Category Archives: State & Local Tax

Controlling Interest Transfer Taxes (Part Two)

▪ Written by Clark Calhoun and Kathleen Cornett

Some states impose a controlling interest transfer tax (CITT) in a simple, straightforward manner, but, as a whole, most states’ CITT statutes suffer from ambiguous terms, complicated calculations, and a lack of guidance. Even the states with seriously solid music scenes. In their second article for the Journal of Multistate Taxation and Incentives reviewing states’ CITT statutes (you can find the first one here), Clark Calhoun and Kathleen Cornett discuss the remaining nine states (including the District of Columbia) that tax the transfer of a controlling interest in an entity that owns real [...]Read more

‘Wayfair’: What Are the Practical Retroactivity Concerns?

▪ Written by Charles Wakefield and Zach Gladney

What is the practical risk that states attempt to apply Wayfair retroactively? And should taxpayers rush to limit exposure for historical periods by entering into voluntary disclosure agreements with states that might assess tax retroactively under Wayfair? In an article originally published in Bloomberg BNA’s Weekly State Tax Report, Zach Gladney and Charles Wakefield explain why applying Wayfair retroactively would be misguided and unsuccessful. To read the full article, click here. [...]Read more

Georgia Proposes Response to Federal Tax Reform

▪ Written by Andrew Yates and Kathleen Cornett

Almost two months since the President signed the Tax Cuts and Jobs Act (TCJA) into law, state legislators across the country are still evaluating the federal tax law’s effects on state revenues and whether to amend state law in response. Introduced on February 12, Georgia’s Internal Revenue Code conformity bill for the 2018 tax year, HB 918, is one example of how states may respond to federal tax reform. HB 918 conforms to many of the provisions in the TCJA, including the $10,000 state and local tax deduction limitation and the treatment of net operating losses. Like at the federal level, [...]Read more

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

▪ Written by Kathleen Cornett

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.

Colorado Asks the Supreme Court to Overturn Quill

▪ Written by Andrew Yates

On August 29, the Direct Marketing Association (DMA) submitted a certiorari petition to the U.S. Supreme Court asking the Court to review the Tenth Circuit Court of Appeals’ decision in Direct Marketing Association v. Brohl (Brohl II). The case already made one trip to the Supreme Court (Brohl I), in which the Court held that the Tax Injunction Act did not bar federal-court review of the case. On remand, the Tenth Circuit held that Colorado’s use tax reporting regime did not violate the Commerce Clause. (To refresh: Colorado’s regime requires out-of-state sellers to report sales to Colorado [...]Read more

Sales Tax Nexus Roundup – Introducing Louisiana and Tennessee

▪ Written by Andrew Yates

We have been closely following the rapid rise of state laws and regulations imposing sales tax nexus or reporting requirements on out-of-state sellers with no physical presence in the state. In the wake of decisions by the U.S. Supreme Court and the U.S. Court of Appeals for the Tenth Circuit in cases brought by the Direct Marketing Association (see prior coverage), states have felt emboldened to enact provisions that challenge the Supreme Court's holding in Quill v. North Dakota, which demands that a seller have physical presence in a state before the state can require the seller to collect [...]Read more

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

▪ Written by Michael Giovannini

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

The Panama Papers: Taking a New Look at an Old Problem

▪ Written by Alston & Bird Tax Team

On April 3, 2016, the International Consortium of Investigative Journalists (“ICIJ”) published more than 11.5 million documents connected to Mossack Fonseca, a Panama law firm that helped establish offshore financial operations for some of the world’s wealthiest power players. The implicated offshore operations allegedly failed to adhere to transparency and beneficial ownership reporting requirements thereby permitting some corporations to operate behind a veil of secrecy and avoid taxing authorities around the world. The release of the Panama Papers has prompted a new firestorm of international [...]Read more

Vermont Proposes Colorado-style Use Tax Reporting Law

▪ Written by Andrew Yates

As we discussed in February, the Tenth Circuit upheld the constitutionality of Colorado’s use tax notification law with its decision in Direct Marketing Association v. Brohl (DMA II). In his concurrence to the decision, Judge Gorsuch predicted that “many (all?) states can be expected to follow Colorado’s lead and enact statutes like the one now before us.” (See Gorsuch, J., concurring, at 9). It appears that Vermont may be the first Colorado follower. Vermont is a seasoned player in the game of sales and use tax nexus and collection. In 2011, the state began requiring retailers who make [...]Read more