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

Pennsylvania: Philadelphia DOR Issues VDA Program Reminder Allowing for Potential Six-Year Lookback
Orig Rel Date: December 15, 2023


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Income/Franchise 

Massachusetts: New Law Contains Significant Tax Law Changes Including Single Sales Factor Adoption
Orig Rel Date: October 6, 2023
New Hampshire: Summary Reminds of Recent Decoupling from IRC §163(j) Business Interest Expense Deduction
Orig Rel Date: October 6, 2023
North Carolina: Enacted Budget Bill Includes Provisions Modifying Calculation of Corporate Franchise Tax
Orig Rel Date: October 6, 2023
North Carolina DOR Explains New Law Expanding Eligibility for Pass-Through Entity Tax Election
Orig Rel Date: October 13, 2023
Pennsylvania: Updated Bulletin on Net Loss Deduction Limitations Under IRC §§ 381 and 382 Addresses IRC §163(j)
Orig Rel Date: October 13, 2023
Indiana DOR Addresses and Explains New Elective Entity-Level Tax for Pass-through Entities
Orig Rel Date: October 20, 2023
Massachusetts DOR Explains 4% Personal Income Surtax on Taxable Income Over $1 Million
Orig Rel Date: October 20, 2023
Nebraska: Taxpayer Seeks State High Court Ruling on Whether Section 965 Income Under One-Time Repatriation Tax is Deductible
Orig Rel Date: October 20, 2023
New Jersey: New and Updated Bulletins Reflect CBT Law Changes Involving Gross Income Tax, NOLs, and Combined Groups
Orig Rel Date: October 20, 2023
Pennsylvania: Updated Bulletin Addresses How IRC §163(j) Limitations are Treated for State Corporate Net Income Tax Purposes
Orig Rel Date: October 20, 2023
Multistate Tax Commission Work Group Circulates Discussion Draft Model Rules on Guaranteed Payments
Orig Rel Date: October 27, 2023
Indiana: Updated Bulletin Clarifies DOR’s Positions on Apportionment and Business Versus Nonbusiness Income
Orig Rel Date: October 27, 2023
Mississippi DOR Explains New Law on Depreciation and Expensing for Some Qualifying Expenditures and Property
Orig Rel Date: October 27, 2023
New Jersey Division of Taxation Explains “Convenience of the Employer” Rule for Connecticut Residents
Orig Rel Date: October 27, 2023
Oregon: Adopted Changes to CAT Rules Address Cost Inputs or Labor Cost Subtraction and Farming
Orig Rel Date: October 27, 2023
Pennsylvania: City of Philadelphia DOR Explains Wage Tax Application for Remote and Hybrid Work
Orig Rel Date: October 27, 2023
Texas: Settlement Payment Deemed for Tort Damages and Thus Not Deductible as COGS for Franchise Tax Purposes
Orig Rel Date: October 27, 2023
Texas: Guidance Addresses Costs Included as Benefits for Compensation Deduction for Franchise Tax Purposes
Orig Rel Date: October 27, 2023
Washington DOR Issues Capital Gains Tax Guidance on §1256 Contracts and Credit for Taxes Paid to Other States
Orig Rel Date: October 27, 2023
Hawaii Department of Taxation Addresses Implementation of New Elective Pass-Through Entity-Level Tax
Orig Rel Date: November 3, 2023
Kansas DOR Notice Addresses Corporate Income Tax Rate Reduction to 3.5% as of January 1, 2024
Orig Rel Date: November 3, 2023
Michigan: Taxpayer Asks US Supreme Court to Review Decision on Apportionment Formula Validity as Applied to Gain from Deemed Asset Sale
Orig Rel Date: November 3, 2023
Michigan Tax Tribunal Holds in Taxpayer’s Favor that Subsidiary was Not Unitary with Parent
Orig Rel Date: November 3, 2023
New Jersey Division of Taxation Addresses Convenience of the Employer Rule for Nonresidents Who Never Physically Work In-State
Orig Rel Date: November 3, 2023
Ohio: Press Release Addresses New Law on Ohio Resident Credit for Pass-Through Entity SALT Cap Taxes Imposed by Other States
Orig Rel Date: November 3, 2023
Utah State Tax Commission Updates Nexus Publication for Businesses, Including Varying Standards by Tax Type
Orig Rel Date: November 3, 2023
Wisconsin: New Law Updates State Conformity to Many Federal Income Tax Changes
Orig Rel Date: November 3, 2023
Hawaii Department of Taxation Addresses Implementation of New Elective Pass-Through Entity-Level Tax
Orig Rel Date: November 10, 2023
Louisiana DOR Explains New Law Providing Some Pass-Through Entity Tax Revisions
Orig Rel Date: November 10, 2023
Maine High Court Holds Sourcing is Determined Using Market Member Method Rather than Market Client Method
