LexisNexis® Legal Newsroom
House Judiciary Committee Holds Hearing on State Taxation and the Role of Congress in Developing Apportionment Standards

LEGAL ALERT May 7, 2010 On May 6, the House Judiciary Subcommittee on Commercial and Administrative Law (CAL), chaired by Representative Steven Cohen (D-TN), held a hearing on state income taxation to explore what role, if any, Congress should play in developing apportionment uniformity...

Florida DOR on Hedging: Mixed Bag or Safe Bet to Plan Future Transactions?

A Florida taxpayer was engaged in three types of hedging activity: (1) hedges on materials related to its inputs; (2) hedges related to the commodity it sells; and (3) hedges unrelated to items it purchases or sells. In deciding whether the hedging revenue was properly included in the taxpayer's...

States Target Inter-Company Cash Management Structure

A common aspect of consolidated groups of companies is a centralized cash management function. While such a structure is a common item in corporate America, states are increasingly challenging any perceived tax benefits of such structures. Two states, Indiana and North Carolina, have taken recent actions...

States Target Inter-Company Cash Management Structure

A common aspect of consolidated groups of companies is a centralized cash management function. While such a structure is a common item in corporate America, states are increasingly challenging any perceived tax benefits of such structures. Two states, Indiana and North Carolina, have taken recent actions...

Vexing Apportionment Challenges Stymie Flummoxed Tax Departments

The murky waters of state taxation, now characterized by single-sales-factor apportionment and economic nexus trends, continue to plague corner office decision-makers and the practitioners who counsel them. [See "Experts: Economic Nexus and Single-Sales-Factor Apportionment May Lead to Discrimination...

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...

Giving Credit Where It Isn’t Due: Arkansas Office of Hearings and Appeals Treats Sales of Tax Credits as Business Income

On June 13, 2018, an Arkansas Administrative Law Judge concluded that a taxpayer’s proceeds from dispositions of tax credits were apportionable business income. In Arkansas, business income arises from either: (1) transactions and activity in the regular course of the taxpayer’s business (the transactional...