Category Archives: Legislation

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Florida’s Business Rent Tax Reduction Coming June 1, 2024

On June 1, 2024, Florida’s business rent tax will be automatically slashed from a 4.5% rate to a 2.0% rate due to implementation of its 2021 Wayfair legislation. Florida’s passage of Chapter 2021-2, Laws of Florida adopted economic nexus concepts related to the retail sale of tangible personal property by remote sellers and marketplaces. Part of the … Continue Reading

South Carolina Legislature Reinforces Separate Reporting Regime, Slapping Department on the Wrist

Last week, South Carolina Governor McMaster signed into law Act No. 113 in a much needed reproach to the Department of Revenue’s aggressive attempts to undermine the state’s separate reporting regime for apportioning corporate income. While the law creates a new paradigm for how and in what manner the state or taxpayer may obtain alternative … Continue Reading

La. Governor Issues Executive Order Regarding ITEP

On February 21, 2024, Governor Jeff Landry issued Executive Order No. JML 24-23 (EO No. 23-24) providing for the conditions for participation in the state’s Industrial Tax Exemption Program (ITEP). The ITEP provides for a property tax exemption for manufacturing facilities. Under the Louisiana Constitutional, art. 7, Section 21(F), subject to terms approved by the Governor, … Continue Reading

Equifax Rises from Its Grave; Will the Mississippi Supreme Court Finally Bury this Procedural Monster for Good?

Mississippi Taxpayers should keep a very close eye on the Toolpushers Supply sales tax case just granted certiorari by the Mississippi Supreme Court.  This case addresses important sales tax issues related to wholesale sales and the extent to which a seller must audit its purchaser’s downstream use of the goods on purported resale transactions.  More … Continue Reading

New York Formally, and Finally, Proposes Regulations Concerning 2015 Corporate Tax Reform

The New York State Department of Taxation and Finance has formally proposed its 2015 corporate tax reform regulations under the State Administrative Procedure Act (SAPA). The regulations have been submitted for publication in the August 9, 2023 edition of the State Register.  These regulations have a long history. There were several iterations of the draft … Continue Reading

Mississippi’s New Software Direct Pay Permit Now Available Online

Mississippi’s new direct pay permit for purchases of computer software and computer software services is now available on the Department of Revenue’s website.  The Mississippi Legislature authorized this new permit earlier this year as part of the state’s comprehensive legislation on the taxation of remote software and services (see prior coverage here), which went into … Continue Reading

Louisiana Franchise Tax Phase-Out Vetoed by Governor

Louisiana Senate Bill 1 of the 2023 Regular Session, which provides for a phase-out of the Louisiana corporation franchise tax, has been vetoed by Governor Edwards. SB 1 by Senator Allain would have reduced the franchise tax by 25% per year, provided certain benchmarks for deposits into the Revenue Stabilization Trust Fund were met until … Continue Reading

Mississippi’s New Comprehensive Software Sales Tax Laws – What You Need to Know

The Mississippi Legislature recently enacted SB 2449 (effective July 1, 2023) to address longstanding issues related to how the state taxes remote software and computer services.  What began in 2021 with an effort by the Mississippi Department of Revenue to update and modernize its sales tax regulations (albeit with a significant expansion of the tax … Continue Reading

Recent Obstacles to New Chicago Mayor’s Campaign Budget Proposals will likely Increase the Temperature on the Transaction Tax

The very first “courtroom” I ever entered as a newly minted lawyer was at the Chicago Administration Hearings Department at 400 W. Superior Street. That case, if I recall correctly, was about the city’s Real Property Transfer Tax and what portion of the sales price in a particular transaction was attributable to the transfer of … Continue Reading

Big SALT Changes in the Louisiana Legislature

Unless otherwise indicated, all bills noted below have been passed by the legislature and are waiting on signature or veto by the governor. Our discussion of each bill assumes the bill is or becomes law. SB1 by Senator R. L. Bret Allain, II TAX/FRANCHISE/CORPORATE:  Phases-out the corporate franchise tax. SB 1 reduces the corporate franchise … Continue Reading

