Upcoming National Meeting

49th 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 18-17; August 17, 2018

Marketplace Seller Model Legislation – One of the big, unanswered questions remaining after the Wayfair decision is how to deal with marketplace sellers. Not all marketplaces operate the same way, and so far, the states that have attempted to legislatively address it have not done so in a uniform manner. Which of the following best describes your company’s interest in uniform model legislation?

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Bloomberg TAX

Leaving New York to Get Tax Relief? Prepare to Be Audited

 

Wealthy New Yorkers who plan to flee to more tax-friendly states like Florida should expect to be audited, tax practitioners told Bloomberg Tax.

State Tax Bogeyman Real or Overhyped After Online Tax Ruling?

 

<p>Collection deadlines are too soon. States are coming for back taxes. Congress should still intervene.</p>

Oct. 1 Online Sales Tax Deadline Unrealistic: E-Commerce Rep

 

<p>States should simplify and be reasonable in changing online sales tax requirements after a pivotal U.S. Supreme Court victory. Otherwise, they risk congressional intervention, an e-commerce industry representative told Bloomberg Tax.</p>

Foreign Sellers Likely Safe From State Online Tax Frenzy Post-Wayfair

 

Serious repercussions to international commerce are possible, but unlikely from the recent U.S. Supreme Court ruling that eased the ability of states to tax online sales, state tax lawyers told...

After ‘Wayfair’, Which States Are Ready to Tax Online Purchases? (1)

 

The dust is beginning to settle after the U.S. Supreme Court threw out a major obstacle to states’ ability to tax online sales.

Online Sales Tax Rule Dead, But Afterlife Murky (2)

 

<p>“The Internet revolution has made <em>Quill’s</em> original error all the more egregious and harmful.” These are the words the U.S. Supreme Court used today in rejecting its 26-year-old standard that barred states from collecting sales tax from out-of-state vendors.</p>

Are High Court Tax Precedents Set in Stone After 25 Years?

 

The U.S. Supreme Court is dealing with a monumental online sales tax case based on a decades-old precedent. Does this standard’s tenure make it more difficult to reverse?

Has Latest New York ‘Tax Flight’ Begun?

 

The “tax flight” that New York feared would result from the new federal tax law may have begun.

Business Taxpayers Look for Guidance From States, IRS

 

Practitioners representing businesses are urging states to help their clients with guidance on the increasing complexities resulting from federal tax law changes.

Amazon Not Happy with Seattle’s New Compromise Head Tax

 

Seattle’s City Council unanimously passed an employee head count tax it revised to placate the business community and hometown company Amazon.com Inc.

Sen. Enzi Sees Strong Pressure on Congress If ‘Quill’ Upheld

 

Sen. Michael B. Enzi (R-Wyo.) said he believes there will be an unprecedented amount of pressure on Congress if the U.S. Supreme Court maintains a law banning states from levying sales tax collection...

Wayfair Case Not ‘Slam-Dunk’ States Hoped For: Tax Group Official

 

The pending digital sales tax case before the U.S. Supreme Court may turn out to be an example of being careful what you hope for, a Multistate Tax Commission attorney said.

Digital Tax Arguments Focus on Role of Congress, Compliance Costs

 

U.S. Supreme Court Justices focused on the role of Congress and real compliance burdens for small businesses during oral arguments in a case concerning the constitutionality of digital...

Multistate Tax Amnesty Program Revenue to Surpass $50 Million

 

The Multistate Tax Commission’s Online Voluntary Disclosure Program is estimated to bring in an additional $51.1 million in annual sales and use tax revenue to participating states, according to a...

Senator Ted Cruz Leaps Into Digital Sales Tax Fray

 

A U.S. Supreme Court decision overturning its 26-year-old rule restricting states’ taxing authority over out-of-state sellers would “thwart ongoing congressional efforts to find a workable solution...

No Grounds for High Court to Undo Sales Tax Rule: E-Retailers

 

The U.S. Supreme Court shouldn’t upend a 26-year-old restriction on states’ taxing authority over remote retailers because state sales tax systems “remain inordinately complex and burdensome during...

Backers of Federal Digital Tax Provision Come Up Empty-Handed

 

It appears a digital sales tax provision will be absent from an omnibus spending bill despite a push from lawmakers to enact legislation before a pivotal U.S. online tax ruling can be handed down in...

