After refusing to back down on the issue for years, the Michigan Department of Treasury (Department) issued guidance last week to taxpayers announcing a change in its policy on the sales and use taxation of remotely accessed...more
Remote sellers making sales into Alabama have until January 1, 2016, to begin collecting sales tax regardless of their physical presence in the state or consider whether there is any impact on financial statement issues as a...more
On December 3, 2015, the D.C. Council Committee of the Whole held an advocates-only hearing on the Universal Paid Leave Act of 2015 (Act), which was introduced on October 6, 2015 by a majority of councilmembers. As...more
Two years ago, a former employee of Card Fact, LLC (subsequently purchased by Card Compliant), a company providing gift card issuance and management services to retailers, filed a false claims action in Delaware alleging that...more
Yesterday, the City of Chicago (City) Department of Finance (Department) published an Information Bulletin that provides additional guidance on the Personal Property Lease Transaction Tax (Lease Tax) and extends a new...more
After being in effect for only a week, the Council of the District of Columbia (Council) unanimously enacted legislation on November 3, 2015 that will repeal the list of tax haven jurisdictions specifically enumerated in the...more
Last week the Chicago City Council approved Mayor Rahm Emanuel’s 2016 revenue ordinance as part of his tax-laden budget proposal. The revenue ordinance included noteworthy changes to the personal property lease transaction...more
11/4/2015
/ City Councils ,
City of Chicago ,
City Taxes ,
Cloud Computing ,
Department of Finance ,
Internet Streaming ,
Local Ordinance ,
Mobile Devices ,
New Legislation ,
Online Videos ,
Personal Property Tax ,
Small Business ,
Startups ,
Tax Exemptions ,
Tax Rates ,
Video Games
On October 27, 2015, a three-judge panel sitting for the Michigan Court of Appeals unanimously affirmed a lower court decision finding that the use of cloud-based services in Michigan is not subject to use tax in Auto-Owners...more
10/30/2015
/ Appeals ,
Cloud Computing ,
De Novo Standard of Review ,
MI Supreme Court ,
Precedential Opinion ,
Sales & Use Tax ,
Software ,
Stare Decisis ,
State Taxes ,
Tangible Property ,
Third-Party Service Provider
In the latest development in the Florida litigation regarding the taxation of delivery charges, Judge Jack Tuter of the 17th Judicial Circuit Court of Florida determined that the complaint against Pizza Hut was sufficient to...more
Earlier this month, the United States Court of Appeals for the D.C. Circuit held in Florida Bankers Ass’n v. U.S. Dep’t of the Treasury, No. 14-5036 (D.C. Cir. Aug. 14, 2015) that the Anti-Injunction Act (AIA, codified at 26...more
9/3/2015
/ Anti-Injunction Act ,
Banking Sector ,
Direct Mkting Association v Brohl ,
Internal Revenue Code (IRC) ,
NFIB v. Sebelius ,
Notice Requirements ,
Reporting Requirements ,
SCOTUS ,
Tax Injunction Act ,
Tax Penalties ,
U.S. Treasury
As soon as we start to think that Delaware’s unclaimed property practices and administration couldn’t possibly get any more egregious, another lawsuit like JLI Invest S.A. et al. v. Cook et al., Case No. 11274 surfaces. The...more
8/26/2015
/ Conversion ,
Declaratory Judgments ,
Due Process ,
Escheat ,
Foreign Commerce ,
Good Faith ,
Gross Negligence ,
Injunctive Relief ,
Merck ,
Property Owners ,
Shareholders ,
Tender Offers ,
Unclaimed Property
On Tuesday, July 14, 2015, at their Annual Meeting the Uniform Law Commission (ULC) completed their first reading of the Revised Uniform Unclaimed Property Act (RUUPA or the Act). While over half of the sections comprising...more
On June 18, 2015, a bill (S.B. 141) was unanimously approved by the Delaware Senate that would place limits on the look-back period and permanently extend the Voluntary Disclosure Agreement (VDA) program. This represents the...more
Yesterday, on June 17, 2015, three state tax bills were favorably reported to the United States House of Representatives (House) by the House Judiciary Committee (House Judiciary) after considering each during a half-day...more
Today, Representative Jason Chaffetz introduced H.R. 2775, the Remote Transactions Parity Act of 2015 (RTPA), in the United States House of Representatives (House).
The RTPA addresses the Internet sales tax issue using...more
With many state legislatures wrapping up session within the past month or so, there has been a flurry of last-minute tax amnesty legislation passed. Nearly a half-dozen states have authorized upcoming tax amnesty periods....more
In a curious decision out of Arizona, an Administrative Law Judge (ALJ) found an out-of-state provider of online research services was properly assessed transaction privilege tax (TPT, Arizona’s substitute for a sales tax)...more
The Fiscal Year 2016 Budget Support Act of 2015 (BSA), introduced by the Washington, D.C. Council at the request of Mayor Muriel Bowser on April 2, 2015, contains a subtitle (see Title VII, Subtitle G, page 66-67) that would...more
Starting September 1, 2015, the Comptroller of Maryland (Comptroller) will offer qualifying taxpayers that failed to file or pay certain taxes an opportunity to remit tax under very attractive penalty and interest terms. The...more
In his recent article, “A Cursory Analysis of the Impact of Combined Reporting in the District”, Dr. Eric Cook claims that the District of Columbia’s (D.C. or the District) newly implemented combined reporting tax regime is...more
The judge in a case challenging Delaware’s use of sampling and extrapolation to determine unclaimed property liability denied the state’s motion to dismiss and in doing so, seriously questioned the State’s approach. ...more
Deputy Executive Director Greg Matson (a nice guy at heart) announced this week that the Multistate Tax Commission (MTC) has hired its first transfer pricing training consultant and is scheduled to begin training state...more
The United States Supreme Court released a unanimous decision yesterday holding that the Tax Injunction Act (TIA), 28 U.S.C. § 1391, does not bar suit in federal court to enjoin the enforcement of Colorado notice and...more
This past December, the Multistate Tax Commission’s (MTC) transfer pricing advisory committee and its project facilitator Dan Bucks recommended what it calls the “preliminary design” approach for a proposed Arm’s Length...more
The Problem
On September 23, 2014, the District of Columbia Council enacted market-based sourcing provisions for sales of intangibles and services as part of the 2015 Budget Support Act (BSA), as we previously...more