In just the first few months of the 2022 tax year, we have already seen several states introduce legislation that would decrease corporate and individual income tax rates. Idaho became the first state to pass such legislation this year, on February 4. The Eversheds Sutherland SALT team expects other states to follow and will provide
Setting the stage for state tax overreach – a look into two recent laws
In this episode of the SALT Shaker Podcast policy series, Eversheds Sutherland Associate Jeremy Gove takes a turn in the policy hot seat, and interviews Partner Nikki Dobay about her recent article in Tax Notes State, which analyzes two recently enacted measures – Idaho H.B. 677 and New Hampshire H.B. 1097.
Nikki and Jeremy
Cross-border state legislative tax wars: Is this just the beginning?
In this installment of SALT Policy Picks for Tax Notes State, Eversheds Sutherland Partner Nikki Dobay analyzes two recently enacted measures that have fascinated her this legislative session – Idaho H.B. 677 and New Hampshire H.B. 1097. Each is intended to prevent taxation of residents by other states where the activity the other state
Idaho Governor Little signs rate reductions and income tax rebate bill into law
On February 4, Idaho Governor Little signed into law HB 436, which will decrease individual and corporate income tax rates. HB 436 was passed and signed into law in just over 20 days after being introduced. Specifically, the legislation lowers the corporate income tax rate from 6.5% to 6% and consolidates the personal income
No small potatoes: taxpayer domiciled in Idaho despite not residing in the state
The Idaho State Tax Commission found an individual taxpayer remained domiciled in the state and thus liable for Idaho individual income taxes where there was no evidence he ever abandoned his Idaho domicile. The taxpayer was audited and issued a notice of deficiency determination because the taxpayer did not file a tax return in Idaho
Quick Update: California, Wisconsin and Idaho
In this episode of the SALT Shaker Podcast, host Chris Lee discusses a California income tax matter concerning the sourcing of an individual’s income, a Wisconsin corporate income tax matter involving the dividends received deduction, and two Idaho individual income tax decisions addressing domicile.
Questions or comments? Email SALTonline@eversheds-sutherland.com.
Idaho Considers Market-Based Sourcing
On January 21, 2021, the Idaho House Committee on Taxation introduced a market-based sourcing bill, which if enacted would change the state’s approach to sourcing the sales of certain multistate businesses. The state currently sources sales other than sales of tangible property to Idaho if the income-producing activity is performed in the state, or
That’s None of Our Business – Idaho Supreme Court Rules Holding Company’s Gain from Sale of LLC Interest is Nonbusiness Income
On May 22, 2020, the Idaho Supreme Court held that the gain realized by a corporate holding company on the sale of its 78.54 percent ownership interest in an LLC was nonbusiness income and therefore not subject to apportionment in Idaho. The LLC was formed in 2003 and manufactured and sold tangible personal property. The
Supreme Court of Idaho Upholds Tax Credit Legislation
The Supreme Court of Idaho upheld the lower court’s judgment that the Idaho Reimbursement Incentive Act (“IRIA”) does not violate the separation of powers provisions of the Idaho Constitution because the IRIA does not delegate lawmaking powers to an administrative body and the IRIA does not limit judicial review. An administrative agency created under the
Idaho Enacts Corporate Income Tax Changes to Take Advantage of the Federal Tax Reform Legislation
On March 12, 2018, Idaho’s governor signed into law H.B. 463 (the Bill), which provides a series of changes to Idaho’s income tax law in response to H.R. 1, popularly referred to as the Federal Tax Cuts and Jobs Act (the Act). The main changes to Idaho tax law include: (i) conformity, for tax years