Orig Rel Date: November 10, 2023
New Jersey: New and Updated Bulletins Reflect CBT Law Changes Involving Combined Reporting and Banks
Orig Rel Date: November 10, 2023
Texas Comptroller Addresses New Law Increasing No-Tax-Due Total Revenue Threshold and Eliminating Filing of Certain Franchise Tax Returns
Orig Rel Date: November 10, 2023
Texas: Recent Election Suggests Voters Support Prohibition Against Imposing an Individual Wealth or Net Worth Tax
Orig Rel Date: November 10, 2023
California: Limited Time Resolution for Some Eligible Transactions Subject to NEST Penalty is Extended
Orig Rel Date: November 17, 2023
Colorado DOR Adopts Rule Changes on Federal Conformity and QBI Deduction Addback
Orig Rel Date: November 17, 2023
Michigan: New Law Amends Some Administration and Procedures for City Income Taxes
Orig Rel Date: November 17, 2023
North Carolina DOR’s Failure to Meet Procedural Deadline Voids Tax Assessment Involving Intercompany Transactions
Orig Rel Date: November 17, 2023
Oregon: Recent Election Suggests City of Salem Voters Reject 0.814% Payroll Tax on Businesses
Orig Rel Date: November 17, 2023
Texas Supreme Court Denies Petitions for Review in Multiple Cases Involving the Sales Factor Treatment for Sales of Securities
Orig Rel Date: November 17, 2023
California Franchise Tax Board Adopts Rule Changes on Alternative Apportionment Petitions
Orig Rel Date: December
Massachusetts DOR Explains 4% Surcharge on Individual Income in Excess of $1 Million
Orig Rel Date: December
Michigan: US Supreme Court Denies Reviewing Case on Apportionment Formula Validity as Applied to Gain from Deemed Asset Sale
Orig Rel Date: December
Minnesota Supreme Court Affirms Gain Involving Goodwill from Unitary Asset is Business Income
Orig Rel Date: December
Pennsylvania Supreme Court Affirms Philadelphia Validly Denied Wage Tax Credit for Taxes Paid to Other State
Orig Rel Date: December
Michigan Department of Treasury Comments on US Supreme Court’s Recent Decision to Not Review Apportionment Case
Orig Rel Date: December 8, 2023
Michigan Court of Appeals Affirms that Audit Did Not Extend Statute of Limitations on Late Unitary Filing
Orig Rel Date: December 8, 2023
Michigan: Newsletter Addresses Implementation of Passthrough Entity Tax and Tiered Structures
Orig Rel Date: December 8, 2023
New York ALJ Denies Refund Request for Remote Work Performed Before and During COVID-19 Pandemic
Orig Rel Date: December 8, 2023
New York: No Resident Tax Credit for Taxes Paid on Carried Interest Income Earned from Out-of-State Asset Management Firm
Orig Rel Date: December 8, 2023
Oklahoma: Proposed Rule Amendments Reflect New Legislation to Eliminate Franchise Tax Beginning with TY 2024
Orig Rel Date: December 8, 2023
Oklahoma: Proposed Rule Amendments Incorporate New Legislation Regarding Election to Expense Qualified Improvement Property
Orig Rel Date: December 8, 2023
South Carolina: Amended ALJ Ruling Still Says Taxpayer Must File a Combined Return
Orig Rel Date: December 8, 2023
Indiana DOR Updates Guidance on Reporting Partnership Level Tax Audit Adjustments
Orig Rel Date: December 15, 2023
Montana DOR Issues Publication on Newly Enacted Elective Pass-Through Entity Tax
Orig Rel Date: December 15, 2023
New Jersey Division of Taxation Comments on Individual Income Tax Application of Hedge Fund Legislation
Orig Rel Date: December 15, 2023
California Superior Court Declares Franchise Tax Board’s P.L. 86-272 Guidance Invalid
Orig Rel Date: December 22, 2023
Illinois DOR Proposes Rule Amendments Reflecting New Law Pertaining to Investment Partnerships
Orig Rel Date: December 22, 2023
Louisiana DOR Proposes Rule Changes Reflecting Newly Enacted Pass-Through Entity Tax Revisions
Orig Rel Date: December 22, 2023
Louisiana: Adopted Rule Reflects Personal Income Tax Exemption for Some Qualifying Digital Nomads
Orig Rel Date: December 22, 2023
Pennsylvania: New Law Modifies Tax Treatment of Certain Grantor Trusts
Orig Rel Date: December 22, 2023
Tennessee: Updated Tax Manual Reflects Recent Law Changes Including Single Sales Factor Adoption
Orig Rel Date: December 22, 2023
Tennessee: Letter Ruling Says Corporate Member May Utilize SMLLC’s Credits Following Merger
Orig Rel Date: December 22, 2023


