A Pinch of SALT

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The principle of nondiscrimination plays a pivotal role in the field of state and local taxation. Discriminatory taxes are said to deter cross-border activity, distort competitive neutrality, and hinder economic efficiency by placing a thumb on the scale of the competitive marketplace. Recognizing these issues, federal and state governments have prohibited discrimination since the founding…

“Business-friendly” Texas has been the leading poacher of California-based companies for over a decade, with relocations from tech-dominated California only accelerating during the pandemic. Oddly enough, at a time when Texas’s highest-profile new neighbors are known for cutting-edge research, the state seeks to narrow the scope of its research and development credit applicable to some…

In this installment of A Pinch of SALT for Tax Notes State, Eversheds Sutherland attorneys Eric Coffill and Annie Rothschild review the Franchise Tax Board’s proposed amendments to California’s market-based sourcing regulation, including its conception and eight important changes to watch as it moves through the approval process.

Read the full article here.

There are several federal statutes that limit state and local taxation, including the Internet Tax Freedom Act and Public Law 86-272. Ever since the U.S. Supreme Court handed down its decision in Murphy v. National Collegiate Athletic Association, there have been calls to apply the “anti-commandeering doctrine” to invalidate or limit these federal laws.…

In their article for State Tax Notes, “Heads They Win, Tails You Lose: New York Decombination and Discretionary Adjustments,” Sutherland attorneys Marc A. Simonetti, Andrew D. Appleby and Sahang-Hee Hahn assert that the New York State Department of Taxation and Finance applies its combined reporting and discretionary authority provisions arbitrarily to maximize its tax…

In this edition of A Pinch of SALT, Jeff Friedman, Pilar Mata and Mary Alexander examine the requirements and ramifications of states’ attempts to apply prospective-only remedies to unconstitutional taxes and explore why Maryland State Comptroller of the Treasury v. Wynne is not an appropriate case for prospective-only relief.

 

Read “Wynne-ing Isn’t …