The State Tax Show

Matt Hunsaker discusses recent North Carolina tax legislation, including phase-out/phase-down of corporate and individual income tax rates, an elective passthrough entity SALT cap workaround, and simplification of the corporate franchise tax. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

The Multistate Tax Commission recently issued a policy position on not disclosing which states nominated a taxpayer for a joint audit or why they were nominated. Matt Hunsaker discusses. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

Louisiana voters appear to have rejected a constitutional amendment that would have centralized its state and parish sales tax systems. Does this rejection mean that parish taxes remain unduly burdensome to interstate commerce? Matt Hunsaker discusses. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

Maryland and Ohio courts disagree on whether taxing billboards violates the 1st amendment. Will the Supreme Court weigh in? How will this affect the surge of interest in targeted taxes on digital advertising? Matt Hunsaker discusses. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

How does the manufacturing exemption apply when the end product starts off as real property? Matt Hunsaker breaks down the Texas Court of Appeals opinion in Texas Westmoreland Coal Co. and its implications. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

In this episode - an update to https://www.bakerlaw.com/podcasts/important-salt-principles-from-2-washington-bo-tax-cases (episode 98) - Matt Hunsaker explains the Washington Supreme Court's decision in Washington Bankers Association v. Wa. Department of Revenue, in which the court concluded that a tax designed to apply to large out-of-state companies did not violate the Commerce Clause. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

Matt Hunsaker highlights some issues that should be considered when purchasing a company jet, including sales tax and property tax. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

In this third installment of the series on taxation of software, Matt Hunsaker talks about how states tax services that often tag along sales of software. A befuddling mix of rules, but Matt gives some general concepts to help make sense of the chaos. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

Texas taxes retailers and wholesalers at half the rate of other taxpayers. Matt Hunsaker breaks down the recent Xerox franchise tax case and what it may mean for leasing companies trying to qualify as retailers or wholesalers. He also discusses how this case may affect the cost-of-goods-sold deduction for leasing companies. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

Matt Hunsaker breaks down the latest state tax news including a discussion of tax arguments in a controversial civil war era statue removal case, the Texas Supreme Court's decision to hear Sirius XM's apportionment case, and the Maryland Comptroller's proposed regulations for sourcing receipts under the Maryland digital advertising tax. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

In this episode Matt Hunsaker explores ways in which states tax custom software differently than prewritten or canned software. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

Matt Hunsaker has finally quit resting on his laurels and has begun a multipart series highlighting the complexity of state taxation of software. In Part 1 he lays the stage by discussing states' early efforts to shoehorn software into definitions of tangible personal property. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

Massachusetts has proposed a digital advertising tax. Matt Hunsaker breaks down the new proposal (and an old proposal to conduct a study before enacting a tax) and compares and contrasts it with Maryland's infamous digital advertising tax. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker Mike Semes Article: https://www.bakerlaw.com/articles/michael-semes-article-discusses-digital-advertising-tax-bills-under-consideration-in-massachusetts

In this episode, Matt Hunsaker explores the sales tax manufacturing exemption to demonstrate why sales tax becomes more complex as you peel back the layers of the onion. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

Matt Hunsaker gives an overview of the recently enacted passthrough workaround to the $10,000 state and local tax deduction cap. Questions & Comments - mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

Arkansas has issued a legal opinion treating SaaS as a nontaxable service when it is hosted remotely. Matt Hunsaker breaks down the issues. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

Matt Hunsaker catches up on three recent developments: Texas legislation excluding payment processing from taxable data processing, a taxpayer PL 86-272 win in New Jersey, and a preview of the Multistate Tax Commission's project on state taxation of partnerships. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

Colorado recently enacted a blacklisted country approach to thwarting perceived state tax abuses by multinational companies. Will it withstand constitutional challenges? Matt Hunsaker gives his two cents. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

After years of back and forth, the Massachusetts Supreme Judicial court has issued the much anticipated ruling in Oracle. Good news! Taxpayers are allowed refunds for software used in multiple locations even if they didn't jump through all of the Commissioner's regulatory hoops. Matt Hunsaker breaks down the decision. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

New Jersey is coming after taxpayers for years before 2019 based on information on combined group reports. From June 15 to October 15, 2021, the state will be offering certain benefits to taxpayers who come forward for years before 2019. In addition, a Washington trial court has upheld the Seattle payroll expense tax in the face of constitutional challenges. Matt Hunsaker discusses both developments. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

California Assembly Bill 71 would have made major changes to how California taxes foreign income, including a thinly-veiled attempt to get multinationals to elect worldwide combination. It looks like the bill will not pass this session, but the policies may not be entirely dead. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

