State and Local

A Major Development in Corporate Income Tax
What’s New Hampshire v. Massachusetts got to do with it?

The pandemic has caused drastic shifts in employment and business arrangements. Major tax implications have surfaced, and taxpayers have been eager for state guidance or federal legislation to address pandemic-related issues. But with limited state guidance, and with federal legislation completely stalled, one development has become the focus of our… Read more »

The Pandemic’s Effect on Sales Tax Post-Wayfair
Expect even more uncertainty going forward

The COVID-19 pandemic has wrought disruption and change in practically every area in which we operate, and its effects on the sales tax environment are no different. What is particularly interesting about the operation of the sales tax is that states and businesses are still grappling with the groundbreaking developments… Read more »

Top State Tax Policies You Can Expect to Deal With in 2021
Fiscal fallout from the pandemic takes hold

When states began their 2021 fiscal year budget processes in early 2020, just about every state anticipated revenue growth consistent with what it had seen in recent years. Most states had robust rainy-day funds, and some were looking at options to lower taxes. As we fast-forward to early 2021, few… Read more »

The Year That Left Us SALT-y: Key State and Local Tax Developments in 2020
Yeah, there’s the ripple effect from 𝘞𝘢𝘺𝘧𝘢𝘪𝘳 and, that’s right, a pandemic

This year has been unusually eventful for just about everyone, not least of all payers of state and local tax. In this article, we provide highlights of some of the most important SALT developments of 2020, including: The Pandemic Playbook: key COVID-19 developments, including the CARES Act, tax issues created… Read more »

Deftly Navigating an MTC Audit: Considerations for Taxpayers
Check out this stat: In the last three years, the MTC Audit Program has recommended state tax assessments in excess of $45 million annually

As recently recognized by Tax Analysts, the Multistate Tax Commission (MTC) has been gaining in prominence and, arguably, effectiveness.1 One of the MTC’s several activities is to administer audits on behalf of states. The MTC’s Joint Audit Program (Audit Program) is authorized by the Multistate Tax Compact and was initiated… Read more »

Life (and Litigation) After Wayfair
Did Wayfair establish South Dakota SB 106 as the new bright-line rule?

In the May/June 2018 edition of Tax Executive, TEI graciously published my article titled “Why Wayfair Won’t Matter.” Admittedly, the title was a bit deceiving, what millennials disparagingly refer to as “clickbait.” Contrary to the title’s suggestion, I did not argue that the palpable buzz around Wayfair was unwarranted. Instead,… Read more »

Looking Ahead: Predictions on Upcoming State Tax Legislation
Key drivers are state economy and gubernatorial election cycle

With the turn of the new year and a new decade, it is only natural to try to predict what state tax legislation may become law in 2020. Many factors can affect the nature and pace of state tax legislation, but perhaps the two leading drivers are the state economy… Read more »

Don’t Throw Out New Jersey Throwout Cases
Why? It’s really a national issue

The New Jersey throwout wins are more nationally relevant than ever, even though New Jersey repealed the throwout provision in its Corporation Business Tax Act nearly a decade ago. “Throwout” takes its name from the requirement that receipts be removed from (or “thrown out” of) a company’s sales factor denominator… Read more »

True, Correct, and Complete: On-time Filing of State and Local Tax Returns Without Clear, Consistent, or Practical Guidance
In a GILTI world, taxpayers need to make their way without a compass

While state and local tax is rife with uncertainty, the signature block of a state or local corporate income tax return is often deceptively simple and definitive. Typically, the signature certifies that the return is “true, correct, and complete.”1 From a practical standpoint, however, state and local corporate tax returns… Read more »

Nexus: Reports of Its Death Are Clearly Premature
Nexus must still be addressed before taxes can be imposed

In the wake of South Dakota v. Wayfair Inc.1 and the U.S. Supreme Court’s endorsement of economic nexus, a subject of wide discussion has been whether nexus issues are dead in the context of sales tax and corporate income tax. Two recent developments indicate that, while the framework for analyzing… Read more »

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