Blog Posts Tagged With State and Local Reform

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The Latest in the Online Sales Tax Saga

Earlier this month, Massachusetts became the latest state to more aggressively pursue sales tax on online purchases, going beyond other states to expand the definition of physical presence to include cookies, apps and server presence with a new directive effective July 1. While these changes may mean a significant revenue bump for Massachusetts, legislative and legal challenges have already begun.

What does the Directive Do?  Under the State’s existing sales tax rules, retailers that are engaged in making “taxable sales” in Massachusetts or that sell “taxable products” for use in Massachusetts are required to collect and remit sales tax if the retailer is engaged in a business in Massachusetts. Continue Reading

NY State RETT Expansion Not Included in Final New York Budget

Last month we wrote about a proposal included in New York State Governor Andrew Cuomo’s 2017-2018 budget that would have expanded the New York State Real Estate Transfer Tax (“NY State RETT”) to cover transfers of minority interests in certain entities. Late last week New York lawmakers reached a final deal on the budget that excludes this provision. The final revenue bill can be found here (see part JJ – what was once the proposed NY State RETT expansion is now “Intentionally Omitted”). It passed the Senate and Assembly over the weekend and is expected to be signed by the Governor today. Continue Reading

It’s Not Just Us – State Governments are Waiting for the Details of Tax Reform Too

Yesterday New York State Governor Andrew Cuomo floated the possibility that New York State will pass its budget in two parts this year – with an initial extender of last year’s budget, followed by a full budget later this year once the impact of Trump’s proposed spending cuts on state revenues become more clear. This serves as a reminder that although the focus right now is on the federal budget and federal tax reform, state budgets and state tax systems are inextricably linked with the federal system.  Notably, and as the Tax Foundation highlighted in a recent publication, most states piggy back their tax code to the federal tax code, so any changes made to federal definitions (such as the definition of adjusted gross income) would influence the revenue that states collect. Continue Reading

Updates on the AHCA and NY State RETT Expansion

On March 8th we published two blog posts detailing pending legislative changes. The first, Details on the House Health Care Bill’s Numerous Tax Changes, summarized the tax changes contemplated by the House Republican’s bill (the American Health Care Act, or AHCA) to repeal and replace the Affordable Care Act. The second, Proposed Expansion of New York State Real Estate Transfer Tax, described legislation introduced in the New York State Legislature that would amend the existing New York State Real Estate Transfer Tax (“NY State RETT”) to tax transfers of minority interests in certain entities holding real estate located in New York. Continue Reading

Proposed Expansion of New York State Real Estate Transfer Tax

While much of the focus of our blog to date has been on federal tax reform, tax reform is also a hot topic at the state and local level.  One area that we are following is the proposed expansion of the New York State Real Estate Transfer Tax (“NY State RETT”) contained in Governor Cuomo’s 2017-2018 budget proposal.

This proposal, introduced in the New York State Legislature on January 23 (as part of the Revenue Article VII Bill), would expand the NY State RETT to apply to transfers of minority interests in certain entities holding New York State real property if the value of the real property is at least 50% of the value of all of the entity’s assets.  Continue Reading

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