Wrapping Up June

Our June 2017 blog posts are available on insidesalt.com, or read each article by clicking on the titles below. To receive the latest on state and local tax news and commentary directly in your inbox as they are posted, click here to subscribe to our email list.

June 5, 2017: Nexus is Crucial, Complex Connection for State Tax Professionals

June 6, 2017: Substitute Alert – Delaware Technical Corrections Bill

June 8, 2017: Inside SALT Event in McDermott Will & Emery’s New York Office

New York, NY: The annual Inside SALT event took place on Thursday, June 8, 2017 in McDermott’s New York office. Tax lawyers Peter Faber, Todd Harrison, Stephen Kranz, Alysse McLoughlin, Art Rosen, Diann Smith and Mark Yopp presented a substantive half-day program highlighting many State and Local Tax updates, including recent changes specific to the New York area, Nexus developments in digital taxation, and news related to apportionment, transfer pricing and unclaimed property. The event had a successful turnout, with tax executives from many of McDermott’s top clients, and culminated in a networking reception.

June 8, 2017: Tax in the City® Event in McDermott Will & Emery’s Chicago Office

Established in 2014 by McDermott Will & Emery LLP, Tax in the City® is a discussion and networking group for women in tax that fosters collaboration and mentorship and facilitates in-person connections and roundtable study group events around the country.

McDermott’s second Tax in the City® meeting of the year took place on Thursday, June 8, 2017 in the Chicago office. The event began with a CLE/CPE presentation on Privilege and the Ethics of Connectivity. After a break for lunch and networking around the room, the program continued with a roundtable discussion focusing on best practices for drafting tax provisions in commercial contracts. Kristen Hazel spoke about drafting Letters of Intent, then Britt Haxton covered credit agreements, Sandra McGill covered withholding tax provisions, and Jane May wrapped up with settlement agreements.  Following that discussion, Mary Kay Martire passed our continuing discussion of the Illinois Grand Bargain over to Carol Portman, McDermott Alum and President of the Taxpayers Federation of Illinois, who shared with us some insights into the Illinois budget stalemate. The event concluded with Sandra McGill offering her insights into tax reform, as well as Kristen Hazel’s thoughts on preparing for new rules effective in 2018. The roundtable event aided great networking and conversations, and saw an impressive turnout with female tax leaders from many of McDermott’s client companies.


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In Letter of Finding No. 02-20140306 (Dec. 31, 2014), the Indiana Department of Revenue (Department) determined that income from the sale of two operating divisions of a business pursuant to an order of the Federal Trade Commission (FTC) was non-business income under Indiana law. Following the reasoning of the Indiana Tax Court in May Department

The saga over local sourcing of Illinois retailers’ occupation taxes is well known. The Illinois Department of Revenue has a dedicated webpage for the issue, and Inside SALT covered some of the litigation aspects last month (see Illinois Regional Transportation Authority Suffers A Setback In Its Sales Tax Sourcing Litigation).  A new chapter

When state legislatures are in need of additional funds – as they often are – it is tempting to enact retroactive legislation to bring more dollars into state coffers. Two recent developments have Due Process Clause questions of retroactivity back in the news in the SALT world. In Caprio v. N.Y. State Dep’t of Taxation

Illinois’ order acceptance rule for sourcing local sales taxes has spurred litigation and endless confusion. The wide differential between local tax rates has encouraged shoppers and retailers to transact business in lower rate jurisdictions – everything from drivers heading across the county line to fill their gas tanks to huge retailers establishing order acceptance facilities

Somewhere in Hollywood:

House of Cards Screenwriter 1: Let’s have an episode where a business getting tax breaks puts on the lobbying pressure to get even more, only to cross the wrong legislator and nearly lose everything.

House of Cards Screenwriter 2: That’s too unrealistic – it could never happen.

Apparently the Maryland legislature