Virginia’s peer-to-peer vehicle sharing tax, passed in April, takes effect on October 1. Generally, vehicle owners with up to ten shared vehicles will be subject to a 6.5% gross tax. The law obligates vehicle sharing platforms to collect the tax on behalf of the owners if the platform has established sufficient contact with the state.
Georgia Legislature Enacts Significant Income, Sales, and Property Tax Legislation
The Georgia legislative session concluded on March 29, 2018. In addition to two major bills relating to federal tax reform, Georgia enacted several other pieces of notable tax legislation.
View the full Legal Alert.
Georgia passes legislation to provide deduction of GILTI from the state tax base
On March 21, 2018, the Georgia Legislature passed SB 328 (the Bill) to exclude IRC § 951A (GILTI ) from Georgia taxable income. The Bill treats GILTI as Subpart F income for purposes of the deduction under OCGA § 48-7-21(b)(8).
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How Will Georgia Conform to Federal Tax Reform? Annual Legislation Introduced
The Georgia Legislature has introduced its annual Internal Revenue Code (IRC) conformity bill—HB 821. Georgia conformity is typically updated annually to apply for the most recent tax year. In light of the recently enacted federal tax reform, this year’s conformity bill will receive particular attention because of what tax reform provisions Georgia chooses to adopt…
When Holding On Is Letting Go: Alabama Supreme Court Agrees Holding Title to Goods Delivered into City Insufficient for Purposes of Imposing Municipal Business License Tax
By Mike Le and Tim Gustafson
On December 8, 2017, the Alabama Supreme Court issued an order without opinion in Thomas v. Elbow River Marketing Ltd. Partnership, affirming a lower court’s decision that a Canada-based seller of hydrocarbon products did not engage in or carry on a business in the City of Birmingham…
North Carolina Supreme Court Determines that Bank’s Market Discount Income Is Not Deductible as Interest
By Liz Cha and Open Weaver Banks
The North Carolina Supreme Court affirmed the North Carolina Business Court’s decision that Fidelity Bank was precluded from deducting “market discount income” from US bonds for North Carolina corporate income tax purposes. Fidelity Bank acquired US government bonds at a discount, held these bonds until maturity, and earned…
Just Trust Us, It’s Right! – Alabama Tax Tribunal Finds Taxpayer Cannot Prove Interest Expense Exempt from Addback Without Evidence
By Chelsea Marmor and Charlie Kearns
The Alabama Tax Tribunal (Tribunal) affirmed the Alabama Department of Revenue’s (DOR) assessment that denied Credit Suisse Boston USA Inc.’s (Credit Suisse) deduction for interest expense paid to a related member. Credit Suisse argued that the interest expense payments were exempt from Alabama’s addback requirement because the expense to…
Texas Supreme Court Upholds Local Ad Valorem Tax on Stored Gas
By Jessie Eisenmenger and Jonathan Feldman
The Texas Supreme Court held that a non-discriminatory tax on stored gas held for future resale does not violate the Commerce Clause of the US Constitution. Harris County imposed an ad valorem tax on natural gas stored in the county on January 1 of the tax year. Applying the…
Georgia Senate Special Tax Exemption Study Committee Holds First Meeting
The Georgia Senate Special Tax Exemption Study Committee held its initial meeting to plan evaluation of Georgia income and sales tax exemptions by December 1, 2017.
- The special study committee was created by a Georgia Senate Resolution during the 2017 Legislative Session.
- The Committee will prioritize exemptions to evaluate, and then recommend whether to continue,
Texas Comptroller Finds Payment Risk and Fraud Prevention Solutions Should Be Apportioned as a Service
The Texas Comptroller of Public Accounts has issued a private letter ruling finding that a Texas company’s revenue from sales of real-time payment risk and fraud prevention services should be sourced to the location of Taxpayer’s customers. In Texas, receipts from a service are sourced to the location where…