Amazon Sellers Armed With New Tax Compliance Information

 

A tax software company will offer a new tool to assist Fulfillment by Amazon sellers with remote sales tax compliance.

State Taxes Could Save Executives’ Performance Pay

 

States could help preserve an approach to executive compensation popular with corporate shareholders after the new federal tax law eliminated its deductibility.

Court or Congress? State Online Sales Tax Power Set for Change

 

South Dakota’s latest filing with the U.S. Supreme Court reiterated the state’s call for the justices to annul a much-maligned constraint on states’ taxing authority over online retailers.

High Court Digital Tax Ruling Could Spur More Amazon-Based Laws

 

The future of marketplace-provider laws requiring Amazon-type platforms to collect tax on its third-party sales hinges on a monumental U.S. Supreme Court case, according to tax professionals.

Duke, FirstEnergy Fight Rate Reductions From Federal Tax Savings

 

Duke Energy Corp., American Electric Power Co. Inc., FirstEnergy Corp., and the Dayton Power and Light Co. are putting up a legal fight to rate reductions based on their decreased tax liabilities...

New Alabama Tax Break Tops Off $700M Toyota-Mazda Incentives

 

Alabama created another local property tax break for economic development as Gov. Kay Ivey (R) signed legislation Feb. 6 to help secure a recently announced Toyota/Mazda manufacturing plant.

States in Pickle Over Deductions for Federal Taxes

 

<p>Six states that provide a deduction for federal taxes will look for ways to reduce an increased burden on taxpayers or to spend the extra loot stemming from the new federal tax law.</p>

States Eager to Act Must Wait for Model Law on Partnership Audits

 

Most states seeking to address the new federal partnership audit regime are in a holding pattern as they look for a model statute to provide guidance.

Amazon’s HQ2 Finalists Bait With Tax Breaks

 

Twenty cities across the U.S. and Canada remain contenders in the largest corporate jobs contest in modern times after an Amazon announcement cleared more than 200 cities from the list of potential sites for its second headquarters.

Lawmakers Push IRS to Allow Prepaid 2018 Property Taxes

 

State residents who rushed to prepay their 2018 property taxes before the end of the year deserve a deduction from the federal government, New York and New Jersey lawmakers told the IRS Jan. 9.

Lawsuits, New Charities? States Eye Ways Around Federal Tax Law

 

Several states are already pushing plans to mitigate the negative impact taxpayers may feel from the federal tax law’s new limit on the deductibility of state and local taxes on federal returns.

Wayfair, Overstock Urge High Court to Deny Digital Tax Case

 

South Dakota has “manufactured an entirely inappropriate vehicle” for the U.S. Supreme Court to reconsider its 25-year-old decision restricting states’ ability to tax remote retailers, according to...

Expedia Wins Lodging Tax Dispute With Illinois Towns

 

Online travel companies (OTCs) won a major victory against Illinois municipalities seeking millions of dollars in unpaid lodging taxes after a federal appeals court found their local ordinances...

Will Goodlatte’s Retirement Lead to Federal Digital Tax Solution?

 

It’s not certain that Rep. Bob Goodlatte’s (R-Va.) retirement will open the door to long-awaited federal legislation addressing states’ taxing authority over remote retailers.

Will Multiple Briefs Sway Supreme Court to Take Digital Tax Case?

 

The U.S. Supreme Court has dozens of state attorneys general and interest groups knocking on its door to take up the issue of states’ taxing authority over remote retailers.

House GOP Tax Plan Draws Protests Over State Impact

 

Federal lawmakers and groups representing state and local governments are pushing back against a key deduction contained in the House Republican tax reform plan released Nov. 2.

Wave of Amazon HQ2 Bids Unlike Anything Experts Have Seen

 

Is the nationwide tidal wave of proposals for Amazon’s second headquarters an unprecedented incentive bonanza, a game-changer, or a PR-stunt precipitating a dozen more PR stunts?

Reworking Intercompany Loan Rules a Mixed Blessing for States

 

Treasury Department recommendations to simplify Obama-administration documentation requirements on intercompany lending may be good news and bad news for states deciding whether to conform.

First Digital Sales Tax Dispute Reaches U.S. Supreme Court

 

South Dakota’s Attorney General has filed the first of an expected wave of state petitions asking the U.S. Supreme Court to reconsider a 25-year-old opinion restricting states’ ability to tax remote retailers.

