Weekly Round-Up: Pennsylvania Net Loss Carryover Deduction Cap Declared Unconstitutional


In this week’s issue of the Bloomberg BNA Weekly State Tax report, Robert Willens of Robert Willens LLC discusses Nextel Commc’ns of Mid-Atlantic, Inc. v. Commonwealth, which declared the Pennsylvania net loss carryover deduction cap unconstitutional. In the case, the court found that disparate treatment of taxpayers based solely on the size of their businesses violates the uniformity clause of the Pennsylvania Constitution.

The article can be read in its entirety here.

Other highlights from the 1/15/16 issue of the Weekly State Tax Report:

* Tax practitioners forecast that the migration of states to market-based sourcing will continue in 2016

* Gillette could indicate states are more likely to prevail in arguments precluding taxpayers from electing Multistate Tax Compact's three-factor apportionment formula

* More states are likely to push the legal boundaries on nexus in 2016 in the hopes of a U.S. Supreme Court case

* States are moving to regulate and tax fantasy sports, treating winnings as reportable income

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

Rhode Island Division of Taxation Adopts Rule Regarding Corporate Nexus with State for Business Corporation Taxation

Michigan Department of Treasury Publishes Bulletin on Sales and Use Tax Treatment of Interstate Motor Carrier Regarding the Rolling Stock Exemption

Montana Department of Revenue Adopts Rules Pertaining to Fiduciaries, Estates, and Trusts

Missouri Supreme Court Upholds Commission's Decision Determining Taxpayer Liable for Sales and Use Tax for Providing Taxable Services

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…  

Maryland: Taxpayer Loses Case addressing whether Portable Toilet Rentals Are Taxable, by KPMG

Michigan: Department of Treasury Discusses New Cloud Computing Policy & Related Refund Procedures, by Deloitte Tax LLP

Compiled by Melissa Fernley