Archive: state and local tax

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

IRS Blocks SALT Deduction Workaround

On August 23, 2018, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) responded to efforts by New York, New Jersey, and Connecticut to bypass the Tax Cuts and Jobs Act’s $10,000 cap for the state and local tax (SALT) deduction. Treasury issued proposed regulations intended to explain the relationship between the […]
August 27, 2018

State Taxes That May Go Unnoticed

The majority of states impose an income tax as well as a sales and use tax on businesses, but it’s the more unique taxes that can catch many off guard. These taxes are broadly applicable to most businesses and typically come in the form of a gross receipts tax (or modified gross receipts). Businesses that […]
February 6, 2018

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

Build Your Toolkit – Fulfilling State Tax Obligations

As service providers have been developing a customer base across state lines, states have been developing more aggressive approaches to imposing its income tax and sales tax on those multistate businesses.  Businesses, particularly small to mid-size businesses, often overlook their state and local tax compliance obligations.  An out-of-state business can be taxable in a state […]
January 13, 2014