State & Local

Income Tax Economic Nexus Is Open Question Post-Wayfair

Maria Koklanaris
Senior Tax Correspondent

The economic nexus laws that states rushed to pass after the Wayfair decision established concrete thresholds for sales and use taxes, but a vastly different landscape remains for corporate income taxes, as agencies and businesses must often negotiate nexus according to various qualitative criteria.

The Tax Angle: Stock Buybacks On Dems' Chopping Block

Stephen K. Cooper
Editor-at-Large

More than a dozen House Democrats are making the case that the new 1% excise tax on corporate stock buybacks doesn't go far enough to persuade companies to invest more money in their workers and should be replaced with a buyback ban.

Uncertainty Clouds Wayfair's Impact On Other State Tax Cases

Maria Koklanaris
Senior Tax Correspondent

South Dakota v. Wayfair has been cited frequently in other high-profile state tax cases in the five years since the U.S. Supreme Court's decision, but whether that landmark opinion will prove to have broad applicability in state tax litigation is uncertain.

Cost To Gov't Means Justices Must Review NC Sales Tax Case

The U.S. Supreme Court should review and overrule the North Carolina high court’s decision in Quad Graphics v. North Carolina Department of Revenue — an anticipatory overruling of precedent that expands the state sales tax base and imposes a stealth tax on the federal government, says Richard Pomp at the University of Connecticut Law School.

Potential Risks And Benefits Of NY Cannabis Crop Rescue Act

Though proposed legislation in New York would help struggling cannabis farmers by allowing them to sell their crops directly to consumers, it poses numerous challenges for retailers and the state’s regulatory framework — and striking the right balance here will be crucial to shaping a sustainable, equitable industry, say Meaghan Feenan and William Wolfe at Harris Beach.

La. Franchise Tax, Minn. Home Seizure: SALT In Review

From a proposal to phase out Louisiana's corporate franchise tax to the U.S. Supreme Court's ruling that a Minnesota county had no right to sell a woman's home for more than she owed, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

How New York State Budget Will Affect Business Taxpayers

The comprehensive state budget legislation recently finalized by New York Gov. Kathy Hochul and the state Legislature did not include some especially concerning tax proposals, but it will subject some state taxpayers to increased tax liability and lengthier appeals, say attorneys at McDermott.

Taxing The Internet And Remote Workers: SALT In Review

From a New York ruling against the taxing of internet services to an attack on Philadelphia's taxing of remote workers, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

How Cities Can Tackle Post-Pandemic Budgeting Dilemmas

Due to increasing office vacancies around the country, cities may consider politically unpopular actions to avoid bankruptcy, but they could also look to the capital markets to ride out the current real estate crisis and achieve debt service savings to help balance their budgets, say attorneys at Cadwalader.

State Payroll Taxes Need Remote Work Reforms

To alleviate employer confusion around remote employee payroll tax, lower enforcement costs and better compete for top talent, states should allow a specific number of remote work days without withholding, simplify their administrative requirements and coordinate their tax policy reforms, say attorneys at Miller Canfield.

Cannabis Supercenters: Key Benefits And Legal Issues

Barstow, California’s novel plan to convert an abandoned mall into a cannabis supercenter could offer a potential blueprint for cannabis companies to thrive in a saturated market and for communities to repurpose underutilized retail spaces — but certain financing, zoning and leasing issues will need to be assessed, says Christopher Gordon at Fox Rothschild.

Taxing The Digital Economy: The Good, The Bad And The Ugly

U.S. tech companies should watch for important developments in international taxation, including the resolution of Apple's decade-old state aid case, growing frustration with the Organization for Economic Cooperation and Development's global tax plan and adoption of the digital services tax instead, says Joyce Beebe at Rice University's Baker Institute for Public Policy.

Kentucky Tax Talk: Pros, Cons Of The SALT Cap Workaround

Recent legislation that allows pass-through entities to be taxed at the entity level — Kentucky’s response to the federal cap on state and local tax deductions — could result in significant savings for taxpayers, but whether it applies to sole proprietorships and other aspects of the law are unclear, say attorneys at Frost Brown.

Big Tax Changes For Multinational Cos. In Budget Proposal

The Biden administration’s fiscal year 2024 budget proposes changes that would materially alter decades-old Internal Revenue Code provisions, requiring a shift in multinational corporations' tax planning strategies comparable to that required after enactment of the Tax Cuts and Jobs Act, say Xenia Garofalo and Kyle Colonna at Eversheds Sutherland.

Home Seized, Tax Paid, Government Enriched: SALT In Review

From a Minnesota county's profit on a home seizure to a California proposal to raise corporate income taxes, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

Mich. Statute Of Limitations Cases Carry Nationwide Impacts

The outcomes of Dine Brands v. Eubanks and Walt Disney v. Eubanks, currently working their way through the Michigan courts, are likely to affect how statutes of limitations in unclaimed property audits are calculated nationwide as well as within the state, given the widespread adoption of similar model provisions by many other states, say attorneys at McDermott.