On April 17, 2018, the US Supreme Court is poised to hear oral arguments in the case of South Dakota v. Wayfair. The Wayfair case will re-examine the 1992 holding of Quill v. North Dakota, in which the US Supreme Court ruled that states could not compel mail order retailers that lack a
sales tax
Georgia Legislature Enacts Significant Income, Sales, and Property Tax Legislation
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The Georgia legislative session concluded on March 29, 2018. In addition to two major bills relating to federal tax reform, Georgia enacted several other pieces of notable tax legislation.
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New York State Budget Adopts Substantial Changes in Response to Federal TCJA
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The New York Legislature passed its 2018-2019 Fiscal Year budget on March 30, 2018, which is expected to be signed into law by Governor Cuomo. The Legislature responded to the Tax Cuts and Jobs Act (TCJA) passed by the United States Congress late last year by excluding IRC § 965 repatriated income from New York…
California Seeks Input on Clean Energy Equipment Tax Exemption
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Posted in California, Policy and Legislation
During the second half of 2017, California expanded its partial sales and use tax manufacturing and research and development exemption to include electric generation and distribution equipment. The legislative changes are particularly favorable to businesses engaged in electric generation through the use of renewable energy sources.
The California Department of Tax and Fee Administration (CDTFA)…
Tennessee DOR Subjects Cloud-Based Employee Scheduling Services to Sales and Use Tax
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The Tennessee Department of Revenue issued a letter ruling finding that a taxpayer’s annual subscription charge for its cloud-based employee scheduling services is subject to Tennessee sales and use tax.
In Tennessee, the use of computer software is subject to tax, even if it remains in the possession of…
DC Office of Tax and Revenue Launches New QHTC Sales and Use Tax Exemption Application/Pre-Certification Process
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Posted in Policy and Legislation
On November 1, 2017, the District of Columbia will begin implementing a new sales and use tax exemption application process for Qualified High Technology Companies (QHTCs). The new application procedure signifies a shift to essentially a pre-certification process and creates new documentation requirements for companies seeking QHTC benefits. Key considerations include:
- Companies will now be
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New California Tax Agencies’ Roles Clarified
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Posted in California, Policy and Legislation
On September 16, 2017, California Governor Jerry Brown signed Assembly Bill 131, a budget trailer bill clarifying a number of provisions related to the roles of California’s two new tax agencies, the California Department of Tax and Fee Administration (CDTFA) and the Office of Tax Appeals (OTA), which were created to perform many of the…
Massachusetts Supreme Judicial Court Holds Taxation of Drop Shipments Is Constitutional
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Posted in Noteworthy Cases
By Charles Capouet and Jonathan Feldman
The Massachusetts Supreme Judicial Court held that an in-state wholesaler was required to collect and remit sales tax on drop shipment sales made to Massachusetts customers. A drop shipment is a transaction in which an in-state customer purchases a product from an out-of-state retailer which then orders the product…
Arizona Court of Appeals: Failure to Publish Law Change Violates Due Process
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Posted in Noteworthy Cases
By Ted Friedman and Charlie Kearns
On August 3, 2017, the Arizona Court of Appeals held that the issuance of a sales tax assessment by the City of San Luis violated the due process rights of a company that calculated its tax liability based on publicly available versions of the tax code that showed a…
Bundled Up: Rhode Island Division of Taxation Finds Subscription Fee Subject to Sales and Use Tax
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Posted in Policy and Legislation
By Maria Todorova and Charles Capouet
The Rhode Island Division of Taxation ruled that a monthly or annual membership fee that allowed customers to access various benefits associated with shopping on a taxpayer’s website—including discounted shipping benefits; streaming or downloading movies and music; photo storage; and access to games and in-game content—is subject to sales…