New York ALJ Narrows the Definition of “Sale” for Apportionment Purposes

In Matter of Sunoco Inc. (R&M) Combined Affiliates, a Division of Tax Appeals Administrative Law Judge (ALJ) determined that Sunoco’s sale of oil pursuant to buy/sell arrangements was not a “sale” for purposes of computing Sunoco’s New York State Article 9-A sales factor.   The ALJ’s determination was based upon her finding that Sunoco was exchanging the … Continue Reading

New Automatic Filing Extensions for Certain Louisiana Taxpayers

In the 2022 Louisiana Regular Legislative Session, the Louisiana Legislature enacted Act 410, modifying the deadlines for filing partnership, fiduciary, and corporate income tax returns. Specifically the Act obsoleted the process by which most taxpayers obtained extensions of time to file. These changes were then implemented by the Louisiana Department of Revenue (the Department) in final regulations … Continue Reading

Budget Bill would Shake Up Tax Litigation in New York

The New York Budget Bill, SB.4009/A.B.3009, introduced on Sunday includes a provision allowing the NYS Department of Taxation and Finance (“Department”) to appeal determinations of the Tax Appeals Tribunal to the New York State Appellate Division under certain circumstances. Currently, the Tax Law allows only the taxpayer to appeal determinations of the Tax Appeals Tribunal. Specifically, … Continue Reading

Mississippi Moves Forward with Remote Software Sales Tax Legislation

The Mississippi House of Representatives yesterday amended S.B. 2449 to adopt comprehensive provisions regarding the sales and use taxation of remote software and related services.  This amendment codifies the Department of Revenue’s existing regulation that “computer software maintained on a server located outside the state and accessible for use only via the Internet is not … Continue Reading

Mississippi Legislature Takes Up Pass-Through Entity Election Technical Corrections Bill

The Mississippi Legislature has taken up two bills this session [HB 1668 / SB 3102] intended to correct several technical issues contained in last-year’s pass-through entity (“PTE”) election legislation.  See our prior coverage of the original PTE legislation here and here, as well as concerns about estimate payment penalties here.  As of this date, both … Continue Reading

Addendum – Estimated Tax Payments: Mississippi Follows the National Pass-Through Entity Tax Election Trend — Start Now to Make a 2022 Tax Election

Addendum – Estimated Tax Payments:  Just after our article went to press, we received some informal guidance from the DOR regarding estimated tax payments that presents a bit of a conundrum for those considering the PTE election.  As explained below, it may be necessary to make duplicate estimated payments at both the entity and partner/member … Continue Reading

Mississippi Follows the National Pass-Through Entity Tax Election Trend — Start Now to Make a 2022 Tax Election

This year, a number of state legislatures considered and passed legislation that creates a pass-through entity (PTE) tax as a workaround to the $10,000 cap on the state and local tax (SALT) itemized deduction. Nearly 30 states have enacted a PTE tax. Mississippi is one of the more recent states to join the ranks. Beginning … Continue Reading

Louisiana Tax Commission Sets Dates for 2023 Rules and Regulations Sessions

For anyone interested in Louisiana property tax issues, the Louisiana Tax Commission has given notice of the dates for its annual Rules and Regulations hearings. Any interested party can submit a proposal to amend the current regulations to the Commission during this process. The Commission accepts written proposals that are presented in an open Commission … Continue Reading

Mississippi Enacts Pass-Through Entity Income Tax Election/ SALT Cap Workaround

Mississippi recently passed a SALT cap workaround in the form of a flow-through entity election. Consistent with the roughly 26 other states having adopted similar schemes, the Mississippi bill presents several grey areas and questions that will need to be addressed through Department of Revenue guidance or possible technical corrections. H.B. 1691, signed into law … Continue Reading

Louisiana Tax Commission Issues Statewide Advisory Regarding Severe Weather Event on March 22

As we have written before, any property owner whose property has been damaged or rendered non-operational as a result of an emergency declared by the governor can seek a reduction in the value of their affected property even though January 1st has passed. See La. R. S. 47:1978.1. On March 23, 2022, Louisiana Governor John … Continue Reading

Louisiana Department of Revenue Updates Partnership Reporting Requirements

In the 2021 Louisiana Regular Legislative Session, the Louisiana Legislature enacted Act 287 making wholesale changes to the Louisiana income tax reporting and audit regime for partners and partnerships.  Effective June 2021, the Act’s updated reporting obligations were made applicable to 2021 returns filed in 2022, prompting a need for guidance with respect to how … Continue Reading
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