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 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 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
With the fifth anniversary of Wayfair last week, the fallout from that case has been a hot topic recently. One day before the anniversary, the U.S. Supreme Court issued an order denying cert in Quad Graphics Inc. v. North Carolina Department of Revenue, signaling what will likely be a long hiatus for the Supreme Court … Continue Reading
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
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
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
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
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
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
Governor Tate Reeves this week signed into law H.B. 549 to enact a new sales tax exemption for items manufactured in the state and exported for first use in another state, regardless of the party or means by which those goods are delivered. While Mississippi already offered a broad 48-hour vehicle export exemption and also … Continue Reading
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
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
At the Supreme Court early with my great friend Pat Reynolds of COST. Following National Pork Producers case, will it be a sleeper SALT case? Will Pike balancing test be toast? Is the dormant Commerce Clause really a “dead letter”? Looking forward to watching my first oral arguments.… Continue Reading
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
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
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 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
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
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
Today the Mississippi Senate released a summary of its proposal for income tax reform. Readers may recall the House passed its proposal, HB 531, and passed it on January 13 (see our prior coverage). That bill has been transmitted to the Senate and referred to the Finance Committee. While the Senate has not yet introduced … Continue Reading
Today the Mississippi House of Representatives filed and passed out of the Ways and Means Committee H.B. 531 which appears to represent the House leadership’s income tax elimination proposal for the 2022 session. The bill, which is 294 pages long, appears to have the following primary features: Quantifies the amounts by which actual fiscal year … Continue Reading
In anticipation of the upcoming public hearing on Mississippi’s proposed amendments to its sales tax regulation on Computer Equipment, Software and Services, Jones Walker recently submitted a letter to the Mississippi Department of Revenue summarizing a wide range of questions and issues raised by the proposal. These questions were compiled as a result of discussions … Continue Reading
UPDATE: In response to widespread interest in these changes, the Mississippi Department of Revenue this afternoon scheduled a public hearing on the proposed amendments. The hearing is set for Wednesday, November 3 at 1:30. Interested parties are encouraged to identify specific questions and issues to present to the Department at the hearing. Jones Walker is … Continue Reading
