Category Archives: State & Local Tax Advisory

State & Local Tax ADVISORY: Georgia Legislation Roundup 2017: General Assembly Fails to Pass Economic Nexus Bill

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Which tax bills survived sine die? Our State & Local Tax Group reviews the three major tax bills of the 2017 Georgia General Assembly.
• HB 329 – the omnibus bill
• HB 225 – the rideshare bill
• HB 283 – the IRC conformity bill

Read the full advisory by clicking here. 

North Carolina Appellate Court Affirms that Taxation of Trust’s Income is Unconstitutional

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On July 5, 2016, the Court of Appeals of North Carolina affirmed the 2015 decision by the superior court in The Kimberley Rice Kaestner 1992 Family Trust v. N.C. Dep't of Revenue, which held that North Carolina was constitutionally prohibited from taxing the income of the plaintiff trust.  Essentially, the state asserted jurisdiction to tax the trust's income based solely on the fact that the beneficiaries of the trust were North Carolina residents (the trust had no other connection with the state).  The superior court rejected this assertion, concluding that the state could not impose the tax [...]Read more

Retailers, Take Note: Connecticut Adds New Gift Card Cash-Back Requirements

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On June 9, Connecticut Governor Dan Malloy signed into law HB 5564, which adds Connecticut to the growing list of states that require gift card sellers or issuers to provide cash back to consumers in certain partial redemption situations.  In particular, HB 5564 (enacted as Public Act No. 16-140) requires a seller or issuer of a gift card to provide the purchaser with either a proof of purchase receipt or a gift receipt for the purchase of such card.  Once the card has been redeemed for goods or services and the remaining balance is less than $3.00, the redeeming seller or issuer must pay the [...]Read more

State & Local Tax Advisory – Gillette Overturned: One Test, Two Decisions in California

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On Thursday, December 31, 2015, the Supreme Court of California issued its decision in Gillette Co. v. Franchise Tax Board, reversing the California Court of Appeal and holding that the Multistate Tax Compact is not a binding compact between its member states.  Accordingly, the California legislature had the authority to, and did in fact, replace the state’s equally weighted apportionment formula with a double-weighted-sales formula in 1993.  This highly anticipated decision by the California high court will undoubtedly have a significant impact on the landscape of ongoing disputes among taxpayers [...]Read more

Connecticut Revenue Commissioner Suggests That States “Ramp Up” Economic Nexus for Sales Tax Purposes

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In a provocative op-ed published in the March/April issue of the Journal of Multistate Taxation and Incentives, the Connecticut Commissioner of Revenue Services (Kevin Sullivan) argues that given Congress’s apparent unwillingness to pass the Marketplace Fairness Act, the states should consider taking matters into their own hands and simply act as if Quill is no longer good law. The Commissioner appears to have been emboldened by Justice Kennedy’s concurrence in the U.S. Supreme Court’s recent decision in Direct Marketing Association v. Brohl, No. 13-1032, __ S. Ct. __ (Mar. 3, 2015), in [...]Read more

State & Local Tax ADVISORY: The MTC’s Transfer Pricing Audit Program Comes into Focus

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This advisory reviews the Multistate Tax Commission’s efforts to create an Arm’s-Length Adjustment Service program to streamline states’ ability to effectively evaluate multistate transfer-pricing issues.

This advisory is provided on the Alston & Bird website: http://www.alston.com/advisories/MTC-transfer-pricing/

State & Local Tax ADVISORY: Alston & Bird SALT Team Secures a Proportional Exemption for an Atlanta Charity

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In an important decision with the potential to have long-lasting effects on Georgia property tax law, the Alston & Bird State & Local Tax (SALT) Team recently secured summary judgment for the Piedmont Park Conservancy (“the Conservancy”) in Fulton County Superior Court on the Conservancy’s claim that its charitable property is entitled to a “proportional” exemption from ad valorem tax. This advisory is provided on the Alston & Bird website: www.alston.com/advisories/SALT-piedmont-park-conservancy/ [...]Read more

State & Local Tax ADVISORY: California Supreme Court Holds in Target That Consumers May Not Sue Under Consumer Protection Laws for Damages Resulting from Excessive Sales Tax Collection

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This advisory discusses Loeffler v. Target Corporation, which involved a claim for a refund of allegedly improperly collected sales taxes brought under California’s consumer protection laws, and how the California Supreme Court held that the refund scheme created by the California tax code provides the exclusive remedy for a dispute over the applicability of the state sales tax to retail transactions. The court’s holding closely followed the logic and policy reasoning outlined in an amicus brief filed in the case by Alston & Bird. The advisory is provided on the Alston & Bird website: www.alston.com/advisories/loeffler-target/  [...]Read more

State & Local Tax ADVISORY: Several Organizations Support Equifax’s Petition for Certiorari to the United States Supreme Court

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This advisory discusses amicus curiae briefs filed with the United States Supreme Court in support of the Petition for a Writ of Certiorari to the Supreme Court of Mississippi in the case of Equifax, Inc., et. al. v. Mississippi Department of Revenue. Joining Equifax in its attempt to overturn the Mississippi Supreme Court’s decision were the Institute for Professionals in Taxation (IPT), the Council on State Taxation (COST) (joined in its brief by the Mississippi Economic Council and Mississippi Manufacturers Association) and the Georgia Chamber of Commerce. The advisory is provided in [...]Read more

State & Local Tax ADVISORY: Litigating in the Georgia Tax Tribunal

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This advisory was originally published in State Tax Notes, as part of Alston & Bird’s regular column “Audit & Beyond.” See 71 State Tax Notes 235 (January 27, 2014). This advisory discusses the Georgia Tax Tribunal, which was created by an act of the Georgia General Assembly during the 2012 legislative session in order to establish “an independent specialized agency separate and apart from the Department of Revenue to resolve disputes between the department and taxpayers in an efficient and cost-effective manner.” This advisory is provided on the Alston & Bird website: www.alston.com/advisories/litigating-in-georgia-tax-tribunal/ [...]Read more