In this episode of the SALT Shaker Podcast, Eversheds Sutherland Associate Jeremy Gove breaks down the ‘affirmative’ Commerce Clause with Partner Eric Tresh. Eric recently authored an article in Tax Notes State on the topic with Partner Maria Todorova and Associate Fahad Mithavayani, which you can read here.

Eric speaks to tax discrimination, especially its effect on specific industries, and how states’ efforts to provide additional revenue raisers are problematic. One avenue of curtailing that behavior is Congress’ affirmative grant of legislative authority to regulate interstate commerce under the Commerce Clause of the US Constitution.

Jeremy’s overrated/underrated question deals with dubbing someone the GOAT, or Greatest of All Time. Should this term still be used, especially for athletes?

Questions or comments? Email SALTonline@eversheds-sutherland.com. You can also subscribe to receive our regular updates hosted on the SALT Shaker blog.

 

 

 

 

 

 

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The New York State Tax Appeals Tribunal reversed an administrative law judge determination and held that an individual was not a statutory resident of New York in 2014 because he did not maintain a permanent place of abode in New York for 11 months of the year.

On audit, the Department of Taxation and Finance asserted that the individual qualified as a statutory resident and issued an assessment for New York State personal income tax, in addition to amounts paid by the individual as a part-year resident.

In 2014, a statutory resident was defined as a person who was not domiciled in New York State but who (1) maintained a permanent place of abode in the state for substantially all of the taxable year, and (2) spent at least 183 days in the state during the taxable year.

The Tribunal noted that the Department’s Nonresident Audit Guidelines for 2014 stated that the Department considers “substantially all of the taxable year” to mean more than 11 months. The Tribunal found that the individual maintained a permanent place of abode in New York for the first 10 months of the year by renting an apartment in New York City, but did not maintain a permanent place of abode in New York during either of the last two months of the year.  The Tribunal acknowledged that the individual stayed with a friend for an additional month in New York City, but that the individual lacked a legal right to the friend’s dwelling, and that the living arrangement was “brief and clearly temporary.” In addition, the Tribunal acknowledged that the individual purchased an apartment in New York City in December 2014, but that use of the residence did not begin until January 2015. Thus, the Tribunal held that the individual did not maintain a permanent place of abode in New York for “substantially all of the taxable year” and, therefore, was not a statutory resident in 2014.

Matter of Joseph Pilaro and Joe Gorrie, DTA No. 829204 (N.Y.S. Tax App. Trib. Aug. 18 2022).

Calling all trivia fans! Don’t miss out on a chance to show off your SALT knowledge!

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

This week’s question: Which member of the Eversheds Sutherland SALT team was recently named a Law360 Tax MVP?

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

The prize for the first response to today’s question is a $25 UBER Eats gift card. Answers will be posted on Saturdays in our SALT Shaker Weekly Digest. Be sure to check back then!

In this episode of the SALT Shaker Podcast policy series, host and Eversheds Sutherland Partner Nikki Dobay is rejoined by Jared Walczak, Vice President of State Projects at the Tax Foundation, to discuss the fall ballot initiative season.

Jared shares his perspective about the fall ballot initiatives he’s keeping an eye on, including those in Idaho, San Francisco, Massachusetts, California, Colorado and Oregon.

They conclude with Nikki’s surprise non-tax question – what’s the difference between a national park and a national forest?

The Eversheds Sutherland State and Local Tax team has been engaged in state tax policy work for years, tracking tax legislation, helping clients gauge the impact of various proposals, drafting talking points and rewriting legislation. Partner Nikki Dobay, who has an extensive background in tax policy, hosts this series, which is focused on state and local tax policy issues.

Questions or comments? Email SALTonline@eversheds-sutherland.com.

Note: This episode was recorded on September 7, and following the recording, the proponents of the Idaho ballot initiative pulled it off the ballot.

 

 

 

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The return of autumn temperatures usually means a few things – sweater weather, pumpkin spice lattes, and another school year!

Join us in wishing our SALT families and their children a great and prosperous year.

1, 4: Legal secretary Candice Alba’s son Marcos (4th grade) and daughter Olivia (7th grade)

2: Partner Charlie Kearns’ daughter Ella (Kindergarten)

3: Partner Tim Gustafson’s daughter Cate (7th grade) and son Luke (3rd grade)

5: Partner Michele Borens’ daughter Avery (senior year of college)

6: Associate Laurin McDonald’s daughter Lola

 

7, 10: Partner Maria Todorova’s daughter Addison (6th grade) and son Nicholas (4th grade)

8: Partner Jeff Friedman’s daughter Sarah (law school)

9: Partner Jonathan Feldman’s daughter Anna (7th grade) and son Micah (4th grade)

11, 12: Legal secretary Melissa Bragg’s daughters Emma (9th grade) and Madelyn (3rd grade)

13: Paralegal specialist Jaime Lane’s son Cooper (7th grade) and daughter Cassidy (5thgrade)

 

14: Partner Dan Schlueter and his family dropping off daughter Rachel for her first day of college

15: Partner Ted Friedman’s son Van (pre-K 4) and daughter Georgie (1st grade)

Calling all trivia fans! Don’t miss out on a chance to show off your SALT knowledge!

