conduct state tax "year-end" planning early, often & always

This is a Public Service announcement. Revealing a secret from the state and local tax underground. A secret that makes it difficult for companies to do business. To stay in compliance. To avoid compounding tax liabilities and interest and penalties.

What is this secret?

Wait for it . . . . . . . .

State taxes are a "moving target."

A "moving target" is defined as:

• something that moves while someone is trying to hit it

• something that is always changing

Some state tax rules don't change. Some state tax rules change at a certain time or in a certain tax year based on federal or state legislation. Some state tax rules change every year. Some state tax rules change suddenly based on a court case or ruling. Some state tax rules change without you knowing it based on a state's internal policy decision or change in interpretation of a statute or regulation.

• So how does a company plan?

• Conduct year-end planning?

• Conduct beginning of the year planning?

• Plan for acquisitions, mergers, divestitures?

Companies must stay on top of income tax laws on a tax year by tax year basis. Meaning, income tax laws are generally static for a specific tax year, but can change from year to year. Thus, tax pros should not follow "SALY" (same as last year) when preparing returns. This can lead to "IAP" (interest and penalties). With that said, there are situations when court case decisions or rulings happen that may have retroactive impact and create amended return / refund opportunities or may simply alter prospective returns.

In regards to sales tax, there are static rules but the interpretation of some of those static rules can change and are definitely not the same in every state. Sales tax rules and tax rates can change at different times of the year due to court cases, rulings and state legislation. Unlike income tax, sales tax periods are generally monthly, quarterly or annual

It's the lack of uniformity among state tax laws that creates risks and opportunities.

Some state income tax laws that may differ from state to state are:

• Economic Nexus (creating a taxable presence)

• Sales sourcing of sales of tangible property and services

• Requiring throwback of sales

• Allowing or requiring combined reporting

• Allowing a pass-through entity (PTE) to make a PTE tax election (i.e., $10,000 SALT-CAP work around)

• If PL 86-272 protection applies

• Conformity to federal international tax considerations (i.e., GILTI, FDII, deemed dividends, ECI, etc.)

• Treatment of bonus depreciation

• Treatment of disregarded entities (i.e., single-member LLCs or Q-Subs)

Some sales tax laws that may differ from state to state are related to the following:

• Sourcing of sales of services (including multiple points of use)

• Sourcing of sales to/from non-US countries

• Sales of software, SaaS, and other computer services

• Sales of information services or data processing

• Sales of services

• Sales by construction contractors

• Treatment of sellers in drop shipment transactions

• Allowable or acceptable forms of exemption certificates

• Treatment of leases (lessors and lessees)

• Width and breadth of manufacturing exemption

• Occasional sale or casual sale exemption when selling assets or business

• Treatment of repairs and maintenance (labor and parts)

• Treatment of research and development activities

• Sales to governmental and non-profit entities

I could keep going, but I think you get the point.

So what is a company supposed to do?

Depending on what stage your business is (i.e., start-up, emerging, growth, mature), I recommend you inquire of your tax professional about the state tax impacts of your business. You may only have one or a few states to deal with right now. Some of you may have 20 or more states to consider. The key is to get on top of it now. To know what you don't know so you can make informed decisions. To stop problems from growing out of control and implement proper procedures and tax decisions. Be proactive. Don't let blind spots create a compound effect of problems.

Conduct year-end state tax planning, early, often and always.

QUOTES

• "In all affairs, it's a healthy thing now and then to hang a question mark on the things you have long taken for granted." - Bertrand Russell

• "Bureacracy is the art of making the possible impossible." - Javier Pascual Salcedo

• "Knowledge is the beginning of practice; doing is the completion of knowing." - Wang Yangming

"darkness is death"

Time change. Daylight savings time. Fall back. Spring ahead. However you describe it, most (if not all of us) changed our clocks recently. We either gained an hour or lost an hour (depending on how you look at it), but one thing I do know - I've lost daylight. So I'm not sure how this is "daylight savings" time. I don't like to complain, but I just do. So I'll just say that I really like sunlight and dislike darkness. As they said in a cartoon movie I can't remember the title of right now - "Darkness is Death."

