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NJ Enacts Elective Pass-Through Business Tax to Limit Federal Cap Impact on SALT Deduction

New Jersey recently enacted the “Pass-Through Business Alternative Income Tax Act,” which allows pass-through businesses with at least one member liable for the New Jersey gross income tax to make an election to pay income...more

Pennsylvania Administratively Sets Bright-Line Economic Nexus Threshold for Corporate Net Income Tax

The Pennsylvania Department of Revenue issued a bulletin announcing its view that the US Supreme Court’s sales and use tax decision in Wayfair v. South Dakota applies equally to corporate net income tax and authorizes the...more

Businesses Beware: California Extends Tax Reach to Out-of-State Sellers and Marketplace Facilitators

California Governor Gavin Newsom approved Assembly Bill 147 on April 25, requiring out-of-state/online sellers and marketplace facilitators to collect sales and use tax on taxable transactions if they have more than $500,000...more

California Supreme Court Shuts Down Consumer Sales Tax Suit

Dear Retail Clients and Friends: The California Supreme Court recently ruled that consumers cannot file suit to force a retailer to seek a refund of sales taxes from the California tax agency absent a determination by the...more

3/12/2019  /  CA Supreme Court , Retailers , Sales Tax

Pennsylvania Court’s Downs Racing Decision Deals Blow to Broad Application of Sales and Use Tax Statutes

Royalties and licensing fees from intellectual property used in the operation of tangible property in Pennsylvania are not subject to sales and use tax. Intellectual property is something separate, and is not merely an...more

New York Employer Compensation Expense Program Registration Ends December 1

New York State recently established the Employer Compensation Expense Program allowing employers to elect to pay an Employer Compensation Expense Tax on payroll expenses paid to covered employees, which in turn allows the...more

Four States Sue Federal Government to Invalidate Cap on State and Local Tax Deduction

New York, New Jersey, Maryland, and Connecticut are seeking to invalidate the new $10,000 cap on the federal deduction for state and local taxes, alleging that the cap is unconstitutional, interferes with states’ rights to...more

Supreme Court Overturns Physical Presence Standard for Establishing Sales Tax Nexus

The US Supreme Court overturned over a half century of precedent on Thursday, holding that a state may reasonably impose sales tax collection obligations on retailers with no physical presence in the state based on a certain...more

Supreme Court Won’t Hear Nextel’s Challenge to PA’s Cap on Net Operating Loss Carryforwards

Following the US Supreme Court’s denial of cert in Nextel, taxpayers with protective refund claims held pending the ultimate outcome of Nextel will need to re-evaluate their claims as Pennsylvania begins to address them...more

Grace Period to Comply with PA Nonemployee Income Tax Withholding Nears End

Businesses and nonprofits operating in Pennsylvania that hire independent contractors or corporate directors who live outside of Pennsylvania, or that pay rent on Pennsylvania property to landlords living outside of...more

State Tax Implications of Federal Tax Changes to Section 162(m)

Due to the varying methods of state conformity to the Internal Revenue Code, both the prior and current versions of Section 162(m) continue to be a consideration for state taxes....more

US Supreme Court to Review Physical Presence Requirement for Sales, Use Tax Collection

The US Supreme Court agreed to hear South Dakota’s challenge to Quill Corp. v. North Dakota, setting the Court up to decide whether a retailer with no physical presence in a state is required to collect and remit sales and...more

State Tax Implications of Federal Tax Reform

Federal tax reform will have a significant and possibly unexpected impact on state taxes, including on individual deductions and, for corporations, reporting methods and limitations regarding net operating losses and interest...more

Ohio Imposes Tax on Online Retailers with No Physical Presence in State

Ohio Supreme Court decides physical presence is not a necessary condition for imposing commercial activity tax. The Ohio Supreme Court recently ruled that Ohio may impose its commercial activity tax (CAT) on...more

U.S. Supreme Court Holds DMA’s Action Is Not Barred By Tax Injunction Act

The U.S. Supreme Court unanimously held that the Tax Injunction Act does not bar Direct Marketing Association’s federal court challenge to Colorado’s sales and use tax notice and reporting requirements....more

Billboard Tax Imposed on New York City’s Commercial Renters

Companies with ads on New York’s billboards may find that tax collectors are their first customers. New York City imposes a little-known commercial rent tax on tenants renting commercial premises in Manhattan, south of...more

New York State Tax Reform Update

Qualified manufacturers subject to the New York State Business Corporation Tax may now pay no tax on business income earned in New York....more

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