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

This week’s question: What senate bill did the New York governor recently sign which aligns New York City’s nexus standards with New York State’s economic nexus standards?

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

The prize for the first response to today’s question is a $25 UBER Eats gift card. Answers will be posted on Saturdays in our SALT Shaker Weekly Digest. Be sure to check back then!

TEI’s Audits and Appeals Seminar, the only tax conference of its kind, is less than two weeks away. You won’t want to miss these ‘must-attend’ SALT sessions:

  • State Tax Judges Panel – Hear from the Other Side of the Bench is a perennial favorite at TEI’s Audits and Appeals Seminar, providing insights into the working of a court room and what state court judges value and dislike, enabling you to litigate cases more effectively.
  • State Auditors Roundtable – A discussion with MTC and State Auditors features four auditors to give a perspective from the other side of the table – discussing the greatest challenges, issues and opportunities on how to make audits go more smoothly.
  • Clear, Direct and Persuasive Writing features expert Ben Opipari from Persuasive Writing on how to ensure your communications are clear, direct and persuasive.

The seminar, being held just outside of Washington, DC, offers two distinct tracks – Federal Tax Controversies and State & Local Tax Controversies. The second day and a half is devoted to SALT matters and will cover the most pressing challenges in-house professionals face when managing state and local audits and appeals, as well as insights from state auditors and state tax court judges.

We hope you can join us! Register today: https://bit.ly/3NTWanS

In this episode of the SALT Shaker Podcast, host and Eversheds Sutherland Associate Jeremy Gove welcomes back Counsel Charles Capouet for a discussion of taxpayer wins and losses in Q1 and Q2 of 2022. Thanks to the SALT Scoreboards, they cover key cases from each quarter and what the results mean.

Continuing tradition, they conclude with Jeremy’s favorite question—overrated/underrated? Are first day of school photos underrated or overrated?

Read the Q1 and Q2 editions of the SALT Scoreboard here.

Questions or comments? Email SALTonline@eversheds-sutherland.com. You can also subscribe to receive our regular updates hosted on the SALT Shaker blog.

 

 

 

 

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Calling all trivia fans! Don’t miss out on a chance to show off your SALT knowledge!

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

This week’s question: What state’s governor recently signed into law a bill that will reduce the state’s top corporate income tax rate from 5.9% to 5.3 % beginning on January 1, 2023?

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

The prize for the first response to today’s question is a $25 UBER Eats gift card. Answers will be posted on Saturdays in our SALT Shaker Weekly Digest. Be sure to check back then!

On August 31, 2022, New York Governor Kathy Hochul signed S.B. 9454, which aligns New York City’s nexus standards with New York State’s economic nexus standards. For tax years beginning on or after January 1, 2022, businesses have nexus with New York City and are subject to the City’s business corporation tax if they have at least $1 million in New York City receipts. A corporation also has nexus if it has less than $1 million in New York City receipts, but has at least $10,000 in receipts within the City, and is part of a unitary group that has at least $1 million in New York City receipts.  Grants received from the New York State and City’s COVID-19 small business relief programs do not count toward the New York City receipts threshold.

There is an additional nexus threshold for companies in the business of issuing credit card or merchant customer contracts. Under the existing law, the New York City nexus threshold was satisfied for companies that have issued either (1) credit cards to at least 1,000 customers with a mailing address in the city, (2) merchant customer contracts to at least 1,000 or more merchants located in the city, or (3) any combination of these two factors that add up to 1,000 customers. According to the new law, for those companies that do not meet the threshold on their own, New York City nexus can also be satisfied if the companies have at least (1) 10 customers with a mailing address in the city, (2) merchant customer contracts with at least 10 merchants located in the city, or (3) any combination of these two factors that add up to 10 customers, and are part of a unitary group whose members in the aggregate satisfy the above-referenced 1,000 customer threshold.

Eversheds Sutherland Observation: Out of state businesses operating in New York City without a physical presence, or New York businesses that have been subject to New York State but not New York City business corporation tax, will need to review their activity in New York City to determine whether their activities in New York City may now create nexus.

In addition to the nexus provisions, the bill provides that New York State taxes paid based on profits or income do not reduce an entity’s New York City entire net income subject to tax. For entities electing to pay the state and city pass-through entity-level taxes, those optional taxes also do not reduce the entity’s entire net income for purposes of determining its New York City general corporation tax or banking corporation tax liability.