Weekly Round-Up: States Looking to Avoid Federal Limits on Income Taxes; Amazon Agreements Boosting States’ Digital Sales Tax Drive

Highlights from the 5/1/17 through 5/5/17 issues of the Daily Tax Report: State :

  • States Looking to Avoid Federal Limits on Income Taxes
    Companies doing business in multiple states may be finding that a federal statute designed to limit state income tax assessments is eroding a bit.
  • Bill Abolishing Texas Franchise Tax Clears House
    A bill that would eliminate the franchise tax cleared the Texas House late April 27 after legislators aired concerns over whether the state had a plan for replacing the lost revenue.
  • Alaska Income Tax Debate Driving Wedge Between House, Senate
    Two words are keeping the Alaska House and Senate apart in creating a fiscal plan that will close or at least narrow a fiscal gap sitting at almost $3 billion: income tax.
  • Amazon Agreements Boosting States’ Digital Sales Tax Drive
    Amazon.com Inc.'s now-nationwide compliance with state sales and use tax regimes will embolden states in their efforts to recover revenue from all remote retailers, according to tax professionals.
  • Soda Tax Fizzles Out in New Mexico, Marking Rare Defeat
    Santa Fe voters by a significant margin voted down a proposed tax on sugary and sweetened beverages May 2.
  • Oregon Democrats Unveil Gross Receipts Tax Framework
    Oregon's majority Democrat lawmakers are pushing a proposal to shift the state's corporate tax regime from one based on net income, but Republicans say it's dead on arrival.
  • Maryland Pioneers Tax Credits for Energy Storage
    Maryland will become the first state to offer a tax credit for energy storage systems under a new law Gov. Larry Hogan (R) signed May 4.

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

  • New Jersey Legislature Amends Law on Economic Redevelopment Growth Grant Program Tax Credits
  • Indiana General Assembly Makes Changes to Wagering, Horse Racing and Other Gaming Related Activities
  • Oregon Legislature Enacts Law on Overpayment of Personal Income Tax
  • Florida District Court of Appeal Finds Taxpayer Not Equitable Owner of Leased Land
  • Virginia Department of Taxation: New Law Affects Dealers Owning Inventory in Virginia

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 …  

State tax policies vary widely on car sharing, home rentals and disaster relief by Accounting Today

Connecticut – Guidance on single-sales factor apportionment and market-based sourcing by PwC

Compiled by Lauren E. Colandreo