Weekly Round-Up: States Still Split on Online Transactions

Highlights from the 5/15/17 through 5/19/17 issues of the Daily Tax Report: State :

  • Expect Tax Overhaul if South Dakota Loses E-Retail Litigation
    Expect states to overhaul their tax systems if South Dakota is unsuccessful in challenging a 1992 Supreme Court opinion that restricts the ability of states to collect sales tax from remote e-retailers.
  • Wisconsin Preps for Fight Over Dark Store Tax Assessments
    Momentum is building in Wisconsin behind a pair of bills seeking to remedy a local property tax gap emerging due to the “dark store theory” used by larger retailers to reduce their property tax assessments.
  • Oklahoma Decouples From Trump Tax Deduction Plan
    Gov. Mary Fallin (R) May 12 signed final legislation making Oklahoma among the first states to decouple from the federal tax code in the wake of President Donald Trump's tax reform proposal.
  • Ohio Budget Includes Pro-Property Owner Tax Appeals Rule
    A little-known provision in the Ohio House budget would shift litigation fees and costs for Board of Revision appeals to losing government entities.
  • Online Marketplace Tax Bill Vetoed in Minnesota
    Minnesota lawmakers agreed to convene a new round of negotiations aimed at cutting taxes and funding state government after Gov. Mark Dayton (DFL) May 15 vetoed every component of the two-year revenue and spending plan passed by the Republican-controlled Legislature.
  • Online Retailer, Airbnb Tax on Table in Massachusetts
    The Massachusetts Senate Committee on Ways and Means’ proposed budget for fiscal year 2018 contains taxes estimated to be worth $409 million per year to the state, including a retail sales tax on online purchases and a tax on short-term room rentals sold on websites like Airbnb Inc.
  • Get Off of My Cloud: Illinois Reasserts Tax-Free Approach
    While some states and cities are pushing forward with regulations permitting taxation of cloud computing transactions, Illinois is reaffirming its hands-off approach to cloud-based services, a state and local tax practitioner told Bloomberg BNA May 17.
  • States May Not Follow Tax Reform on Treatment of Machinery
    States may not conform to a possible change in the federal tax code requiring businesses to include full and immediate expensing of machinery purchases and other capital investments, creating administrative headaches for companies.
  • Louisiana One Step Closer to Regulation of Uber, Lyft
    Louisiana could soon start taxing and regulating ride-share companies like Uber and Lyft under legislation sent to the state Senate

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

  • Oregon Legislature Redefines Apportionable Income for Corporate Tax Apportionment Purposes
  • Connecticut Supreme Court Finds Inclusion in Decedent's Gross Estate, Value of Qualified Terminable Interest Property Proper
  • Washington Legislature Amends Law Concerning Marijuana Producer's Licenses
  • Minnesota Department of Revenue Highlights Individual Income Tax Benefits Available to Military Service Members
  • Louisiana Department of Revenue Issues Bulletin on Annual Sales Tax Holiday for Hurricane Preparedness Supplies

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 …  

D.C. Council Committee to Vote on Interrupting Tax Reform Package by the Tax Foundation

Washington – Proposed Advisory provides credit card processors subject to B&O tax on full amount of merchant fees, could have nexus implications by PwC

Compiled by Lauren E. Colandreo