This column includes examples and scenarios
from different states that illustrate various sales tax treatment approaches.
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State & Local Tax (SALT)
A 1939 Frame of Mind: Old-School NOL Carryover Rules Prevail in Some States
This item briefly explains the issue of carrying over NOLs after a merger or reorganization as applied in certain states still following the Internal Revenue Code of 1939.
More Light Shines on State Taxation of SaaS in 2015
This item discusses recent legislative and judicial developments from Tennessee, Vermont, and Michigan.
Comparing the Marketplace Fairness Act and the Remote Transactions Parity Act
This article examines the major provisions in the two bills and highlights their differences.
Appeals Court Upholds Colorado Use Tax Reporting Law
The Tenth Circuit held that Colorado’s sales and use tax notice and reporting law, designed to force noncollecting out-of-state retailers to report sales to Colorado customers and the state, does not violate the dormant Commerce Clause.
Legislation Permanently Bans Internet Taxes, Increases Failure-to-File Penalty
Congress passed the Trade Facilitation and Trade Enforcement Act of 2015, making permanent the moratorium on states and
localities taxing Internet access.
Water’s-Edge Election: Effectively Connected Income and the 20% Rule in California
This item discusses how foreign corporations that generate income from intangible assets are affected by the economic nexus rules as well as the water’s-edge rules.
Full Faith and Credit Clause Prohibits Nevada Court’s Damage Award Against California
The state of Nevada cannot apply Nevada law to award damages against the California Franchise Tax Board that are greater than it could award against a Nevada state agency in similar circumstances, the U.S. Supreme Court held.
Ways to Make Tax Compliance Less of a Nightmare for Small Business
Troy Lewis, chair of the AICPA’s Tax Executive Committee, testified in favor or the Mobile Workforce State Income Tax Simplification Act.
Factor Presence Nexus Standards and Market-Based Sourcing: A Tough Combination for Service Businesses
The combination of factor presence nexus
standards and market-based sourcing of services for sales factor purposes can have a particularly significant impact on multistate service providers.
New Jersey’s Sourcing Rule for Gain on Dispositions of Interests in Flowthrough Entities Can Be a Real Deal-Killer
Stress points that often produce significant difficulties include apportionment issues stemming from the mixed entity and aggregate treatment of flowthrough entities, the attribution of nexus up and down tiered flowthrough structures, and the impact on individual owners of residency rules and unusable credits for taxes paid to other states.
Colorado’s Use Tax Notice and Reporting Law Is Constitutional, Tenth Circuit Holds
The court held that the law does not discriminate against out-of-state retailers.
Congress Enacts Permanent Ban on State and Local Internet Taxes
Thursday, the Senate approved a bill making the Internet Tax Freedom Act’s ban on state and local taxes on internet access permanent.
Oregon Courts’ Recent Examination of UDITPA Provisions
Recently, Oregon courts have issued important state income tax decisions, which may have potential application within and outside the state.
Wynne’s Effect on State and Local Personal Income Taxes
This article explores the facts and arguments of the case, how this unique decision relates to and departs from case precedent, and the effects on the taxing schemes of other states and localities.
The Increasing Compliance Burden of Economic Nexus
State courts have supported the economic nexus theory, which does not require a business to actually conduct activities within the state to incur an income tax obligation.
California Appellate Court Rules on Nexus of Special-Purpose Entities, Tells Lower Court to Rule on Constitutionality of Filing Election
The court determined that two SPEs related to Harley-Davidson Inc., with no physical presence
in California, established nexus under Due Process and Commerce Clauses of the U.S. Constitution.
Unclaimed Property: Unraveling the Business-to-Business Exemptions
States with B2B exemptions have determined that businesses are capable of ensuring that their property interests are secured and that taxpayer dollars should not be spent to protect them.
State Taxation of Financial Institutions: A Multidimensional Landscape
Economic nexus provisions, which often target financial institutions, vary considerably from state to state, and they can trigger income or franchise tax filing responsibilities of which taxpayers are often unaware.
Navigating SALT Nexus and Compliance for Not-for-Profits
Many not-for-profits do not know that the states in which they conduct business have many rules that may apply to them.
INDIVIDUALS
Current Developments in Taxation of Individuals: Part 1
This update surveys recent federal tax developments involving individuals, including court cases, rulings, and guidance issued during the six months ending October 2025.
