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Multistate Tax  |  2023 Second Quarter Summary
State Tax Matters
State Tax Matters
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Administrative 

California OTA Proposes Rule Changes that Limit its Authority to Declare Regulations Invalid
Orig Rel Date: April 7, 2023
Tennessee DOR Updates General Guidance on Voluntary Disclosure Agreement Program
Orig Rel Date: April 14, 2023
Arizona: New Law Continues Operation of Board of Tax Appeals through June 30, 2031
Orig Rel Date: April 28, 2023
Indiana: New Law Creates State and Local Tax Review Task Force to Issue Report by December 1, 2024
Orig Rel Date: May 12, 2023
Maryland: New Law Creates Taxpayer Advocate Division Within the Comptroller’s Office
Orig Rel Date: May 12, 2023
Montana: New Law Says Cryptocurrencies and NFTs Used as Payment Methods are Not Taxable
Orig Rel Date: May 12, 2023
California: Comments on Revised Proposed Office of Tax Appeals Rule Changes are Due May 26
Orig Rel Date: May 19, 2023


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Income/Franchise 

Indiana DOR Addresses and Explains New Elective Entity-Level Tax for Pass-through Entities
Orig Rel Date: April 7, 2023
Kentucky: New Law Revises Recently Enacted Elective Pass-Through Entity Level Tax
Orig Rel Date: April 7, 2023
New Jersey Division of Taxation Addresses Recently Enacted S Corporation Election Changes
Orig Rel Date: April 7, 2023
New Jersey: Income Allocated to Restore Negative Capital Account Deemed Not Taxable
Orig Rel Date: April 7, 2023
North Carolina: New Law Updates State Conformity to Internal Revenue Code and Revises PTE Tax
Orig Rel Date: April 7, 2023
Utah: Nonresident Individual Who Taught Online Courses Deemed Not Subject to Income Tax
Orig Rel Date: April 7, 2023
Virginia Department of Taxation Addresses New Law Revising Pass-Through Entity Tax
Orig Rel Date: April 7, 2023
West Virginia: Deferred Tax Deduction Enacted for Publicly Traded Companies Due to Apportionment Changes
Orig Rel Date: April 7, 2023
Arkansas: New Law Lowers Corporate Income Tax Rate and Repeals Throwback Rule
Orig Rel Date: April 14, 2023
Colorado DOR Adopts New and Amended Rules on Foreign Source Income and NOLs
Orig Rel Date: April 14, 2023
Minnesota DOR Explains How Due Process Minimum Connections Applies to Trusts
Orig Rel Date: April 14, 2023
Mississippi DOR Issues More Guidance on Elective Entity-Level Taxation for Pass-through Entities
Orig Rel Date: April 14, 2023
North Carolina DOR Denies Taxpayer’s Request to File Water’s Edge Unitary Combined Return
Orig Rel Date: April 14, 2023
Ohio: Benefit of Prior Year Bonus Depreciation Addbacks are Disallowed for Some PTE Tax Filers
Orig Rel Date: April 14, 2023
West Virginia Tax Division Addresses Implementation of New Elective Pass-Through Entity Tax
Orig Rel Date: April 14, 2023
Colorado DOR Updates Guidance on State Impact and Treatment of Federal Law Changes
Orig Rel Date: April 21, 2023
Virginia: New Law Moves from Fixed Date to Rolling Conformity with Internal Revenue Code
Orig Rel Date: April 21, 2023
Idaho: Administrative Ruling Addresses Unitary Groups, Business Income, and Apportionment
Orig Rel Date: April 28, 2023
Indiana: Affiliated Special Purpose Entity Not Includable on Return Because it Lacked Nexus
Orig Rel Date: April 28, 2023
Tennessee Governor Expected to Sign Bill Adopting Single Sales Factor and TCJA Bonus Depreciation