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Gross Receipts 

Ohio: Proposed CAT Rule Changes Reflect New Law on CAT Exclusion and Annual Minimum Tax
Orig Rel Date: October 13, 2023
Ohio CAT Agency Exclusion Did Not Apply to Reimbursements from Management Fee Contracts
Orig Rel Date: November 10, 2023
Washington Supreme Court Agrees to Hear Case on Whether Investment Funds are Eligible for Investment Income Deduction
Orig Rel Date: November 10, 2023
Washington Appellate Court Affirms Bank’s In-State Activities Satisfied B&O Tax Physical Presence Nexus Requirement
Orig Rel Date: November 17, 2023
Washington DOR Posts Guidance Explaining that Patent Income May Be Subject to B&O Tax
Orig Rel Date: December
Ohio: Proposed CAT Rule Changes Reflect New Law on CAT Exclusion and Annual Minimum Tax
Orig Rel Date: December 8, 2023
Ohio: CAT Rule Changes Reflect New Law on CAT Exclusion and Annual Minimum Tax
Orig Rel Date: December 15, 2023
Washington DOR Proposes Changes to Rule Addressing Sourcing of Services for B&O Tax Purposes
Orig Rel Date: December 15, 2023
Washington Board of Tax Appeals Addresses B&O Tax Sourcing Methodology for IT Service Company
Orig Rel Date: December 15, 2023
Washington DOR Explains Taxation Involving Online Fundraising through Crowdfunding
Orig Rel Date: December 15, 2023


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Credits/Incentives 

Pennsylvania: New Law Restricts Persons Associated with Russia and Belarus from Claiming Tax Credits
Orig Rel Date: December 22, 2023


