LexisNexis® Legal Newsroom
State Tax Developments: Captives

Recent developments in several key states, including Illinois, New York and Minnesota, may impact many captive insurance companies. These states are moving to include captive insurance companies in corporate income tax combined returns with parents and affiliates. The effect of combination is to disallow...

Don't Get Your Hopes Up - Maryland Letter Ruling Process is Hardly a Done Deal

In recent years, the tax community has engaged in an effort to promote transparency in tax administration. This effort culminated in Maryland with the passage of Senate Bill 843 by the 2016 General Assembly and was enacted in Chapter 582 of the Acts of 2016 (the “Act”). Included in a statute...

DC Office of Tax and Revenue Launches New QHTC Sales and Use Tax Exemption Application/Pre-Certification Process

On November 1, 2017, the District of Columbia will begin implementing a new sales and use tax exemption application process for Qualified High Technology Companies (QHTCs). The new application procedure signifies a shift to essentially a pre-certification process and creates new documentation requirements...

The State and Local Tax Implications of Federal Tax Reform

On November 2, 2017, Republicans in the House of Representatives released their much-anticipated tax reform bill. The Tax Cuts and Jobs Act proposes numerous changes to the Internal Revenue Code, many of which will have an impact on taxpayers’ state and local tax liabilities. Most states conform...

Watch Your Step: New York City Real Property Transfer Tax Imposed Under Step Transaction Doctrine

By Dmitrii Gabrielov and Tim Gustafson The New York State Supreme Court, Appellate Division, affirmed the New York City Tax Appeals Tribunal’s (Tribunal) determination that certain real estate transactions were subject to the New York City Real Property Transfer Tax (RPTT) under the step transaction...

Tax Reform Executive Summary - A 2-Pager on the 7 Things You Need to Know

Tax reform efforts, if successful, will have a major impact on virtually every business. There has been a great deal of reporting on the tax reform process and the proposed changes to the US Internal Revenue Code (IRC). This Alert provides a high-level overview of the top 7 tax reform issues that all...

Washington Strikes and Hits Again - Nonresident Jeweler Subject to Washington B&O Tax

By Chelsea Marmor and Jonathan Feldman The Washington Administrative Review and Hearings Division of the Department of Revenue found that an out-of-state diamond and gold wholesaler was subject to the business and occupation (B&O) tax based on in-state consigned property. The wholesaler consigned...

California Office of Tax Appeals Releases Final Draft Emergency Regulations on Rules for Tax Appeals

Under notice dated December 26, 2017, the California Office of Tax Appeals (OTA) released its Final Draft Emergency Regulations on the Rules for Tax Appeals (Emergency Regulations), which will be submitted to the Office of Administrative Law for review in the coming days. The Emergency Regulations...

California's Altered Tax Landscape

On January 10, 2017, California Assembly member Phil Ting introduced and read Assembly Bill ("AB") 102 for the first time. Introduced as a placeholder bill, AB 102 consisted of a single section and sentence: "SECTION 1. It is the intent of the Legislature to enact statutory changes relating...

Many State Tax Incentives Are Now Taxable Due to Federal Tax Reform

Recently enacted federal tax reform is expected to generate $6.5 billion in additional federal revenue through 2027 by increasing corporate tax liability for certain state and local incentives. In their article for Bloomberg , Eversheds Sutherland attorneys Timothy Gustafson and Hanish Patel discuss...

How Will Georgia Conform to Federal Tax Reform? Annual Legislation Introduced

The Georgia Legislature has introduced its annual Internal Revenue Code (IRC) conformity bill—HB 821. Georgia conformity is typically updated annually to apply for the most recent tax year. In light of the recently enacted federal tax reform, this year’s conformity bill will receive particular...

Georgia Legislature Enacts Significant Income, Sales, and Property Tax Legislation

The Georgia legislative session concluded on March 29, 2018. In addition to two major bills relating to federal tax reform, Georgia enacted several other pieces of notable tax legislation. View the full Legal Alert. Continue Reading…

Oregon Legislature Passes IRC Conformity Legislation, But Decouples from Certain Federal Tax Reform Provisions

On April 10, 2018, and April 13, 2018, Oregon Governor Kate Brown signed into law S.B. 1529 and S.B. 1528 (the Bills), respectively, which provide a series of changes to Oregon’s income tax laws in response to recent federal tax changes as part of the federal Tax Cuts and Jobs Act. Most notably, the...