Orig Rel Date: April 28, 2023
Texas Supreme Court Reinstates Petition for Review in Sales Factor Case Involving Hedging Transactions
Orig Rel Date: April 28, 2023
Texas: Gains from Sale of Certain Leasehold Interests Deemed Includable in Franchise Tax Base
Orig Rel Date: April 28, 2023
Georgia: New Law Updates State Conformity to IRC and Decouples from TCJA Changes to IRC §174
Orig Rel Date: May 5, 2023
Illinois DOR Adopts Changes to Special Apportionment Rules Involving Sales-Inducement Payments
Orig Rel Date: May 5, 2023
New York Budget Extends Expiring Business Income Tax Rates and Increases MCTMT Rate
Orig Rel Date: May 5, 2023
Pennsylvania DOR Addresses Corporate Income Tax Treatment and Apportionment of Electricity
Orig Rel Date: May 5, 2023
Washington DOR Explains Meaning of Domicile and Allocation Rules Under New Capital Gains Tax
Orig Rel Date: May 5, 2023
Wisconsin DOR Summarizes Ruling on Intercompany Royalties, Business Purpose and Economic Substance
Orig Rel Date: May 5, 2023
Georgia: New Law Allows More Entities to Make Pass-Through Entity Tax Election
Orig Rel Date: May 12, 2023
Indiana: New Law Updates State Conformity to IRC and Addresses NOLs, R&D Deduction, and Mobile Workforce
Orig Rel Date: May 12, 2023
Maryland: New Law Narrows Definition of “Captive REIT” Subject to Dividends Paid Deduction Addback
Orig Rel Date: May 12, 2023
New York ALJ Holds that Federal ITFA Preempts Taxation of Receipts from Certain Telecom Services
Orig Rel Date: May 12, 2023
Colorado: New and Amended Rules on Foreign Source Income and NOLs are Effective May 30
Orig Rel Date: May 19, 2023
Iowa: New Law Allows Some Entities to Make a Pass-Through Entity Tax Election
Orig Rel Date: May 19, 2023
Missouri DOR Proposes Recission of Withholding Rule Addressing Pandemic-Related Telecommuting
Orig Rel Date: May 19, 2023
Missouri DOR Adopts Permanent Rule Implementing New Optional Pass-Through Entity-Level Tax
Orig Rel Date: May 19, 2023
New York: Receipts from Certain Buy/Sell Arrangements Cannot be Included in Receipts Factor
Orig Rel Date: May 19, 2023
North Carolina: Trial Court Reverses ALJ Holding that Disallowing Related-Party Deductions was Unconstitutional
Orig Rel Date: May 19, 2023
Tennessee DOR Notices Explain New Law Adopting Single Sales Factor and TCJA Bonus Depreciation
Orig Rel Date: May 19, 2023
Iowa DOR Asks for Requests for Guidance on New Pass-Through Entity Tax Election by June 7
Orig Rel Date: May 26, 2023
Montana: New Law Eliminates List of Approximately 40 Tax Haven Countries and Jurisdictions
Orig Rel Date: May 26, 2023
Montana: New Mobile Workforce Law Includes 30-Day Threshold for Nonresident Withholding
Orig Rel Date: May 26, 2023
Montana: New Law Creates Elective Pass-Through Entity Tax with Refundable Credit
Orig Rel Date: May 26, 2023
Oregon Tax Court Addresses Inclusion of Commodities Hedging Receipts in Company’s Sales Factor
Orig Rel Date: May 26, 2023
South Carolina: New Law Updates State Conformity to Internal Revenue Code
Orig Rel Date: May 26, 2023
Virginia: Taxpayer May Choose Manufacturer’s Special Apportionment Method on Amended Return
Orig Rel Date: May 26, 2023
Florida: New Law Generally Updates State Conformity to Internal Revenue Code
Orig Rel Date: June 2, 2023
Minnesota: New Law Updates State Conformity to IRC, Taxes GILTI, and Revises DRD and NOL Amounts