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Sales/Use/Indirect 

Florida Circuit Court Holds that Intercompany Sales of Electronically Delivered Software are Not Taxable
Orig Rel Date: October 6, 2023
Mississippi Supreme Court Says OTCs are Not Subject to Tax on Gross Income of Hotels
Orig Rel Date: October 6, 2023
Ohio: Draft Rule Reflects Law Permitting Bad Debt Deductions for Certain Private Label Credit Card Transactions
Orig Rel Date: October 6, 2023
South Carolina DOR Addresses Expanded Meaning of Motor Vehicle for Exemption Purposes
Orig Rel Date: October 6, 2023
California: New Law Revises Pre-Wayfair Qualified Purchaser Program to Allow More Use Tax Registration Avoidance
Orig Rel Date: October 13, 2023
New Mexico: Proposed New and Amended Rules Say Digital Advertising is Subject to Gross Receipts Taxation
Orig Rel Date: October 13, 2023
South Dakota DOR Guidance Addresses Wayfair Retroactivity and Taxation of Electronically Delivered Products
Orig Rel Date: October 13, 2023
Washington: Proposed Rule Addresses Additional 1.2% B&O Tax on Certain Banks
Orig Rel Date: October 13, 2023
Illinois: US Court of Appeals Affirms Dismissal of Locality’s Lawsuit Against Streaming Entertainment Companies
Orig Rel Date: October 20, 2023
South Dakota DOR Guidance Addresses Retroactivity for Marketplace Providers
Orig Rel Date: October 20, 2023
Colorado DOR Updates Proposed Rule on Refund Claims and Potential Penalties on Incomplete Claims
Orig Rel Date: October 27, 2023
Illinois DOR Proposes Rule Addressing Bad Debt Deductions on Installment Contracts for Cash Basis Retailers
Orig Rel Date: October 27, 2023
Washington Appellate Court Affirms Use Tax and B&O Tax Due on Internal Sales Based on Comparable External Sales
Orig Rel Date: October 27, 2023
Texas Comptroller of Public Accounts Proposes Changes to Local Tax Situsing Rule
Orig Rel Date: November 3, 2023
Vermont: Guidance Addresses Taxation of Prewritten Software Accessed Remotely (SaaS, IaaS, and PaaS)
Orig Rel Date: November 3, 2023
Washington DOR Addresses Taxation of Goods Received by Canadians in Washington Near Border
Orig Rel Date: November 3, 2023
Missouri High Court Affirms Intercompany Resales of Configured IT Equipment Qualify for Exemption
Orig Rel Date: November 10, 2023
Nevada: Credit Card Processing Fee Included on Invoice of Taxable Sale is Subject to Sales Tax
Orig Rel Date: November 17, 2023
Utah: Online Streaming Entertainment Company Owes Tax on Monthly Subscription Fees as Bundled Transactions
Orig Rel Date: December
Washington: Proposed Rule Reflects Expansion and Extension of Exemption for Some International Investment Management Companies
Orig Rel Date: December
Illinois: Telecom Agrees to Settle Qui Tam Whistleblower Suit Alleging Failure to Collect Taxes on Cell Phones
Orig Rel Date: December 8, 2023
North Carolina: Letter Ruling Addresses Taxability of Electronically Transmitting Reformatted Messages
Orig Rel Date: December 15, 2023
Florida DOR Warns of Potential Compliance Issues for Merchants Making Sales through Delivery Network Companies
Orig Rel Date: December 22, 2023
Iowa DOR Reminds that Exemption for Certain Purchases of Computers and Peripherals Expires December 31
Orig Rel Date: December 22, 2023
Iowa: Proposed Rule Changes Address Resale and Manufacturing Exemptions, Remote and Marketplace Sales, and Digital Products
Orig Rel Date: December 22, 2023
Tennessee: Updated Tax Manual Reflects Adoption of Streamlined Sales Tax Sourcing Provisions
Orig Rel Date: December 22, 2023
Tennessee: Customized Software Services Deemed Taxable and Cannot be Allocated to Out-of-State Users
Orig Rel Date: December 22, 2023


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Property 

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
Tennessee: Administrative Judge Lowers Real Property Valuation Due to Pandemic Related Economic Downturn
Orig Rel Date: October 20, 2023
Texas: Recent Election Suggests Voters Support Certain Legislatively Established Property Tax Cuts
Orig Rel Date: November 10, 2023
Mississippi Supreme Court Holds Locality Has No Grounds for Assessment of Back Taxes Based on Freeport Exemption
Orig Rel Date: December 8, 2023
Connecticut Supreme Court Upholds Validity of Taxing Out-of-State Registered Vehicles Based on In-State Storage
Orig Rel Date: December 15, 2023
Wisconsin DOR Explains New Law Eliminating Taxes Levied on Personal Property
Orig Rel Date: December 15, 2023


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Other/Miscellaneous 

Kentucky: US Supreme Court Denies Reviewing Validity of Regime Favoring Purchase of In-State Coal
Orig Rel Date: October 6, 2023
Maryland: Digital Advertising Gross Revenues Tax Refund Denial Notices Give Taxpayers Only 30 Days to Appeal
Orig Rel Date: November 3, 2023
Tennessee: Updated Tax Manual Addresses Business Tax Law Changes, Caselaw, and Nexus
Orig Rel Date: December 22, 2023


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Income/Franchise

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