The New York Division of Tax Appeals recently ruled in favor of a taxpayer, E. & J. Gallo Winery, holding that it met the statutory requirements of a âQualified New York Manufacturerâ (âQNYMâ) and was therefore entitled to a reduced corporation franchise tax rate. As a result of New Yorkâs corporate tax reform, QNYMs are entitled to a reduced tax rate, including a 0% tax rate on their business income base beginning in 2014, for…
A new lawsuit filed by Wayfair, LLC in Jefferson County Court (Colorado) seeks to address a question left open by the U.S. Supreme Courtâs landmark 2018 Wayfair decision that permits states to impose a sales or use tax collection obligation based on an economic nexus threshold: Does this decision apply to locally-administered sales or use taxes? While many localities have asserted that the same economic nexus standards should apply at the state and local levels,…
California’s long-anticipated market-based sourcing âguidanceâ is finally out. Legal Ruling No. 2022-01 provides the Franchise Tax Board’s take on how to find the market in certain business-to-business sales. Though the guidance emphasizes that a seller should look to where its direct customer receives the benefit of sales of services, it keeps with current market-based sourcing trends amongst states and directs taxpayers to source such receipts based on the location of the taxpayerâs customerâs customer. The…
The Baker McKenzie SALT team presented the fifth session of its monthly webinar series covering coast-to-coast state and local tax developments on November 11, 2020. If you were unable to attend the session, links to the recording and materials are provided below: View the recorded webinar Download the materials