Archive: salt

States Continue to Adopt Federal SALT Limitation Workaround

In the past year, several states have created a pass-through entity tax (PET) to circumvent the $10,000 cap for the state and local tax (SALT) deduction. Louisiana and New Jersey are the most recent states to adopt such a tax.   Effective December 2017, the Tax Cuts and Jobs Act (TCJA) brought sweeping reform to […]
February 7, 2020

Massachusetts Says In-State Apps and Cookies are a Physical Presence

Massachusetts has joined the growing number of states that have implemented a sales tax collection obligation for out-of-state retailers. On April 3, 2017, the Massachusetts Department of Revenue issued a directive announcing that the Department is adopting an “administrative bright-line rule” for sales tax collection requirements for Internet vendors (Directive 17-1). Effective July 1, 2017, […]
April 7, 2017

New Tax for D.C. Employers Would Fund Paid Family Leave

The D.C. Council has proposed legislation that would provide most D.C. workers 16 weeks of paid leave after the birth or adoption of a child, to recover from an illness, to recuperate from a military deployment, or to tend to an ill family member.  The benefits would be funded by a new tax on employers, […]
October 20, 2015

Alabama Sales Tax Regulation Ignores U.S. Supreme Court

A new sales tax regulation in Alabama directly contradicts the bright-line physical presence nexus standard created by the U.S. Supreme Court in Quill Corp. v. North Dakota.  While Congress has debated (and been unable to enact) multiple versions of federal legislation that would limit the application of the physical presence nexus standard for certain retailers, […]
October 12, 2015

Uncertainly in Alabama on the Taxation of Electronically Delivered Information

Alabama has revoked a twenty-year-old sales tax ruling, and in doing so has ruled that electronically transmitted information is taxable tangible personal property for sales tax purposes.  The notice issued by the Alabama Department of Revenue on September 3, 2015 cites advances in technology and analogous expansions of the definition of “tangible personal property” to […]
September 16, 2015