Following in the footsteps of Ohio more than 20 years ago, more than 20 states have enacted addback statutes, which generally limit taxpayers from reducing their state income tax liability by deducting interest and intangible expenses paid to out-of-state related parties. In this edition of A Pinch of SALT, Sutherland SALT’s Michele Borens and Jessica Kerner
Policy and Legislation
Sutherland SALT Shaker: November 2013 Digest
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Posted in Noteworthy Cases, Policy and Legislation
Click here to read our November 2013 posts on stateandlocaltax.com or read each article by clicking on the title. You may also view a printable PDF here.
- Alaska Supreme Court Can’t See Russia, But Does See Unitary Business
The Alaska Supreme Court held that a petroleum company and its subsidiaries were engaged in a
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Sutherland SALT Shaker: October 2013 Digest
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Click here to read our October 2013 posts on stateandlocaltax.com or read each article by clicking on the title. A printable PDF is also available here.
- Down for the Count, But Not Out: Colorado’s Remote Retailer Reporting Requirements Expected to Be Challenged in State Court
After the U.S. Court of Appeals for the Tenth
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Short Shrift for the Short-Lived Tech Tax: Massachusetts’ Computer Design Services Tax Repealed in Less Than Two Months
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Posted in Digital Economy, Policy and Legislation
By Sahang-Hee Hahn and Timothy Gustafson
Less than two months after Massachusetts enacted a tax on computer design and software services (Tech Tax), the legislation was repealed with the passage of House Bill (HB) 3662 (for Sutherland’s previous coverage of this development, click here). The Tech Tax expanded Massachusetts’s sales and use tax…
Legal Alert: Illinois Click-Through Nexus Law Preempted by the Internet Tax Freedom Act
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In a 6-1 decision, the Illinois Supreme Court affirmed an Illinois Circuit Court holding that Illinois Public Act 96-1544 (The Click-Through Nexus Act), requiring out-of-state retailers to collect and remit use tax, violates the Internet Tax Freedom Act. Performance Marketing Ass’n v. Hamer, Docket No. 114496 (Oct. 18, 2013).
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If At First You Don’t Succeed: Illinois House of Representatives Introduces Corporate Tax Liability Disclosure Bill After Senate Failure
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Posted in Policy and Legislation
By Suzanne Palms and Timothy Gustafon
The Illinois House of Representatives recently held a contentious hearing on legislation introduced earlier this year that would require publicly traded corporations, and those that are at least 50% owned by a publicly traded company, “doing business” in Illinois to disclose certain tax information in an annual statement filed…
To Market, To Market: Massachusetts Adopts Market-Based Sourcing of Intangibles, Expands Definition of Taxable Services
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Posted in Policy and Legislation
By Sahang-Hee Hahn and Timothy Gustafson
On July 24, 2013, the Massachusetts Legislature passed the Transportation Finance Bill (H.B. 3535) over Governor Patrick’s veto, implementing three key changes to Massachusetts’ state tax system. To begin, the new legislation requires the use of a market-based sourcing method for sales of intangibles in computing…
Sutherland SALT Shaker: July 2013 Digest
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Click here to read our July 2013 articles here on our website, or read each article by clicking on the title. If you prefer, you may also read a printable PDF version.
- Arizona: Software Licenses Determined to Be Personal Property Rentals
The Arizona Department of Revenue determined that a taxpayer providing online backup and restoration services
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Ending the Storm Tax: Delaware Excludes Emergency-Related Work from Nexus Determination
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By Shane Lord and Prentiss Willson
Under the Delaware Infrastructure Emergency Response Act, emergency work related to a declared state of emergency does not constitute legal presence, residency, or doing business in Delaware for purposes of state and local taxes, licensing, and regulatory requirements. This exclusion applies to out-of-state businesses and employees that conduct emergency…
Texas Reins In Its Comptroller: Specified Locations to Qualify as a Retailer’s Place of Business for Sales Tax Remittance Purposes
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Posted in Policy and Legislation
By Saabir Kapoor and Timothy Gustafson
Texas has clarified the Comptroller’s authority to disregard certain retail business locations in determining the situs of a sale for local sales tax purposes. Current law requires retailers to collect and remit local sales tax based on the ship-from location on all delivery sales of taxable items that are…