Highlights from the 1/13/17 issue of the Weekly State Tax Report :
Oil States View Taxes Warily in Battling Crude Market Dips
Historic declines in oil prices are sending states dependent on the slippery resource scrambling for ways to make up budget shortfalls in 2017 and beyond. Policy groups and lawmakers in Alaska, Texas and elsewhere are examining budgets and readdressing revenue sources to gird against fluctuations in the oil market
Taxing Online Sales in Focus for National Task Force
Partnership audits and states’ continued efforts to collect more taxes on remote sales will be front and center Jan. 14 at a meeting of the National Conference of State Legislatures Task Force on State and Local Taxation. Notice and reporting requirements for online retailers are expected to pop up in many states this year, as is a continued increase in measures challenging the 1992 Supreme Court ruling in Quill Corp. v. North Dakota, which permits states to impose sales and use tax obligations only on vendors with an in-state physical presence.
Congress Still Chewing Over Digital Sales Tax Solution
Will Congress put to rest the aging dispute over remote sales taxation in 2017? The outlook is questionable despite lots of discussion and several pending bills, as well as a growing flurry of state activity to collect more taxes from online sales.
Amazon Agrees to Remit Sales Tax in South Dakota
Amazon is adding South Dakota to the growing list of states in which it voluntarily collects and remits sales tax. During his State of State address, South Dakota Gov. Dennis Daugaard (D) announced that the retailer will start collecting state and local sales taxes next month and remitting the following month.
Comptroller Airs Franchise Tax Dispute in Texas Appeals Court
Labor costs incurred shouldn't be included in the cost of goods sold for Texas franchise tax purposes, an attorney representing the state argued before the Texas Third Court of Appeals. The state is seeking a determination from the court as to whether the cost of goods sold, or COGS, deduction for the Texas franchise tax is applicable to the entirety of labor costs associated with an automobile shop's installation of vehicle parts. (Hegar v. Autohaus, LP, Tex. App., No. 03-15-00427-CV, oral arguments 1/11/17).
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Compiled by Jason Plotkin
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