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
SALT Insights
Akerman Perspectives on the State of Taxation
SALT Insights, published by Akerman LLP, focuses on state and local tax (SALT) issues affecting businesses, particularly in areas such as nexus, sourcing, and tax compliance. The blog covers developments in state tax regulations, constitutional challenges to tax regimes, and the impact of federal laws like Public Law 86-272 on state taxation authority. It addresses topics including taxation of digital goods and services, sales and use tax complexities, home rule jurisdiction tax issues, and evolving interpretations of tax statutes in the context of e-commerce and telecommunications. The blog provides analysis of legal challenges and regulatory changes shaping state and local tax landscapes.
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Annie Get Your Gun: Wayfair and the Unresolved Ambiguities of Sales Tax Nexus
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…
You Can’t Touch This: Sale of Partnership Interest by Nonresident Corporate Partner Deemed Subject to NYC Tax Despite Lack of Unitary Business
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…
Tempest in a Teapot? The Due Process Clause Implications of Kaestner Trust
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…
Challenging New York City Real Property Taxes
By Eric Olson
New York City faces a continuing decline in state and federal funding and increased property taxes continue to be a reliable revenue stream to fund local services. Every January 15th, the NYC Department of Finance (DOF) sends to each owner…
In the Wake of Wayfair, New York Will Enforce Sales Tax Economic Nexus
By Eric Olson
On June 21, 2018, in its South Dakota v. Wayfair, 138 S. Ct. 2080 (2018), decision, the U.S. Supreme Court reversed its “physical presence” nexus test established over a quarter century earlier in Quill Corp. v. North Dakota, 504 U.S.…
New Jersey’s Tax Amnesty is Underway
By Eric Olson
New Jersey’s Tax Amnesty, launched by the New Jersey Division of Taxation on November 15, 2018, is a limited-time opportunity for taxpayers to settle certain New Jersey tax obligations with reduced interest and abated penalties.…
Vacation Rental and Shared Housing Tax Surcharge
By Stefi George
The enactment in October of a shared housing surcharge in Chicago and a new tax on online bookings in Pennsylvania both will have an impact on the hotel industry.…
Significant Changes to Illinois Nexus Rules effective October 1, 2018
By Akerman Law
Illinois recently passed Public Act 100-587 which requires remote sellers with no physical presence in Illinois to register and collect Use Tax on sales sourced to the state if certain thresholds are met, effective October 1, 2018. On September 11,…
Indiana SaaS Exemption Designed to Address Market Considerations
By David Blum & Akerman Law
Indiana recently passed a new sales tax exemption for Software as a Service (“SaaS”), effective July 1, 2018. Under the new law, sales, leases, and licenses of prewritten software remains taxable, regardless of delivery mechanism, but sales, leases, and licenses…