Weekly Round-Up: States Keeping a Watchful Eye on Federal Tax Reform

Highlights from the 9/25/17 through 9/29/17 issues of the Daily Tax Report: State :

  • States Watch Federal Changes to Corporate Income, Effect on Base
    States that tax corporate and personal income are keeping a close eye on changes to the federal tax code and how those changes might affect their tax bases.
  • N.Y., California Peg Billions in Losses From Axing Tax Deduction
    The plan by President Donald Trump and GOP leaders to end the federal deduction for taxes paid to state and local governments would cost New York taxpayers $17.5 billion a year, New York Gov. Andrew M. Cuomo (D) said.
  • State Groups Vow Fight for Tax Deduction Despite Trump, Big Six
    Groups representing state and local officials will lobby hard to persuade members of Congress not to go along with calls from President Donald Trump and GOP leaders to end the federal deduction for taxes paid to state and local governments.
  • Trump's State-Tax Plan Could Cause Headaches for 52 Republicans
    President Donald Trump's promised tax overhaul may force dozens of Republican congressmen in states including New York and New Jersey into a politically damaging vote to repeal a $1.3 trillion tax break their districts use heavily.
  • Newegg, Wayfair, Overstock Say Wyoming's Suit Unconstitutional
    More than 12,000 state and local taxing jurisdictions in the U.S. adds “enormous complexity and potential burden” to multistate sales and use tax compliance for companies, three major e-commerce companies argued in litigation over Wyoming's digital sales tax law.
  • Federal Digital Tax Bills Frozen as High Court Case Heats Up
    State tax watchers are skeptical that federal legislation aimed at addressing remote sales tax collection will move while there is the possibility that the U.S. Supreme Court will review a South Dakota decision that struck down a statute requiring out-of-state sellers to collect sales tax.
  • What Do Governors Want From Tax Reform?
    Republican governors are closely watching tax reform to see how it could impact revenue in their states, after showing their clout in negotiations over the Affordable Care Act.
  • New York Uses $20M in Tax Incentives to Land Amazon Offices
    Amazon.com Inc. will receive $20 million in performance-based tax incentives to locate a 359,000-square foot administrative office in a New York City real estate development property.

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

  • Alaska Department of Revenue Proposes Amending Oil, Gas Production Tax Rules
  • California Announces Valuation Changes for Construction in Progress
  • Idaho Provides Information on Claiming Fuel Tax Credits
  • Illinois Finds Internet Company's Mail Order Catalogs Didn't Constitute Presence in State

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 … 

Ohio’s Commercial Activity Tax: A Reappraisal by the Tax Foundation

Delaware Sewer and Water Authority Successfully Challenges Permit "Fee" as Disguised Tax by Eversheds Sutherland