State Groups Vow Fight for Tax Deduction Despite Trump, Big Six

 

Groups representing state and local officials will lobby hard to persuade members of Congress not to go along with calls from President Donald Trump and GOP leaders to end the federal deduction for...

States Won’t Sweat Conformity to Retroactive Tax Reform

 

States that want to follow retroactive provisions of whatever tax reform package comes from Congress this year probably wouldn’t worry about legal challenges.

Federal Partnership Rules May Be Tricky for States: ABA Group

 

State and local governments may find themselves in a pickle when a new federal partnership audit regime goes into effect, according to a Sept. 11 letter addressed to Internal Revenue Service...

First U.S. Prosecution Over ‘Zapper’ Software Nets Guilty Plea

 

A Seattle-area restaurant owner accused of using software to hide receipts and steal sales tax revenue pleaded guilty Aug. 30 in the first such prosecution in the U.S., the Washington Attorney...

IRS Asked to Help States by Clarifying Partnership Audit Regime

 

An influential tax group is asking the IRS to clarify how proposed regulations will implement certain aspects of the new federal partnership audit regime.

Michigan’s Value-Added Tax: A Cautionary Tale for Feds, States

 

The U.S. has been among a small number of developed countries for most of the last century in resisting an academically revered economic policy—the value-added tax. Michigan’s failed VAT may help...

‘Looking at You, Kid': Tax Credits for Movies, TV in Focus

 

The stiff competition among states to lure the multibillion-dollar film and television industry with lucrative tax credits may be going through a Darwinian period where only the strongest survive.

State Deduction Needed for Tax Reform After Health Care Failure

 

Republicans’ failure to repeal the taxes underlying the Affordable Care Act makes eliminating the deduction for state and local taxes even more important to their tax reform plans.

Federal Tax Reform Driving States to Digital Sales Taxes

 

Federal lawmakers’ efforts to control states’ taxing authority over remote retailers is adding pressure as potential federal tax reform threatens to further deplete states’ coffers.

Federal Bills Fighting to Modernize Interstate Taxes

 

A House-passed bill standardizing rules for taxing nonresident workers will face stiff opposition from large states that stand to lose millions in revenue, an original co-sponsor of the Senate...

Businesses Face a Patchwork of Trade Show Tax Rules

 

Businesses that use trade shows to promote and sell their products would be well-advised to research the hosting state’s nexus rules if they hope to avoid long-term sales and use tax duties in that jurisdiction, tax practitioners told Bloomberg BNA.

Prolific Tax Whistle-Blower Must Rethink Strategy

 

A Chicago lawyer regarded as the most prolific tax whistle-blower in the U.S. will have to reconsider his relentless litigation strategy in light of a state appeals court finding him ineligible for...

IRS Releases Proposed Partnership Audit Rules After Delay

 

The IRS proposed rules to implement the new partnership audit regime after a regulatory freeze delayed release of the guidance for five months.

Parties Unveil Model State Statute for Partnership Audit Law

 

Practitioners have rolled out draft model legislation that many hope will serve as the starting point for uniform state statutes addressing the new federal partnership audit regime.

States No Longer Fretting Over Federal Tax Reform This Year

 

The pressure to go into special session or take immediate action this year in response to federal tax reform no longer exists for state lawmakers and governors

Gray Areas in State Tax Policies: Bloomberg BNA Survey

 

Lawmakers’ strategy to strike a decades-old, state-border restriction on taxing sales may prove fruitful before the U.S. Supreme Court, according to a leading state and local tax practitioner.

States Eye New York Whistle-Blower Law as Tax Fraud Tool

 

State lawmakers and tax administrators are taking a closer look at enacting whistle-blower statutes as a strategy for prosecuting big-ticket incidents of tax fraud and scooping revenue into state coffers.

Tax Reform Would Send States Back to ‘Drawing Board’

 

Most modifications materializing from a potential federal tax reform package would throw states’ personal and corporate income tax structures up in the air, according to a leading tax professional.

States to Battle White House for Tax Deduction, Muni Exemption

 

States and cities are fighting to preserve a deduction for taxes paid to local governments after the White House’s tax plan said it would jettison the popular tool.

States, Tax Groups Furiously Planning for Partnership Audit Law

 

States and taxpayers aren’t waiting for a fix to the new federal partnership audit regime as they wade further into it to assess how the law will shape state tax systems.

