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During the July 21st Legislative Meeting, the D.C. Council voted to postpone consideration of the Fiscal Year 2021 Local Budget Act of 2020 (“LBA”) (which establishes the expenditures of D.C. revenue) to Thursday, July 23rd at 12:30 p.m. Prior to that meeting, the D.C. budget office will attempt to trim $18.4 million from the LBA,…

In what could best be described as a “tax on talking,” the DC Council will vote on a budget tomorrow that relies on revenue from expanding the sales tax to advertising services and personal information. The rate is generally 3%, but could rise to 7.25% for certain taxpayers.

The legislation quickly moved through the Council…

On June 22, the US Supreme Court denied Altera Corp.’s petition for certiorari seeking review of the US Court of Appeals for the Ninth Circuit’s decision upholding the US Department of the Treasury’s transfer pricing regulation requiring related participants in cost-sharing agreements to include stock-based compensation costs in the joint cost pool to comply with…

On June 30th, 2020, the Internet Tax Freedom Act’s grandfather clause will expire. ITFA prohibits states and political subdivisions from imposing taxes on Internet access. But the grandfather clause has permitted such taxes if they were generally imposed and actually enforced prior to October 1, 1998. In particular, Ohio and Texas have imposed their sales…

On April 22, 2020, the Pennsylvania Supreme Court issued an opinion that could have a material impact on the unemployment insurance obligations of businesses that engage independent contractors in the state. In A Special Touch v. Pennsylvania Dep’t of Labor & Indust., involving a nail salon, the state supreme court construed the second prong of…

States continue to consider tax legislation to balance their budgets in reaction to the COVID-19 pandemic. On May 27, 2020, Mayor Muriel Bowser signed D.C. Act 23-326, the Coronavirus Support Emergency Amendment Act of 2020. In part, this act limits net operating loss carryovers. For tax years beginning after December 31, 2017, corporations, unincorporated…

On May 11, a San Francisco trial court held that the California Constitution allows special local taxes proposed by voter initiative to be enacted with a simple majority vote, in contrast to the two-thirds vote required for special taxes proposed by local government. The ballot initiative in question imposed a $298 per parcel tax and…

The Nebraska Department of Revenue (“Department”) issued guidance explaining that Nebraska Advantage Act (“Act”) project-holders may not have to repay incentives if they cannot meet their project obligations due to COVID-19. The Act provides incentives to businesses that commit to certain levels of employment and investment as part of an expansion project in Nebraska. The…

On April 28, 2020, the Multistate Tax Commission (MTC), as part of its 2020 Spring Committee Meetings, held its Strategic Planning Committee Meeting by teleconference. Over the prior week, the MTC also held meetings of its Executive, Uniformity, Nexus, and Audit Committees.

The Eversheds Sutherland SALT group attended the Strategic Planning Committee Meeting.…