Tax Law

Recent Posts

Needed Fundamental Reforms Off the Radar in State Tax Policy
Posted on 1 Jun 2009 by Sean Craig

When we are young, our parents and educators teach us that sometimes you have to take your medicine to heal a problem. For example, we tell children to study and work hard so that they can accomplish more in their education and eventual career. When we... Read More

California's Trendy Business Tax Proposal
Posted on 29 Jul 2009 by Martin A. Sullivan

Now that Governor Schwarzenegger and the legislature have completed another painful round of budget negotiations, lawmakers can give some attention to the work of California's tax reform commission. The most interesting proposal under consideration... Read More

Ohio Wind Energy Tax Incentives Deficient, Trade Group Says
Posted on 25 May 2009 by Peter Miller

Ohio is in a quandary as it tries to reconcile last year's greening legislation and aspirations for wind energy production with the state's financial troubles. The linchpin of the problem, of course, is tax revenue. The state is trying to find... Read More

Income Taxes Do Not Lead to Out Migration
Posted on 18 Aug 2011 by David Brunori

...[T]he Center on Budget and Policy Priorities's newest report on the effects of taxes on migration (Higher State Taxes Bring More Revenue, Not More Migration)... shows that higher personal income taxes do not result in significant out migration... Read More

Tax Foundation Says More Taxes Are Dangerous
Posted on 8 Jan 2010 by David Brunori

The Tax Foundation recently released a report asserting that... increases... [on] personal income taxes, and cigarette and alcohol taxes will not serve the states well when the economy starts to improve... [Author Joe Henchman] says that increased reliance... Read More

New York State "Temporary Stay" Residency Exemption in Jeopardy
Posted on 16 Oct 2008 by Mark Klein

On October 15, New York State announced its intention to eliminate the "temporary stay" exemption from New York State and City income taxes retroactively to January 1 of this year. Under the current rules, a nonresident of New York can acquire... Read More

California Audit Procedures and Demands for Records Intensify
Posted on 3 Mar 2009 by Will Yancey, CPA

The California Board of Equalization (BOE) staff and state Assembly are considering proposals that would significantly tighten the business tax audit requirements. The discussion paper for Proposed Regulation 1698.5 includes a requirement to complete... Read More

In Michigan, State Mandates Cost Local Governments $2.2 Billion
Posted on 15 Jan 2010 by David Brunori

A new study worth reading was released by the Commission on Legislative Mandates . The report shows that the staet mandates cost local governments more than $2.2 billion a year... If the states want something done, they should pay for it and not foist... Read More

The U.S. Congress Should Learn from the Kansas Legislature
Posted on 14 May 2010 by Tax Analysts Editorial Staff

Over the past several weeks, the Kansas legislature did something remarkable. It approved a $314 million tax increase. The tax will take the form of a penny per dollar increase in the sales tax (from 5.3 to 6.3 percent). The tax increase is temporary... Read More

General Tax Amnesty Program for Ohio Taxes to Begin in 2012
Posted on 15 Jul 2011 by Steven A. Dimengo and Richard B. Fry III

In addition to the Use Tax Amnesty Program discussed in previous posts, the Ohio Budget Bill ( H.B. 153 ) also provides for a General Tax Amnesty Program allowing delinquent taxpayers to resolve their Ohio Estate Tax , Corporate Franchise Tax , Motor... Read More

Remember: State Budgets are About Values
Posted on 27 Jan 2011 by David Brunori

...[S]tate budgets reflect the values of the citizens. They reflect our preferences for the size of government. Some states (New York) have large, sophisticated government operations. Some (New Hampshire) do not. The budgets reflect how we value particular... Read More

Do Not Expect Leniency from the Ohio BTA for Financial Hardship
Posted on 25 May 2011 by Steven A. Dimengo and Richard B. Fry III

In Cottonwood, Inc. v. Levin , Ohio BTA No. 2009-K-5 (April 19, 2011, the Tax Commissioner assessed a struggling business deficient sales tax, interest and penalties. The taxpayer appealed to the Ohio Board of Tax Appeals ("BTA") requesting... Read More

They Don’t Call It Country and Western Anymore
Posted on 9 Jul 2012 by David Brunori

ABC Studios is going to do a television series called Nashville . The show will, appropriately, be about the country music scene. Nashville is the home of country music. In fact, the city calls itself "music city." It is the home of the Country... Read More

Unemployment Tax Increases - A Bad Idea
Posted on 8 Oct 2009 by David Brunori

Maryland expects to increase employment taxes for all businesses in the coming year. This is because the state has paid out a lot more unemployment benefits than a year ago (about 50 percent more). The bad economy has wreaked havoc on the unemployment... Read More

Investor Alert on California IOUs
Posted on 10 Jul 2009 by Mark A. Muntean

Earlier this week I was wondering if investing in California IOUs was a good idea. Well the answer may be a big fat NO . The SEC has issued an opinion that California IOUs are “securities,” and therefore those holding the IOUs are entitled... Read More

  • Blog Post: What Occupancy Taxes Must Internet Travel Reservation Companies Pay?

