Michael Jacobs

Michael Jacobs

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Pa. Governor’s Budget Proposal – 'No Broad-based Tax Increases'?

Pennsylvania Gov. Tom Wolf presented his budget address February 7, 2017. The proposed budget seeks $1 billion in new revenue from several tax proposals, such as a severance tax on natural gas drilling, corporate net income...more

2/10/2017 - Governor Wolf Income Taxes State and Local Government State Budgets State Taxes

Governor Baker Releases Proposed FY 2018 Budget Including Extending Sales Tax Collection to Online Retailers and Expanding Room...

On January 25, 2017, Governor Charlie Baker released his proposals for the Commonwealth’s fiscal year 2018 budget. Among the proposed tax/revenue changes in the proposal are the following: 1. Extending sales tax...more

2/6/2017 - Department of Revenue Sales Tax State and Local Government State Budgets State Taxes

The Nomination of Judge Neil Gorsuch: One More Vote to “Kill Quill”?

With states like Alabama and South Dakota attempting to place Quill’s physical presence rule before the U.S. Supreme Court, Judge Gorsuch’s concurring opinion in Direct Marketing v. Brohl—and his previous clerkship with...more

2/2/2017 - Judicial Appointments Neil Gorsuch Nominations SCOTUS Trump Administration

(US) There Are Two New York Real Estate Transfer Tax Proposals to Watch in Governor Cuomo’s Proposed Budget

New York Governor Andrew Cuomo introduced his FY 2018 budget proposal on January 17. The proposal includes several significant revenue-raisers, including a few that could impact the New York real estate market....more

1/25/2017 - Property Owners Property Tax Real Estate Market Real Estate Transfers Transfer Taxes

Supreme Court of Ohio Sustains Factor-Presence Nexus for Some, But Opens Door for Apportionment of CAT Receipts for All

Yesterday, the Supreme Court of Ohio upheld the Ohio Commercial Activity Tax’s (“CAT”) $500,000 factor-presence nexus test in the face of a Commerce Clause challenge. Specifically, in Crutchfield Corp. v. Testa, the court...more

11/18/2016 - Commerce Clause Commercial Activity Tax Nexus OH Supreme Court Physical Presence Test Quill State Taxes

Revitalized by Increased State Interest, the MTC Transfer Pricing Committee Pushes Ahead

On November 9, the Multistate Tax Commission’s Transfer Pricing Committee met to continue its effort to develop and implement a comprehensive transfer pricing program, through which states can identify and remedy allegedly...more

11/10/2016 - Arms Length Transactions Legitimate State Interest Multistate Tax Commission Transfer Pricing

Virginia Supreme Court Grants Discretionary Review in Lead Addback Case

The Virginia Supreme Court has granted review of the Richmond City Circuit’s decision regarding the “subject to tax” exception to intangible addback. In a case of first impression, the Richmond City Circuit had determined...more

11/2/2016 - Discretionary Clauses State Taxes VA Supreme Court

Maryland Tax Court Overturns Comptroller's Policy of Limiting Subtraction for Interest Received on Federal Obligations

The Maryland Tax Court recently ruled that a bank was entitled to deduct all of its interest received with respect to federal obligations for Maryland corporate income tax purposes, thereby generating net operating losses...more

8/24/2016 - Comptroller Constitutional Challenges Corporate Taxes Interest Income Net Operating Losses Reversal Supremacy Clause Tax Court Tax Deductions

With a New Name, MTC Transfer Pricing Program Moves Forward

On August 18, 2016, the Multistate Tax Commission’s Transfer Pricing Committee voted to adopt an Information Exchange Agreement, which permits states to share taxpayer information with other states participating in the...more

8/19/2016 - Arms Length Transactions Information Sharing Internal Revenue Code (IRC) IRS Multistate Tax Commission Transfer Pricing

Massachusetts SJC Reaffirms Decision Sourcing 100% of Taxpayer’s Loans to Massachusetts — Confirms Opportunity for Out-of-State...

On August 12, 2016, the Massachusetts Supreme Judicial Court issued its decision in First Marblehead on remand from the U.S. Supreme Court. The decision reaffirms that many taxpayers that (1) file as financial institutions in...more

8/16/2016 - Commerce Clause Comptroller of the Treasury v Wynne Double Taxation Financial Institutions First Marblehead v MA Commissioner of Revenue Loans MA Supreme Court Remand Securitization Vehicles SINAA Test

MTC Annual Meeting Update: Market-Sourcing Regulations Presented to Executive Committee

On July 28, the Multistate Tax Commission (“MTC”) held its Executive Committee Meeting. The Executive Committee voted to accept the Uniformity Committee’s recommendations for a taxpayer’s prospective change in its method of...more

7/29/2016 - Apportionment Broker-Dealer Financial Institutions Gross Receipts Hedging Market Based Approach Multistate Corporations Multistate Tax Commission Multistate Tax Compact Proposed Amendments State Taxes UDITPA

MTC Annual Meeting Update: MTC Approves Model Sales and Use Tax Nexus Statute

The Multistate Tax Commission (“MTC”) held its Annual Commission Meeting on July 27, 2016. Of note, the MTC voted to adopt the Model Sales and Use Tax Nexus Statute. In addition, the Arm’s-Length Adjustment Service Committee...more

7/28/2016 - Arm's Length Principle Multistate Tax Commission Nexus Physical Presence Test Quill Retailers Sales & Use Tax State Taxes Tax Audits Transfer Pricing

Pennsylvania Enacts Tax Bill as Part of Budget Package

Pennsylvania has enacted tax law changes projected to generate $752M in new revenue. The changes include severe restrictions on the vendor sales tax discount for timely filing, imposition of sales tax on digital downloads and...more

