Latest COST Conscious

ISSUE 21-04; February 26, 2021

Effective Communication During the Pandemic – The pandemic has significantly shifted legislative and administrative processes, from virtual hearings to closed capitols. As a result, has your organization changed how it communicates with government officials on tax-related issues?

Latest Legislative Alert

ISSUE 21-09; February 23, 2021

COST Opposes Minnesota Retroactive Taxation of Foreign Source Income; West Virginia Legislation Would Adopt Problematic MTC Mobile Workforce Model and Repeal Throwout; SSUTA Governing Board Meeting to Address National Emergencies

Latest Practitioner Connection

ISSUE 21-04; February 19, 2021

Managing State Tax Challenges Facing Businesses – Most states have experienced sharp revenue drops in 2020, according to the Center on Budget and Policy Priorities, States Grappling With Hit to Tax Collections (Nov. 6, 2020), although there are exceptions like Kentucky. Logically, this means that states will be looking for revenue. In regard to businesses, where does that revenue come from? Proper


Democrats Shelve Tax Penalty Aimed at Raising Minimum Wage (1)


Senate Democrats are shelving an effort to raise minimum wages for workers as part of the $1.9 trillion virus relief package that passed the House on Saturday, according to two people familiar with the matter.

Bill to Legalize Recreational Pot Heads to Virginia Governor


Virginia lawmakers are sending the governor legislation that would legalize and tax recreational marijuana in three years.

WEEKEND INSIGHTS: Taxing Non-Income Items and Retirement Plans


This week we look at problems with the new partnership audit regime, passing wealth to the next generation, an expected increase in tax risk and controversy, New Hampshire v. Massachusetts, the pursuit of small unclaimed accounts, the latest on opportunity zones, and more.

House Passes Biden Aid With $1,400 Checks; Focus Moves to Senate


The U.S. House passed President Joe Biden’s $1.9 trillion pandemic-relief plan, spanning $1,400 stimulus checks, enhanced jobless benefits and fresh funding for vaccines and testing. Also included: a minimum-wage measure with no prospects of passing in the Senate.

Amazon Sellers Sue Pennsylvania for Seeking Back Taxes


An association of e-commerce vendors sued Pennsylvania Friday for seeking back taxes against its members who sell products in the state through Amazon.

Low-Wage Tax Penalty Risks Sparking Contract Labor Boom


A Democratic plan to slap tax penalties on companies with too many low paid workers would drive larger firms to outsource more of their labor unless Senate Finance Chairman Ron Wyden can plug potential holes in his plan, economists warned.

Wave Computing Bankruptcy Sale on Track With Fee Issue Resolved


Delaware has issued the certificates Wave Computing Inc. needed for its $61 million bankruptcy sale after the company agreed to pay franchise tax fees owed to the state.

Maryland Moves Closer to Expand Tax Credit to Immigrants


State lawmakers passed legislation that would make immigrants living in Maryland eligible for a tax break for low-income workers.

Marijuana Dispensary Urges Supreme Court to Review IRS Summons


A Colorado marijuana dispensary argued the U.S. Supreme Court should consider a challenge to an IRS summons over possibly improper business deductions because the case offers an opportunity to address the definition of constitutional income under the 16th Amendment.

Wisconsin Cranberry Tax Nears End; Mississippi Reform on Tap


The Week in Wayfair: Wisconsin moved forward with ending its sales tax on dried cranberries; Mississippi took up a major proposal to cut income taxes while raising sales taxes; Missouri moved closer to requiring tax collection by remote sales and marketplace facilitators; and Louisiana looks at a single sales-tax collection entity.

Tax Notes

COST Opposes Retroactive Corporate Tax Provisions in Minnesota Bill


The Council On State Taxation is urging Minnesota lawmakers to remove retroactive corporate income tax changes from a budget bill, saying they raise due process issues and tax policy concerns.

New Jersey Tax Court Upholds Limit on Extension of NOL Carryover


In Fifth Third Equipment Finance Co. v. Division of Taxation, a case involving a net operating loss carryover deduction, the New Jersey Tax Court ruled that an extension of time does not apply if a taxpayer did not have enough income for an NOL to be used.

Arizona Court Expedites Appeal of Denied Income Tax Measure Injunction


An Arizona appeals court has agreed to expedite review of a decision in the consolidated cases of Fann v. Arizona and Eco-Chic Consignment Inc. v. Arizona that allowed a higher income tax rate on top-tier earners to go into effect.

Wisconsin Governor Proposes Conformity With Federal Tax Provisions


Wisconsin Gov. Tony Evers (D) is proposing federal conformity and other tax changes to generate roughly $1 billion in new revenue, but the plan faces head winds in the state’s Republican-majority legislature.

