Our newest SALT associate, Annie Rothschild, might have had to start her new job working from home, but she does get a pretty great office-mate to work alongside with because of it. Meet Marlowe, a 1.5 year-old Goldendoodle. While she’s forced to work from home, Annie and Marlowe have gotten a chance to spend a lot more time together.

Annie and her boyfriend adopted Marlowe in December of 2018, when a local family’s dog had puppies. When searching for a cute and unique name, Annie was inspired by Raymond Chandler’s fictional character Detective Phillip Marlowe.

In-between conference calls and video chats, Marlowe enjoys cuddling on the couch, going on walks and chasing birds. The current work from home situation has Marlowe missing his friends. One of his favorite things to do is play with all of his dog friends.

Marlowe’s first birthday party was held at a local park, and he invited a few of his closest friends to join. The party included its own dog-exclusive birthday cake. After playing with the other dogs for a while, Marlowe ventured off on his own to find a large mud puddle. Marlowe LOVES mud. Before he could be stopped, Marlowe proceeded to lay down in the mud, covering himself almost completely in mud. It’s a moment that everyone considers the best day of his life so far!

We are thrilled to feature Marlowe as our March Pet of the Month!

The California Franchise Tax Board just issued Notice 2020-02, providing an extension to July 15th for taxpayers to file income/franchise tax refund claims, protests, or appeals and petitions for rehearing at the Office of Tax Appeals that would normally have statutory due dates during the “postponement period” of Mar. 12, 2020 to July 15, 2020.

The Notice also states that the FTB has until July 15th to issue Notices of Proposed Assessment where the statute of limitations is set to expire during the postponement period.

Last week we launched SALT Trivia to test your knowledge on state and local taxes. Thank you to everyone who participated!

Last Week’s Question:
Which state was the first to enact a general state sales tax?

The Answer:
Mississippi. Although a few states had some sales tax features prior to that date, Mississippi was the first state to enact a state sales tax in 1932.

Within a few years, more than half the states had adopted sales taxes. Currently, 45 states, including the District of Columbia, have some type of general sales tax in force. Alaska, Delaware, Montana, New Hampshire, and Oregon are the only states that have no general sales tax.

Keep an eye out for our next trivia question on Wednesday!

State and local tax jurisdictions continue to evolve their tax systems around the US. Analyzing the latest key decisions, legislative and regulatory changes, and revenue agency guidance, the Eversheds Sutherland SALT Team focuses on providing updates on the most important developments in US state and local tax.

We are pleased to announce the launch of our new podcast channel, A Grain of SALT, which will help tax professionals navigate growing challenges in the evolving tax systems of state and local jurisdictions.

Subscribe now.

On March 29, 2020, the New York State Department of Taxation and Finance issued Notice N-20-2, extending the April 15, 2020 due date for New York State personal income tax and corporation tax returns to July 15, 2020. The Notice was issued in response to Executive Order No. 202.12 which, among other things, authorized the Commissioner of Taxation and Finance to provide relief from certain tax filing and payment deadlines.

The Notice states that the extension applies to returns for individuals, fiduciaries (estates and trusts), and corporations taxable under Tax Law Articles 9, 9-A, and 33. In addition, the Notice states that taxpayers may defer all related tax payments originally due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed.

Taxpayers do not need to file any forms to request or apply for this relief.

The Notice further provides:

  • Payments of tax or installments of tax, including installments of estimated taxes for the 2020 tax year, will not be subject to any failure to file, failure to pay, late payment, or underpayment penalties, or interest if filed and paid by July 15, 2020. Interest, penalties, and additions to tax with respect to such extended tax filings and payments will begin to accrue on July 16, 2020.
  • Taxpayers who request an automatic extension to file a 2019 return by July 15, 2020 will have their due date extended to October 15, 2020 (or, in the case of fiduciary income tax returns, September 30, 2020).
  • Any direct debit payments scheduled with a previously filed 2019 return will not be automatically rescheduled to July 15, 2020—instead, a taxpayer must cancel and schedule a new direct debit payment.

The Notice identifies the following exceptions to the relief provided:

  • No extension is provided by the Notice for any other type of state tax, or the filing of any state information return.
  • Remittance of income tax withheld by employers required to be made using Form NYS-1, Return of Tax Withheld, must be made on time.

While the New York City Department of Taxation and Finance has not yet issued guidance automatically extending deadlines to file corporate tax returns, it has issued Finance Memorandum 20-2, allowing for a waiver of penalties for NYC Department administered business and excise taxes due between March 16, 2020, and April 25, 2020. Taxpayers may request to have penalties waived on a late-filed extension or return, or in a separate request. However, interest would be due on all tax payments received after the original due date.

Stay tuned for updates on New York State and City tax-related deadlines and relief provisions related to COVID-19.

Please join us on Tuesday, March 31 at 12 pm ET for a discussion of State and Local Tax legislative developments from 2020. We will discuss which state legislatures have adjourned or temporarily suspended their legislative sessions in response to the threat of COVID-19. Despite their adjournment, many tax bills were passed and several were still being actively considered. A number of states are expected to react to the economic slowdown. This webcast will provide an overview of recently enacted and pending legislation from this year’s legislative session including highlights such as:

  • proposals to tax digital advertising
  • proposals to tax digital goods and services
  • combined reporting bills out of several states

Register here.

The Tennessee General Assembly passed S.B. 2182 on March 19 and the measure awaits execution by the Governor. The bill would require marketplace facilitators to collect and remit tax on behalf of their third-party sellers. Specifically, marketplace facilitators that made or facilitated total sales to consumers in the state of more than $500,000 in the previous year would be required to collect and remit sales and use tax on third-party sales. The bill would exclude from the definition of a marketplace facilitator certain delivery network companies facilitating local sales and deliveries and would allow for waivers and remittance agreements between the facilitator and seller under certain circumstances. The bill would take effect on October 1.

The Georgia Department of Revenue released guidance on March 17 clarifying that marketplace facilitators will be required to collect and remit state sales tax being April 1. The bulletin states that marketplace sellers in the state are not required to collect or remit state sales or use tax on retail sales that the marketplace facilitator is required to collect. The bulletin outlines the circumstances in which a marketplace facilitator will not be liable for sales tax it fails to collect. The bulletin also provides examples of circumstances of when the marketplace facilitator collection requirements apply and how the tax base is calculated for certain marketplace facilitators.

Calling all trivia fans! Today we are launching a new weekly trivia series. Don’t miss out on a chance to show off your SALT knowledge!

We will award prizes for the smartest (and fastest) participants.

Today’s Question
Which state was the first to enact a general state sales tax?

E-mail your response to SALTonline@eversheds-sutherland.com.

The prize for the first response to today’s question is a $20 UBER Eats gift card.

Answers will be posted later this week. Be sure to check back then.