Carried-Interest Bill Gets Attention in Connecticut

 

A subcommittee in the Connecticut Legislature heard testimony April 11 from the group called Patriotic Millionaires on a bill that would end the carried-interest tax advantage that benefits...

Digital Sales Tax: Hit and Miss in States

 

States’ collective agenda to rope in lost revenue from remote sales has yielded mixed results so far in 2017.

Most States Sick Over GOP Health Bill, Impact on Budgets

 

Rick Noonan said he wanted to cry when he heard the American Health Care Act was getting closer to becoming law.

Rise of Machines to Spark Rise of San Francisco Taxes?

 

Whether San Francisco should adopt an automation tax to replace taxes lost to automated jobs is the subject of a hearing proposed by a supervisor backing CEO pay surcharges.

Online Sales Tax Marching Toward South Dakota High Court

 

The South Dakota Supreme Court could soon take up the state’s online sales tax that a lower court ruled unconstitutional.

End of An Era: State Tax Legend Paul Frankel Dies

 

A light has gone out in the state and local tax world with the passing of one of its most preeminent and beloved practitioners.

Kansas Passthrough Exemption on Life Support

 

A controversial income tax break came back from the dead in the Kansas Legislature Feb. 22, but it appears to have little chance of ultimately surviving the current legislative session.

Business Tax Burdens Possibly on States’ Chopping Block

 

State efforts to carve out business personal property from taxation are gaining steam amid continuing calls for states to remove business inputs from the sales tax base.

Import-Export Tax Idea Presents State Constitutional Pitfalls

 

States could run afoul of the Constitution by following a federal border-adjustments plan advocated by House Speaker Paul Ryan (R-Wisc.) to tax imports and exempt exports.

Trump’s High Court Pick May Shadow Scalia in State Tax Cases

 

Justice Antonin Scalia’s potential successor may be cut from a similar judicial cloth—but it remains to be seen how the Supreme Court nominee could shape state tax issues.

“High” Taxes—States Continue to Look to Marijuana to Generate Revenue

 

As Colorado and Washington continue to experiment with legalized marijuana, state lawmakers’ attention has turned to preserving the new revenues and tweaking tax provisions. Meanwhile, at least nine...

Taxation of LPs and LLCs: Variances Among States Pose Traps for the Unwary

 

Two of the most popular business structures for small business owners are limited liability companies (LLCs) and limited partnerships (LPs). These business entities offer a host of practical...

Corporate Close-Up: Five Things to Watch for in State Corporate Income Taxes in 2017

 

In Chinese astrology, 2016 is the year of the monkey, a symbol of mobility and action, apt for a year setting the stage for potentially massive tax overhauls. The coming year will be symbolized by...

Three Prominent State and Local Tax Practitioners' Outlook on What's Ahead in 2017

 

Bloomberg BNA recently asked three prominent state and local tax thought leaders about changes they see on the horizon for 2017. Below are the responses from EY's Joe Huddleston, KPMG's Harley Duncan...

Alabama to Push Online Tax Bill After High Court Clears Way

 

Alabama’s tax commissioner said she will ask the state Legislature to consider a Colorado-style reporting and notice requirement for out-of-state retailers that don’t collect and remit the state’s...

Comcast Scores Partial Win in California Tax Dispute

 

A California appellate court panel affirmed a trial court ruling that was a partial win for both Comcast and the Franchise Tax Board in a dispute about Comcast’s unitary ties with another company and...

Featured Resources

COST - Council on State Taxation

Amicus Briefs

Earthlink & Bellsouth v Cobb & Gwennett Counties

COST filed an amicus brief on the merits supporting Earthlink and Bellsouth Telecommunications appeal pending before Georgia's Supreme Court. COST argued that the Court should determine whether the disputed 911 charges are a tax or fee on a statewide basis and that the lack of an audit and contingent fee arrangement violated the taxpayers' due process rights.

COST - Council on State Taxation

COST Studies, Articles & Reports

2018 State and Local Amnesty Programs

This report tracks state and local tax amnesty programs by state for 2018.

COST - Council on State Taxation

COST Comments & Testimony

COST Supports Utah Legislation to Decouple from Global Intangible Low-Taxed Income (GILTI)

COST's letter to the Utah State Senate's Revenue and Taxation Interim Committee supports legislation to decouple from certain provisions of federal tax reform (commonly referred to as the Tax Cuts and Jobs Act (TCJA)), specifically “global intangible low-taxed income” (I.R.C. Sec. 951A).