Mark Nebergall
Subscribe to Mark Nebergall's PostsMark Nebergall advises clients on all aspects of tax policy with respect to software transactions at state, federal and international levels. He also works with McDermott’s tax controversy team handling tax litigation where he brings his former experience as a litigator for the US Department of Justice, Tax Division. Mark combines tax policy and tax litigation skills to help solve client tax problems holistically. Read Mark Nebergall's full bio.
New Mexico Proposes Regulations Addressing Gross Receipts Tax Treatment of Digital Advertising Services
By Eric D. Carstens, Stephen P. Kranz, Michael J. Hilkin, Mark Nebergall and Jonathan C. Hague on Aug 11, 2022
Posted In Allocation/Apportionment, Constitutional Issues, Local Tax, Nationwide Importance, New Mexico, Sales Tax, Tax Base, Transaction Taxes
On August 9, 2022, the New Mexico Taxation and Revenue Department published proposed regulations addressing the gross receipts tax (New Mexico’s version of a sales tax) treatment of digital advertising services. The Department states the proposed regulations do not reflect a change in policy but instead ensure the rules are consistent for all advertising platforms....
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Massachusetts Supreme Judicial Court Approves Sales Tax Apportionment for Software
By Stephen P. Kranz, Richard C. Call, Mark Nebergall and Jonathan C. Hague on May 25, 2021
Posted In Allocation/Appointment, Constitutional Issues, Local Tax, Massachusetts, Nationwide Importance, Sales Tax
On May 21, 2021, the Massachusetts Supreme Judicial Court issued a decision affirming the Massachusetts Tax Appeal Board’s decision in favor of Microsoft and Oracle, ruling that the companies may apportion sales tax to other states on software purchased by a Massachusetts company from which the software was accessed and seek a tax refund. The...
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US Treasury Issues Guidance on the ARPA Claw-Back Provision
By Stephen P. Kranz, Mark Nebergall and McDermott Will & Emery on May 12, 2021
Posted In Constitutional Issues, Franchise Tax, Income Tax, Insurance Tax, Local Tax, Nationwide Importance, Property Tax, Sales Tax, Tax Base, Transaction Taxes
Earlier this week, the US Department of the Treasury (Treasury) issued formal guidance regarding the administration of the American Rescue Plan Act of 2021 (ARPA) claw-back provision. The guidance (Interim Final Rule) provides that the claw-back provision is triggered when there is a reduction in net tax revenue caused by changes in law, regulation or...
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The US Department of the Treasury Says State IRC Conformity Bills Do Not Trigger Federal Relief Claw-Back Provision
By Stephen P. Kranz and Mark Nebergall on Apr 9, 2021
Posted In Constitutional Issues, Franchise Tax, Gross Receipts Tax, Income Tax, Insurance Tax, Local Tax, Nationwide Importance, Property Tax, Sales Tax, Tax Base, Transaction Taxes
As we’ve blogged about in the past, the recently enacted American Rescue Plan Act of 2021 (ARPA) includes an ambiguous claw-back provision. If broadly interpreted, it could result in states losing relief funding provided under the APRA if there is any state legislative or administrative change that results in the reduction of state revenue. This...
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McDermott Provides Treasury Department with Concrete Suggestions for Guidance on the American Rescue Plan Act’s Claw-Back Provision
By Stephen P. Kranz and Mark Nebergall on Mar 25, 2021
Posted In Constitutional Issues, Franchise Tax, Gross Receipts Tax, Income Tax, Insurance Tax, Local Tax, Nationwide Importance, Property Tax, Sales Tax, Tax Base, Transaction Taxes
The recently enacted American Rescue Plan Act of 2021 (ARPA) includes an ambiguous claw-back provision that has brought the world of state and local tax policymaking to a grinding halt. Because ARPA’s adoption occurred during the final weeks of many states’ legislative sessions, rapid issuance of guidance from the US Department of the Treasury is...
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Federal COVID-19 Relief Bill Brings State Tax Policy to a Grinding Halt
By Stephen P. Kranz, Mark Nebergall and Eric D. Carstens on Mar 16, 2021
Posted In Constitutional Issues, Franchise Tax, Incentives, Income Tax, Local Tax, Nationwide Importance, Property Tax, Sales Tax, Tax Base
On March 11, 2021, US President Joe Biden signed the American Rescue Plan Act of 2021 (ARPA), the COVID-19 relief bill that includes $350 billion in relief to states and localities. To prevent states from using federal relief funds to finance tax cuts, Congress included a clawback provision requiring that any relief funds used to...
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Maryland Digital Advertising Services Tax—Implementation Delay Likely
By Michael Kimberly, Stephen P. Kranz and Mark Nebergall on Mar 2, 2021
Posted In Allocation/Appointment, Constitutional Issues, Maryland, Nationwide Importance
On the morning of Friday, February 26, 2021, the Maryland Senate Budget and Taxation Committee added a new item to its agenda for the hearing later that morning. The new item was proposed amendments to Senate Bill 787, a bill that would amend the Maryland Digital Advertising Tax by excluding broadcasters and news media and...
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Maryland Enacts First Digital Advertising Services Gross Receipts Tax: Now What?
By Stephen P. Kranz, Mark Nebergall and Eric D. Carstens on Feb 12, 2021
Posted In Allocation/Appointment, Connecticut, Constitutional Issues, Indiana, Maryland, Montana, Nationwide Importance, New York, Oregon, Washington
General Assembly Veto Override On February 12, 2021, the Maryland General Assembly overrode Governor Larry Hogan’s veto of HB 732 (2020) (the Act), a bill enacting a first-of-its-kind digital advertising services tax on the annual gross receipts from the provision of digital advertising services in Maryland. The tax only applies to companies having annual gross...
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Batten Down the Hatches: Digital Tax Nor’easter Coming This Fall
By Eric D. Carstens, Mark Nebergall and Stephen P. Kranz on Jun 28, 2019
Posted In Connecticut, Rhode Island, Sales Tax, Tax Base
Recently passed budget legislation in both Connecticut and Rhode Island included tax increases on sales of digital goods and services. The Connecticut bill has been signed into law. The Rhode Island bill passed late last night awaits executive action. Below are brief summaries of the impacts of these bills on the sales taxation of digital...
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Wisconsin Enacts Discriminatory Exit Charge for Businesses Moving out of State
By Mark Nebergall and Stephen P. Kranz on Jun 28, 2019
Posted In Constitutional Issues, Income Tax, Tax Base
On June 24, 2019, Wisconsin Governor Tony Evers (D), signed into law AB 10, entitled “2019 Wisconsin Act 7.” This Act either bars a deduction for, or requires that amounts deducted be added back to, Wisconsin taxable income “for moving expenses” deducted on federal income tax returns if the expenses are associated with a move...
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