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Connecticut Bill Aims to Address the Impact of Telecommuting during the Pandemic

By on Mar 8, 2021
Posted In Connecticut, Income Tax, Local Tax, Nationwide Importance

As we continue to face growing concerns because of the nationwide impact of COVID-19, taxpayers should be mindful of the potential impacts that the continued rise in telecommuting may have on their state personal income tax liabilities. A bill was recently introduced in Connecticut that partially addresses this situation. Connecticut House Bill No. 6513 (HB...

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Washington Department of Revenue Announces LendingTree Decision Does Not Prevent Sourcing of Services to Customer’s Customer Location

By on Aug 17, 2020
Posted In Allocation/Apportionment, Constitutional Issues, Washington

The Washington State Department of Revenue (the “Department”) recently announced its interpretation of the Washington Court of Appeals’ March 30, 2020, adverse ruling in LendingTree, LLC v. Dep’t of Revenue, no. 80637-8-I (Wash. App. Ct. Mar. 30, 2020). See here for our prior analysis of the LendingTree opinion. In its interpretation, the Department takes the...

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Washington Surtax on “Big Banks” Struck Down as Unconstitutional

By , and on May 18, 2020
Posted In Local Tax, Maryland, Oregon, Washington

On May 8, Washington’s 1.2% surtax on “specified financial institutions” (banks with at least $1 billion a year in net revenue) was struck down by a King County Superior Court judge. Judge Marshall Ferguson ruled that the tax, which is imposed on top of all other taxes, violates the Commerce Clause of the US Constitution...

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Alert: California False Claims Expansion Bill Preparing to Advance

By , and on May 8, 2020
Posted In California, False Claims Act, Illinois, Nationwide Importance

The revived False Claims expansion bill in California, A.B. 2570, is on the agenda to be heard by the Assembly Judiciary Committee on May 11 at 10:00 am PDT. The proposal would authorize tax-based false claims actions, allowing private, profit-motivated parties to bring punitive civil enforcement lawsuits—an abusive practice that is prohibited under current law...

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Déjà Vu – Marketplace Model Debate May Resume Again

By , and on Apr 20, 2020
Posted In Nationwide Importance, Nexus, Sales Tax, Transaction Taxes

The debate over state marketplace laws may resume again, after the Uniform Law Commission (ULC) announced it has set up a committee to study whether to draft a uniform state law on online sales tax collection, focusing on marketplaces. The study committee is chaired by Utah Sen. Lyle Hillyard. The lead staffer (“reporter”) will be...

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Washington Appellate Court Rejects Department’s B&O Tax Apportionment Method

By on Apr 17, 2020
Posted In Allocation/Apportionment, Washington

In a recently issued taxpayer-favorable opinion, the Washington Appellate Court rejected the apportionment methodology used by the Department of Revenue, which sourced service receipts to the location of a taxpayer’s customers’ customers. The Court then affirmed the taxpayer’s methodology, which sourced the receipts to the location of its customers. LendingTree, LLC v. State of Wash....

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The Digital Advertising Tax Trend Continues: New York Introduces Another Bill

By and on Apr 15, 2020
Posted In Nationwide Importance, New York, Sales Tax, Transaction Taxes

On April 13, S. 8166 was introduced in the New York Senate, which would expand the sales tax base to include receipts from the sale of digital advertising services. The bill would dedicate the revenue raised to student loan relief. As introduced, “digital advertising services” would be broadly defined as “advertisement services on a digital...

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DC and New Jersey Join Mississippi in Disregarding Coronavirus-Caused Remote Work for Tax Purposes

By and on Apr 14, 2020
Posted In District of Columbia, Federal Tax, Franchise Tax, Income Tax, Mississippi, Nationwide Importance, New Jersey, Nexus

As part of our open letter to state tax administrators urging relief of undue tax administration burdens in light of COVID-19, we urged the disregarding of remote work for tax purposes. The public health necessity for businesses to close central operations and direct employees to work from home should not be used as an “opportunity”...

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Iowa Responds to McDermott’s Call to Drop Unnecessary or Dangerous Tax Administration Requirements

By and on Apr 14, 2020
Posted In Federal Tax, Income Tax, Interest and Penalties, Iowa, Nationwide Importance, Property Tax, Sales Tax

In late March, we wrote an open letter to state tax administrators requesting that they take steps to relieve undue tax administration burdens in the wake of the COVID-19 situation. We gave five suggestions, including postponing deadlines for tax filing and payment, waiving requirements to use hard-copy documents or checks, suspending accrual of interest on...

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The Nexus Implications of Teleworking

By and on Apr 2, 2020
Posted In Income Tax, Mississippi, Nationwide Importance, New Jersey, Nexus, Tax Base

Over the past several weeks, state and local governments have issued a slew of “stay-in-place” or “shelter-in-place” orders mandating the closure of all “nonessential businesses” and requiring all persons to self-isolate. For most companies, this means that most, if not all, of their employees are required to work remotely. While telework has become a great...

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