Month: November 2017
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New SALT Implications in Proposed House and Senate Tax Reform Bills

The federal tax reform legislation is a work in progress, and its final form will undoubtedly be affected by political considerations and lobbying by interested parties. Both the House and Senate bills deserve careful study by taxpayers and their representatives, as many of the provisions will have an effect on state and local taxes. Continue Reading.

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Preparing for the Repeal of Cook County’s Beverage Tax: Requesting Credits and Refunds

Earlier this fall, the Cook County Board voted to repeal its constitutionally suspect, politically unpopular one cent per ounce sweetened beverage tax (Tax). The short-lived Tax will expire at the end of the County’s fiscal year on November 30, 2017. Having been tasked with implementing the Tax, the Cook County Department of Revenue (Department) is now charged with unwinding it. Distributors and retailers who have paid the Tax are entitled to credits or refunds on their unsold inventory at month’s end. The Department recently issued guidance on the credit/refund procedure. Retailers that have paid Tax to their distributors may claim a credit/refund from their distributors for Tax paid on their unsold inventory by completing the Department form entitled “2017 Sweetened Beverage Retailer Inventory Credit Request Form and Schedule A.” Retailers should complete and submit the form to their distributors, not the Department. Distributors must file a final Tax...

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New California Office of Tax Appeals Discusses Emergency Regulations

The New California Office of Tax Appeals (OTA) on November 6, 2017, held an interested parties meeting in Sacramento to discuss the contents of a draft of emergency regulations to guide both income tax appeals from the California Franchise Tax Board and sales and use tax appeals from the California Department of Tax and Fee Appeals (CDTFA). The meeting was chaired by Kristen Kane, the newly appointed Chief Counsel and Acting Director of the OTA, and by Zack Morazzini, the Director and Chief Administrative Law Judge (ALJ) in the Office of Administrative Hearings.  Ms. Kane and Mr. Morazzini provided helpful insight on how the new OTA will operate, including the following: The OTA is in the process of hiring 18 new ALJs. Hearings will be held in Sacramento, Los Angeles and Fresno. Hearings are expected to commence in late January, after a crash training program for the new ALJs. Both Ms. Kane and Mr. Morazzini stressed the intention that the hearings be as...

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SALT Implications of the House and Senate Tax Reform Bill

Many provisions of the House and Senate tax reform proposals would affect state and local tax regimes. SALT practitioners should monitor the progress of this legislation and consider contacting their state tax administrators and legislative bodies to voice their opinions. Continue Reading.

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Finishing SALT: Inside SALT’s Monthly Recap

Wrapping Up October – and Looking Forward to November As we wrap up October, you can view all of the topics we discussed over the last month and take a look at the State and Local Tax events where our lawyers will be speaking in November. SALT Activities in November: November 1, 2017: Jane May presented “State Conformity with Federal Income Tax Laws — Especially in Light of Possible Sweeping Federal Income Tax Legislation?” at the 2017 Annual Meeting of the California Tax Bar and California Tax Policy Conference. November 2, 2017: Peter Faber presented an Update on SALT Developments at the Philadelphia Tax Conference. November 2, 2017: Arthur Rosen presented “Doing Business Beyond Michigan Borders” and “Recent and Impending Developments in State Taxation” at the Michigan Tax Conference in Livonia, Michigan. November 6, 2017: Peter Faber presented on sales tax on investment research and planning for defending a False Claims act at the Wall Street Tax...

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California’s New Office of Tax Appeals Issues Preliminary Draft of Procedural Rules that Is Silent on Discovery Matters

As part of Governor Jerry Brown’s 2017 budget bill, the California State Board of Equalization (SBE) was stripped of its functions that had been authorized by statute, leaving principally property tax matters deriving from the state constitution. Sales and use tax and fee functions were moved to a newly created California Department of Tax and Fee Administration (CDTFA). Jurisdiction to hear appeals from the Franchise Tax Board (FTB) as well as appeals in sales and use tax and fee matters from CDTFA was vested in a new Office of Tax Appeals (OTA), to become effective January 1, 2018. The OTA is scurrying to adopt rules before opening for business on January 1, 2018. It recently released an early draft of what will become emergency regulations. An informal public discussion meeting of the draft has been scheduled for November 6, 2017, in Sacramento. The initial discussion draft provides for deferring an appeal in sales and use tax matters pending settlement...

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