Regardless of how you feel about changing your clocks or sunlight or darkness, one thing is certain, times continue to change. The way business is conducted continues to change. New technologies are created (whether that's good or bad; or will be used for good or bad is yet to be seen). And last but not least, state tax legislation continues to change; and court cases and rulings continue to be made which ultimately create certainty and uncertainty. Wait, what? What did you just say?

Yes, new legislation, court cases and rulings create just as much uncertainty as they do certainty.

Well, that's great.

Just as each company's facts and circumstances differ, state tax laws seem to have a life of their own when the answer isn't "black and white" (which is most of the time); or when each state's laws are different. This creates a world of grey (or some may say, "darkness"). This "darkness" is why I say every state tax question is a research question. (A research question that needs to be solved by a human (not A.I., AI or artificial intelligence, just saying)).

Darkness is debilitating. It's hard to drive in the dark without headlights. It's hard to walk in the dark without a flashlight. Darkness creates fear and uncertainty. Darkness creates unknown risks. Thus, light is needed to move forward with some level of assurance and confidence.

Darkness can also create unknown opportunities. You can't see them. This requires faith. A compass. A navigator. A roadmap.

"Darkness" in the state tax world surrounds several areas and questions companies continually ask:

• what states do I need to file tax returns in?

• is what I'm selling subject to sales tax?

• which entity in my affiliated group of companies is required to file the tax return?

• if I sell my interest in this partnership, to what states do I source the gain and have to pay tax?

• I'm selling services all across the United States. How do I source those sales to each state in the apportionment factor of my income tax returns?

• do I really have to get exemption certificates from my customers?

• do I have to register with a state for sales tax purposes to provide a vendor with that state's resale exemption certificate or can I use a multijurisdictional certificate?

• am I required to file combined income tax returns or does every entity file separately?

• should I make this election or that election?

• do I qualify for these tax credits?

• do I have to collect sales tax on my total gross receipts or can I deduct costs reimbursements or costs that I flow-through and pay to someone else?

• how do I know if we really meet the requirements to be protected from a state's income tax by P.L. 86-272?

• I didn't even know that state had a gross receipts tax.

• what is a franchise tax and why is the tax base so high?

• am I really selling SaaS and does the state tax it?

• should I make a state's pass-through entity tax election? How do i quantify or model the impact? Will it be beneficial for all partners and shareholders?

• should I file a Voluntary Disclosure Agreement (VDA) or simply start filing returns?

• should I request a Private Letter Ruling (PLR)?

• should I challenge (protest) this audit assessment or simply pay it and move on?

• when can I stop filing returns in a state?

• how do I dissolve or withdraw from a state?

• is registering with a state's Secretary of State's Office the same thing as registering with a state's Department of Revenue (taxation)?

• what sales tax compliance software should I use? Should I outsource the return prep to a third-party?

I could keep going, but I think you get the point. The darkness is everywhere.

Finding the light in the state tax world is not easy.

Unlike darkness in life where you can just flip the light switch and see, darkness in the state tax world takes research and analysis and judgment based on experience. And even then, the answer may not be clear (still dark or grey).

Consequently, I think the "light" is finding the right-fit state tax consultant that you trust and like working with. Someone with not only the technical knowledge and experience, but the ability to look at an issue from 2 feet and 50,000 feet. To be technical and practical. To look at the risk and provide judgment. To reduce risk. To recommend positions with the proper level of assurance. Knowledge. Judgment. Advocacy. That is the light in the proverbial darkness. The compass. The roadmap. The flashlight. The headlight.

I hope you find the light you need to move your company and clients forward.

If you are a state tax consultant, I hope you "shine brightly."

