Georgia Bill Proposes Changes to Sales and Use Tax Reporting and Collection Rules
Posted on Feb 15, 2019 in State and Local Tax
On February 14, 2019, the Georgia House Ways and Means Committee voted in favor of House Bill 182. Effective for January 1, 2020, the bill would amend O.C.G.A. § 48-8-2(8)(M.1) to lower the sales threshold on the requirement to collect or report sales and use tax from $250,000 to $100,000 and would repeal subsection (c.2) of O.C.G.A. § 48-8-30 in its entirety to eliminate the option to...
Podcast: New Jersey apportionment of GILTI
Posted on Feb 6, 2019 in State and Local Tax
In this podcast, our state tax team discusses New Jersey guidance regarding the apportionment treatment of GILTI income.
New Jersey Tax Court Rejects Alternative Apportionment Formula
Posted on Feb 1, 2019 in State and Local Tax
The New Jersey Tax Court rejected the Division of Taxation’s application of a five-factor alternative apportionment formula as invalid rulemaking under New Jersey’s Administrative Procedures Act (APA). The Tax Court previously determined that an application of the statutory apportionment formula in effect prior to 2011 for companies without a “regular place of business” outside New...
Indiana Supreme Court Cites Business Purpose Requirement in Holding RV Dealership Liable for Uncollected Sales Tax
Posted on Jan 31, 2019 in State and Local Tax
On December 5, 2018, the Indiana Supreme Court in a 3-2 split decision held that an RV dealership was liable for uncollected sales tax on RV sales even though it delivered the RVs to buyers at out-of-state locations. The RV dealership’s protocol for transferring possession of its RVs to customers depended on the customer’s state of residence. Customers from Indiana—or from one of the...
Massachusetts ATB Finds that Indiana Utility Receipts Tax Not a Deductible Transaction Tax for Massachusetts Corporate Excise Tax
Posted on Jan 30, 2019 in State and Local Tax
The Massachusetts Appellate Tax Board disallowed a deduction for Indiana utility receipts tax (URT) paid by a natural gas distribution operator with operations in Indiana. The deduction for the URT was disallowed, for purposes of computing Massachusetts net income for corporate excise tax, because the URT is not a deductible “transaction tax.” The Board found that while the URT may...
It’s Not the Eggnog – New Jersey Proposes to Specially Allocate GILTI Based on GDP
Posted on Dec 24, 2018 in Presentations, State and Local Tax
On December 21, the New Jersey Division of Taxation released Technical Bulletin TB-85, which addresses how the Division will expect taxpayers to calculate the amount of so-called global intangible low-taxed income (GILTI) and foreign derived intangible income (FDII) that are taxable for New Jersey corporation business tax (CBT) purposes. Background: GILTI and FDII under Federal Tax Law...
California Court of Appeal Affirms that Transactions Involving Out-of-State Title Transfer Are Subject to Local Use Tax, Not Local Sales Tax
Posted on Dec 19, 2018 in State and Local Tax
The California Court of Appeal affirmed a trial court decision finding that transactions involving an Internet retailer headquartered in Brisbane, California, were subject to local use tax, rather than local sales tax, because title in the transactions at issue passed outside California. The court explained that when a retail seller delivers goods to a common carrier at an out-of-state...
Videocast: State tax considerations of IRC § 965
Posted on Aug 28, 2018 in State and Local Tax
In this Bottom Line videocast, Eversheds Sutherland attorneys Aaron Payne and Todd Betor discuss the state tax consequences and considerations of IRC § 965. This videocast includes: A federal income tax overview of IRC § 965 SALT considerations of IRC § 965 Specific state responses
Top New Jersey Tax Changes in the 2018 Budget Deal
Posted on Jul 6, 2018 in State and Local Tax
In a last-minute deal to avert a government shutdown, New Jersey Governor Phil Murphy and the New Jersey Legislature cobbled together a budget with numerous amendments to New Jersey’s tax law. View the full legal alert.
New Jersey Legislature Passes Corporate Tax Increases, Still Negotiating with Governor
Posted on Jun 28, 2018 in State and Local Tax
In the midst of a budget showdown between New Jersey’s Legislature and Governor Murphy, on June 25, 2018, the Legislature passed a replacement bill that seeks to raise revenue with a temporary Corporation Business Tax “surtax” on corporations meeting certain income thresholds and by limiting New Jersey’s dividend exclusion. The Legislature also responded to the Tax Cuts, and Jobs Act...
State Tax Reform Roundtables
The Tax Executives Institute’s (TEI) State and Local Tax Committee is holding a series of State Tax Reform Roundtables to enable SALT professionals to stay abreast of state tax developments associated with the Tax Cuts and Jobs Act, to engage with subject-matter experts, and to hear from peers regarding their “boots on the ground” knowledge and experience. This series of calls will...Non-Tax Lawyer’s Guide to the Tax Cuts and Jobs Act
Posted on Jun 1, 2018 in State and Local Tax
On December 22, 2017, the largest overhaul of the nation’s tax code since 1986 was signed into law. While the reduction in the corporate income tax rate grabbed most of the headlines, in their article for the Summer 2018 edition of Partnering Perspectives, Eversheds Sutherland attorneys Jeffrey Friedman and Michael Resnick discuss several additional important considerations related to...
Indiana Enacts IRC Conformity Bill, Decouples from Certain Federal Tax Reform Provisions
Posted on May 17, 2018 in State and Local Tax
On May 14, 2018, Indiana Governor Eric Holcomb signed into law H.B 1316 (the Bill). The Bill provides a number of changes to Indiana’s tax laws, including responding to provisions of the federal Tax Cuts and Jobs Act. Some notable provisions of the Bill include: updating Indiana’s conformity to the Internal Revenue Code from January 1, 2016 to February 11, 2018, effective for taxable...
State Tax After TCJA: Treatment Of International Income
Posted on May 8, 2018 in State and Local Tax
The Tax Cuts and Jobs Act, P.L. 115-97,[1] made sweeping changes to the Internal Revenue Code, and will have far-reaching implications for state tax systems that broadly conform to the IRC. In this article for Law360, Eversheds Sutherland attorneys Jeffrey Friedman, Eric Tresh, Todd Lard and Todd Betor focus on the major state income tax implications of the TCJA’s international tax...
New York City: Penalty Relief Available for Certain Section 965 Underpayments
Posted on May 7, 2018 in State and Local Tax
The New York City Department of Finance recently announced the availability of penalty abatements for certain taxpayers that have underpaid business taxes due to the inclusion of Section 965 income. NYC Finance Memorandum No. 18-4 (PDF) describes tax considerations and late payment penalty relief for NYC taxpayers affected by Section 965 and subject to the General Corporation Tax...