In this week's episode, https://www.bakerlaw.com/MichaelJSemes (Mike Semes) joins Matt Hunsaker in the studio to discuss alternative apportionment and an unfortunate case coming out of Maryland. Questions & Comments: mhunsaker@bakerlaw.com and msemes@bakerlaw.com bakerlaw.com/matthunsaker

The Texas Legislature has passed HB 2080 which tempers Texas' "pay to play" system for judicial review of tax cases and SB 903, which allows taxpayers to skip an administrative hearing on refund cases. Matt Hunsaker, a longtime Texas tax litigator, breaks down these two bills currently sitting on the Governor's desk (as of June 1, 2021). Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

Delaware has proposed many changes to its controversial unclaimed property regime, including contingency fee auditing practices. Matt Hunsaker breaks down some of the proposals. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

At the end of 2020, only three states with a sales tax had not passed a marketplace facilitator/economic presence package: Florida, Kansas, and Missouri. After this legislative session, those final three holdouts have fallen (maybe). Matt Hunsaker explains. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

Last week, Governor Inslee signed SB 5096, which enacted a 7% individual capital gains tax. What does this mean for the future of a progressive income tax in Washington? Will it survive a court challenge? Matt Hunsaker breaks it down on this week's show. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

In April 2021, the Multistate Tax Commission's Uniformity Committee met to discuss two new projects: a broad exploration of uniformity in state taxation of partnerships and state taxation of digital goods and services. Matt Hunsaker breaks down these nascent developments. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

What in the world is unclaimed property and escheat? And why are tax people dealing with it? Matt Hunsaker gives a basic high-level overview of the world of unclaimed property. Questions & Comments: mhunsaker@bakerlaw.com Tulsa Race Massacre Info: https://www.tulsa2021.org/

Courts notoriously give deference to state tax agencies in interpreting tax laws. But is the tide changing for taxpayers? Matt Hunsaker puts Georgia's Taxpayer Fairness Act into context. Questions & Comments: mhunsaker@bakerlaw.com www.bakerlaw.com/matthunsaker

Since the May 2018 Murphy v. NCAA US Supreme Court decision, states have been able to authorize and tax sports betting. Twenty-six states and the District of Columbia have done so. In this week's show, Matt Hunsaker explains the sudden shift, including some sports wagering taxes passed this year. Questions & Comments: mhunsaker@bakerlaw.com Link to NY Gaming Study: https://www.gaming.ny.gov/pdf/Spectrum%20New%20York%20Gaming%20Study%20Executive%20Summary,%20Final.pdf bakerlaw.com/matthunsaker

After a 4 1/2 year hiatus, the Multistate Tax Commission has met to revive the State Intercompany Transactions Advisory Service Committee (SITAS). Matt Hunsaker talks about the committee meeting and other recent happenings in state tax transfer pricing. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

Listeners in the property tax world have been clamoring for an update. Here is the latest in property taxes: pandemic implications, dark stores, intangibles, and more. https://www.bakerlaw.com/DavidDEbersole (Dave Ebersole) joins Matt Hunsaker in the virtual studio to offer his insights. Questions & Comments: debersole@bakerlaw.com mhunsaker@bakerlaw.com

Tucked away in the American Rescue Plan Act of 2021 is a provision that prohibits states from using the $350 billion in state and local relief money to fund tax cuts. What does this mean for state tax policy? What does this mean for federalism and anti-commandeering? Matt Hunsaker explains. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

New York has proposed an excise tax on companies that collect consumer data (SB 4959). The tax is a per-consumer head tax and could cost taxpayers millions of dollars each month. Will this tax affect you? Matt Hunsaker breaks down the details in this week's episode. Questions/Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

In this week's episode, Matt Hunsaker equates regular state tax nexus studies with regular visits to the dentist. Things can go bad if you skip either. Learn more about what goes into a nexus study and why now is the best time ever to do one. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

In Wisconsin Department of Revenue v. Deere & Company, the Department of Revenue tried to disallow a dividends received deduction for distributions from a Luxembourg entity despite published guidance conflicting with its position. Matt Hunsaker breaks down the Wisconsin Court of Appeals decision preventing the Department from deviating from its published guidance. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

The California legislature introduced AB 71 to provide a comprehensive plan to address statewide homelessness. In January, it was amended to add various tax provisions. Big ones. Matt Hunsaker breaks down what this means for those doing business or living in California. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

Last Friday, the Maryland General Assembly voted to override last year's veto of the digital advertising tax (H.B. 732). The Assembly has also introduced legislation to prevent taxpayers from overtly passing on the tax to Maryland advertising consumers. Matt Hunsaker forecasts what will become of the tax and how the Permanent Internet Tax Freedom Act plays into tax challenges. Prior Episodes on Digital Advertising: https://www.bakerlaw.com/podcasts/taxing-digital-advertising-a-roundtable-discussion https://www.bakerlaw.com/podcasts/digital-advertising-taxes-will-maryland-strike-back Questions & Comments: mhunsaker@bakerlaw.com

