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Tax Law Roundup current law developments in U.S. taxation

Category Archives: State and Local Tax

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Supreme Court Rules on Limits of State Taxing Authority – Refund Claims in Order

Posted in State and Local Tax, Tax Credits

In Comptroller v. Wynne, the Supreme Court ruled that individuals who earn income in states in which they do not reside may be entitled to refunds if the taxes they pay to the nonresident state are not fully creditable against their resident state taxes. This case involved residents of Maryland who held interests in an… Continue Reading

Massachusetts Software Tax Repealed After Two Months

Posted in State and Local Tax

Recently we reported that Massachusetts had extended sales and use tax to computer and software services despite significant protests from the technology industry.  In an abrupt change of mind, that state of Massachusetts has now repealed this tax through H.B. 3662.  According to a government representative the so-called tech tax was broader than they intended… Continue Reading

Massachusetts Sales and Use Tax Extended to Computer and Software Services

Posted in General, Sales Tax, State and Local Tax

As of July 31, the Massachusetts 6.25% sales and use tax was extended to specific computer and software services.  New Massachusetts Department of Revenue (DOR) guidance addresses some of the practical questions.  The new guidance takes the form of both Frequently Asked Questions and Technical Information Release 13-10.  The DOR has requested that comments and… Continue Reading

October 20 Deadline for Expanded DC “Use” Tax Filing Obligation

Posted in State and Local Tax

The District of Columbia (DC) recently changed its laws to expand the scope of businesses subject to the “use” tax, which was previously limited to businesses that were otherwise subject to DC sales tax.  October 20, 2012 is the deadline for the initial return, which covers the period October 1, 2011 through September 30, 2012…. Continue Reading

DC Re-Proposes Combined Reporting Regulations

Posted in General, State and Local Tax

On August 31, the District of Columbia (DC) issued new re-proposed regulations on the Combined Reporting legislation that applies to tax years beginning after December 31, 2010.   The revised rules replace the January 2012 proposed regulations, and include a series of clarifications, clean up changes, and examples.  The changes include (1) clarification as to the… Continue Reading

DC Clarifies Recording Tax On Refinanced Loans Excludes Original Principal

Posted in State and Local Tax

The DC Office of Tax and Revenue (OTR) has received substantial press recently about whether they should have been collecting recordation taxes on the entire principal or just the “new” excess principal when an existing real estate loan was refinanced.  This technical issue in the law has caused much concern in the DC real estate… Continue Reading

Proposed Regulations Issued for DC’s New Combined Reporting Rules

Posted in Corporate, General, REITs, State and Local Tax

In the fall of 2011, the District of Columbia (DC) adopted a “combined reporting” regime that effectively shares the taxable income of a DC subsidiary to certain related non-DC corporations.  Other states have adopted similar rules, although the specifics vary significantly per state on questions such as whether related non-DC corporations are removed from combined… Continue Reading

New “Amazon” Legislation on Internet Sales Remote Sales Tax Legislation Introduced in the Senate

Posted in General, Legislative, State and Local Tax

A bipartisan group of senators has introduced S. 1832, which would authorize and provide a streamlined process for states to require sellers, such as Amazon, to collect sales tax on remote transactions.  Similar legislation was recently introduced in the House (H.R. 3179) in October.  Under the proposed Senate legislation, businesses with less than $500,000 in… Continue Reading

DC Combined Reporting For Corporations Becomes Effective

Posted in General, State and Local Tax

On  September 14th, 2011, the District of Columbia Fiscal Year 2012 Budget Support Act of 2011 (“Budget Act”) became law, which is earlier than the initially anticipated effective date of October 21, 2011.  The Budget Act contains several changes to DC tax rules including creating a combined reporting for multistate corporations.  The DC combined reporting… Continue Reading