In April 2021, the Multistate Tax Commission's Uniformity Committee met to discuss two new projects: a broad exploration of uniformity in state taxation of partnerships and state taxation of digital goods and services. Matt...more
Courts notoriously give deference to state tax agencies in interpreting tax laws. But is the tide changing for taxpayers? Matt Hunsaker puts Georgia's Taxpayer Fairness Act into context....more
Since the May 2018 Murphy v. NCAA US Supreme Court decision, states have been able to authorize and tax sports betting. Twenty-six states and the District of Columbia have done so. In this week's show, Matt Hunsaker explains...more
After a 4 1/2 year hiatus, the Multistate Tax Commission has met to revive the State Intercompany Transactions Advisory Service Committee (SITAS). Matt Hunsaker talks about the committee meeting and other recent happenings in...more
Tucked away in the American Rescue Plan Act of 2021 is a provision that prohibits states from using the $350 billion in state and local relief money to fund tax cuts. What does this mean for state tax policy? What does this...more
3/29/2021
/ American Rescue Plan Act of 2021 ,
Anti-Commandeering ,
Biden Administration ,
Coronavirus/COVID-19 ,
Federal Funding ,
Federalism ,
Local Taxes ,
Relief Measures ,
State and Local Government ,
State Sovereignty ,
State Taxes ,
Tax Cuts
New York has proposed an excise tax on companies that collect consumer data (SB 4959). The tax is a per-consumer head tax and could cost taxpayers millions of dollars each month. Will this tax affect you? Matt Hunsaker breaks...more
In this week's episode, Matt Hunsaker equates regular state tax nexus studies with regular visits to the dentist. Things can go bad if you skip either. Learn more about what goes into a nexus study and why now is the best...more
In Wisconsin Department of Revenue v. Deere & Company, the Department of Revenue tried to disallow a dividends received deduction for distributions from a Luxembourg entity despite published guidance conflicting with its...more
3/9/2021
/ C-Corporation ,
Corporate Taxes ,
Department of Revenue ,
Income Taxes ,
Luxembourg ,
State Taxes ,
Tax Appeals ,
Tax Audits ,
Tax Authority ,
Tax Deductions ,
Tax Liability ,
Tax Litigation ,
Taxable Distributions
The California legislature introduced AB 71 to provide a comprehensive plan to address statewide homelessness. In January, it was amended to add various tax provisions. Big ones. Matt Hunsaker breaks down what this means for...more
Last Friday, the Maryland General Assembly voted to override last year's veto of the digital advertising tax (H.B. 732). The Assembly has also introduced legislation to prevent taxpayers from overtly passing on the tax to...more
Matt Hunsaker does a rapid fire analysis of various state and local tax issues in the technology space. Stay tuned for an update on software and cloud computing....more
In mid-January, the Texas Comptroller issued controversial amendments to its franchise (margin) tax apportionment sourcing rules. Are the rules an administrative drift towards market-based sourcing? Matt Hunsaker breaks down...more
2/4/2021
/ Advertising ,
Business Taxes ,
Franchise Taxes ,
Franchises ,
Goods or Services ,
Gross Receipts ,
Gross Receipts Tax ,
Income Taxes ,
Net Operating Losses ,
New Rules ,
State Taxes ,
Tax Liability
The CARES Act created the Paycheck Protection Program. The PPP allowed businesses to secure forgivable SBA loans. Federal taxation of forgiven loans and related expenses are quite favorable - will states follow suit? Matt...more
And then there were three . . . Florida, Kansas, and Missouri don't have economic presence or marketplace facilitator sales tax laws on the books. Will that change this session? Will sales tax nexus laws bleed over on the...more
Since 2017, the California Franchise Tax Board has been working on revisions to its regulations for market-based sourcing regulation for income from services and intangibles and for petitioning for alternative apportionment....more
Massachusetts is taxing nonresidents who are working outside Massachusetts due to COVID-19. Seems unfair? Well New Hampshire agrees and has asked the US Supreme Court to allow it to bring suit against Massachusetts. Matt...more
12/30/2020
/ Commerce Clause ,
Coronavirus/COVID-19 ,
Due Process ,
Income Taxes ,
Jurisdiction ,
Non-Resident Income Taxes ,
Non-Residents ,
Out-of-State Employees ,
Remote Working ,
State Sovereignty ,
State Taxes ,
Telecommuting ,
Withholding Tax
In this light-hearted episode, Matt Hunsaker explains how Wayfair, marketplace facilitator laws, false claims acts, economic nexus, the manufacturing exemption, and other issues apply to Santa Claus....more
12/23/2020
/ Economic Presence Nexus ,
False Claims Act (FCA) ,
Income Taxes ,
Local Taxes ,
Manufacturers ,
Online Marketplace ,
Retailers ,
Sales & Use Tax ,
Sales Tax ,
SALT ,
State Taxes ,
Tax Exemptions
This week Matt Hunsaker interviews two very special guests for Part III in the series Women in State Tax:
Beth Sosidka (AT&T - Tax Director of External Tax Policy) and Angela Miele (Motion Picture Association - Vice...more
A few states allow private parties (e.g., plaintiff lawyers) to bring tax suits under state False Claims Acts (qui tam actions) - often for a share of treble damages. The District of Columbia is looking to join the club...more
Throughout November, various Multistate Tax Commission committees held virtual annual meetings (due to COVID). In this episode, Matt Hunsaker runs down the highlights from each meeting, including technical corrections to...more
Everyone has been fixated on the presidential and congressional elections. But this election was chock full of state and local tax ballot measures. Some passed, some didn't - Matt Hunsaker breaks down the results in Arizona,...more
For three years, states and taxpayers have been looking for novel ways to get around the federal TCJA's $10,000 cap on deducting state and local taxes. The IRS just released Notice 2020-75, which appears to bless states'...more
In the second installment of Women in State Tax, Matt Hunsaker interviews Nancy Prosser, general counsel of the Multistate Tax Commission and Jenny Burleson at the Texas Comptroller's office. Two women with long and varied...more
For many, Commerce Clause nexus protections seem to be getting porous. In this week's show, Matt Hunsaker reviews Robinson v. Jeopardy Productions Inc. (Louisiana) and reminds taxpayers of the importance of paying attention...more
Back in Episode 95 (May 7, 2020), the Baker Hostetler team broke down the problems with digital advertising taxes, including the Maryland proposal (HB 732). On this week's show Matt Hunsaker talks about the Maryland...more