In his draft budget plan for Fiscal Year 2025-2026 released on January 10, 2025, California Governor Gavin Newsom proposed to bring financial institutions in line with most other corporate taxpayers when it comes to apportioning multistate income. Banks and “financial corporations” currently use a three-factor apportionment formula consisting of property, payroll and sales to apportion
Multistate Tax Commission Nexus and Audit Committee Updates – November 2020
On November 16th and 17th, 2020, the Multistate Tax Commission’s (“MTC”) Nexus and Audit Committees met to consider several topics. The biggest developments from these meetings are that: (1) the Nexus Committee shared their proposed, revised draft of its Uniform Sales and Use Tax Exemption/Resale Certificate – Multijurisdiction, which reflects the Wayfair
US Supreme Court Overrules Physical Presence Standard, Leaves Plenty of Questions
In a 5-4 decision, the US Supreme Court today overruled its landmark decisions in Quill Corp. v. North Dakota and National Bellas Hess, Inc. v. Department of Revenue of Illinois, disposing of the “physical presence” rule that has served as the bright-line standard for whether remote sellers are required to collect state sales taxes.
What are the State Tax Implications of International Tax Reform?
What are the State Tax Implications of International Tax Reform? Jeff Friedman and others outline the key points at the COST 2018 Spring Audit Session/Income Tax Conference in snowy Boston, Massachusetts.
These issues were also addressed in a recent article, “Waiting for the Other Shoe to Drop: State and Local Tax Implications of Federal
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 Most Important State And Local Tax Cases Of 2017
There has been no shortage of state tax controversies this year. States and taxpayers looked to state courts seeking guidance on some of the most contentious state tax issues.
In their article for Law360, Eversheds Sutherland attorneys Jeffrey Friedman and Stephanie Do look back at some of the most interesting decisions of 2017, which
Congress Holds Hearing on Legislation to Limit State Taxation
On July 25, 2017, the US House of Representatives Judiciary Committee’s Subcommittee on Regulatory Reform, Commercial and Antitrust Law conducted a hearing on “No Regulation Without Representation: HR 2887 and the Growing Problem of States Regulating Beyond Their Borders.” This hearing was important for several reasons:
- State tax nexus legislation has been one of the
A Pinch of SALT: Trends and Developments in Alternative Apportionment of State Income
While alternative apportionment is an important relief mechanism to avoid unjust taxation, it is often used to justify the ad hoc administration of tax. View the latest edition of A Pinch of SALT, by Eversheds Sutherland (US) attorneys Christopher Lutz, Robert Merten and Nicholas Kump, which reports on:
- Recent case law regarding
US Supreme Court Declines to Review Retroactive State Tax Legislation
By Jeff Friedman and Stephanie Do
Following an unfavorable court decision, state legislatures have been able to effectively reverse a decision by retroactively changing the law. Several taxpayers have challenged the validity of retroactive state tax changes by arguing that the retroactive laws violate the US Constitution’s Due Process Clause, which requires that no state
Developing Strategic Solutions to Multistate Tax Litigation
Managing state tax controversies is challenging not only because of the complexities that a particular case presents, but also because of the multidimensional considerations of litigating similar cases in multiple forums. View this article, which highlights the importance of developing a comprehensive strategy to avoid the pitfalls of multistate tax litigation, such as:
- Setting goals,