The American Catalog Mailers Association (ACMA), which describes itself as the nation’s leading industry trade association advocating for catalog, online, direct mail, and other remote-selling merchants and their suppliers, has filed suit against the California Franchise Tax Board (FTB) in the San Francisco County Superior Court of California. ACMA’s complaint…
Articles Posted in States
Pennsylvania Legislation Provides Updates to Corporate Income Tax Law
The Pennsylvania Governor signed H.B. 1342 to enact changes to the state’s corporate income tax.[1] The legislation modifies the corporate income tax in three ways: (1) adopts a bright-line economic nexus standard; (2) adopts market sourcing for receipts from intangibles; and (3) reduces the corporate tax rate and gradually continues…
New Jersey Supreme Court Requires Factual Record in Jersey City Payroll Tax Dispute
The New Jersey Supreme Court upheld a lower court decision that Jersey City’s payroll tax was not a facial violation of the U.S. Constitution but remanded the matter to create a factual record to evaluate an as-applied challenge to the tax. Enacted in 2018, the Jersey City payroll tax applies…
California Court Holds Nonresidents’ Pass-through Income from Intangibles Is Taxable if It Is Classified as Business Income at the Entity Level.
The California Court of Appeal held a nonresident S corporation shareholder’s pro rata share of gain on the sale of goodwill classified as business income by the S corporation has a California source and is subject to tax for personal income tax purposes to the extent of the S corporation’s…
New Tax Legislation Shifts Consolidated Return Landscape in Georgia
Pillsbury SALT attorneys Zachary T. Atkins, Evan M. Hamme, Jack Thomas Camillo discuss new tax legislation in GA. Takeaways For tax years beginning on or after January 1, 2023, affiliated groups may elect to file a consolidated Georgia income tax return without having to seek the permission of the Georgia Department of…
Broker-Dealer Successfully Fights Look-Through Sourcing in New York
An administrative law judge in the New York State Division of Tax Appeals rejected the New York State Division of Taxation’s use of a look-through approach for sourcing fees paid to a broker-dealer for marketing, recordkeeping, and support services. The April 28, 2022 determination in Matter of TD Ameritrade, Inc.,…
Texas Supreme Court Sides with Sirius XM’s “Straightforward” Interpretation of Service Receipt Sourcing Statute
The Texas Supreme Court issued a decision holding that service receipts are sourced to the physical location of the taxpayer’s personnel or equipment that performed the service for which the customer paid. The decision resolves disagreement regarding the proper interpretation of a Texas franchise tax apportionment statute that addresses the…
Contractual Delivery Terms Control Application of Alabama’s Wholesale Oil License Fee
The Alabama Tax Tribunal held the taxpayers’ wholesale sales of fuel that entered and exited the state via the Colonial Pipeline were subject to the state’s wholesale oil license fee. The sales in question were made to Alabama license holders and involved fuel imported from out-of-state. The fuel would either…
California Tax Credits and NOL Deductions Are Back! Governor Signs Legislation Reinstating Business Taxpayer Benefits Limited by 2020 Legislation
California Governor Gavin Newsom has signed legislation (i.e., S.B. 113) to, among other things, reinstate business tax credits and net operating loss (NOL) deductions originally limited by the enactment of A.B. 85 in 2020. At the beginning of the pandemic, California anticipated the state would face a large tax revenue…
Trade Groups Ask SCOTUS to Hear Commerce Clause Challenge to Washington B&O Surtax on Financial Institutions
Two organizations, the Washington Bankers Association and American Bankers Association (collectively, the “Associations”), are urging the U.S. Supreme Court to review the constitutionality of Washington’s business and occupation surtax on large financial institutions. On January 28, 2022, the Associations filed a cert petition arguing that the surtax discriminates against interstate…