Missouri

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 issueYou 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) - February 7, 2018

The following are state tax and business developments I have curated since January 6th, 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. Online Travel Company Liable for Maryland Sales Tax

  2. Corporate Close-Up: The Texas Comptroller Ruled that Wireless Voice and Data Services are Performed in Texas when a Customer Accesses Those Services in Texas--Is It Market-Based Sourcing?

  3. Many State Tax Incentives Are Now Taxable Due to Federal Tax Reform

  4. California Proposes Bill to Counter Federal Limit on SALT Deduction

  5. Remote Retailers Must Notify Online Purchasers of Louisiana Use Tax

  6. Pennsylvania Requires Addback for Federal Bonus Depreciation

  7. Fourth quarter 2017 state and local tax developments

  8. State implications of federal tax reform - international business

  9. Twenty-Five States Face Revenue Shortfalls in 2018

  10. FEDERAL TAX REFORM AND THE STATES - great resource from the National Conference of State Legislatures

  11. 2017 State Policy Review: Taxation

  12. THE SKINNY ON THE 2017 MTC SALES TAX AMNESTY PROGRAM AND HOW IT AFFECTS AMAZON FBA SELLERS - this is an interesting video to watch (even now).

  13. Top Tax Strategies for California Businesses in 2018

  14. U.S. Supreme Court to Review Bid to Collect Internet Sales Tax

  15. New Hampshire Department of Revenue Administration Announces Business Tax Rate Reductions

  16. Michigan Department of Treasury Discusses New Law Permitting Alternate Method of Dispute Settlement and Resolution for Certain Tax Liabilities

  17. Ohio Department of Taxation Launches Amnesty Program that Runs through February 15 and Permits Potential Waiver of 100 Percent Penalties and 50 Percent Interest

  18. Pennsylvania DOR Announces that Non-Participation Penalty Assessments from 2017 Amnesty Program are Coming Soon

  19. Alabama DOR Issues Proposed Amended Rules on NOL Carryforwards, Federal Conformity, and Revised Filing Due Dates

  20. Florida DOR Issues Administrative Rule Changes Reflecting 2017 Law on Return Filing and Payment Due Dates

  21. US Supreme Court Denies Taxpayer Request to Review Florida Supreme Court Holding

  22. Louisiana DOR Reminds that Certain Remote Retailers Must Issue Annual Information Notices and File Statements

  23. Washington DOR Issues CPI-Adjusted Substantial Nexus Bright Line Nexus Thresholds for Business and Occupation Tax Purposes

  24. Remote Businesses Might Become Subject to Hawaii Tax

  25. New Jersey Enacts Corporate HQ Credit

  26. Illinois Proposes Tax on Investment Management Service Businesses

  27. Federal Tax Act Affects Minnesota Taxpayers

  28. Illinois Responds to SALT Deduction Limit

  29. Alaska Governor Seeks Support For Payroll Tax

  30. Missouri Governor’s Plan for Tax Reform

  31. Tax Law Prompts S Corps to Examine Their Structures: A Primer

  32. Idaho State Tax Commission Discusses How Recently Enacted Federal Tax Reforms May Affect State Income Taxation

  33. Michigan Court of Appeals Holds that Receipts from Law Firm Services are Sourced on a Market-Based Methodology for City of Detroit Income Tax Purposes

  34. Colorado DOR Issues Updated Compliance Guidance on Some Remote Seller Notice and Reporting Requirements

  35. Texas Comptroller Revises Administrative Rule 3.308 Computers – Hardware, Software, Services, and Sales

  36. Washington DOR Issues Proposed Expedited Regulatory Amendments Reflecting 2017 Legislation that Expands B&O Economic Nexus

  37. Multistate Tax Considerations of the Federal Tax Reform International Tax Provisions

  38. What the Tax Cuts and Jobs Act Means for States – A Guide to Impacts and Options

  39. Key Lessons for States as They Determine Responses to the Federal Tax Bill

  40. 2018 Tax policy outlook

  41. NYC Receipts Allocation Reflects Employees and Consultants

  42. State Tax Conformity: Revenue Effects

  43. Tax Reform Moves to the States: State Revenue Implications and Reform Opportunities Following Federal Tax Reform

  44. January Tax Retrospective: Congress Acts, States React

  45. Tax reform provides federal and state credits and incentives opportunities

  46. New York releases FY 18-19 budget proposal

  47. California Competes tax credit program - More than $55 million in tax credits available

  48. You’re Invited: COST, Bloomberg Tax and McDermott Will & Emery to Host Post-Oral Argument Roundtable Discussion

  49. Oregon DOR Issues Final Market-Based Sourcing Rule

  50. Pennsylvania DOR Discusses New Law that Imposes Information Reporting and Notice Requirements on Some Remote Sellers Including Marketplace Facilitators

  51. South Carolina: ALJ Denies DOR Motion for Injunction – Holds that Online Marketplace Provider is Not Required to Collect Tax on Third-Party Sales During Pendency of Case