Orig Rel Date: June 2, 2023
Nebraska: New Law Lowers Corporate Income Tax Rates and Retroactively Permits PTE Tax Election
Orig Rel Date: June 2, 2023
Oklahoma: New Law Revises Election to Immediately and Fully Expense Qualified Property
Orig Rel Date: June 2, 2023
California: Limited Time Resolution Offered for Some Eligible Transactions Subject to NEST Penalty
Orig Rel Date: June 9, 2023
California FTB Reminds of Nonconformity to Extended Federal Statute of Limitations Period on NOL Carrybacks
Orig Rel Date: June 9, 2023
Colorado: New Law Addresses How and When Some Partnerships Must Report Federal Tax Adjustments
Orig Rel Date: June 9, 2023
Hawaii: New Law Updates State Conformity to Internal Revenue Code
Orig Rel Date: June 9, 2023
Hawaii: New Law Establishes Elective Entity-Level Taxation for Some Pass-through Entities
Orig Rel Date: June 9, 2023
Michigan: Newsletter Summarizes Recent Cases Involving Federal Depreciation and Basis Adjustments
Orig Rel Date: June 9, 2023
North Carolina DOR Explains Corporate Tax Treatment of CFC In Light of Federal TCJA Changes
Orig Rel Date: June 9, 2023
Oklahoma: New Law Eliminates Franchise Tax Beginning with Tax Year 2024
Orig Rel Date: June 9, 2023
Connecticut: New Law Extends Corporation Business Tax Surcharge and Revises PTE Tax
Orig Rel Date: June 16, 2023
Illinois: New Law Increases Franchise Tax Exemption and Modifies Investment Partnership Withholding
Orig Rel Date: June 16, 2023
Montana DOR Explains Implementation of Newly Enacted Elective Pass-Through Entity Tax
Orig Rel Date: June 16, 2023
Oregon: New Law Updates State Conformity to Internal Revenue Code for Specific Provisions
Orig Rel Date: June 16, 2023
Virginia: Ruling Addresses Whether Taxpayer Needs Permission to Change Consolidated Filing Status
Orig Rel Date: June 16, 2023
Washington DOR to Hold Virtual Public Meeting Discussing Preliminary Draft Rule on Capital Gains Tax
Orig Rel Date: June 16, 2023
Colorado DOR Issues Updated Implementation Guidance on Elective Pass-Through Entity Tax
Orig Rel Date: June 23, 2023
Colorado DOR Proposes Rule Changes on Federal Conformity and QBI Deduction Addback
Orig Rel Date: June 23, 2023
Vermont: New Law Creates Payroll Tax and Requires Employers to Withhold and Remit It
Orig Rel Date: June 23, 2023
West Virginia Tax Division Proposes Rules Implementing New Elective Pass-Through Entity Tax
Orig Rel Date: June 23, 2023
Multistate Tax Commission Work Group Circulates Draft Proposed Rule on Investment Partnerships
Orig Rel Date: June 30, 2023
Indiana DOR Says Company May Carry Forward Adjustments and Attributes from Previous RARs
Orig Rel Date: June 30, 2023
Louisiana: New Law Repeals Sales Factor Throwout Rule and Revises Market-Based Sourcing Provisions
Orig Rel Date: June 30, 2023
Minnesota Tax Court Holds Out-of-State Company’s In-State Activities Exceed P.L. 86-272 Protections
Orig Rel Date: June 30, 2023
Nevada Department of Revenue Announces Modified Business Tax Rate Reduction as of July 1
Orig Rel Date: June 30, 2023
New Mexico Appellate Court Says Package Delivery Company May Use Volume Method to Apportion Income
Orig Rel Date: June 30, 2023
Pennsylvania: City of Philadelphia Ordinance Lowers Business Income and Receipts Tax Rate
Orig Rel Date: June 30, 2023
Tennessee: Updated Tax Manuals Reflect Recent Law Changes Including Single Sales Factor Adoption
Orig Rel Date: June 30, 2023