QUOTES

"The art and science of asking questions is the source of all knowledge." - Thomas Berger

"The prize goes to the person who sees the future the quickest." - William Stiritz

"We are drowning in information and starved for knowledge." - John Naisbitt

STATE TAX KNOWLEDGE UPDATE (59 ITEMS) - JUNE 11, 2018

The following are state tax and business developments I have curated since May 22nd, and posted in the LEVERAGE SALT LinkedIn group:

Some of the items may be on the same state/issue/topic, but they are from different sources which may give you a broader perspective to help your company or client.

1. California proposes to amend entity classification rules; comments due June 26

2. Delaware qui tam case against gift card retailers moves forward

3. Colorado Market-Based Sourcing Legislation Goes to Governor

4. California Launches Online Directory of Business Incentives

5. Tennessee Decouples From Business Interest Deduction Limit

6. Louisiana Governor Proposes Tax Cuts, Elimination of Deductions

7. Minnesota Governor Vetoes Omnibus Tax Legislation

8. Missouri Lawmakers Approve Corporate Rate Cut, Apportionment Changes

9. 2018 State Tax Amnesty Programs (as of 5 25 18)

10. California FTB holds interested parties meeting regarding significant proposed revisions to its market-based sourcing rules

11. The SALT Deduction Limit: The IRS Responds to State Workarounds

12. Online Travel Companies Are Not Liable for Local California Hotel Tax

13. Hawaii Use Tax Held Constitutional

14. TaxDay becomes official MLB Players Association partner

15. IRS Discusses Certain Payments Made in Exchange for State and Local Tax Credits

16. California FTB Provides TY 2017 Filing Guidance Regarding IRC Section 965 Repatriation Transition Tax

17. New Louisiana Law Revises Due Date for Filing Corporate Franchise Tax Returns

18. Maine Revenue Services Comments that Amended Returns May be Necessary Given State Nonconformity to Recent Federal Tax Law Changes

19. Michigan Appellate Court Affirms that Holding Company Lacks Requisite Nexus for City of Detroit Income Tax Purposes

20. New Jersey Appellate Court Affirms Lower Court Decision Involving Unreasonable Exception to CBT Intercompany Expense Addback Rule

21. New Tennessee Law Includes Delayed Decoupling from New Business Interest Limitations under IRC Sec. 163(j)

22. Hawaii State High Court Upholds Validity of Use Taxation Scheme on Purchases from Out-of-State Sellers

23. Washington DOR Advisory Explains that Retailer’s Enhanced Delivery Services May Create Nexus

24. Corporate Close-Up: No More Passing Through In Connecticut and New York?

25. Georgia Property Tax Appeal Thresholds Decreased

26. Delaware Creates Angel Investor Credit

27. Georgia Creates Additional High-Technology Exemption

28. Governor Signs Iowa Sales and Use, Excise Tax Reform Legislation

29. Iowa Enacts Major Income Tax Reform

30. Connecticut Enacts Pass-Through Entity Income Tax

31. Montana Adopts Pass-Through Entity Apportionment Rules

32. Connecticut enacts responses to federal tax reform

33. California FTB Now Permitting Taxpayers to Make Oral Presentations in Staff-Initiated Alternative Apportionment Proposals

34. Michigan Department of Treasury Issues New Bulletin on UBG Including Control and Relationship Tests

35. Pennsylvania DOR Issues Ruling on New Law that Imposes Information Reporting and Notice Requirements

36. New York Tax Appeals Tribunal Reverses ALJ to Hold that Taxpayer’s Transactions Must be Aggregated and Thus Subject to Tax

37. Enacted Kentucky Legislation Provides for Mandatory Combined Reporting for Unitary Businesses and Additional Sales Tax Changes