  52. Pennsylvania DOR Announces Immediate Effectiveness of 2017 Legislative Amendments Involving NOL Limitations

  53. Montana DOR Discusses How Recently Enacted Federal Tax Reforms May Affect Some State Income Taxation

  54. Minnesota DOR Discusses How Recently Enacted Federal Tax Reforms May Affect Some State Income Taxation

  55. South Dakota Updates IRC Conformity Date

  56. New Hampshire Joins Internet Sales Tax Fight

  57. Ohio Amnesty Program Ends February 15

  58. Oklahoma Governor Proposes Budget with Numerous Tax Changes

  59. Tax Reform Friday: From Coast to Coast, Federal Tax Reform Involves State Taxation Policy

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 issueYou 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 (27 items)- October 2, 2017

The following are state tax and business developments I have curated since September 21st, 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. PRACTICE AND PROCEDURE: STATES KEEP TAXPAYERS AFLOAT BY PROVIDING TAX RELIEF FOR HARVEY AND IRMA VICTIMS

  2. Cuomo Announces New Amazon Office in New York City will Create 2,000 Jobs

  3. Whole Foods Told To Pay $3.5M On Add-Backs Per NY Tax Law

  4. California holds IPM on withholding for pass through entities

  5. State Tax Developments: Captives

  6. Wisconsin Eliminates Alternative Minimum Tax

  7. Alaska 80% DRD for dividends received from 80 20 company

  8. State sales tax could be costing Nashville tech jobs

  9. Multistate Insider: Local Policy Digest

  10. California Governor Signs Cleanup Legislation Related to Restructuring of State BOE and New OTA

  11. Virginia Governor Reminds that Amnesty Program Has Begun

  12. New York Extends Gramm-Leach Bliley Transition Rules for Certain New York City Financial Institutions

  13. New York City Tax Appeals Tribunal Requires Taxpayer to Recognize Property Gain on Final Tax Return

  14. Taxpayer Asks US Supreme Court to Review Florida Supreme Court Holding Which Held that Taxing Satellite Services Versus Cable TV Services at Different Rates is Constitutionally Valid

  15. Amended Oklahoma Rules Reflect Remote Seller and Affiliate Nexus Provisions

  16. South Dakota Supreme Court Affirms that Remote Seller Economic Nexus Law is Unconstitutional

  17. Wisconsin Governor Signs Budget Bill with Various Tax Law Changes Including Updated State Conformity to IRC, Revised Sourcing and Apportionment Provisions, and NOL Limitations

  18. Proposed Alabama Amended Rule Reflects New Law that Includes Loans and Credit Card Receivables in Property Factor for FIET Purposes

  19. California FTB Chief Counsel Ruling Addresses Impact of Recorded Goodwill for Deemed Water-Edge Election Business Assets Test

  20. New Mexico AHO Holds in Taxpayer Favor that Interest Income from Payment-in-Kind Notes is Nonbusiness Income Allocable Out-of-State

  21. North Carolina Supreme Court Affirms that Taxpayer Cannot Claim Interest Deduction for Market Discount Income on Discounted US Bonds

  22. Illinois Appellate Court Holds that Internet Retailer Lacks Substantial Nexus and Thus Not Liable for Use Tax

  23. Massachusetts Supreme Judicial Court Affirms that Wholesale Distributor Must Collect and Remit Tax on Goods Sold to Out-of-State Retailers in Drop Shipment Scenarios

  24. Holders Beware: Delaware Department of State Notices to be Mailed in Two Weeks!

  25. Why Does Missouri Want a Gross Receipts Tax?

  26. Ohio’s Commercial Activity Tax: A Reappraisal

  27. State and Local Tax Aspects of Republican Tax Reform Framework

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 issueYou 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.

23 State Tax & Business Developments You May Want to Know - July 18, 2017

The following are state tax developments and commentary I have curated for today and posted in the LEVERAGE SALT LinkedIn group that you may find helpful:

  1. The Ideal Federal Tax Rate? 21%

  2. Welcome to the Wild, Wild West Where the States Have All the Guns!

  3. Missouri ‘Suddenlink’ Decision Raises Questions Regarding Impact of 2016 and 2017 Legislation

  4. Florida Passes Data Center Sales Tax Exemption

  5. Delaware DOF Delays Adoption of Estimation Regulations as DOS Adopts Final Regulations

  6. New York Significantly Steps up Audit Enforcement while Increasing Incentives for Voluntary Compliance

  7. Sales Tax Slice: Following DMA v. Brohl, More States Require Out-of-State Sellers to Report Customers’ Purchases

  8. Weekly Round-Up: Online Marketplaces, Remote Retailers and Digital Sales

  9. Corporate Close-Up: Oregon Joins Montana in the Trend towards Market-Based Sourcing

  10. FY 2018 BUDGET STATUS (for 50 States)

  11. Why a Border Adjustment Tax Would Be a Bad Deal for States and Localities

  12. THE BEST AND WORST OF STATE TAX ADMINISTRATION COST SCORECARD ON TAX APPEALS & PROCEDURAL REQUIREMENTS

  13. 2017 STATE TAX AMNESTY PROGRAMS

  14. Testimony before the Arkansas Tax Reform and Relief Task Force

  15. COST’s Opposition to S.B. 1548 (“Accurate Reporting of Corporate Profits”/Mandatory Worldwide Combined Reporting)

  16. Kansas Learned Its Lesson, But Will Other States?

  17. State Inheritance and Estate Taxes: Rates, Economic Implications, and the Return of Interstate Competition

  18. Partnership Taxation - A State Tax Administrator's Perspective

  19. State Corporate Income Taxes and the Effect on European Taxes

  20. UDITPA Sec. 18 Regulatory Project Work Group Meeting

  21. Nexus Committee Meeting

  22. Use Tax Information Reporting Work Group

  23. Partnership Work Group Meeting

If you like the curating of state tax developments into one spot (regardless of firm), but still feel overwhelmed by the volume of state tax developments, please consider my 'custom curating' service. Meaning, clients hire LS to daily curate state tax developments relating to a specific industry, state(s), tax type and issue. The client can make it as granular as they prefer. Clients hire LS to curate information for multiple specific items on a daily basis. Unlike getting updates on a publisher's research platform, LS custom curation will provide updates from multiple sources including accounting firms, law firms and state websites. This service is provided on a subscription basis.

New Year, New Legislative Sessions and the MTC

I hope your new year is going well. State tax legislative sessions are beginning and talks of crazy tax hikes (Illinois), and imposing sales taxation collection obligations on remote retailers is commencing (Wyoming). Some may even try to eliminate the corporate income tax (Missouri).

The Multistate Tax Commission continues its Sec. 18 Regulatory Project. According to the MTC, the Section 1 and 17 workgroups have identified a list of issues that may need to be addressed by the Uniformity Committee in light of changes to Article IV (UDITPA) adopted by the Commission in 2014 and 2015. The list includes (but is not limited to) the following:

  •  Address the possible distortion that could be caused by the exclusion of functional receipts from the definition of “receipts” for purposes of the receipts factor in certain circumstances.
  • Consider exceptions to the definition of “receipts,” which now excludes receipts from securities and hedging, where these receipts might represent “transactional” receipts for certain taxpayers (e.g. brokers) as well as how possible distortion might be avoided (e.g. churning of investments).
  • Consider whether receipts from factoring of receivables should ever be included in the receipts factory.
  • Address any situations where general population data, used under the draft Section 17 sourcing rules, might result in distortion and what methods might be used to address that distortion.
  • Consider whether there needs to be a “de minimis rule” for sourcing of receipts in certain instances so that the taxpayer may use a proxy for sourcing, or possibly throw out those receipts from the factor.
  • Address regulations that might be needed to interpret and implement the amendments to Article IV, Section 18 made by the Commission in 2015.
  • Consider other special industry rules that might be necessary.

In addition to the technical matters we deal with, I hope your career is moving in the direction you desire. If not, remember, action over intention. Can't get a different result by doing the same thing over and over again.

this week's top 10 developments include: nexus, alternative apportionment, amnesty, transfer pricing and more

Rulings, court cases, and proposed legislation change the landscape of multistate taxation every day. It is impossible to follow all of it. I attempt to keep you aware of the items that may have a significant impact on a broad range of taxpayers. If you are following a major issue in your state that isn't listed below, and would like me to highlight it on this blog, please contact me.

Here are my top 10 for the week:

  1. Tennessee is looking to establish click-through nexus for sales tax and economic nexus for income tax. Legislation moving to Governor (HB 644).
  2. South Carolina issued draft guidance on alternative apportionment methods. Open for public comments until May 14th. Conference to be held on May 21st.
  3. Maryland enacts favorable Amnesty? See McDermott Will & Emery's Inside SALT post for details.
  4. North Dakota enacts law to phase-in single sales factor and repeal some Multistate Tax Commission provisions (SB 2292).
  5. Louisiana proposes combined reporting (HB 775).
  6. Missouri General Assembly passes bill that would establish market-based sourcing for sales other than sales of tangible personal property (SB 19).  
  7. Nevada Senate approves bill to broaden definition of physical presence to cause remote sellers to collect sales tax, including a click-through nexus provision (SB 382).  
  8. New York enacts multiple tax law changes as part of 2015-2016 budget (AB 3009).
  9. New York enacted legislation makes numerous changes to New York City's taxation of corporations (SB 4610).
  10. District of Columbia's transfer pricing enforcement program and combined reporting regime - appropriate? - read McDermott Will & Emery's post for details.

If you would like assistance in determining how any of the above will impact your company or clients, please contact me. Also, please contact me if you would like LEVERAGE SALT, LLC to comment, on your behalf, on the South Carolina draft guidance on alternative apportionment methods.