Upcoming National Meeting

51st Annual Meeting Webinar

This program offers sessions of interest to every state tax professional in industry, whether a COST member or otherwise, as well as in the consulting, accounting and legal profession. The program covers all types of state and local taxes that business taxpayers are confronted with today and provides updates on key SALT issues.

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Newsletters & Media

Cost Conscious

ISSUE 20-16; August 7, 2020

Delays in the Audits and Appeals Resolution Process – As much as businesses have had to shift work arrangements in response to the pandemic (see previous question, below), state taxing agencies have also made similar adjustments. The collective impact results in more remote state tax audits and appeals, which may also impact the timeframe to resolve a matter. Generally, has it taken your company l

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Bloomberg TAX

Pelosi Rebuffs Mnuchin ‘Overture’ With Relief Talks in Limbo

 

House Speaker Nancy Pelosi said she rebuffed an “overture” from Treasury Secretary Steven Mnuchin to restart talks on a new round of U.S. pandemic relief because the White House hadn’t budged from demands for a smaller stimulus.

New York’s Local Sales-Tax Collections Improve in July: DiNapoli

 

Local sales-tax collections in New York State fell 8.2% in July, an improvement from the 25.4% drop in June, according to a news release from state Comptroller Thomas DiNapoli.

No College Football Would Deal Big Hit to Sports Betting States

 

A fall without college football could be just as wounding to state tax collectors as it would be to fans—costing sports betting states about $1 billion dollars in bets.

Schumer, Pelosi Say White House Not Budging on Aid Talks Stance

 

Senate Democratic leader Chuck Schumer and House Speaker Nancy Pelosi say “an overture was made” by Treasury Sec. Steven Mnuchin to meet “and he made clear” that his earlier televised comments that the White House is not moving over its position on the size of virus aid still stand.

Wall Street Democrats Rejoice at Biden’s Pick of Moderate Harris

 

Morgan Stanley Vice Chairman Tom Nides was doing Zoom calls from his Washington home Tuesday when his TV screen flashed with the news that Joe Biden had picked Kamala Harris as his running mate. The former deputy secretary of state, a major Wall Street donor to Democrats, was still rejoicing the next morning.

N.J. Wins Ruling to Issue Up to $9.9 Billion Debt for Crisis (2)

 

Governor Phil Murphy can sell as much as $9.9 billion in debt to plug a revenue hole from the coronavirus, New Jersey’s highest court ruled amid a looming budget deadline and as states across the country grapple with their finances.

Mnuchin, Kudlow Say Congress Vote Needed for Capital Gains Cut

 

The White House isn’t considering an executive order to carry out President Donald Trump’s call for a cut in the capital gains tax because Congress probably would have to change the rate, administration officials said.

Treaties Don't Shield Couple From Income Tax, Second Circuit Says (1)

 

A couple's income from selling gravel mined from tribal land isn't tax-exempt under treaty agreements because the land remains in the Seneca Nation of Indians's possession, the Second Circuit ruled.

'Coach Tax' Carveouts Cheered By Nonprofit, Investment Groups

 

Exceptions included in IRS proposed rules would spare nonprofits from an overly broad tax on high-paid employees, industry groups told the agency.

Uber CEO Threatens Future Shutdown in California Over Labor Law

 

Dara Khosrowshahi, chief executive officer of Uber Technologies Inc., threatened to temporarily shut down service in California if it loses a drawn-out fight over a state law seeking to reclassify contractors as employees.

Tax Notes

Audit Finds South Carolina County Misused $32.4 Million

 

A South Carolina county misused millions of dollars meant for transportation projects on legal expenses, public relations, a job training program, and other costs, according to an audit by the state revenue department.

Michigan Lawmakers Propose Gender-Neutral Language in Tax Laws

 

Legislation has been introduced in Michigan to replace gender-specific language in references to married couples in the state’s tax laws.

Oregon Special Session Won't Include CARES Act Decoupling

 

Oregon lawmakers appear to have decided not to take up a proposal to decouple from federal business tax breaks in the Coronavirus Aid, Relief, and Economic Security Act.

Report: Vermont Pot Revenue Potential Higher Than Estimated

 

A new report estimates that Vermont residents' heavy cannabis use would generate over $175 million in cannabis tax revenue under legislation to legalize sales of the drug.

Oregon May Consider Decoupling From CARES Act in Special Session

 

Oregon lawmakers discussed a proposal to decouple from business tax break provisions of the CARES Act in advance of the special session that begins August 10.

California Court Rejects Group's Bid to Alter Split-Roll Ballot Title

 

A California tax watchdog is appealing a superior court ruling that rejected its challenge to the ballot description of a measure to increase commercial property taxes.

COVID-19 Surcharges Are Taxable in South Carolina

 

Charges added to the price of items sold by retailers to cover increased costs associated with the COVID-19 pandemic are subject to sales tax in South Carolina, according to guidance issued by the state Department of Revenue.

Maine GOP Avoids Special Session Vote, Leaving IRC Conformity in Limbo

 

Maine GOP lawmakers have for the second time avoided voting on convening a special session, leaving IRC conformity and tribal sovereignty legislation in limbo.

Virginia Commissioner Addresses Taxability of Tribe’s Transactions

 

There is no legal basis to grant a sales and use tax break for a tribe’s purchases occurring off a reservation for use on the reservation, the Virginia tax commissioner recently ruled.

Indiana Tax Court Affirms Charitable Exemption Determination

 

Substantial evidence supported a state board’s determination that a nonprofit corporation providing affordable housing for low-income tenants qualified for a charitable purposes exemption during several years, according to the Indiana Tax Court.

Featured Resources

COST - Council on State Taxation

Amicus Briefs

Sirius XM Radio v. Hegar (Texas)

COST and TTARA amicus brief urging Texas Supreme Court to accept review of the Court of Appeals’ decision to ensure uniformity and to provide clear rules as to how to apportion receipts derived from the performance of services.

COST - Council on State Taxation

COST Studies, Articles & Reports

2020 State and Local Amnesty Programs

Tracker of most state and local tax amnesty programs enacted and conducted in 2020.

COST - Council on State Taxation

COST Comments & Testimony

Comments to FTB re. De Minimis Partner Reporting and Payment Requirements

COST encourages the FTB to adopt reporting procedures for de minimis adjustments pursuant to its authority under Cal. Rev. & Tax Cd. § 18622.5(j).