    Many state and local transient occupancy tax ordinances were enacted before the introduction of the internet, or at least before online travel reservations became popular. While the language of occupancy tax ordinances varies by state or locality, the ordinances generally focus on the obligations of...
  • Blog Post: Gross Receipts Taxes Short on Integrity and Effectiveness

    While state legislators and policy makers find touting them as easy political sells, the proliferation of gross receipts taxes is disturbing and serves to undermine the competitiveness of our economy. As state officials have struggled with adapting their tax structures to keep up with fundamental changes...
  • Blog Post: Turf Battle: P.L. 86-272 Changes Opposed on States Rights Grounds

    On September 14, 1959, the federal government responded to the need for a uniform standard of income tax imposition by the states by enacting Public Law 86-272 as part of the United States Code. The law, which prohibits states from imposing net income taxes unless a taxpayer has substantial nexus with...
  • Blog Post: Overhauling Antiquated California Tax Administration

    In a recent law review article, University of California Davis Professor Daniel L. Simmons pleads his case for why the time is ripe to reform California’s tax collection system. See Daniel L. Simmons, California Tax Collection: Time for Reform , 48 Santa Clara L. Rev. 279 (2008). Among other things...
  • Blog Post: New York Tax-Exempt Organizations Must Collect Sales Tax on Certain Transactions

    Pursuant to a little-publicized provision of this year's budget bill, effective September 1, 2008, New York State imposed an obligation on tax-exempt organizations to begin collecting sales tax on certain sales. Under the new rules, exempt organizations must collect tax on the following: ...
  • Blog Post: New York State "Temporary Stay" Residency Exemption in Jeopardy

    On October 15, New York State announced its intention to eliminate the "temporary stay" exemption from New York State and City income taxes retroactively to January 1 of this year. Under the current rules, a nonresident of New York can acquire living quarters and be physically present in New...
  • Blog Post: Texas Margins Tax: Sourcing Commissions for Internet-Initiated Stock Trades

    The Comptroller of Public Accounts recently issued a taxability memorandum under the revised franchise tax, or “Margin Tax,” that imposes a potentially burdensome compliance obligation on businesses that process stock trades initiated by customers over the internet. The issue in the July...
  • Blog Post: THE EMPIRE STATE STRIKES BACK ON E-TAILER SALES TAX REPORTING!

    When will a state consider an e-tailer to be in the nature of an in-state retailer for purposes of collecting sales tax from customers? Tim Noonan of Hodgson Russ, LLP in New York has important insights to share in a Tax Law Podcast interview, coming this week on this Tax Law Center site. ... ...
  • Blog Post: California Audit Procedures and Demands for Records Intensify

    The California Board of Equalization (BOE) staff and state Assembly are considering proposals that would significantly tighten the business tax audit requirements. The discussion paper for Proposed Regulation 1698.5 includes a requirement to complete audits within two years. Assembly Bill 347 would enact...
  • Blog Post: Unitary/Combined Reporting Results Mixed for States and for Business

    HEAR PHIL OLSEN OF McCARTER & ENGLISH, LLP DISCUSSING THE MASSACHUSETTS UNITARY TAX REGIME IN A PODCAST INTERVIEW ON THIS WEB SITE! As the states strive to generate additional revenue during distressed economic times, movement to unitary combined reporting tax regimes may be misguided. Projections...
  • Blog Post: Distressed Economy Drives Georgetown SALT Conference Policy Themes

    The influence of economic distress on themes at the 2009 Georgetown Advanced State and Local Tax Institute was palpable. Difficulties in balancing the compelling need to generate revenue with the waning ability of taxpayers to carry the burden were evident in most, if not all, seminars and workshops...
  • Blog Post: Are The Stars Aligned For Federal AND State Value Added Taxation (VAT)?

