Weekly Round-Up: Online Sales Tax Picking Up Steam; Conformity to Internal Revenue Code


Highlights from the 02/17/17 issue of the Weekly State Tax Report :

  • Partnership Audit Bill Arrives in Minnesota House
    Minnesota has filed conformity legislation that appears to address the early opt-in election under the new federal partnership audit regime. Introduced Feb. 15, and authored by Rep. Greg Davids (R), H.F. 1227 responds to the new federal approach to auditing partnership entities. 
  • Business Tax Burdens Possibly on States’ Chopping Block
    State efforts to carve out business personal property from taxation are gaining steam amid continuing calls for states to remove business inputs from the sales tax base. According to consulting firm Multistate Associates, states are increasingly motivated to pull away from taxing businesses’ tangible personal property (TPP). More than 20 bills have been introduced this year to reduce or remove the property tax.
  • Online Sales Tax Reporting Bill Clears Alabama Senate
    Alabama could require internet retailers that don't collect sales tax to report their sales to the state and notify customers of use tax obligations under legislation the Senate approved Feb. 16. S.B. 86, which passed on a 28-0 vote, would give the Alabama Department of Revenue authority to impose reporting and notification requirements on sellers that don't collect and remit sales tax. The bill now goes to the House for consideration.
  • Federal Tax Talks Trigger California Conformity Questions
    California lawmakers following debate in Congress about a federal tax overhaul are bracing themselves for the complex task of deciding whether and when the state would conform. The Legislature will need at least six months to examine the eventual federal package and adjust to the potentially radical changes, Assembly Revenue and Taxation Committee Chair Sebastian Ridley-Thomas (D) told Bloomberg BNA Feb. 16.
  • Utah Governor Readying Battle Lines on Online Taxes, Narrowing of Tax Base
    Utah will not wait on Congress or the U.S. Supreme Court to improve its taxing authority over online sales, Gov. Gary R. Herbert (R) told Bloomberg BNA. In his State of the State address at the start of the 2017 session of the Utah Legislature, Herbert touted the challenges the state faces in collecting taxes on remote sales and dealing with a growing complexity of the state's tax system.

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

  • Arkansas Governor Issues Statement on Amazon's Decision to Collect Sales Tax in Arkansas Starting in March
  • Idaho Legislature Enacts Law to Update References to Internal Revenue Code Regarding Income Taxes
  • Nebraska Department of Revenue Releases General Fund Receipts for January 2017
  • Comptroller of Maryland Office Prevents $1.1 Million in Fraudulent Income Tax Returns

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 …  

Illinois Department of Revenue Proposes an Amendment to the Sourcing Regulation That Would Affect Taxpayers Providing Services to ‘Investment Funds’ by PwC

Colorado: Economic Nexus, Alternative Apportionment and More; Trial Court Addresses a Number of Corporate Income Tax Issues by KPMG

Compiled by Chreasea Dickerson