Weekly Round-Up: Special Sourcing Rules for SpaceX; Additional Incentives for Amazon


Highlights from the 10/2/17 through 10/6/17 issues of the Daily Tax Report: State :

  • South Carolina Apportionment Decision Should Stand: Tax Group
    An October 2016 decision that the South Carolina Department of Revenue can't use an alternative apportionment method to assess the corporate income tax liability of a Rent-A-Center Inc. subsidiary should stand, the Council On State Taxation (COST) said in a friend-of-the-court brief.
  • Amazon Headquarters Bid Ramps Up in Illinois
    Illinois lawmakers are ramping up their bid for the massive Amazon HQ2 project, unveiling a high-level committee to steer the state's offer and discussing options for a special legislative session to craft the incentives package.
  • Amazon Headquarters Promised $5B in New Jersey Tax Incentives
    New Jersey lawmakers are putting on a full court press to lure the HQ2 project by Amazon.com Inc. by promising some $5 billion in tax incentives.
  • Maine Considers 20 Percent Combined Tax for Marijuana
    A Maine legislative committee submitted a marijuana legalization proposal to the Legislature that folds a volume-based excise tax into its proposed 20 percent tax rate.
  • High Court Invites Solicitor General to Tribe Tax Case
    The U.S. Supreme Court has shown interest in a case over whether a Washington state tribe's treaty with the U.S. shields its members from paying state taxes on wholesale gasoline hauled in on off-reservation roads.
  • Space Flight Income Tax Rules Take Off in California
    Space transportation companies such as SpaceX and United Launch Alliance now have special rules to calculate the amount of their income that is taxable in California.
  • Trump Funded 1986 Effort to Keep Tax Break He Now Wants to End
    President Donald Trump was once one of the top funders of an effort by wealthy New York real estate executives to preserve a tax break that he now wants to end, a memo obtained by Bloomberg shows.
  • Nevada High Court Mulls Who Can Distribute Marijuana
    Nevada's marijuana regulation agency and alcohol wholesalers argued in court Oct. 3 over who should be allowed to distribute the substance under the state's new recreational program.
  • NHL Players’ Salaries Shrink by Millions After Taxes
    What do National Hockey League athletes really make? The players are lucky to see about a third of their original salaries after federal taxes, state taxes, and other financial obligations.

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

  • Rhode Island Amends Business Corporation Act, Limited Liability Company Act
  • New York Allows Taxpayer to Reform Decedent's Will to Minimize Estate Tax 
  • Minnesota Announces Completion of 2015 Federal Conformity Adjustments
  • Oklahoma Tax Commission Adopts Voluntary Disclosure Initiative Rules

Get a free trial to Bloomberg BNA Tax & Accounting's State Tax solution , a comprehensive research service that provides deep analysis and time-saving practice tools to help practitioners make well-informed decisions.

In other developments …  

Does Your State Levy a Capital Stock Tax? by the Tax Foundation

California expands voluntary disclosure program to include certain flow-throughs by PwC