    Sales tax revenues are in the tank; collections are the worst in 50 years in terms of inflation-adjusted dollars. The states are starving for new revenue as they look at busted budgets. Obviously, the U.S. Treasury is no different. Serious consideration of value-added taxation (VAT) regimes on state...
  • Blog Post: Ohio Wind Energy Tax Incentives Deficient, Trade Group Says

    Ohio is in a quandary as it tries to reconcile last year's greening legislation and aspirations for wind energy production with the state's financial troubles. The linchpin of the problem, of course, is tax revenue. The state is trying to find ways to close an anticipated $3 billion gap in the...
  • Blog Post: Needed Fundamental Reforms Off the Radar in State Tax Policy

    When we are young, our parents and educators teach us that sometimes you have to take your medicine to heal a problem. For example, we tell children to study and work hard so that they can accomplish more in their education and eventual career. When we go to the doctor, they often prescribe treatments...
  • Blog Post: North Carolina Chosen as Site of Apple’s New Data Center Following Enactment of North Carolina Senate Bill 575

    On Wednesday, June 3, 2009, the office of the Governor of North Carolina announced that the state will be the site of Apple’s new data center, a project that is expected to receive more than $1 billion in investment dollars from Apple over nine years and that, according to the North Carolina Department...
  • Blog Post: Indiana Authorities Lower the Boom on Tax Scofflaws

    HEAR ANDREW SWAIN, INDIANA ATTORNEY GENERAL OFFICE CHIEF TAX COUNSEL, DISCUSS THE STATE'S INTENSIFYING ENFORCEMENT EFFORTS The Indiana Attorney General is cracking down on puppy mill operators and "white van" vendors selling inferior stereo equipment. Sales tax evasion and other charges...
  • Blog Post: Valdez AK Tax Defeat Protects Interstate Commerce

    While Alaska is not California or New York in terms of population or business activity and the personal property tax on large vessels is fairly isolated in its application, it is comforting to see the U.S. Supreme Court be willing to step in where appropriate to correct a state and state court from overreaching...
  • Blog Post: Two-Year Tennessee SSTA Postponement: Is SSTA for Real?

    Tennessee has again delayed implementation of the Streamlined Sales Tax Agreement (SSTA), now until at least July 1, 2011. At what point are tax administrators and state government officials going to admit that while the initial ambition and purpose of the SSTA was a worthwhile endeavor, the realities...
  • Blog Post: Can Unitary Reporting Rectify North Carolina's Corporate Tax Problems?

    In light of the recent decision in Wal-Mart Stores East, Inc. v. Hinton, it will be interesting to see if the current legislative proposal in North Carolina calling for unitary reporting (HB 1588, filed on May 5, 2009) will gain enough traction to be passed into law. North Carolina’s peculiar situation...
  • Blog Post: When Will High Court Hear State Corporate Tax Nexus Case?

    On June 22, 2009, the U.S. Supreme Court denied cert in two Massachusetts corporate excise tax cases: Geoffrey, Inc. v. Comm'r of Revenue, 453 Mass. 17 (Mass. 2009) , cert denied, U.S. S. Ct., Dkt. No. 08–1207, 06/22/2009 and Capital One Bank v. Comm'r of Revenue, 453 Mass. 1 (Mass. 2009...
  • Blog Post: Is Reform a Dead Letter for 52-Year Old UDITPA?

    The National Conference of Commissioners on Uniform State Laws ("NCCUSL") approved the Uniform Division of Income for Tax Purposes Act ("UDITPA" or "Act" ) in 1957, recommending its adoption by the states to promote a homogeneous approach to apportioning income based on...
  • Blog Post: Are California Registered Warrants a Good Investment?

    As we all know, California started to issue the now famous (infamous?) California registered warrants, or IOUs as the media likes to call them. A number of these California warrants are popping up on Craigslist or EBAY by holders seeking to maintain cash flow. Some sellers are happy to get the principal...
  • Blog Post: Investor Alert on California IOUs

    Earlier this week I was wondering if investing in California IOUs was a good idea. Well the answer may be a big fat NO . The SEC has issued an opinion that California IOUs are “securities,” and therefore those holding the IOUs are entitled to protections provided under federal securities...
  • Blog Post: Ohio's Biennial Budget Sans Tax Increases: Dead on Arrival

    The budget approval train was two weeks late leaving the station, but the Buckeye state's 2009-2011 fiscal plan is suspect at best. In fact, the budget's underlying assumptions may not hold water, and cracks may show up in the armor well before 2011. Then even more daunting challenges will emerge...
  • Blog Post: Sales Tax Holiday Gimmicks Are Victims of the Recession

    The demise of the sales tax holiday may be the one good thing that comes out of this recession. You see, sales tax holidays are political gimmicks designed to make people think they are getting a break when they are not. Politicians who hawk them should be ashamed. But politicians are rarely ashamed...