What are the State Tax Implications of International Tax Reform?

What are the State Tax Implications of International Tax Reform? Jeff Friedman and others outline the key points at the COST 2018 Spring Audit Session/Income Tax Conference in snowy Boston, Massachusetts. These issues were also addressed in a recent article, “Waiting for the Other Shoe to Drop: State...

Maryland Enacts Legislation Adopting Single Sales Factor Apportionment

On April 24, Maryland Governor Larry Hogan signed Senate Bill 1090 and House Bill 1794, which adds Maryland to the growing list of states that are moving towards a single sales factor formula to apportion corporate net income. Under prior Maryland law, most corporations generally used a three-factor...

A Pinch of SALT: Implications of the MTC’s Market-Based Sourcing Model Regulations

It is more complicated to determine an in-state sale regarding the provision of multistate services or licenses of intangibles. Historically, states looked to a taxpayer’s costs of performing the service or licensing the intangible. Some states have become critical of this cost-of performance method...

Oregon Deems Amendments to Statutory State Apportionment Formulas to Be Constitutional

In another of the so-called “Compact” cases, the Oregon Supreme Court affirmed the decision of the Oregon Tax Court and held that: (1) the 1967 Oregon Legislature, in enacting Oregon Statute Section 305.655, did not clearly and unmistakably intend for Oregon to enter into a binding contract that would...

Indiana Enacts IRC Conformity Bill, Decouples from Certain Federal Tax Reform Provisions

On May 14, 2018, Indiana Governor Eric Holcomb signed into law H.B 1316 (the Bill). The Bill provides a number of changes to Indiana’s tax laws, including responding to provisions of the federal Tax Cuts and Jobs Act. Some notable provisions of the Bill include: updating Indiana’s conformity to the Internal...

IRS to Crackdown on SALT Deduction Cap Workarounds

The IRS intends to issue regulations pertaining to states’ attempts to subvert the state and local tax deduction cap. The Tax Cuts and Jobs Act imposed a $10,000 ($5,000 for married individuals filing separately) limit on state and local tax deductions for federal income tax purposes. Certain states...

Maryland’s Limited Interest on Wynne Refunds Ruled Unconstitutional

Maryland Tax Court holds that Maryland’s limitation of interest on refunds resulting from the US Supreme Court’s decision in Comptroller of the Treasury of Maryland v. Wynne violates the US Constitution. In 2014, the Maryland legislature passed a law to retroactively limit the statutory interest rate...

Chicago Streaming Video Tax Does Not Violate Federal and State Law

On May 24, 2018, the Circuit Court of Cook County upheld the City of Chicago’s imposition of its amusement tax on streaming services. On June 9, 2015, the Chicago Department of Finance issued a ruling indicating that electronically delivered amusements are subject to the amusement tax. The circuit court...

New York Bill Introduced to Exempt GILTI

On June 11, 2018, Senate Bill 8991 was introduced by New York Senate Majority Leader John Flanagan. The Bill would decouple from the federal treatment of Global Intangible Low-Taxed Income (GILTI). View the full legal alert. Continue Reading…

The Sales Taxation of Virtual Currency

Bitcoin and other virtual currencies may be the most controversial financial assets on the market right now and are certainly the most discussed. In their article for Bloomberg BNA, Eversheds Sutherland attorneys Jonathan Feldman and Christopher Beaudro examine the state sales tax implications of selling...

New Jersey Legislature Passes Corporate Tax Increases, Still Negotiating with Governor

In the midst of a budget showdown between New Jersey’s Legislature and Governor Murphy, on June 25, 2018, the Legislature passed a replacement bill that seeks to raise revenue with a temporary Corporation Business Tax “surtax” on corporations meeting certain income thresholds and by limiting New Jersey...

Top New Jersey Tax Changes in the 2018 Budget Deal

In a last-minute deal to avert a government shutdown, New Jersey Governor Phil Murphy and the New Jersey Legislature cobbled together a budget with numerous amendments to New Jersey’s tax law. View the full legal alert. Continue Reading…