Weekly Round-Up: Trump Infrastructure Plan May Undermine Municipal Market; New Fronts Opening in States’ Fight Over E-Retailer Sales Tax

Highlights from the 12/02/16 issue of the Weekly State Tax Report :

  • Trump Infrastructure Plan May Undermine Municipal Market
    President-elect Donald Trump and a Republican-controlled Congress may take steps to make municipal bonds less attractive to investors, potentially undermining a popular tool to finance bridges, roads and other public projects.
  • New Fronts Opening in States’ Fight Over E-Retailer Sales Tax
    States’ fight for the right to tax all e-commerce sales continues to find new battlegrounds, although tax attorneys say many of them might not directly confront the physical presence requirement that states hope to overturn.
  • IRS, States Edgy Over ‘Push-Out’ Election in Partnership Rules
    Federal and state officials share concerns over provisions pushing out tax liability to individual partners under the new federal partnership audit and adjustment regime. Enacted as part of the Bipartisan Budget Act of 2015 (Pub. L. No. 114-74), and effective for taxable years after Dec. 31, 2017, the rules provide that IRS partnership audits will be conducted and adjustments collected at the entity level.
  • Washington State to ‘Wait-and-See’ on WTO Boeing Ruling
    Washington state will wait before taking any steps in response to a World Trade Organization ruling that a portion of an $8.7 billion state tax incentive package to The Boeing Co. constitutes an illegal subsidy.
  • Maine High-Earner Tax Passes, Marijuana Vote Recount to Begin
    Maine's wealthiest residents will ring in the new year with a 3 percent higher income tax, the Secretary of State's office has announced. Meanwhile, the fate of a measure to legalize and tax marijuana hangs in the balance, as a recount of ballots is set to begin.
  • Trump Claims Victory at Carrier as Manufacturing Still Bleeds
    President-elect Donald Trump said he called the top executive of United Technologies Corp. shortly after his election and told him not to close a Carrier factory in Indianapolis that became a symbol of the Republican's outsider campaign for the White House.

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

  • Illinois Department of Revenue Proposes to Amend Rules Concerning Alternative Allocation or Apportionment of Income
  • Rhode Island Department of Revenue Announces Estate Tax Credit and Threshold for 2017
  • Indiana Department of Revenue Issues Letter of Findings Sustaining Protest as Taxpayer Establishes Domicile in Another State
  • Pennsylvania Commonwealth Court Affirms Denial of Sales and Use Tax Relief as Taxpayer Fails to Qualify for Manufacturing Exclusion
  • Massachusetts Department of Revenue Publishes Technical Information Release on Massachusetts Supreme Judicial Court Decision, Holding Bank Subject to Fiduciary Income Tax

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 …  

Thirty Days Have Extenders by the Tax Foundation

New York City – Unregistered entities not permitted to characterize as registered entities under Broker-Dealer Provisions by PwC

Compiled by Lauren E. Colandreo