38. Alabama DOR Issues Guidance Regarding IRC Section 965 Deemed Repatriation Impact on Taxpayers

39. Iowa enacts significant income tax and sales tax changes

40. Legislative Session Review: Iowa

41. Oregon's research credit sunsets - Opportunities for 2017 tax year

42. Missouri reduces rate, adopts single factor and market sourcing, more

43. LINK TO IOWA TAX REFORM WEBSITE CREATED BY IOWA DOR

44. Iowa Governor Signs Tax Reform & Conformity Bill

45. Wayfair Debated at Georgetown SALT Conference

46. State Impacts of TCJA Analyzed at Georgetown Conference

47. Missouri Enacts Corporate Tax Rate Cut and Apportionment Changes

48. Sales Thresholds Trigger Sales Tax Nexus in Illinois

49. Michigan Updates Unitary Business Group Guidance

50. Colorado Enacts Market-Based Sourcing

51. Connecticut Explains Repatriation Transition Tax Reporting

52. New Colorado Law Imposes Market-Based Sourcing Provisions for Certain Receipts from Services and Intangibles

53. New Connecticut Law Makes Various Changes in Response to Federal 2017 Tax Act

54. Kentucky DOR Explains New Law that Includes Mandatory Unitary Combined Reporting Regime and Market-Based Sourcing

55. Michigan Department of Treasury Comments on Federal 2017 Tax Act

56. Montana DOR Issues New Regulations on the Apportionment and Allocation of Income Reported by Pass-Through Entities

57. New Illinois Law Imposes Remote Seller Tax Collection and Remittance Responsibilities via Economic Nexus Provisions

58. New Iowa Law Imposes Economic Nexus

59. Recent Idaho Law Amendments Provide Income Tax Rate Reductions and Amend IRC Conformity

The above represents 'general curating' of state tax developments into one spot. If you still feel overwhelmed by the volume of state tax developments, please consider my 'custom curating' service. Meaning, clients hire LEVERAGE SALT to daily curate state tax developments relating to a specific industry, state(s), tax type and issue. You can make it as granular as you prefer. This allows you to reduce information overload, and only get the information you need to help your clients or company. This service is provided on a fixed-fee or subscription basis. Contact me at strahle@leveragesalt.com.

STATE TAX KNOWLEDGE UPDATE (59 ITEMS) - May 22, 2018

The following are state tax and business developments I have curated since May 2nd, and posted in the LEVERAGE SALT LinkedIn group:

Some of the items may be on the same state/issue/topic, but they are from different sources which may give you a broader perspective to help your company or client.

1. Wisconsin Explains Reconciliation with Federal Consolidated Returns

2. Preview of the share image State Sales Tax Shakeup

3. Indiana Offers Voluntary Disclosure Initiative for Out-of-State Retailers

4. Kentucky Requires IRC Sec. 199A Addback, Restores Credits

5. South Dakota Provides Guidance on Foreign Dividend Recapture

6. MTC Section 18 Alternative Apportionment Regulatory Project Moves Forward with Two Proposed Model Rules - Draft Model Use Tax Reporting Statute Also Advances

7. Alabama DOR Issues Guidance on IRC Sec 965 Transition Tax Impact on State Tax Returns

8. California FTB Moves Forward with New Draft Proposed Amendments to Market-Based Sourcing Regulation

9. Florida DOR Issues Guidance on IRC Sec 965 Transition Tax Impact on State Corporate Tax Returns

10. New Kentucky Law Imposes Mandatory Unitary Combined Reporting Regime

11. Ohio Supreme Court Holds in Taxpayer Favor Regarding Credit Computation for Pre-CAT NOLs

12. Oregon DOR Issues Proposed Administrative Rule on New State Repatriation Tax Credit Pursuant to IRC Sec 965 Repatriation Income for Tax Year 2017

13. Growing Number of State Sales Tax Jurisdictions Makes South Dakota v. Wayfair That Much More Imperative

14. Oklahoma Allows Transition Tax Installment Payment Election

15. Tax Reform Task Force Names Income Tax Proposals for Further Study

16. California OTA Readopts Emergency Rules on Administration and Procedures of Appeals and Petitions for Rehearing

17. Focusing the Lens on Film Credits

18. Indiana DOR Offers Special Limited-Time VDI for Out-of-State Online Retailers with In-State Inventory

19. New Georgia Law Addresses Federal Partnership Audit Regime Changes and How to Report Adjustments for State Purposes

20. Taxpayer Asks US Supreme Court to Review 2017 Pennsylvania Supreme Court Ruling on NOL Carryovers

21. South Dakota DOR Discusses Federal Tax Law Changes Relating to Foreign Dividend Recapture and Potential Impact for State Bank Tax Purposes