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Gross Receipts 

Washington Appellate Court Agrees that Investment Funds are Ineligible for Investment Income Deduction
Orig Rel Date: April 14, 2023
Washington DOR Proposes Changes to Rule Addressing Sourcing of Services for B&O Tax Purposes
Orig Rel Date: May 12, 2023
Washington DOR Ruling Says Customized Online Product Sales are Subject to Manufacturing B&O Rate
Orig Rel Date: June 30, 2023


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Credits/Incentives 

North Dakota: New Law Creates Tax Credit for Some Purchased Manufacturing M&E Used for Automation
Orig Rel Date: May 19, 2023


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Sales/Use/Indirect 

Washington DOR Extends Emergency Amendments to Post-“Wayfair” Remote Seller Economic Nexus Rules
Orig Rel Date: April 7, 2023
West Virginia Division of Taxation Explains Taxability of Streaming Entertainment Services
Orig Rel Date: Month DD, 2023
Kentucky: New Law Excludes Various Forms of Social Media from Definition of Taxable Telecom Services
Orig Rel Date: April 14, 2023
Arkansas: New Law Revises and Clarifies Machinery and Equipment Exemption
Orig Rel Date: April 21, 2023
Missouri Supreme Court Affirms that Telecom’s Affiliate Qualifies for Manufacturing Exemption
Orig Rel Date: April 21, 2023
Tennessee: Letter Ruling Says On-Demand Online Classes are Taxable Specified Digital Products
Orig Rel Date: April 21, 2023
Arizona Tax Court Holds Online Retailer Lacked Nexus During Pre-“Wayfair” Periods at Issue
Orig Rel Date: April 28, 2023
Michigan: New Law Excludes Certain Delivery and Installation Charges from Taxable Price
Orig Rel Date: April 28, 2023
New Mexico: Out-of-State Recruiting and Staffing Company Deemed Subject to Gross Receipts Taxation
Orig Rel Date: April 28, 2023
Georgia: New Law Taxes Certain Retail Purchases and Sales of Specified Digital Products
Orig Rel Date: May 5, 2023
Indiana: Software Purchased Pre-July 2018 Deemed Exempt Because No Possessory Interest
Orig Rel Date: May 5, 2023
Michigan: Notice Explains Implementation of New Law Exempting Delivery and Installation Charges
Orig Rel Date: May 5, 2023
Wisconsin DOR Summarizes Ruling on Taxability of Online Platform’s Secondary Ticket Sales
Orig Rel Date: May 5, 2023
California: Trade Association Asks US Supreme Court to Review Case Involving Online Remote Sellers
Orig Rel Date: May 12, 2023
Colorado: New Law Permits Retailers to Pay Retail Delivery Fee on Behalf of Purchasers
Orig Rel Date: May 12, 2023
Michigan: New Law Expands Industrial Processing Exemption to Include Activities Performed on Some Aggregate
Orig Rel Date: May 12, 2023
Washington: US District Court Holds Sales of Gift Cards for Video Game Digital Currency are Not Exempt
Orig Rel Date: May 12, 2023
Alabama Appellate Court Affirms Dealer’s Sales of Prepaid Wireless Service Plans are Not Taxable
Orig Rel Date: May 19, 2023
Colorado DOR Summarizes New Law Revising Implementation of the Retail Delivery Fee
Orig Rel Date: May 19, 2023
Michigan: Treasury Comments on New Law Expanding Industrial Processing Exemptions as it Relates to Aggregate
Orig Rel Date: May 19, 2023
North Carolina: Facilitation of Money Deposits for Telecom’s Customers is Not Taxable Prepaid Wireless Calling Services
Orig Rel Date: May 19, 2023
Washington: New Law Says State Exemptions, Credits, and Deductions Apply Identically to Local Ones
Orig Rel Date: May 19, 2023
Colorado DOR Says Taxable Telecom Includes Call Conferencing and Stresses 30-Day Bundled Services Deadline
Orig Rel Date: June 2, 2023
Florida: New Law Lowers Tax Rate on Commercial Rental of Real Property
Orig Rel Date: June 2, 2023
Illinois DOR Answers Questions Involving Drop Shipments and Marketplace Facilitators
Orig Rel Date: June 2, 2023
Minnesota: New Law Imposes Retail Delivery Fee on Some Items Delivered to In-State Customers
Orig Rel Date: June 2, 2023
Louisiana: New Law Eliminates 200 Separate Transaction Economic Nexus Threshold
Orig Rel Date: June 9, 2023
Missouri DOR Adopts Amended and New Rules on Drop Shipments and Marketplace Facilitators
Orig Rel Date: June 9, 2023
North Carolina: Facilitation of Money Deposits for Telecom’s Customers is Taxable Prepaid Wireless Calling Services
Orig Rel Date: June 9, 2023
Colorado: New Law Requires DOR to Undertake Modifications to Electronic Tax Simplification System
Orig Rel Date: June 16, 2023
California: US Supreme Court Denies Trade Association’s Petition to Review Remote Seller Case
Orig Rel Date: June 23, 2023
Kentucky DOR Issues Newsletter Summarizing Recent Changes on Taxability of Services
Orig Rel Date: June 23, 2023
Louisiana: New Law Requires Board to Implement Uniform Electronic Tax System for Localities
Orig Rel Date: June 23, 2023
Missouri: Adopted Rule Amendments Reflect Post-Wayfair Nexus Standard for Vendors
Orig Rel Date: June 23, 2023
North Carolina: US Supreme Court Denies Review of Case Disregarding “Dilworth” and Upholding Constitutionality of Taxation
Orig Rel Date: June 23, 2023
Kansas DOR Reminds Separately Stated Delivery Charges No Longer Subject to Tax Starting July 1
Orig Rel Date: June 30, 2023
Louisiana: New Law Adds Digital Art to Suspended Exemption on Sales of Certain Works of Art
Orig Rel Date: June 30, 2023
Massachusetts Appellate Court Invalidates Directive on Taxation of Cell Phones in Bundled Transactions
Orig Rel Date: June 30, 2023
New Mexico Court of Appeals Says Company May Claim Deduction for Medical Services Provided
Orig Rel Date: June 30, 2023


