Keep up with the latest state and local tax developments by reading our SALT Alerts. They are labeled by state so that you can easily find the ones that apply to you. The following are the most recent alerts:
California enacts partnership reporting, payment procedures
On Sept. 23, 2018, California enacted legislation requiring partnerships that are issued a federal audit adjustment to report each change or correction to the California Franchise Tax Board (FTB) within six months after the final federal determination.
D.C. Court of Appeals denies transfer tax exemption
On Sept. 20, the District of Columbia Court of Appeals rejected a taxpayer’s appeal claiming a statutory exemption from transfer and recording taxes for a transfer of property from a sole proprietorship to a limited liability company (LLC).
Illinois Supreme Court upholds hospital property tax exemption
On Sept. 20, 2018, in Oswald v. Hamer, the Illinois Supreme Court unanimously held that the Illinois property tax exemption for hospitals and their affiliates is constitutional. On Sept. 20, 2018, in Oswald v. Hamer, the Illinois Supreme Court unanimously held that the Illinois property tax exemption for hospitals and their affiliates is constitutional.1 Previously, two districts of the Illinois Appellate Court had issued conflicting opinions concerning the constitutionality of the hospital property tax exemption statute on its face.
New Jersey enacts remote-seller sales tax collection rules
On Oct. 4, 2018, New Jersey enacted legislation imposing sales tax collection requirements on certain remote sellers and marketplace facilitators.1 This legislation was enacted in response to the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc.2 that held physical presence no longer is required in order for a state to impose sales tax.
New Jersey adopts federal foreign income deduction
On Oct. 4, 2018, New Jersey enacted legislation amending the state’s Corporation Business Tax (CBT). Many of these changes are technical corrections in response to the major tax reform legislation, A.B. 4202, which was enacted on July 1, 2018.
New Mexico tax amnesty program runs through Dec. 31
On Nov. 8, 2018, the New Mexico Taxation and Revenue Department released guidance announcing that taxpayers with unreported or underreported taxes may qualify to have penalties and interest waived if they enroll in the Fresh Start Program by Dec. 31, 2018, and pay their liabilities within 180 days.
South Carolina enacts tax reform legislation
On Oct. 3, 2018, South Carolina Gov. Henry McMaster signed into law H.B. 5341, updating the state’s conformity to the Internal Revenue Code (IRC) and adopting some of the changes contained in H.R. 1, commonly referred to as the Tax Cuts and Jobs Act (TCJA).
South Dakota reaches settlement; dismisses Wayfair litigation
On Oct. 31, 2018, South Dakota Gov. Dennis Daugaard announced that the state has entered into a settlement agreement and a stipulation of dismissal in South Dakota v. Wayfair, Inc.1 Under the settlement agreement, the three litigants in the case, Wayfair, Overstock and Newegg, will begin collecting sales tax on Jan. 1, 2019.
Tennessee increases incentives for scripted TV series
In an effort to attract the production of scripted television series to the state, the Tennessee Entertainment Commission (“TEC”) increased the state’s film and television incentives beginning Sept. 1, 2018. The revised incentives provide an increase in grant support for Tennessee labor and encourage non-resident labor for the first time.