State and Local Taxation: Headline News and Trends
September 16, 2020 David A. Fruchtman, Partner Chair, Steptoe’s National State and Local Tax Practice
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Today’s Agenda
Section I: Megatrends ( 3‐33) Section II: Transaction Taxes (34‐43) Section III: Business Activities Taxes (44‐54) Section IV: Miscellaneous (55‐63)
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Megatrends and Developments US Supreme Court
Espinoza v. Montana Department of Revenue, 591 U.S. ___ (2020) Ban on religious tax credit is unconstitutional
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Megatrends and Developments US Supreme Court
Still pending: Delaware v. Pennsylvania and Arkansas v. Delaware, Dkt. Nos. 22O145 and 22O146 (consolidated October 3, 2016) Escheat of unclaimed property; at Special Master
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Megatrends and Developments US Supreme Court
In briefing: CIC Services, LLC v. IRS, Dkt. No. 19-930 – IRS Response Filed 9/8/20 Does the Anti-Injunction Act bar challenges to tax reporting and recordkeeping rules? Possible interplay with the Tax Injunction Act (see DMA v. Brohl, 135 S. Ct. 1124 (2015))
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Megatrends and Developments US Supreme Court
Great Lakes Minerals LLC v. State of Ohio, No. 20-24 Distributed for Conference of 9/29/2020
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Megatrends and Developments US Supreme Court
Rogers County Bd. of Tax Roll Corrections v. Video Gaming Technologies, Inc., No. 19-1298 Distributed for Conference of 9/29/2020
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Megatrends and Developments Deductibility Limitation
State of New York v. Mnuchin as Sec’y of Department of Treasury, et al, US Court of Appeal 2d Cir., No. 19-3962
• On September 3, 2020, case calendaring was proposed for the week of November 30, 2020
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Megatrends and Developments Federal Proposals
Remote and Mobile Worker Relief Act of 2020. S. 3995 (introduced 18, 2020)
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Megatrends and Developments Federal Proposals
Remote Worker Relief Act of 2020 H.R. 8056 (introduced August 14, 2020)
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Megatrends and Developments Federal Proposals
Multi‐State Worker Tax Fairness Act of 2020. H.R. 7968 (introduced August 7, 2020)
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Megatrends and Developments Federal Proposals
Federal Mobile Workforce Act S. 4318 (introduced July 27, 2020)
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Megatrends and Developments State Proposals
• Tax Presence
• Withholding
• Taxing State
• Other Issues
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Megatrends and Developments Federal and State Proposals
What’s not to love about these Acts? Maybe plenty…
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Megatrends and Developments Federal and State Proposals
Expect jurisdictions with the convenience of the employer test to take a very close look.
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Megatrends and Developments Federal and State Proposals
Expect states with no or a narrow personal income tax to take an even closer look. (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming)
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Megatrends and Developments Federal and State Proposals
“Sununu warns NH could sue if Mass. levies income tax on telecommuters”
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Megatrends and Developments Would Such State Actions be Legal?
A possible case of “heads we lose, tails they win”?
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Megatrends and Developments Might Such Federal Actions Be Unconstitutional?
For possibly relevant analyses, see