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Unclaimed Property 

Delaware: Reminder – Response Deadline for 2023 Unclaimed Property VDA Invitation Letters is May 25
Orig Rel Date: May 19, 2023
Indiana: New Law Addresses Virtual Currency and Requires its Liquidation Before Filing Report
Orig Rel Date: May 19, 2023
Montana: New Law Addresses Virtual Currency and Requires its Liquidation When Filing Report
Orig Rel Date: May 26, 2023
Wisconsin: Proposed Rule Addresses Virtual Currency and its Liquidation When Filing Report
Orig Rel Date: June 30, 2023


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Property 

Texas Comptroller of Public Accounts Reminds of April 17 Deadline and Potential May 15 Extension
Orig Rel Date: April 14, 2023
Texas Supreme Court Prohibits Localities from Entering into Contracts on Contingent-Fee Basis
Orig Rel Date: May 26, 2023
US Supreme Court Holds that Locality Keeping Excess Proceeds from Property Tax Sale is Unconstitutional
Orig Rel Date: June 2, 2023
Colorado Supreme Court Holds in Favor of Localities in Disputes Over Pandemic-Related Valuation
Orig Rel Date: June 2, 2023
Rhode Island: New Law Includes Statewide $50,000 Exemption from Tangible Property Tax
Orig Rel Date: June 23, 2023
Wisconsin: New Law Removes Taxes Levied on Personal Property Including Business Equipment
Orig Rel Date: June 23, 2023


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Other/Miscellaneous 

Kentucky Asks US Supreme Court if Incentive to Purchase In-State Versus Out-of-State Coal is Valid
Orig Rel Date: May 12, 2023
Louisiana Appellate Court Affirms Dismissal of Franchise Fee Suit Against Streaming Platform Companies
Orig Rel Date: May 12, 2023
Maryland Supreme Court Vacates Decision Invalidating Gross Receipts Tax on Digital Ad Services
Orig Rel Date: May 12, 2023
Maryland Comptroller Addresses State High Court’s Digital Ad Gross Revenues Tax Ruling
Orig Rel Date: May 19, 2023
Indiana: Trial Court Asked to Review Streaming Companies’ Motion to Dismiss Local Franchise Fee Case
Orig Rel Date: June 16, 2023


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Administrative

Income/Franchise

Gross Receipts

Credits/Incentives

Sales/Use/Indirect

Unclaimed Property

Property

Other/Miscellaneous

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