22. Texas Comptroller Issues Franchise Tax Ruling on Whether Proceeds from Certain Hedging Transactions Are Included in Apportionment Factor

23. Alabama DOR Discusses New Law Requiring Certain Marketplace Facilitators to Collect and Remit Tax

24. New Georgia Law Requires Some Remote Sellers to Collect and Remit Tax or Else Adhere to Information Reporting Requirements

25. California FTB Issues Final Report on California’s Conformity to 2017 Federal Income Tax Changes

26. State and Local Tax Technology Checklist (Techlist)

27. TWIST - This Week in State Tax

28. Georgia Expands “Dealer,” Adds Use Tax Notice Requirement

29. Alabama Opens for Amnesty Applications on July 1

30. Connecticut Legislature Approves Pass-Through Entity Tax

31. Legislative Session Review: Georgia

32. California May 18 meeting on changes to market based sourcing rules

33. Connecticut Requires Bonus Depreciation, Sec. 179 Adjustments

34. IRC Conformity Bill Goes to Hawaii Governor

35. Indiana Special Session Considers IRC Conformity

36. North Carolina Proposes Income Tax Rate Changes

37. Legislative Session Review: Kansas

38. Indiana Enacts IRC Conformity Bill

39. Indiana Revises Corporate Income Tax Rate Calculation and Credit

40. Massachusetts Provides Estimated Tax Penalty Relief for IRC Sec. 965 Income

41. Oklahoma Creates New Credits for Vehicle Manufacturing Industry

42. “One Maryland” Credit Revised

43. Maryland Retains Personal Exemptions

44. Alabama DOR Reminds that 2018 Amnesty Program Begins July 1

45. Kentucky Claims Commission Amends Rules Related to Tax Appeals Procedures

46. Alabama DOR Issues Amended Rules on NOL Carryforwards and Revised Filing Due Dates

47. Updated Connecticut Administrative Guidance Discusses Treatment of IRC Sec 965 Federal Repatriation Transition Tax

48. New Indiana Law Updates State Conformity to IRC

49. Massachusetts DOR Issues Release on Estimated Tax Penalty Relief for Corporations Affected by Transition Tax on Deferred Foreign Earnings

50. New Oklahoma Law Permits Electing Federal Transition Tax Installment Payers to Elect Similar Payment Scheme for State Purposes

51. Pennsylvania DOR Announces that 2017 State Supreme Court Ruling on NOL Carryovers Will Not Be Applied to Earlier Years

52. City of Seattle Poised to Impose an Employee Hours Tax on Some Businesses

53. Alabama Tribunal Judge Denies DOR Motion to Stay in Online Retailer Legal Challenge of Economic Presence Rule for Out-of-State Sellers Making Threshold Sales into Alabama

54. New York eyes UBT in response to federal tax reform

55. Pennsylvania Clarifies Caps for NOL Calculations

56. California Requires Return Adjustments for Sec. 965 Amounts

57. Minnesota Legislature Passes IRC Conformity, Rate Reductions

58. Friday Tax Reform: States Issue Guidance, Waive Penalties for Foreign Income

59. Corporate Close-Up: Indiana Latest State to Respond to Federal Tax Reform

The above represents 'general curating' of state tax developments into one spot. If you still feel overwhelmed by the volume of state tax developments, please consider my 'custom curating' service. Meaning, clients hire LEVERAGE SALT to daily curate state tax developments relating to a specific industry, state(s), tax type and issue. You can make it as granular as you prefer. This allows you to reduce information overload, and only get the information you need to help your clients or company. This service is provided on a fixed-fee or subscription basis. Contact me at strahle@leveragesalt.com.

