The New Mexico Administrative Hearings Office affirmed the Taxation and Revenue Department’s assessment based on General Electric’s exclusion of foreign dividend and Subpart F income from its base income in its New Mexico consolidated return. In this case of first impression, the Hearings Office held that New Mexico’s inclusion of dividends and Subpart F income
Webcast: State Tax Implications of Federal Tax Reform
The state and local tax (SALT) implications of federal tax reform are numerous, yet still often unclear. With states releasing new law and guidance about federal tax reform, taxpayers must stay abreast of this very dynamic area of law. In this webcast, Todd Lard and Todd Betor discuss the gating question to the SALT implications
The State and Local Tax Implications of Federal Tax Reform
On November 2, 2017, Republicans in the House of Representatives released their much-anticipated tax reform bill. The Tax Cuts and Jobs Act proposes numerous changes to the Internal Revenue Code, many of which will have an impact on taxpayers’ state and local tax liabilities.
- Most states conform to the federal income tax base —at least
New York State Tax Appeals Tribunal: Assessment of Non-Admitted Alien Insurance Companies Violated Tax Treaty and Foreign Commerce Clause
By Huy “Mike” Le and Andrew Appleby
The New York State Tax Appeals Tribunal (Tribunal) held that the Department’s assessment of two non-admitted German insurance companies violated the United States-Germany Tax Treaty’s anti-discrimination clause and the US Constitution’s Foreign Commerce Clause.
The alien non-admitted non-life insurance companies had no premiums from sources in the United
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
Marketplace Providers Are Statutorily Required to Collect Sales Tax in Minnesota and Washington
By Jeff Friedman and Stephanie Do
A new landmark sales tax statute has been adopted in Minnesota, which expands sales tax collection requirements to those retailers that sell their goods on certain “marketplaces.” Generally, only a retailer that is physically present in a state is required to collect and remit the state’s sales tax. The
Not So Fast: Tennessee Chancery Court Prohibits Department of Revenue from Enforcing Sales Tax Collection By Out-of-State Retailers
By Eric Tresh and Liz Cha
On April 10, 2017, a Tennessee Chancery Court ordered that the Tennessee Department of Revenue is temporarily prohibited from enforcing a regulation that requires out-of-state retailers making annual sales in excess of $500,000 to collect and remit sales tax. The Order arises out of a dispute between the Plaintiffs
Expanding the Water’s Edge: Four Trends to Watch in International Issues in State Taxation
Traditionally, mandatory worldwide combined reporting was the state corporate tax issue of most concern to companies engaged in international business. States are now moving toward a water’s-edge unitary combination method for both US and foreign-based companies.
In his article for the Spring 2017 edition of Partnering Perspectives, Eversheds Sutherland (US) Senior Counsel Eric Coffill covers
Harley Hits Another Trial Court Road Bump–California Superior Court Upholds FTB’s Different Combined Reporting Treatment of Interstate and Intrastate Companies
By Robert Merten and Madison Barnett
The San Diego County Superior Court determined that California’s combined filing regime—which requires interstate taxpayers to use combined reporting but permits intrastate taxpayers to choose between combined or separate reporting—does not violate the US Constitution’s Commerce Clause. The court acknowledged that (1) the interstate and intrastate unitary businesses were
West Virginia Court Rules that Credit for Taxes Paid to Other States Must Include Local Taxes
By Mike Kerman and Open Weaver Banks
The West Virginia Supreme Court held that a credit for taxes paid to other states on purchases of motor fuel is constitutional only if interpreted to include taxes paid to subdivisions of other states. The court determined that a credit that applies only to taxes paid to other