Upcoming National Meeting

50th Annual Meeting

2 ½ day program offering sessions for every state tax and government affairs professional with tax responsibilities. The meeting presents an extensive program covering all types of state and local taxes that business taxpayers are confronted with today. The ever-popular audit sessions and state chamber of commerce roundtables are included, and other conference sessions provide updates on key SAL

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Newsletters & Media

Cost Conscious

ISSUE 19-20; October 4, 2019

TODAY’S TOPIC: SURVEY TIME! The periodic COST Membership Survey was released just over a week ago. If you haven’t already completed it, please click the link below and provide us with your feedback. Topics covered include: educational programs, COST’s Foundation (the State Tax Research Institute, or STRI), demographic information, and participation in COST. The survey consists of 20 questions and

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Bloomberg TAX

California Tax-Sharing Deals Like Apple's To Need New Disclosure

 

California Gov. Gavin Newsom (D) will allow cities to continue crafting deals that give a portion of their sales-tax revenue to companies like Apple Inc., and eBay Inc., with more robust disclosures.

Pot Businesses in California Will Get Tax Deductions

 

California cannabis business owners will be able to deduct business expenses on their state income tax returns starting in 2020.

California Medicinal Pot Donations Won't Be Taxed

 

Donations of marijuana for medical use are exempt from California state taxes under a bill signed by Gov. Gavin Newsom.

California Tax Breaks Will Get More Scrutiny

 

California Gov. Gavin Newsom signed a bill prompting lawmakers to explain the goals of new tax breaks but vetoed a related measure that would have created a new board to evaluate the effectiveness of such large breaks.

Crypto Estate Planning • Ivy League Tax • Amazon Merchants

 

This weekend roundup of Bloomberg Tax Insights includes the implications for investment managers of the OECD's digital economy taxation work program; cryptocurrency estate planning and administration; the differences between qualified opportunity funds and traditional investment funds; calculating the new excise tax on the endowments of some private colleges and universities; and Amazon's pre-Wayfair South Carolina sales tax bill.

IRS Pushes Back Against Treatment of Grants in New Jersey Program

 

The Tax Court erred in concluding that grants used as contributions to capital aren't taxable gross income, the IRS said in a brief filed Oct. 11.

Alabama DOR Announces Coal Mining Sales and Use Tax Rate Change in County of Tuscaloosa

 

The Alabama Department of Revenue (DOR) Oct. 10 announced that effective Oct. 1, the county of Tuscaloosa discontinued the reduced rate of sales and use tax levied on coal mining machines, and parts and attachments for machines used in manufacturing tangible personal property. Coal mining machinery previously eligible for the discounted coal mining manufacturing rate is now subject to the regular manufacturing machinery rate for the county. The regular manufacturing machinery rates are: 1) 1.875 percent for the county (7063); 2) 1.5 percent for the county PJ (7163); and 3) 1.125 percent for the county CL (7763). The coal mining tax is no longer available on the DOR's online filing system. Taxes can be remitted online through My Alabama Taxes. [Ala. Dep't of Revenue, Local Tax Notice - Tuscaloosa County, 10/10/19]

Alaska DOR Announces Revenue Online Unavailable Oct. 19

 

The Alaska Department of Revenue Oct. 1 announced a scheduled Revenue Online outage Saturday Oct. 19, from 7 p.m. to Sunday Oct. 20, 12 p.m. Alaska daylight time, for individual income, property, and excise tax purposes. [Alaska Dep't of Revenue, Alert, 10/01/19]

Arizona DOR Adopts Regulations Concerning Electronic Filing, Payment of Transaction Privilege Tax

 

The Arizona Department of Revenue (DOR) Oct. 11 adopted amended regulations to accommodate the needs of remote sellers and marketplace facilitators concerning the electronic filing and payment of tax for sales and use tax purposes. The DOR received approval to engage in this exempt rulemaking action on Sept. 16. The rules include measures: 1) to add cross-references to the statutory definitions of marketplace facilitator and remote seller; 2) to require marketplace facilitators and remote sellers who meet or reasonably can expect to meet the threshold requirements on or after Oct.1, to pay transaction privilege taxes through electronic funds transfer unless the DOR grants them a waiver based on the listed conditions; and 3) to conform to the rulemaking guidelines eliminating potentially confusing inconsistencies in capitalization usage and internal cross-references. The regulations took effect Oct. 1. [Ariz. Dep't of Revenue, Regs. Sections R15-10-301, R15-10-302, R15-10-501 et al., 10/11/19 Ariz. Admin. Reg.]

