Jones Walker’s SALT Team Presents Webinar: The Time is Now – 2020 Tax Traps and 2021 Planning

‘Tis the season for the final 2020 Jones Walker SALT Team webinar, titled “The Time Is Now – 2020 Tax Traps And 2021 Planning.” In this year-end state & local tax webinar, the Jones Walker SALT Team will help to ensure that you’re making a list, checking it twice… and doing it correctly, or it won’t be nice!

Please join us for a discussion of various year-end action items, planning opportunities, deadlines, obstacles, and potential “foot faults” that companies should be aware of and consider in their year-end state and local tax activities, including those concerning:

  • Audits and related prescription (statute of limitations) issues and waiver considerations/requirements
  • Refund claims and related prescription (statute of limitations) issues and requirements
  • Workforce planning/locations and related nexus or tax reporting issues and considerations
  • Credits and incentives requirements
  • Property tax issues, such as taxability, property location, and valuation (including informational support for issues such as obsolescence, etc.)

As the old holiday saying goes, “the best way to spread tax department cheer is planning now, instead of next year!”

When: Thursday, December 10, 2020 | 12:00 – 1:00 p.m. CST

Presenters:

Webinar Registration Details: Registration is complimentary. Contact cfarley@joneswalker.com

This program is intended for intermediate to advanced practitioners in state and local tax administration and those doing business in Louisiana and Mississippi. The full day’s program has been recommended for 1 hour of Texas and Louisiana CPE. This course or a portion thereof has been approved by the Mandatory Continuing Legal Education Committee of the Louisiana State Bar Association for a maximum of 1 hour credit. An application for accreditation of this activity has been submitted to the MCLE Committee of the State Bar of Texas and is pending.

Mississippi Governor Proposes Elimination of Individual Income Tax

In a Monday press conference on Facebook Live, Mississippi Governor Tate Reeves laid out an ambitious plan to eliminate the state’s individual income tax in the upcoming legislative session starting in January.  The tax, levied at a maximum rate of 5%, was trimmed in 2016 when the Legislature eliminated the 3% tax bracket levied on the first $5,000 of income.  That phase out is scheduled to be complete by 2022, after which time Mississippi will levy a 4% tax on income from $5,000 to $10,000, and a 5% tax on all amounts in excess of $10,000, with the first $5,000 of income not taxed.  The elimination of the 3% bracket and the remaining rate brackets apply to both corporate and individual taxpayers.

Under the Governor’s plan, the state would phase out the existing 4% rate bracket over the next five years, and then the top 5% bracket by 2030, after which there would be no individual income tax.

Individual income tax receipts in the upcoming 2021 fiscal year are expected to account for just over $2 Billion – roughly 35% – of the state’s total $5.5 Billion in tax revenue.  When coupled with the ongoing phase-out of the corporate franchise tax, elimination of the individual income tax will put significantly more pressure on the sales and corporate income taxes to fund the state’s coffers.

REMINDER: Alabama Department of Revenue Now Requires Annual Renewal of Alabama Tax Licenses, Beginning November 1, 2020

This is a reminder to all businesses registered in Alabama for sales, rental, sellers use, lodgings, utility gross receipts, or simplified sellers use tax purposes and who are required under current law to obtain a corresponding license from the Alabama Department of Revenue (ADOR) that you are now required to renew these licenses annually beginning November 1, 2020, according to the Notice of Annual Renewal of Alabama Tax Licenses issued by the ADOR on October 1, 2020.

The ADOR has implemented this new process pursuant to Alabama Administrative Rule 810-6-5-.01.01, which became effective February 2020.

The ADOR also issued a subsequent press release on October 28, 2020 regarding this issue.

Beginning November 1, 2020, each calendar year a business entity must apply for a new tax license, which will be generated by the ADOR when the business applies for renewal during the applicable annual renewal period (November 1–December 31 of each year). Thus, beginning this year, the tax licenses will only be valid for one year and must be renewed again each year.

The new Notice was quietly issued by the ADOR, but it should not be ignored. Beginning November 1, taxpayers will have two months (until December 31) to provide the applicable information to the ADOR and request renewal of any current tax licenses.

Businesses can utilize the My Alabama Taxes (MAT) portal/website to verify or update their applicable business information in order to generate a new tax license for the upcoming year.

The ADOR has also now published a detailed set of Step by Step Instructions for License Renewal to assist impacted taxpayers with their respective tax license renewals via the MAT portal/website.

In addition, the ADOR has published FAQs addressing this issue.

According to the ADOR’s Notice, the purpose for such annual tax license renewals is so that the ADOR can verify the business is continuing to operate in the same business entity type for which the existing tax license was issued. If the business’ entity type has changed, then the business will need to apply for a new tax license.

If a tax license is not renewed, the license will expire (and be canceled) after December 31 of that year, and the business will no longer be able to engage in transactions permitted under the previous license (such as the use of the tax license to make tax-exempt purchases for resale or rental purposes).

The ADOR will require the following information to be reviewed and/or updated for purposes of the tax license renewal (and will not renew the business’ tax license until the required information has been provided to the ADOR):

  • Current legal name – must be reviewed
  • Owner/officer/member information – must be reviewed and/or updated
  • Phone number(s) – must be reviewed and/or updated
  • Social security security numbers/FEINs – must be reviewed
  • Location address(es) including d/b/a names for each location – must be reviewed and/or updated
    • Main address must be reviewed
    • Location address(es) must be reviewed and/or updated

To reiterate, businesses will be required to renew Alabama tax licenses for the following tax types:

  • Sales tax
  • Rental tax
  • Sellers use tax
  • Lodgings tax
  • Utility gross receipts tax
  • Simplified sellers use tax

The Jones Walker State and Local Tax team will continue to monitor this new tax license renewal process in Alabama, and we will provide updates as any new issues arise.

