Last week, the Multistate Tax Commission (MTC) held its Fall Executive Committee and Uniformity Committee Meetings (in person) in Alexandria, Virginia. During the Executive Committee Meeting, MTC staff approved California’s participation as a sovereignty member. The Uniformity Committee Meeting focused on discussing the status of its current projects, held its state roundtable, and proposed a study of its special industry apportionment regulations.
Read the full Legal Alert here.
On this episode of the SALT Shaker Podcast, host and Eversheds Sutherland Associate Jeremy Gove is joined by Counsel Michael Hilkin from the firm’s New York office. Michael provides an overview of the New York False Claims Act and its recent prevalence and expansion in the state.
Jeremy and Michael also discuss two False Claims Act cases recently litigated in New York, and how those cases inform the balance of power between the New York Attorney General’s Office and the New York Department of Taxation and Finance in enforcing New York tax laws. Finally, they conclude their False Claims Act discussion with an examination of the impact on taxpayers. 
Continuing tradition, they end their conversation with Jeremy’s favorite – overrated or underrated? This week, they cover doughnuts.
Questions or comments? Email SALTonline@eversheds-sutherland.com.
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Kansas’s remote seller law became effective July 1, 2021, one of the last states to adopt sales tax nexus requirements for remote sellers. As part of implementing the new law, the Department of Revenue recently issued guidance to remote sellers providing that while a remote seller is not required to collect tax on its first $100,000 in sales for purposes of determining when economic nexus first begins, remote sellers should advise purchasers they have a use tax obligation if no tax is collected on the sale. Once the $100,000 threshold is passed, remote sellers must begin collecting and remitting sales tax on any further sales to Kansas customers. In addition, for purposes of determining when a remote seller passes the $100,000 threshold, all sales made by the remote seller to Kansas customers count toward the threshold, regardless of whether the item purchased is actually taxable.
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: In our latest SALT Scoreboard, we included our view of the Ohio Supreme Court’s decision on which city’s billboard excise tax?
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 a private letter ruling, the Illinois Department of Revenue ruled that an out-of-state taxpayer that provided software subscriptions and related hardware for one bundled price was subject to the Service Occupation Tax, not the Retailers’ Occupation Tax, Use Tax, or Service Use Tax. The customer owns the hardware, but the taxpayer retains ownership of the embedded firmware. The Department concluded that the taxpayer is acting as a “serviceman” offering cloud-based services. The taxpayer’s charges for software and firmware are transferred to the customer incident to the cloud-based service and are taxable. As a serviceman, the taxpayer may choose one of four ways to calculate tax—in this case, the taxpayer did not wish to separately state tangible personal property, and therefore was required to collect the service occupation tax based on 50% of the entire bill.
On November 8, Eversheds Sutherland Partner Nikki Dobay will present a SALT update for the Texas Society of CPAs during their 2021 Summit, which highlights topics in estate planning, state taxation and general tax. Registration and event information can be found here.
In addition, Eversheds Sutherland Partner Jeff Friedman will present Ongoing Teleworking and Multiple Workplace Issues Like Nexus for Employers, Convenience of the Employer Rule, Etc. at the Advanced Tax Institute 2021, co-sponsored by the Maryland State Bar Association Section of Taxation Law and the Maryland Association of CPAs.
View and learn more about past and upcoming events and presentations for the SALT team.
In this episode of the SALT Shaker Podcast policy series, host and Eversheds Sutherland Partner Nikki Dobay welcomes back Jeff Newgard, Principal and Owner of Peak Policy, as well as Stephanie Do, Senior Tax Counsel for the Council On State Taxation (COST).
They team up with Nikki to discuss the intricacies of corporate tax disclosures, including recently-introduced ballot initiative 21-23 in Massachusetts. They cover the initiative’s status, concerns associated with it and how it may fare in the future. In addition, Jeff reviews the history of public tax disclosure legislation in Oregon and opines on whether there should be concerns that such legislation might be back in 2022. Collectively, they express concern with disclosure bills generally and how it affects tax policy discussions.
Then, they wrap up with Nikki’s surprise non-tax question – what is your favorite Halloween costume?
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. This series, which is focused on state and local tax policy issues, is hosted by Partner Nikki Dobay, who has an extensive background in tax policy.
Questions or comments? Email SALTonline@eversheds-sutherland.com.
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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: Which state recently proposed a rule expanding the state’s sales tax to cloud computing, defining “cloud computing” as “the delivery of computing resources, including software applications, development tools, storage, and servers over the Internet?”
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!
Trick or treat? This All Hallows’ Eve, the Eversheds Sutherland SALT team wasted no time getting in the spirit.
Take a look at some of the fun and creative costumes from our team members and their families – including pets!
Please share your SALT family costumes with us at SALTonline@eversheds-sutherland.com!
1: Tori Caracci and her husband Matthew dressed as Shaggy and Velma from Scooby Doo, with their dog as Scooby.
2: Candice Alba’s son Marcos braved a Halloween graveyard.
3: Partner Breen Schiller’s daughters Avery and Quinn dressed up as Captain Marvel and Evil Audrey from Descendants 3, while Breen’s son Sullivan represented the White Sox as Tim Anderson.
4: Partner Maria Todorova and her family opted to be a skeletal crew, while her daughter Addison dressed up as Runa Yomozuki, an anime character.
5: Partner Charlie Kearns donned his best Hawaiian attire as Armond from HBO’s The White Lotus, while his daughter Ella looks on skeptically as a bat.
6: Associate Laurin McDonald’s daughter Lola took on crime as Batgirl.
7, 8: Paralegal specialist Jaime Lane’s daughter Cassidy and son Cooper opted to be a cowgirl (who unfortunately got kicked off her horse!) and Michael Myers.
9: Melissa Bragg and her husband Mike posed with their daughters Madelyn and Emma, who dressed up as Carmen Sandiego and the Mad Hatter.
10, 11: Partner Tim Gustafson’s daughter Cate and son Luke challenged other trick or treaters as Princess Leia and a ninja, while Tim also got in on the fun as a grown-up Prince Adam.
12: Business development coordinator Pamela Wimmer’s son Nathan snatched up plenty of candy as Spiderman.
13: Partner Jonathan Feldman and his wife opted to go as David S. Pumpkins and Darcy S. Pumpkins, while his kids chose a pig and pepperoni pizza costumes.
14: Partner Nikki Dobay’s furchild Grapes enjoyed the neighborhood visits as a lion.
