The revived False Claims expansion bill in California, A.B. 2570, is on the agenda to be heard by the Assembly Judiciary Committee on May 11 at 10:00 am PDT. The proposal would authorize tax-based false claims actions,...more
The debate over state marketplace laws may resume again, after the Uniform Law Commission (ULC) announced it has set up a committee to study whether to draft a uniform state law on online sales tax collection, focusing on...more
On April 13, S. 8166 was introduced in the New York Senate, which would expand the sales tax base to include receipts from the sale of digital advertising services. The bill would dedicate the revenue raised to student loan...more
As part of our open letter to state tax administrators urging relief of undue tax administration burdens in light of COVID-19, we urged the disregarding of remote work for tax purposes. The public health necessity for...more
In late March, we wrote an open letter to state tax administrators requesting that they take steps to relieve undue tax administration burdens in the wake of the COVID-19 situation. We gave five suggestions, including...more
This week we wrote a letter to state tax administrators, sharing five key suggestions for relieving undue tax administration burdens in the wake of this difficult COVID-19 situation. As explained, “at a time when many people...more
Brief Overview of Guidance Issued in Response to COVID-19...more
With gatherings larger than 50 people banned and the State House cleared of visitors, on March 18, 2020, Maryland’s legislature approved HB 732, which contains a massive new punitive tax on digital advertising services, and...more
Most states have historically not subjected foreign-source income to state income tax. Consequently, since the passage of TCJA, the vast majority of states have opted not to tax GILTI (with most states explicitly decoupling...more
1/24/2020
/ Department of Revenue ,
Dividends ,
Federal Taxes ,
Foreign Earned Income ,
GILTI tax ,
Income Taxes ,
Proposed Legislation ,
Repatriation ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Deductions
On January 21, A. 9112 was introduced in the New York Assembly. An identical Senate companion bill, S. 6102, has been referred to the Senate Budget & Revenues Committee after being introduced in May 2019. The bills would...more
For years, Delaware has used contract audit firms to enforce their unclaimed property laws and paid them based, at least partially, on the amount recovered. Motivated by this financial reward and empowered as an agent of the...more
The D.C. Council is once again preparing to consider legislation (B23-0035; the False Claims Amendment Act of 2019) that would authorize tax-based false claims actions, allowing private, profit-motivated parties to bring...more
On January 16, a bill (H. 756) was introduced in the Vermont Assembly that would repeal the sales and use tax exemption for remotely accessed prewritten computer software. If enacted as introduced, the exemption would no...more
1/17/2020
/ Cloud Computing ,
Cloud Service Providers (CSPs) ,
E-Commerce ,
Internet Tax Freedom Act ,
Internet Taxation ,
Proposed Legislation ,
Repeal ,
Sales & Use Tax ,
Software ,
Software Developers ,
Tangible Property ,
Tax Exemptions
On January 14, LB 989 was introduced in the Nebraska Legislature, which would impose sales and use tax on “the retail sale of digital advertisements.” The bill defines “digital advertisement” as “an advertising message...more
On January 8, SB 2 was introduced to establish a new digital advertising gross revenue tax of up to 10% on “annual gross revenues of a person derived from digital advertising services in the state.” This uncharted new tax...more
1/13/2020
/ Advertising ,
Commerce Clause ,
Constitutional Challenges ,
Digital Communications ,
Equal Protection ,
First Amendment ,
Income Taxes ,
Online Platforms ,
Proposed Legislation ,
State and Local Government ,
State Taxes ,
Tax Legislation ,
Tax Liability ,
Tax Rates ,
Tax Returns ,
Tax Revenues
As the economy shifts to a digital one, we are finding that states are turning toward unconventional revenue options. One trend we’re seeing is the surprising comeback of the gross receipts tax (GRT):
• Oregon’s new...more
9/25/2019
/ B&O Tax ,
Business Taxes ,
Commercial Activity Tax ,
Gross Receipts Tax ,
Income Taxes ,
Legislative Agendas ,
Local Ordinance ,
New Legislation ,
Payroll Taxes ,
Proposed Legislation ,
State and Local Government ,
State Taxes ,
Tax Legislation ,
Tax Liability ,
Tax Planning ,
Tax Rates ,
Tax Revenues
Legislators in Sacramento are mulling over one of the most (if not the most) troubling state and local tax bills of the past decade. AB 1270, introduced earlier this year and passed by the Assembly in late May, would amend...more
Taxpayers may have celebrated too soon when the New Jersey Division of Taxation announced that it was withdrawing TB-85 and the GDP-based apportionment regime for global intangible low-taxed income (GILTI) and foreign-derived...more
Many New Jersey taxpayers have a reason to celebrate today as the Division of Taxation withdrew Technical Bulletin-85, providing for a special apportionment regime for global intangible low-taxed income (GILTI) and income...more
Recently passed budget legislation in both Connecticut and Rhode Island included tax increases on sales of digital goods and services. The Connecticut bill has been signed into law. The Rhode Island bill passed late last...more
7/1/2019
/ Digital Downloads ,
Digital Goods ,
Digital Services ,
Digital Taxes ,
Electronically Downloaded Products ,
General Assembly ,
New Legislation ,
Pending Legislation ,
Sales & Use Tax ,
State Budgets ,
State Taxes ,
Tangible Property ,
Tax Rates
On June 24, 2019, Wisconsin Governor Tony Evers (D), signed into law AB 10, entitled “2019 Wisconsin Act 7.” This Act either bars a deduction for, or requires that amounts deducted be added back to, Wisconsin taxable income...more
6/28/2019
/ Business Formation ,
Business Ownership ,
Discrimination ,
Due Process ,
Exit Strategies ,
Fifth Amendment ,
Fourteenth Amendment ,
Income Taxes ,
Interstate Commerce ,
Limited Liability Company (LLC) ,
Privileges and Immunities ,
S-Corporation ,
Transfer Restrictions
This has been an eventful and exciting week for those interested in the states’ taxation of global intangible low-taxed income (GILTI). On Monday, taxpayers received the good news that New York Governor Cuomo signed S. 6615—a...more
Legislators in Frankfort added a new “video streaming service” tax to the omnibus tax bill (HB 354) as part of a closed-door conference committee process before the bill was hastily passed in the House and Senate. Notably,...more
On May 8, Governor Bill Lee (R) signed SB 558, which provides for the exclusion of 95% of Global Intangible Low-Taxed Income (GILTI) and foreign earnings deemed repatriated under IRC section 965 (965 Income) from the tax base...more
Judicial deference to state tax agencies puts taxpayers at a steep disadvantage and wastes time and resources on costly tax disputes. A united advocacy effort can help promote passage of state-level legislation that takes the...more