Rhode Island Bill Would Tax Sugar-Sweetened Beverages


A Rhode Island bill would impose an excise tax on sugary drinks and use the revenue to fund Supplemental Nutrition Assistance Program initiatives to promote healthy eating.

Ohio Court Finds City’s Tax Settlement Not Covered Under Insurance


An Ohio appellate court determined in City of Gahanna v. Ohio Municipal Joint Self-Insurance Pool that a city wasn’t entitled to indemnification in connection with a $9.1 million payment to settle a class action concerning overpaid municipal taxes, finding that an insurance policy exclusion applied.

Georgia Republicans Reintroduce Judicial Deference Bill


Georgia Republicans have reintroduced a business-friendly proposal that would eliminate judicial deference in the state to all subregulatory interpretations of the Department of Revenue.

Louisiana Lawmakers to Prioritize Centralized Sales Tax System


Establishing a centralized sales and use tax system in Louisiana will be a top priority for the upcoming legislative session, according to House Speaker Clay Schexnayder (R).

Iowa Appellate Court Sustains Agency’s Valuation of Lowe’s Store


In Lowe’s Home Centers LLC v. Iowa Property Assessment Appeal Board, the Iowa Court of Appeals has affirmed a lower court’s order that upheld the $10.9 million valuation of a Lowe’s store.

Wisconsin, California to Allow PPP Loan Expense Deductions


Wisconsin has enacted legislation that conforms to federal law allowing the deduction of business expenses paid for with forgiven Paycheck Protection Program loans; separately, California’s governor recently announced a major stimulus deal that includes a similar conformity provision to benefit businesses in that state.

Select State Tax News

Mississippi House Kills Proposal for Gas Tax Election


by Emily Wagster Pettus, Associated Press The Mississippi House is backing away from a proposal for a statewide election on increasing gasoline and diesel fuel taxes to pay for improvements to...

IRS Free File Opens Today; Do Taxes Online for Free


WASHINGTON – Most taxpayers can get an early start on their federal tax returns as IRS Free File – featuring brand-name online tax providers − opens today at for the 2020 tax filing...

IRS Free File Helps Seniors and Retirees Do Their Taxes for Free


Pixabay, Tookapic WASHINGTON – Seniors and retirees whose incomes are under $69,000 a year should explore IRS Free File for free online tax preparation. Seniors are among the key constituents for...

IRS: Most Taxpayers Eligible for Free Federal and Free State Tax Return Prep


WASHINGTON – Most taxpayers can do both their federal and state tax returns for free online through Free File offered either by the IRS or by states that have a similar public-private partnership....

The Case for Coal


Commentary For over twenty years, I’ve worked with many key industry leaders, stakeholders, state officials, and the past two presidential administrations on developing energy policy. Montana has...

How the IRS Collections Process Works


Owing money to the IRS or state can be extremely stressful and you may be tempted to ignore the situation, but this will only make it worse. But where do you start? Let’s begin by explaining the IRS...

Louisiana Legislature promises push to 'fundamentally change' tax structure


(The Center Square) – Leaders of the Louisiana Legislature released a letter to Louisiana taxpayers Friday announcing they will push to “fundamentally change our tax structure.” Commissioner of...

Important tax information about your unemployment benefits


DOR provides guidance to ensure you file your taxes correctly and include all required information With over 1.2 million unemployment claims in 2020, more Hoosiers than ever will be including...

Commentary: What will local leaders do about unfair school funding for Rappahannock?


Comment articles reflect the opinion of the writer, not the Rapp News. Reply below or by writing a letter to editor: . After reading about the joint meeting of the School Board...

Legislators are officially revamping Louisiana’s tax system; what that could mean for taxpayers | Legislature


The work to modernize the state’s tax system, which has been going on for weeks behind the scenes, was made public Friday when Senate President Page Cortez published an announcement signed by the...

Where did the money come from?


A major task each legislative session is creating and approving a plan for how we will spend our state tax dollars in the upcoming year. The legislative session typically ends in late March. The...

Successfully launching a hedge fund


Submitted 28/02/2021 - 10:16am By Ron Geffner – I nvestors and regulators continue to evolve, becoming more sophisticated and asking more probing questions. Now more than ever, successfully...

OUR OPINION: Pump the brakes on income tax elimination


T he Mississippi House of Representatives this week passed a bill that would eliminate the state income tax and move Mississippi to more of a consumption-based tax system by raising sales taxes....

Lifting the veil on electric vehicle subsidies


Electric vehicles are the future. Everyone will want one because they’re emission-free, ecologically responsible and more affordable every year. That’s why GM, Volvo and other manufacturers will soon...