Archive: State tax

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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

State Tax Deduction Limitation: States Seek Plan to Counter

This article is co-authored by Michael Leonardis. The new tax reform bill signed into law by President Trump on December 22nd places a $10,000 ceiling on the state and local tax (SALT) deduction. Some states are looking to offset the impact of the limitation to its residents through the use of charitable contributions. The previous […]
January 22, 2018

Expanding Sales Tax Collection for Online Marketplace Providers

The newest strategy being utilized by states to boost sales tax collection is requiring online marketplace providers to collect sales tax on sales made by third-party retailers selling their products on the marketplace provider’s platform. In the last year, three states have adopted rules requiring marketplace providers to collect the state’s sales tax of third-party […]
September 5, 2017

States Continue to Push for Remote Seller Sales Tax Collection

Despite being at odds with the “physical presence” test established by the U.S. Supreme Court in Quill Corporation v. North Dakota, states are continuing to enact legislation requiring certain “remote sellers” to collect sales tax on in-state sales. The newest states to join the “kill Quill” movement are Maine and Ohio, who both enacted legislation […]
July 17, 2017

Hawaii General Excise Tax and the Unsuspecting Government Contractor

Winning a contract in a new state can present many challenges, not least of which is ensuring that your company is compliant with the state’s tax code. The worst approach to state tax compliance is assuming that the taxes your company may be subject to and the tax treatment of your company’s activity will be […]
February 7, 2017

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

The Sourcing Tail Wagging the Nexus Dog

There is a growing list of states that have adopted a more aggressive income tax nexus standard.  On August 11, 2015, Alabama added itself to the group of states that impose their income tax on out-of-state businesses solely based those businesses a certain level of sales to customers in the state.  The trend is a […]
August 20, 2015

Maryland Comptroller Speaks Out on Tax Amnesty and Wynne

On August 4, 2015, the Maryland Comptroller’s office hosted an informal gathering for tax practitioners to ask questions of the Comptroller’s staff regarding the upcoming Maryland tax amnesty program, as well as the processing of refund claims related to the Wynne decision. The tax amnesty program, which will take place from September 1, 2015 to […]
August 7, 2015

Is Your Business Paying too Much in Virginia BPOL Taxes?

If your Virginia business is required file income tax returns in multiple states, you may be paying too much in BPOL taxes. Virginia localities are authorized to impose a Business, Professional and Occupational License (BPOL) tax for the privilege of doing business in the locality. The tax is also known as a “business privilege tax” […]
July 15, 2015