Arizona DOR Adopts Regulations for Remote Sellers, Marketplace Facilitators Concerning Transaction Privilege, Use Tax

 

The Arizona Department of Revenue (DOR) Oct. 11 adopted regulations to accommodate the needs of remote sellers and marketplace facilitators concerning transaction privilege sales and use tax. The DOR received approval to engage in this exempt rulemaking action on Sept. 16. The rules include measures to: 1) repeal provisions related to sales tax retail classification and transaction privilege tax alternative reporting, registration, and licensing; 2) add new provisions related to liability relief for marketplace facilitators and remote sellers and reasonable cause for waiver of civil penalties; 3) provide that, starting Oct. 1, marketplace facilitators and remote sellers must file their return using an electronic program and remit applicable taxes by an authorized means of transmission; and 4) remove and modify obsolete language of the rules. The regulations took effect Oct. 1. [Ariz. Dep't of Revenue, Regs. Sections R15-5-101 et al., 10/11/19 Ariz. Admin. Reg.]

Tax Notes

Nebraska Rare-Metal Mining Project Gets Millions in Tax Incentives

 

Nebraska has awarded $200 million in tax incentives to a rare-metal mining project in the southeast part of the state.

Reality Television Stars Settle Georgia Tax Evasion Claims

 

A reality television couple has settled allegations that they failed to pay approximately $2.1 million in Georgia state taxes.

GILTI Classified as Dividend Income, Louisiana Guidance Says

 

Global intangible low-taxed income will be classified as dividend income for Louisiana income tax purposes, according to recent Department of Revenue guidance.

Massachusetts Governor Revs Up Call for Telecommuting Credit

 

Massachusetts Gov. Charlie Baker (R) urged lawmakers to support his transportation plan that incorporates a proposed tax credit to encourage telecommuting.

Coalitions File Amici Briefs in Ohio Home Rule Tax Case

 

A coalition of Ohio cities suing over state laws limiting home rule and taxing authority continues to garner support since the state supreme court has agreed to hear the case.

New California Tax Appeals Office Making Considerable Progress

 

The California Office of Tax Appeals has made considerable progress since it began hearing cases in 2018, adopting new rules and issuing precedential decisions, according to a representative of the new adjudicative body.

Due Process Clause May Shape Future Tax Nexus Fights

 

The federal due process clause may become more significant as a means of vetting states’ taxing authority in the post-Wayfair era.

Wayfair, Legal Questions Discourage GILTI Conformity, Experts Say

 

New remote sales tax revenue and foreign commerce clause concerns are likely reasons states have chosen not to conform to the Tax Cuts and Jobs Act's global intangible low-taxed income provision, according to state tax experts.

Featured Resources

COST - Council on State Taxation

Amicus Briefs

Jefferson Parish v. Walmart.com

COST filed an amicus brief on the merits on June 20, 2019 stressing to the Louisiana Supreme Court that a marketplace facilitator does not meet the definition of a “dealer” under the State’s law, violates due process because adequate notice was not provided, and the Parish of Jefferson’s interpretation could result in retroactive imposition of a tax from the Louisiana Dep’t of Revenue and 62 other

COST - Council on State Taxation

COST Studies, Articles & Reports

2019 State and Local Amnesty Programs

This report tracks state and local tax amnesty programs by state for 2019.

COST - Council on State Taxation

COST Comments & Testimony

Comments re Proposed Amendments to Miss. Admin. Code Title 35.III.2.06

COST on September 20 filed comments with the Mississippi Department of Revenue urging it to amend or withdraw proposed changes to its regulations addressing the State’s treatment of dividends. COST urged the Department to avoid effectuating a Mississippi tax policy change in response to the Mississippi Supreme Court’s 2016 holding in Mississippi Department of Revenue v. AT&T Corp. through regulati