Weekly Round-Up: State Taxation of Guns, Ammo, Digital Downloads, Uber and Lyft


Highlights from the 8/5/16 issue of the Weekly State Tax Report :

  • Taxing Guns, Ammo? Load Up for a Fight
    Recent mass shootings in the U.S. stage the backdrop for an increasingly tense duel between advocates for gun control and gun rights. And that friction is seeping into a debate typically not raised amid the immediate post-shooting rhetoric: whether states and local tax laws can target firearms and ammunition.
  • E-Retailer Tax Bills, Flurry of State Acts Flummox Congress
    None of the multiple congressional proposals over states' authority to tax remote sales have garnered widespread support. And it's unclear if they will, especially as states increasingly act to expand their authority and to challenge U.S. Supreme Court limits.
  • Intra-Company Cash Transfers Ripe for State Coffers
    States, looking for sources of revenue, may look into treating the movement of cash from an operating company to a parent as debt and imputing interest to collect tax.
  • Pokemon Gone: Pennsylvania Zaps Tax-Free Digital Downloads
    Tax-free digital downloads are history in Pennsylvania. As of Aug. 1, anyone in the Keystone State who downloads a book, streams a video, buys an app or subscribes to a digital music stream will pay a 6 percent sales and use tax on the purchase.
  • Uber, Lyft Transporting States to New Tax Challenges
    While many state legislators have turned their taxing attention to online retail sales and short-term vacation rentals, lawmakers in some states have begun looking to other digital industries, including the burgeoning ride-hailing market.
  • California Tax Board Opposes High Court Review of ‘Gillette'
    The California Supreme Court correctly held that private taxpayers can't prevent the state from changing its tax laws or dictate how it makes changes when it ruled that California could vary from the terms of the Multistate Tax Compact, the Franchise Tax Board told the U.S. Supreme Court.

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

  • Virginia Tax Commissioner Upholds Corporate Income Tax Assessments as Taxpayer Fails to Prove Subsidiary, With Insufficient Nexus, Should be Included in Combined Return
  • New York Legislature Enacts Law Regarding the Registration and Regulation of Interactive Fantasy Sports Contests
  • California Film Commission Announces California's Film and Television Tax Credit Program 2.0 Gains First $100 Million-Plus Feature
  • Utah State Tax Commission Lowers Valuation Based on Appraisal Evidence, Finds Taxpayer Fails to Show Entitlement to Larger Tribal Exemption
  • Louisiana Department of Revenue Releases Information Announcing Many Back-to-School Expenses Are Tax Deductible

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…  

Washington – No transactional nexus requirement, or dissociation, for Washington sales tax or B&O tax by PwC LLP

South Dakota: Quill Challenge Meets Challenges by KPMG LLP

Compiled by Lauren E. Colandreo