Jones Walker LLP Authors:

Matt Mantle, Partner

Walt Terry, Associate

Jay Adams and Andre Burvant are Cooking Up “A Little Louisiana Lagniappe” at the COST Annual Meeting

On Wednesday, October 21, 2020, Jones Walker LLP SALT team members Jay Adams and Andre Burvant will present “A Little Louisiana Lagniappe” at the COST Annual Meeting. Be sure to watch as they cook up some salty and sweet treats!

Click here for more information on the COST Annual Meeting.

 

 

John Fletcher to Present at the COST Annual Meeting on Wednesday, October 21

Jones Walker LLP SALT team member John Fletcher will discuss “Uniformity in Sourcing Services: Should (& Why) Does Sourcing Services Differ for Sales Tax and Corporate Income Taxes?” at the COST Annual Meeting on Wednesday, October 21.

States have increasingly moved to market-based sourcing for services in the corporate income tax arena. Historically, states have used a destination/benefits-received analysis for sourcing services under their sales taxes. This session will address the issues with the sourcing of services for both types of taxes, along with explaining the “why and how” the sourcing is often inconsistent between state income and consumption taxes.

Speakers: Jeremy Abrams, Reed Smith, Washington, DC; John Fletcher, Jones Walker, Jackson, MS; Lynn Gandhi, Foley & Lardner, Detroit, MI; Zach Gladney, Alston & Bird, New York, NY

Click here for more information on the COST Annual Meeting.

Thank you for attending!

Thank you to everyone who attended our annual State & Local Tax Program! In lieu of sending out our favorite logo items to all of our attendees, we wanted to use those funds to instead give back to the individuals and communities that have had an especially difficult year.

If you know us, you know we love food and cooking. During these difficult times, many families and companies are struggling to stay afloat. We are very fortunate and wanted to help. We have made monetary donations to the following charities.

Thanks to your voting from the seminar, No Kid Hungry received the most votes for an additional donation.

We hope to see everyone in person again when the time is right and it is safe to do so!

Jones Walker SALT Team

Still Time to Register! Jones Walker LLP Annual SALT Seminar October 7 & 8

The Jones Walker LLP State & Local Tax team is back virtually this year with two half-days of webinar programming on October 7 and 8, 2020, titled “It’s All in the Roux!” This State & Local Tax workshop will be cooking up a gumbo of SALT topics featuring traditional favorites and some new flavors.

On day one, you will be instructed on how not to burn the roux (or get “burned” by the roux), as our SALT chefs give you the latest recipe for Louisiana state and local tax procedure. Then, we’ll stir in the “holy trinity” of Louisiana SALT updates – a discussion on recent Louisiana litigation, legislation, and administrative developments. After simmering for a bit, on day two, Chef Fletcher will throw in some Mississippi flavor by providing an update on hot and spicy SALT issues in the Magnolia State. Our SALT chefs will then finish off the gumbo by adding in a potpourri of SALT-y topics to season it just right. After a final Q&A with our SALT chefs, we recommend you serve over rice and enjoy. Bon appétit!

When: Wednesday, October 7 & Thursday, October 8, 2020 | 9:00 a.m. to 12:15 p.m. CDT

Where: Zoom Webinar

Webinar Registration Details: Registration is complimentary.

Questions or to Register: cfarley@joneswalker.com

This program is intended for intermediate to advanced practitioners in state and local tax administration and those doing business in Louisiana and Mississippi.

Jones Walker LLP Annual SALT Seminar October 7 & 8

The Jones Walker LLP State & Local Tax team is back virtually this year with two half-days of webinar programming on October 7 and 8, 2020, titled “It’s All in the Roux!” This State & Local Tax workshop will be cooking up a gumbo of SALT topics featuring traditional favorites and some new flavors.

On day one, you will be instructed on how not to burn the roux (or get “burned” by the roux), as our SALT chefs give you the latest recipe for Louisiana state and local tax procedure. Then, we’ll stir in the “holy trinity” of Louisiana SALT updates – a discussion on recent Louisiana litigation, legislation, and administrative developments. After simmering for a bit, on day two, Chef Fletcher will throw in some Mississippi flavor by providing an update on hot and spicy SALT issues in the Magnolia State. Our SALT chefs will then finish off the gumbo by adding in a potpourri of SALT-y topics to season it just right. After a final Q&A with our SALT chefs, we recommend you serve over rice and enjoy. Bon appétit!

When: Wednesday, October 7 & Thursday, October 8, 2020 | 9:00 a.m. to 12:15 p.m. CDT

Where: Zoom Webinar

Webinar Registration Details: Registration is complimentary.

Questions or to Register: cfarley@joneswalker.com

This program is intended for intermediate to advanced practitioners in state and local tax administration and those doing business in Louisiana and Mississippi.

Save the Date for Jones Walker LLP’s Annual State & Local Tax Program

It’s that time of year again! The Jones Walker State & Local Tax Team will be back virtually, for our annual State & Local Tax Program on Wednesday, October 7 and Thursday, October 8, 2020 for two half-days of content.

Our program will once again cover the most important Louisiana and Mississippi state and local tax issues currently facing taxpayers. While we are sad we are not able to see everyone in person this year, we hope you will join us virtually for great content, interactive presentations, and of course, special surprises!

Our morning sessions will be from 9:00 a.m. CDT to 12:15 p.m. CDT on Wednesday, October 7 and Thursday, October 8.

This program is intended for industry tax professionals. More information coming soon!

When: Wednesday, October 7 and Thursday, October 8 | 9:00 a.m. CDT to 12:15 p.m. CDT
Where: Zoom Webinar
Questions? Courtney Farley | cfarley@joneswalker.com

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