coverage provided to higher risk patients.
  • Online Travel Companies Fight Federal Court's $84M Judgment
    Online travel companies are pleading for reversal of a federal district court's judgment they are liable for $84 million in hotel occupancy taxes, penalties and interest.
  • No April Fooling: Amazon to Begin New Mexico Tax Collection
    Online retailer Amazon.com Inc. is poised to begin collection of gross receipts (sales) tax revenue in New Mexico beginning April 1, and politicians and revenue experts eagerly await early indications on how much new revenue that agreement may bring the state.

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

  • Ohio Department of Revenue Issues Notice Concerning Meaning of “Indirect” Ownership for Personal Income and Pass Through Entity Tax Purposes
  • South Carolina Supreme Court Reverses Circuit Court, Finds South Carolina Code Unconstitutionally Restricted Retail Liquor Licenses
  • Utah Legislature Enacts Law Amending Individual Income Tax Provisions Related to Pass-Through Entities
  • Illinois Independent Tax Tribunal Denies Motion for Partial Summary Judgment as Taxpayers Failed to Establish Entitlement to Disallowed Trade-In Credits

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 …  

The Return of Gross Receipts Taxes by the Tax Foundation

Arizona: Use of Software to Provide Services Did Not Constitute the Rental of Tangible Personal Property by KPMG

Compiled by Lauren E. Colandreo