7/15/2016 - Banks Corporate Taxes Digital Downloads Gaming Tax Governor Wolf Income Taxes Internet Streaming Lottery Personal Property Tax Sales Tax Software State Taxes Tax Amnesty Tax Returns Tobacco Vendors

Massachusetts Court Issues 'True Debt' Decision

On June 8, the Massachusetts Appeals Court once again denied a taxpayer’s claimed deductions from the income and net worth tax base of the corporate excise tax. In a decision that will be a disappointment for taxpayers...more

6/10/2016 - Audits Corporate Taxes Cross-Border Transactions Debt Department of Revenue Excise Tax Intercompany Transactions IRS Statements of Net Worth Tax Deductions Taxable Income

Tom Brady’s suspension reinstated, so what are the potential Massachusetts tax consequences?

Deflategate and the NFL’s suspension of quarterback Tom Brady for 4 games has been the NFL’s biggest news story of the past two years. On April 25, 2016, the United States Court of Appeals for the Second Circuit ruled in...more

4/28/2016 - Athletes Bonuses Deflategate Employment Contract Income Taxes New England Patriots NFL State Taxes Tom Brady Work Suspensions

Mark Nunnelly Leaving Position as DOR Commissioner – DOR Now Seeking 3rd Commissioner in Less Than 2 years

Governor Charlie Baker’s office announced in a press release today that Mark Nunnelly has accepted a new role as Executive Director of MassIT, the state technology office, beginning April 4. In that role, Mr. Nunnelly is...more

3/16/2016 - Department of Revenue Governor Baker Information Technology

Massachusetts Net Worth “True Debt” Litigation Moves Forward—Oral Argument Held, Awaiting Decision

With oral argument and briefing complete, the Massachusetts Department of Revenue’s authority to increase the net worth component of a taxpayer’s corporate excise using its “true debt” analysis is under review by the Appeals...more

3/4/2016 - Appeals Corporate Taxes Debt Excise Tax Income Taxes International Finance Statements of Net Worth

Massachusetts Department of Revenue Launches Pilot Program for Settling Uncertain Tax Issues—Lack of Anonymity in Settlement...

Continuing its efforts to improve the process for resolving tax disputes in Massachusetts, the Massachusetts Department of Revenue has released final AP 637 Voluntary Disclosure Program for Settlement of Uncertain Tax Issues...more

2/16/2016 - Anonymity Audits Department of Revenue Settlement Agreements State Taxes Tax Appeals Voluntary Disclosure

Virginia Trial Court Rules Against Taxpayer in Addback Case

In a case of first impression, the Richmond City Circuit has determined that Virginia’s “subject to tax” exception to intangible expense addback only applies to the portion of the royalty that the recipient included in its...more

2/10/2016 - Add-Back Legislation Exceptions First Impression Income Taxes Royalties Tax Litigation Trial Court Orders

Pennsylvania Department of Revenue Releases Discussion Draft of Add-Back Notice

On February 2, 2016, the Pennsylvania Department of Revenue (the “Department”) released its first effort at providing public guidance regarding Pennsylvania’s intangible expense add-back provision. In its Discussion Draft of...more

2/3/2016 - Add-Back Legislation Business Taxes Department of Revenue Draft Guidance Exceptions

Supreme Judicial Court Rules Against Taxpayer in Regency Transportation

On January 6, the Massachusetts Supreme Judicial Court (“SJC”) issued its decision in Regency Transportation v. Commonwealth, finding against the taxpayer. The taxpayer in Regency was a trucking company that purchased...more

1/11/2016 - Commerce Clause Department of Revenue MA Supreme Court Sales & Use Tax Trucking Industry

Massachusetts Joint Committee Hears Testimony Yesterday on Bill to Ban Use of Contingent Fee Auditors

Yesterday, the Massachusetts Legislature’s Joint Committee on State Administration and Regulatory Oversight heard testimony on Senate Bill 1710, a bill that would prohibit the use of contingent fee auditors by state agencies,...more

11/11/2015 - Auditors Audits Contingency Fees Legislative Committees Public Policy

Supreme Judicial Court hears Oral Argument in Regency

Today, the Massachusetts Supreme Judicial Court (“SJC”) heard oral argument in Regency Transportation v. Commonwealth, a case in which the taxpayer is challenging the Department of Revenue’s assessment of use tax on the full...more

11/6/2015 - First Marblehead v MA Commissioner of Revenue MA Supreme Court Sales & Use Tax SCOTUS State Taxes

U.S. Supreme Court Vacates Decision in First Marblehead; Remands to Massachusetts Supreme Judicial Court

On October 13, the United States Supreme Court granted a request for review in the case of First Marblehead Corporation v. Massachusetts Commissioner of Revenue, and summarily vacated the decision issued January 28, 2015, by...more

10/17/2015 - Comptroller of the Treasury v Wynne Dormant Commerce Clause Double Taxation Financial Institutions First Marblehead v MA Commissioner of Revenue Loans MA Supreme Court Remand SCOTUS SINAA Test Tax Appeals Vacated

Breaking News: U.S. Supreme Court Vacates Decision in First Marblehead; Remands to Massachusetts Supreme Judicial Court

Today, the United States Supreme Court granted a request for review in the case of First Marblehead Corporation v. Massachusetts Commissioner of Revenue, and summarily vacated the decision issued January 28, 2015, by the...more

10/14/2015 - Dormant Commerce Clause Double Taxation Financial Institutions First Marblehead v MA Commissioner of Revenue Income Taxes Interstate Commerce Local Taxes SCOTUS State Taxes

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