Matt Hunsaker does a rapid fire analysis of various state and local tax issues in the technology space. Stay tuned for an update on software and cloud computing. Questions & Comments: mhunsaker@bakerlaw.com www.bakerlaw.com/matthunsaker

In mid-January, the Texas Comptroller issued controversial amendments to its franchise (margin) tax apportionment sourcing rules. Are the rules an administrative drift towards market-based sourcing? Matt Hunsaker breaks down new rules for services, advertising, net losses (Hallmark), internet hosting, and more. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

The CARES Act created the Paycheck Protection Program. The PPP allowed businesses to secure forgivable SBA loans. Federal taxation of forgiven loans and related expenses are quite favorable - will states follow suit? Matt Hunsaker explains. Submit your Women in State Tax nominations here: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

Since 1937, the Tax Injunction Act (28 USC 1341) has significantly limited taxpayers' access to federal courts to hear state tax matters. In this week's episode, Matt Hunsaker provides an overview of the Act and avenues still available to taxpayers to get into federal court. Questions/Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

And then there were three . . . Florida, Kansas, and Missouri don't have economic presence or marketplace facilitator sales tax laws on the books. Will that change this session? Will sales tax nexus laws bleed over on the income tax front? Matt Hunsaker addresses these issues in this week's episode. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

Since 2017, the California Franchise Tax Board has been working on revisions to its regulations for market-based sourcing regulation for income from services and intangibles and for petitioning for alternative apportionment. Could these projects cross the finish line in 2021? How are these projects relevant to businesses outside California? Check out this episode for Matt Hunsaker's thoughts. Questions & Comments: mhunsaker@bakerlaw.com

Massachusetts is taxing nonresidents who are working outside Massachusetts due to COVID-19. Seems unfair? Well New Hampshire agrees and has asked the US Supreme Court to allow it to bring suit against Massachusetts. Matt Hunsaker explains why this case is important and how it could have implications for states that use the far-reaching "convenience of the employer" approach to taxing nonresidents working at home. Thank you for listening and making Season 3 such a success! Questions/Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

In this light-hearted episode, Matt Hunsaker explains how Wayfair, marketplace facilitator laws, false claims acts, economic nexus, the manufacturing exemption, and other issues apply to Santa Claus. Questions/Comments - mhunsaker@bakerlaw.com

This week Matt Hunsaker interviews two very special guests for Part III in the series Women in State Tax: Beth Sosidka (AT&T - Tax Director of External Tax Policy) and Angela Miele (Motion Picture Association - Vice President State Government Affairs and Tax Policy). Both have long careers in state and local tax, with special expertise in navigating tax policy. Check out their stories and career advice! Questions & Comments: mhunsaker@bakerlaw.com Beth's awesome drawings on Instagram: @mompaintspets

A few states allow private parties (e.g., plaintiff lawyers) to bring tax suits under state False Claims Acts (qui tam actions) - often for a share of treble damages. The District of Columbia is looking to join the club despite near universal opposition. In this episode Matt Hunsaker breaks down what this means for your company. Questions & Comments: mhunsaker@bakerlaw.com Register for the Telecommuting State Tax Webinar here: https://www.bakerlaw.com/events/webinar-practical-solutions-to-tax-issues-facing-employers-with-increased-telecommuting

Throughout November, various Multistate Tax Commission committees held virtual annual meetings (due to COVID). In this episode, Matt Hunsaker runs down the highlights from each meeting, including technical corrections to RAR/partnership audit rules, PL 86-272, passthrough entity studies, gross receipts taxes, audit manual updates, and much more! Questions and Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker

Everyone has been fixated on the presidential and congressional elections. But this election was chock full of state and local tax ballot measures. Some passed, some didn't - Matt Hunsaker breaks down the results in Arizona, California, Colorado, Illinois, and Oregon, not to mention the Business Tax Overhaul and Overpaid Executive Tax initiatives in San Francisco. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker #Prop19 #Prop22 #Prop15 #split-rollpropertytax #sanfrancisco #overpaidexecutivetax #businesstaxoverhaul #givethanks

For three years, states and taxpayers have been looking for novel ways to get around the federal TCJA's $10,000 cap on deducting state and local taxes. The IRS just released Notice 2020-75, which appears to bless states' passthrough entity tax workaround regimes. But there is a lot more below the surface. There will be winners, losers, and continuing ambiguity. Matt Hunsaker breaks down the issues. Questions & Comments: mhunsaker@bakerlaw.com bakerlaw.com/matthunsaker