STATE TAX KNOWLEDGE UPDATE (62 ITEMS) - MAY 2, 2018

The following are state tax and business developments I have curated since April 11th, and posted in the LEVERAGE SALT LinkedIn group:

Some of the items may be on the same state/issue/topic, but they are from different sources which may give you a broader perspective to help your company or client.

1. Legislative Session Review: Idaho

2. Legislative Session Review: Arkansas

3. Maryland Legislature Sends Single-Sales Factor Bill to Governor

4. Oklahoma Enacts Marketplace Sales Legislation

5. Oregon Updates IRC Conformity, Repeals Tax Haven Law

6. Oregon Extends Interstate Broadcaster Apportionment Provisions

7. Maine Amends Headquarters Credit, Other Provisions

8. Enacted Oklahoma Marketplace Sales Legislation Detailed

9. Virginia Allows Modified Apportionment Factors for Certain Companies

10. New York Enacts Budget With IRC Conformity, Other Changes

11. Nebraska Updates IRC Conformity

12. Tennessee Allows Financial Asset Managers to Elect Single Receipts Factor Apportionment

13. New Arizona Law Updates State Conformity to Some Provisions of IRC

14. Texas Comptroller Reminds that Tax Amnesty Program will Run from May 1 to June 29 and Provides for Potential Waiver of Penalties and Interest

15. Connecticut Administrative Guidance Discusses Treatment of IRC Sec 965 Federal Repatriation Transition Tax

16. New York 2018-2019 State Budget Bill Addresses Treatment of Some Provisions of the 2017 Federal Tax Reform Act

17. New Oregon Law Updates State Conformity to IRC for Specific Provisions and Extends Sunset Date of Modified Apportionment Regime for Interstate Broadcasters

18. New Alabama Law Requires Certain Marketplace Facilitators to Collect and Remit Tax or Else Adhere to Information Reporting Requirements

19. Oregon Enacts Qualified Business Income Addition

20. Kentucky Enacts Apportionment Formula, Rate, Other Changes

21. Kentucky Broadens Sales Tax Base, Hikes Cigarette Tax, Makes Other Changes

22. Digital Tax Arguments Focus on Role of Congress, Compliance Costs

23. Insight: ‘Wayfair: Covering the Waterfront—Amicus Briefs Supporting Respondents

24. A Brief History of the Biggest State Tax Case in a Generation

25. Rhode Island Discusses Treatment of IRC Sec. 965 Income

26. South Dakota v. Wayfair - TTR Explains What Tax Technology Options Really are Available

27. No Simple Story About Tax Bill’s Impact on States

28. Cap on the State and Local Tax Deduction Likely to Affect States Beyond New York and California

29. State & Local Tax Advisory: The Supreme Court Weighs a New State Tax Nexus Standard, Again | Alston & Bird LLP

30. New Mexico Administrative Hearings Office Issues Timely Opinion Regarding State Taxation of Subpart F Income and Dividends from Foreign Affiliates

31. Oregon Taxpayers Denied Use of MTC’s Apportionment Formula

32. Kentucky Might Require Combined Reporting, Many Tax Changes

33. Virginia Enacts Subtraction for REIT Income

34. The Tax-Savvy Company Restructuring

35. Adopt or adapt? New IRS partnership audit rules affect states

36. Legislative Session Review: Florida

37. New Jersey Permits Dedicated Prepayment of Anticipated Taxes

38. Maryland Phases in Single-Sales Factor Apportionment Formula

39. Legislative Session Review: Nebraska

40. New Arizona Law Allows Some Taxpayers to Bypass OAH Process and Appeal Tax Dispute Directly to Board of Tax Appeals

41. Arizona DOR Issues Notice Regarding Certain Fiduciary Return Filers with IRC Sec 965 Repatriation Income for 2017 Tax Year

42. California FTB Issues Fourth and Final Report to Legislature on Recently Enacted Federal Tax Reforms

43. New Maryland Law Phases in Single-Sales Factor Apportionment for Corporate Income Tax Purposes

44. New Nebraska Law Provides Adjusted Basis Computation for Certain IRC Sec 179 Depreciable Property

45. New Hampshire DOR Administration Issues Report on How 2017 Federal Tax Reforms May Affect State Income Taxation – New Law Revises Effective Dates of Tax Rate Changes Enacted in 2017

