The Utah Supreme Court ruled for taxpayers John and Brooke Buck, finding they were not domiciled in Utah during tax year 2012. The Court held that the State Tax Commission had incorrectly applied Utah’s statutory domicile presumption that attaches when a taxpayer claims a residential exemption for property tax purposes. As addressed in more detail
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
Not my domicile: Indiana DOR drops assessment against taxpayer who moved out of state
On July 27, the Indiana Department of Revenue found that a taxpayer had abandoned her Indiana domicile and was therefore no longer subject to Indiana state income despite the taxpayer erroneously listing her permanent address with her employer as her old Indiana-based address.
The taxpayer protested the imposition of Indiana income tax and provided the
Five common challenges when changing state tax residency/domicile
Residency/domicile is a critical issue in a state-tax analysis because, as a general principle, a state taxes its own residents on all their income from whatever sources it is derived (typically with a credit mechanism for some or all tax paid to another state on that same income). However, regardless of residency and regardless of
Domicile, residency and personal income tax: what should you consider?
On this episode of the SALT Shaker Podcast, Host and Eversheds Sutherland Associate Jeremy Gove is joined by Partner Tim Gustafson to delve into the intricacies of personal income tax, residency and domicile.
The two discuss the numerous tests various jurisdictions use in determining when a taxpayer is a domiciliary, and even when not domiciled
C’est la vie: Nonresident must pay California tax on community income earned by resident spouse
On May 18, the California Office of Tax Appeals (“OTA”) issued a pending precedential decision holding that community income derived from nonqualified stock options (“NQSOs”) and restricted stock units (“RSUs”) granted to a resident in exchange for services performed exclusively in California and vested while a California resident is taxable California source income to a
Massachusetts Appellate Tax Board Rules Non-Massachusetts S Corporation’s Subsidiary Sale Subject to Massachusetts Tax
On October 23, 2020, the Massachusetts Appellate Tax Board ruled that capital gain from a Florida S corporation’s sale of a subsidiary Massachusetts LLC was subject to Massachusetts corporate excise tax and nonresident composite tax. The taxpayer contended that the U.S. Constitution’s Due Process and Commerce Clauses forbade Massachusetts from taxing the income because the
Cleveland Gets Personal Taxing Nonresident Retiree’s Stock Options
The Ohio Board of Tax Appeals (BTA) affirmed the Cleveland Board of Income Tax Review’s (Board) decision that it properly denied a refund claim of municipal income tax paid on income from stock options that a nonresident was granted while working in the city but exercised after she retired and moved to Florida. Willacy v.
Your customer is not your customer – California Office of Tax Appeals (OTA) finds that a nonresident did not have California sourced income
The California Office of Tax Appeals held that pursuant to market-based sourcing rules, a nonresident individual did not derive California sourced income and was not required to file a California return or pay personal income tax. The taxpayer resided in Texas and worked as an independent contractor for Christopher Konrad Consulting, LLC (Konrad), a company
Ohio Supreme Court Rules that Taxing Out-of-State Investor’s Capital Gain Violates Due Process Clause
By Chris Mehrmann and Leah Robinson
The Ohio Supreme Court held that the Due Process Clause of the U.S. Constitution precluded Ohio from taxing a nonresident individual on an apportioned share of his gain from the sale of a limited liability company that conducted business in the state. During the relevant time period, Ohio Rev.