Michael Bowen

Michael Bowen is the chair of Akerman's State and Local Tax Practice, a national team advising multistate clients on compliance, controversy, and litigation matters in all 50 states. He serves clients in the financial, automotive, manufacturing, retail, ecommerce, pharmaceutical, healthcare, energy, telecommunications, technology, and insurance sectors as well as professional athletes and high net worth individuals. Michael prosecutes and defends tax controversy and litigation matters across the United States at the audit, administrative, and judicial levels. He litigates issues such as nexus, apportionment, sales tax refunds, and constitutional issues. Michael’s clients value his 50-state knowledge and his litigation experience, which include high stakes, precedent-setting cases.

Firm/Organization: Akerman LLP

Blogs: SALT Insights

Latest Articles

SALT Insights

Kansas Surprises By Removing Nexus Thresholds and Seeks to Create Rebirth of “Slightest Presence” Nexus

By Emily Fiore & Michael Bowen on August 29, 2019

The Kansas Department of Revenue recently released Notice 19-04 (the “Notice”) which provides that all remote sellers making sales into the state are required to register for and begin collecting and remitting sales and use tax effective October 1, 2019, raising significant Constitutional concerns. Notably, the Notice cites no transaction or dollar thresholds for determining remote seller nexus with Kansas. The only predicate for nexus is that the remote seller makes a sale of tangible…

SALT Insights

New Hampshire Passes Anti-Wayfair Remote Tax Legislation

By Michael Bowen & Emily Fiore on August 15, 2019

Most states impose sales or use tax on tangible personal property sold or consumed in the state. However, five states – Alaska, Delaware Montana, New Hampshire, and Oregon – do not impose such a tax. In its landmark South Dakota v. Wayfair decision, the U.S. Supreme Court ruled that out-of-state sellers can be required to collect and remit tax on sales into another state in which the seller had no physical presence. The response from…

SALT Insights

Arizona v. California: A Clear Case of “Passive Aggressiveness” in the State Taxation of Nonresidents

By Michael Bowen on July 30, 2019

The State of Arizona has asked the Supreme Court of the United States to hear a challenge to the State of California’s taxation of nonresident members of California LLCs and nonresident shareholders of California corporations. The crux of the dispute relates to California’s “doing business” tax on all entities that conduct business in the State. The tax is a flat $800 for limited liability companies and is a minimum of $800 for corporations. Arizona asserts…

SALT Insights

Nothing to See Here? – Kaestner Trust Decision Leaves Many Unanswered Questions

By Michael Bowen on June 26, 2019

The U.S. Supreme Court recently issued its decision in North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Trust. The Court unanimously determined that the residency of in-state beneficiaries alone is an insufficient basis for a State’s taxation of trust income where (1) the beneficiary did not receive distributions of trust income, (2) the beneficiary had no right to distributions of trust income, and (3) it was uncertain if the beneficiary would ever receive…

SALT Insights

Notable Changes to Florida Tax Law

By Michael Bowen & Russell Hale on June 25, 2019

The Florida legislature recently wrapped up its 2019 session. Of particular note, the following tax law changes were enacted. Documentary Stamp Tax – Deeds between Spouses Florida imposes a surtax – referred to as the “documentary stamp tax” – on real estate deeds based upon the consideration paid for the transfer. Mortgage indebtedness on the property is always treated as consideration paid, even if the debt is not assumed by the acquiror. Exempt from this…

SALT Insights

A Case of History Repeating Itself: State Taxation of Transportation Related Companies

By Michael Bowen on May 14, 2019

During the Great Depression, the taxi industry boomed in the United States. This growth was fueled, in part, by the fact that the industry was largely unregulated. With many unemployed and underemployed individuals in need of extra money at the time, driving a taxi was a popular pursuit. At that time, drivers used “call boxes” located on city streets to communicate directly with the dispatch center to determine where to pick up the next passenger…

SALT Insights

Annie Get Your Gun: Wayfair and the Unresolved Ambiguities of Sales Tax Nexus

By Michael Bowen on April 10, 2019

In the late nineteenth century, Annie Oakley was arguably the most famous woman in the country. She was renowned for her skill as a sharpshooter and traveled the country in Buffalo Bill’s Wild West Show performing mind-blowing feats. She is credited with shooting the ashes off a lit cigarette hanging out of someone’s mouth and hitting objects by looking at them in a mirror. With rare exception, if Annie Oakley targeting something, she hit it.…

SALT Insights

You Can’t Touch This: Sale of Partnership Interest by Nonresident Corporate Partner Deemed Subject to NYC Tax Despite Lack of Unitary Business

By Michael Bowen on April 7, 2019

The decision by the New York City Tax Appeals Tribunal in Goldman Sachs Petershill Fund Offshore Holdings Corp (“Petershill Fund“), unfortunately, does not involve parachute pants or any reference to the “Running Man” dance. Setting this disappointment aside, the case does address a critical constitutional issue impacting passive investors in partnerships. The crux of the dispute was whether the U.S. Constitution prevented New York City (“NYC”) from imposing its General Corporation Tax on a nonresident…

SALT Insights

Tempest in a Teapot? The Due Process Clause Implications of Kaestner Trust

By Michael Bowen on February 13, 2019

The two primary constitutional weapons used to combat the application of state tax laws are the Due Process Clause and the Commerce Clause. That said, for decades Due Process Clause arguments were often afterthoughts to those made under the Commerce Clause. All that changed when the U.S. Supreme Court’s decision in South Dakota v. Wayfair. The Court’s holding in Wayfair calls into question the going forward usefulness of taxpayer challenges brought under the Commerce Clause. …

SALT Insights

SCOTUS Rejects Physical Presence Rule in Wayfair

By Michael Bowen on June 21, 2018

In a narrow 5-4 decision, the Court in South Dakota v. Wayfair, Inc. overruled its long-held precedent and held that under the Commerce Clause physical presence is no longer the touchstone for sales tax nexus. Dating back to its decision in National Bellas Hess in 1967, the Court had been clear that a state sales tax passes scrutiny under the Commerce Clause only if the out-of-state business had a physical presence in the taxing state.…

Michael Bowen

Kansas Surprises By Removing Nexus Thresholds and Seeks to Create Rebirth of “Slightest Presence” Nexus

New Hampshire Passes Anti-Wayfair Remote Tax Legislation

Arizona v. California: A Clear Case of “Passive Aggressiveness” in the State Taxation of Nonresidents

Nothing to See Here? – Kaestner Trust Decision Leaves Many Unanswered Questions

Notable Changes to Florida Tax Law

A Case of History Repeating Itself: State Taxation of Transportation Related Companies

Annie Get Your Gun: Wayfair and the Unresolved Ambiguities of Sales Tax Nexus

You Can’t Touch This: Sale of Partnership Interest by Nonresident Corporate Partner Deemed Subject to NYC Tax Despite Lack of Unitary Business

Tempest in a Teapot? The Due Process Clause Implications of Kaestner Trust

SCOTUS Rejects Physical Presence Rule in Wayfair

Company

Support

New to the Network