46. New York City Memo Explains Deemed Repatriation Income under GTC, BTX, and UBT

47. Pennsylvania DOR Discusses Application of IRC Sec 965 RTT to State CNIT

48. Rhode Island Division of Taxation Provides Guidance on Treatment of IRC Sec 965 Income for Individuals and Pass-through Entities

49. MTC Approves Hearing Officer Report on Apportionment Regulation Amendments

50. Ohio Supreme Court Overturns Reduced NOL Credit

51. THE BEST AND WORST OF SALES TAX ADMINISTRATION

52. Conformity with federal tax reform will result in an estimated state corporate tax base increase of about 12% for the first ten years

53. FY 2019 STATE BUDGET STATUS

54. NCSL: REMOTE SALES TAX COLLECTION ANALYSIS & OPINION

55. Years of work to simplify the collection of remote state sales taxes may soon pay off.

56. Kentucky legislature overrides Governor's veto of tax plan

57. Florida Explains Treatment of Repatriation Income

58. Kentucky Requires Combined Reporting in Tax Reform Bill

59. Pennsylvania Explains Treatment of Repatriation Income

60. Alabama Provides Guidance on IRC Sec. 965 Repatriation Income

61. Kentucky Clarifies Definition of Prewritten Computer Software

62. Kentucky Enacts Combined Reporting

The above represents 'general curating' of state tax developments into one spot. If you still feel overwhelmed by the volume of state tax developments, please consider my 'custom curating' service. Meaning, clients hire LEVERAGE SALT to daily curate state tax developments relating to a specific industry, state(s), tax type and issue. You can make it as granular as you prefer. This allows you to reduce information overload, and only get the information you need to help your clients or company. This service is provided on a fixed-fee or subscription basis. Contact me at strahle@leveragesalt.com.

STATE TAX KNOWLEDGE UPDATE (54 ITEMS) - APRIL 11, 2018

The following are state tax and business developments I have curated since March 13th, and posted in the LEVERAGE SALT LinkedIn group:

Some of the items may be on the same state/issue/topic, but they are from different sources which may give you a broader perspective to help your company or client.

1. Idaho Enacts Tax Reform Legislation

2. Washington Revises Nexus Rules

3. California Issues Notice Regarding Processing Docketed Protests

4. Vermont Gives Income Tax Nexus Examples

5. Wyoming Exempts Cryptocurrencies

6. New Idaho Law Generally Updates State Conformity to IRC and Selectively Updates Conformity to Some Federal Tax Code Provisions and Decouples from Others

7. Idaho State Tax Commission Grants Taxpayer Request for Use of Alternative Apportionment Method on Gain from Sale of LLC Interest

8. North Carolina DOR Explains Classification as a Holding Company for Franchise Tax Purposes and Qualifying for 150K USD Tax Liability Cap

9. Receipts from Service Contracts Must be Sourced In-State for CAT Purposes Because Underlying Property Tied to Services is Located in Ohio

10. Vermont Department of Taxes Issues Nexus Bulletin Including List of Nexus-Creating Activities

11. Case Challenging Economic Presence Administrative Rule is On Hold Pending the Outcome of US Supreme Court Litigation Involving Quill Physical Presence Standard in Tennessee

12. Washington DOR Issues Regulatory Amendments Reflecting 2017 Legislation that Expands Business and Occupation Tax Economic Nexus Provisions

