Archive for State Tax

Remote Work Force And State Tax Implications

Remote Work Force And State Tax Implications

The Covid-19 pandemic has had an impact on our workforce.  Companies were forced to quickly respond to a work-from-home model for their employees.  Many employees began working from states other than the states in which their assigned offices were located.  As a result, questions are being raised such as whether the company will have nexus for corporate income tax and sales and use tax purposes in the states where it has remote employees, should the company begin withholding on wages earned by the employee based on the location of the remote employee and whether the employee should be filing a nonresident tax return in the state in which she is working remotely.

Nexus for Companies – Corporate Income Taxes and Sales and Use Taxes

Generally, states will assert that an employee working from home or remote location within the state will trigger nexus for the company.  Nexus is used in tax law to describe a situation in which a business has a tax presence in a particular state, therefore, subjects the company to the state tax laws, such as corporate income or franchises taxes, or sales and use taxes tax.

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Written by | Posted in Remote Workers • State Tax

Tax Climate In Ohio – Aggressive On Technology Products For Sales Tax Purposes

Monika Milkes

Ohio is a Midwestern state in the Great Lakes Region of the United States. It is the 34th largest state by area, the seventh most populous and the 10th most densely populated. Ohio is historically known as the “Buckeye State” after its Ohio Buckeye trees and Ohioans are also known as “Buckeyes.”

Much of Ohio features glaciated till plains, with an exceptionally flat area in the northwest being known as the Great Black Swamp. This glaciated region in the northwest and central part state is bordered to the east and southeast by a belt known as the glaciated Allegheny Plateau, and then the unglaciated Allegheny Plateau. Most of Ohio is of low relief, but the unglaciated Allegheny Plateau features rugged hills and forests.

Business Climate

Ohio’s geographic location has proven to be an asset for economic growth and expansion because Ohio links the Northeast to the Midwest, much cargo and business traffic passes through its borders along its well-developed highways. Its border with Lake Erie has numerous cargo ports.

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Written by | Posted in Ohio • Sales/Use Tax • State Tax

Kansas Tax And Business Climate

Monika Miles Kansas Tax Climate

This month brings us to the center of the country, the Great Plains state of Kansas. Kansas is a Midwestern state that epitomizes the U.S. Heartland with its Great Plains setting of rolling wheat fields. The Museum of World Treasures in Wichita, the state’s largest city, covers world history from dinosaurs to Elvis, while the open-air Old Cowtown Museum highlights the city’s pioneer past. In nearby Hutchinson, the Cosmosphere displays the Russian Vostok and Apollo 13 spacecrafts. Read More

Written by | Posted in State Tax

California’s Border Wall And Participation With State Tax Credits

The Federal Government’s proposed border wall with Mexico has been getting a lot of attention lately, particularly since the president recently visited the Golden State. One California legislator has an interesting take on the ongoing disagreement between California and the White House. Assemblyman Phil Ting, of CA, recently announced his bill, A.B. 2355, as a way to incentivize companies not to participate in the building of the wall.

The Logistics

As recently reported by Bloomberg BNA, companies that participate in the building of the Federal government’s proposed wall with Mexico, on the California border, would not be able to participate in several state tax credits. Read More

Written by | Posted in California • State Tax

State Tax Deduction Limit? California Fights Back

By now many of us in California have contemplated our fate regarding how the tax reform act passed by Congress last month will likely hurt Californians as a result of the federal limit on the state and local tax deduction for individual taxpayers.

In an effort to mitigate the limit of this deduction for Californians, state lawmakers have quickly looked to alternatives. Read More

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California College Access Tax Credit Reminders

California’s College Access Tax Credit Program started in 2014. For individuals, it allows a large credit for donations made to this fund. Before claiming any credit though, the donor must first apply for the credit with the State Treasurer. This is because a fixed amount of credits is available so people claim it on a first-come-first-serve basis. In the first few years, little was claimed relative to the amount allocated.

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Written by | Posted in California • State Tax • State Treasury • Tax Credit • United States

Update On The California Competes Tax Credit & Beneficiaries Thus Far

As the mainstream media wonders where Amazon will locate its HQ2, many states are in the news touting their credits and incentives benefits to draw in company expansions.

As I’ve reported before, the California Competes Tax Credit has been available since January 2014 and isn’t scheduled to sunset until 2025. Every year, the state earmarks funds for the program of approximately $200 million, and companies compete for the funds during three application periods per year.

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Written by | Posted in State Tax • Tax Credit • United States

Online Sales Tax Bill Defeated In SD Supreme Court

If you’ve been following the online sales tax debate on our blog, you know South Dakota recently passed, “Senate Bill 106, allowing the state to collect taxes from sales made from online retailers – even if they don’t have nexus within South Dakota itself.”

The 2016 law mandated a sales tax collection responsibility from sellers grossing over $100,000 in sales to South Dakota customers, or transactions numbering more than 200 in a year – even if the seller has no physical presence or other connection with the state. Then NetChoice and the American Catalog Mailers Association sued the state, claiming the law violates Quill Corp. v. North Dakota, a ruling which established businesses need a physical presence in the state to be responsible for sales tax and fees. Read More

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Reminder To CA Manufacturers: Sales Tax Exemption!

Remember when the California Manufacturing Sales Tax Exemption first came into fruition, on July 1, 2014? It seems like so long ago. But maybe it’s a good time to remind companies about this useful partial exemption available to manufacturing companies.

What exactly is this exemption?

It allows certain manufacturers and biotech companies to exempt a portion of California sales and use tax on purchases of qualified equipment used in manufacturing and R&D (research and development). Read More

Written by | Posted in State Tax

Ongoing Amnesty Program: Act Soon!

Monika Miles

Last month, we updated our readers on an ongoing amnesty program for state taxes that is currently taking effect. As this program could be helpful to sellers utilizing fulfillment marketplaces, we wanted to provide an update on this program so qualified companies can take advantage of the potential benefits of the amnesty.

What exactly is it? Read More

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Indiana Advocating For Online Sales Tax With A Lawsuit

Monika Miles, Online Sales Tax

Every time we turn around, it seems there’s a new development in the online sales tax debate. As states continue to get involved and look for new ways to bolster their revenue, the issue continues to grow larger and more complex. Now Indiana is looking to the courts to settle the matter.

Indiana’s Online Sales Tax Lawsuit Read More

Written by | Posted in State Tax

Tax Incentives And Credits In Maine

Monika Miles, Maine, Multistate taxes

This month we travel all the way to the northeast corner of the country to the state with the rocky coastline and maritime history of Maine, the Pine Tree State.

Maine is the northeasternmost state in the contiguous United States. It is known for its jagged rocky coastline, low, rolling mountains, heavily forested interior, picturesque waterways, and its seafood cuisine, especially clams and lobster. Read More

Written by | Posted in State Tax
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