Shaking things up in state and local tax
Shaking things up in state and local tax
This week, Eversheds Sutherland is a proud sponsor of the virtual New England State and Local Tax Forum. Partner Breen Schiller will cover key issues facing combined filers in 2021.
In addition, Partner Jeff Friedman will present a virtual multistate tax update during the New Jersey Society of Certified Public Accountants Multistate Tax Conference…
The Multistate Tax Commission (MTC) adopted its long-awaited guidance interpreting Public Law (P.L.) 86-272 protections for internet businesses on August 4, 2021. P.L. 86-272 was passed by the U.S. Congress in 1959, and protects businesses from the imposition of state income tax when the business’s only activity in the state is the solicitation of orders…
On August 3, 2021, the New Jersey Division of Taxation released guidance on its website informing taxpayers that as of October 1, 2021, the state is ending its temporary waiver of certain corporation business tax (CBT) and sales tax nexus standards necessitated by the COVID-19 pandemic. The temporary guidance allowing employers to source wage income…
On May 27, the New Jersey Tax Court held that the New Jersey Division of Taxation could not eliminate a taxpayer’s net operating losses generated during years beyond the statute of limitations. The division’s proposed reduction was based on a transfer pricing adjustment between related entities for years never audited by the division and otherwise…
New Jersey’s 2022 Fiscal Year appropriations bill requires the New Jersey Division of Taxation to conduct a study of the state tax laws in relation to the “digital economy” and make recommendations on gaps in the current law. The Division’s study must “quantify how various taxes have expanded or reduced the economic activity, and State…
The New Jersey Tax Court ruled that the in-state activities of an out-of-state wholesale produce distributor were protected under Public Law 86-272 (P.L. 86-272), a federal law that prohibits states from imposing a net income tax on an out-of-state taxpayer. The Taxpayer had no offices, property, employees or inventory in New Jersey, but it did…
The New Jersey Tax Court denied the Division of Taxation’s motion for reconsideration and again found that the Alternative Minimum Tax is preempted by P.L. 86-272. Previously, the New Jersey Tax Court granted summary judgment in favor of the taxpayer and held that the AMA, which was repealed for tax years beginning on or after…
New Jersey’s Appellate Division concluded that a Jersey City payroll tax violated the dormant Commerce Clause because there was no mechanism to resolve disputes if two taxing entities, in different states, impose a payroll tax on the same employee. The lower court had previously dismissed the case, ruling that the Jersey City payroll tax was…
In an unpublished opinion, the Appellate Division of the New Jersey Superior Court affirmed the Tax Court’s holding that the New Jersey partnership filing fee does not violate the Commerce Clause of the U.S. Constitution. New Jersey statutes require partnerships with more than two owners and income derived from New Jersey sources to pay an…
In a per curiam opinion, the New Jersey Supreme Court affirmed an insurance premium tax (IPT) decision of the Appellate Division “substantially for the reasons expressed” in the Appellate Division’s opinion. The New Jersey Appellate Division held that New Jersey’s IPT for self-procured insurance coverage is based only on the risks insured in the state,…