13. State Tax Reform Opportunities and Challenges: The STAR Partnership

14. Business Income Tax Collections FF(3.19.2018)

15. Emergency Regulations Adopted for Appeals From CDTFA

16. Preliminary CA Report on IRC Conformity Revised

17. New York Allows Withdrawal of Group Election in Some Cases

18. California Releases Summary of 2017 Federal Legislation

19. Utah Enacts Tax Rate Cuts, Single Sales Factor Apportionment

20. Florida Enacts IRC Conformity, Rate Reduction

21. Virginia Court Confirms “Subject to Tax” Exception Decision

22. Individual Income Insights: Highlights of the ABA and IPT Advanced Income Tax Conference in New Orleans

23. Extras on Excise: U.S. Supreme Court to Decide Whether to Review Loudoun County BPOL Case, Possibly Adding a Second Major State Tax Case to its Docket

24. New York allows withdrawal of certain combined elections by June 1

25. Florida updates conformity to IRC; rate reduction possible

26. New Florida Law Updates State Conformity to IRC, Extends Bonus Depreciation Decoupling, and Includes Contingent Corporate Income Tax Rate Reductions

27. New Georgia Law Decouples from 2017 Tax Reform Act’s GILTI Provisions

28. New Idaho Law Generally Updates State Conformity to Federal Bipartisan Budget Act of 2018

29. Illinois DOR Discusses Recently Enacted Federal Tax Reforms - Specifically State Reporting Requirements Involving the New Foreign Income Deemed Repatriation Transition Tax

30. New Jersey Tax Court Reaffirms that Tech Company Foreign Source Income that is Not Taxable for Federal Purposes is Not Taxable under CBT

31. Memo Explains Limited-Time Withdrawal Procedure from Some Commonly Owned Group Elections in New York

32. Utah New Law Permits Corporations to Pay Tax on IRC Sec 965 Deferred Foreign Income in Installments, Lowers Corporate Tax Rate, and Expands Mandated Single Sales Factor Apportionment

33. Virginia Supreme Court Holds that Intercompany Royalty Payments Must be Taxed in Another State to Qualify for Subject-to-Tax Addback Exception Once More

34. New Idaho Law Imposes Remote Seller Click-Through Nexus Provisions

35. Indiana New Law Provides that Remote Access Software is Not Subject to Tax

36. Louisiana Trial Court Holds that Online Marketplace Facilitator Must Collect Local Sales and Use Taxes on Third-Party Retailer Online Sales

37. Arizona Changes Multistate Service Provider Apportionment Rules

38. Illinois Proposes Addition Adjustment for FDII and GILTI

39. Alabama Changes Income Tax Filing Thresholds

40. Oklahoma Caps Personal Itemized Deductions

41. Florida Enacts Tax Rate Reductions and Modifications

42. COST: Tennessee Testimony on Federal Tax Reform Conformity

43. New Hampshire’s Internet Sales Tax Fight Continues

44. New Wisconsin Law Updates State Conformity to IRC and Couples and Decouples from Various Provisions of the 2017 Federal Tax Reform Act

45. New Utah Law Revises Certain Single Sales Factor Apportionment Method Provisions

46. New Ohio Law Updates State Conformity to IRC

47. New York City Memo Explains Limited-Time Withdrawal Procedure from Some Commonly Owned Group Elections

48. New Arizona Law Includes Sales from Intangibles in Defining Multistate Service Providers that May Elect Use of Special Sales Factor Sourcing Provisions

49. Louisiana: Online marketplace provider required to collect sales tax

50. Legislative Session Review: Wisconsin

51. Wisconsin Tackles IRC Conformity

52. Arizona Updates IRC Conformity

53. Kentucky Governor Vetoes Major Tax Legislation

54. Corporate Close-Up: Alabama Pass-Through Entity Owners, Rejoice! Why You May be Entitled to a Refund for The 2013 Through 2017 Tax Years

The above represents 'general curating' of state tax developments into one spot. If you still feel overwhelmed by the volume of state tax developments, please consider my 'custom curating' service. Meaning, clients hire LEVERAGE SALT to daily curate state tax developments relating to a specific industry, state(s), tax type and issue. You can make it as granular as you prefer. This allows you to reduce information overload, and only get the information you need to help your clients or company. This service is provided on a fixed-fee or subscription basis. Contact me at strahle@leveragesalt.com.