SALT Insights

Akerman Perspectives on the State of Taxation

Blog Authors

David Blum

Alvan Bobrow

Michael Bowen

Paul J. D'Alessandro, Jr.

Latest from SALT Insights

SALT Insights

SCOTUS to decide who gets a consolidated group’s tax refund when a bankruptcy intervenes?

By David E. Otero

December 6, 2019

The U.S. Supreme Court heard oral arguments on December 3, 2019 in Simon E. Rodriguez v. Federal Deposit Insurance Corp., 18-1269 (Sup. Ct.). At dispute in the case is whether a $4.1 million tax refund belongs to a failed bank (the FDIC, as receiver for defunct United Western Bank) or its corporate parent in bankruptcy (Rodriguez, as trustee for United Western Bancorp Inc.). The Supreme Court granted certiorari in Rodriguez to decide whether state law…

SALT Insights

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

By Emily Fiore & Michael Bowen

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

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…

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

By Michael Bowen

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

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…

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Notable Changes to Florida Tax Law

By Michael Bowen & Russell Hale

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

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

Removing Transaction Thresholds – Where does Wayfair go from here?

By Emily Fiore

May 10, 2019

Last year, the U.S. Supreme Court ruled in South Dakota v. Wayfair that economic nexus is constitutional for sales tax purposes. South Dakota’s economic nexus statute at issue in the case included an economic threshold of at least $100,000 of sales or 200 separate transactions into the state in the prior calendar year. The decision overruled prior decisions by the Supreme Court, including the landmark holding in Quill Corp. v. North Dakota. In the 1992…

SALT Insights

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

By Michael Bowen

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

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

Akerman Perspectives on the State of Taxation

Blog Authors

SCOTUS to decide who gets a consolidated group’s tax refund when a bankruptcy intervenes?

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

Removing Transaction Thresholds – Where does Wayfair go from here?

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

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