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Archive for Monika Miles

Tax And Business Climate In Wisconsin

Tax And Business Climate In Wisconsin

This month we travel north to the Badger State of Wisconsin, a Midwestern U.S. state with coastlines on two Great Lakes (Michigan and Superior) and an interior of forests and farms. Several beer companies are based in Milwaukee, and many offer brewery tours. The state is known as “America’s Dairyland” because it is one of the nation’s leading dairy producers, particularly famous for its cheese. Manufacturing, especially paper products, information technology (IT), cranberries, and tourism are also major contributions to the state’s economy.

Wisconsin’s geography is diverse having been greatly impacted by glaciers during the Ice Age with the exception of the Driftless Area. The Northern Highland and Western Upland along with a part of the Central Plain occupies the western part of the state, with lowlands stretching to the shore of Lake Michigan. Wisconsin is second to Michigan in the length of its Great Lakes coastline.

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Why Wayfair Legislation Is Helping States Survive The Pandemic

Why Wayfair Legislation Is Helping States Survive The Pandemic

Last year was not an easy one for a variety of reasons, the ongoing pandemic chief among them. 2021 has provided some relief, but COVID’s economic impacts are still being felt by individuals, businesses and governmental organizations across the country.

According to a pair of Harvard economists, the pandemic would have cost the U.S. “at least 16 trillion” if it ended this fall. Given COVID numbers are still high in many areas, it’s safe to say the pandemic is not over and its true cost will exceed their estimate. By how much is yet to be seen.

That said, some states have weathered the pandemic better than initially feared. This is largely thanks to legislation adopted following the 2018 Wayfair decision which allowed states to collect additional tax from online purchases.

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New California Competes Grant Program

New California Competes Grant Program

Since 2013, when California eliminated its statewide enterprise zone tax credit and incentive programs, we have been following the evolution of the California Competes Tax Credit (“CCTC”) program, which seeks to award tax credits to companies locating to or expanding within California.  The program has had its issues, certainly. Not the least of which is that few companies have been able to take advantage of the program, either because they do not engage in the type of expansion necessary, or because they are not paying income tax due to excess net operating losses, tax credits (i.e.; Research and Development Credits) or other reasons.

For this fiscal year, the Governor has included in his budget a new grant program called the California Competes Grant Program (“CalCompetes Grant Program”), which promotes that it will allow more companies to qualify and utilize cash grant funds (as opposed to tax credits) in the name of expansion in the state. The goal of this new program is to make funds available to companies which could previously not qualify for the tax credit, but might be making the necessary investments and could benefit from the grant instead.

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What You Need To Know About The Taxation Of Streaming Services

What You Need To Know About The Taxation Of Streaming Services

When it comes time to relax with your favorite show, where do you go to find it? Over the last decade, more and more people have made the choice to look online and utilize streaming services like Netflix and Hulu instead of depending on traditional cable or satellite TV.

This trend is in line with digital transitions in many industries, and like those other industries, it presents new tax challenges for regulatory agencies and streaming companies alike.

In this article, we’ll share the brief history of streaming taxes, where we are today and our predictions for the future.

An Overview Of Streaming Taxes

As the most famous of the streaming services, Netflix paved the way for those that followed in its wake. First offering its “Watch Now” video on demand service in 2007, Netflix has more than 208 million paying subscribers, with 74.4 million of those in the U.S. and Canada.

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Business And Tax Climate In Tennessee

Business And Tax Climate In Tennessee

This month, we travel east to Tennessee, the Volunteer State. It is the 36th largest state by area and the 16th most populous state. Nashville is home to the Grand Old Opry. Memphis, in the far southwest portion of the state, is home to Elvis Presley’s Graceland and the blues clubs of Beale Street. Sun Records resides in Memphis, which is where Elvis Presley, Johnny Cash, Roy Orbison, Carl Perkins, Jerry Lee Lewis and Charlie Rick began their recording careers.

Tennessee is home to the Great Smoky Mountains National Park, located in the eastern part of the state. It is the most visited national park in the country. Furthermore, the state is considered to be the most biologically diverse state without a coastline, boasting seven of the eight most ecologically rich rivers in North America. It has more than 325 species of fish, ranking the state first among all states in freshwater fish diversity. The state also has a diverse population of salamanders.

Business Climate

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California Competes Tax Credit – An Update

California Competes Tax Credit – An Update

Statutory tax credits are helpful to businesses looking to expand their operations within a state. As is often headlined in mainstream media, states compete with one another to entice companies to build plants, new headquarters operations, etc. within their state. And companies (particularly large ones) are happy to be courted for these often lucrative incentives which can include income tax credits, sales tax rebates, alternative financing, property tax incentives and infrastructure improvements – to name a few.

But over the years, state tax incentive programs have been criticized by many as “corporate giveaways” because companies often receive the tax breaks but don’t live up to the agreed upon investment (generally headcount). When companies fail to meet their milestones, it is often difficult for states to claw that money back and states are left to decide how to deal with the shortfall.

California’s Credit

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Are Remote Workers A Tax Liability? It Depends.

Are Remote Workers A Tax Liability? It Depends.

Are your employees still working remotely? When the pandemic first hit, many businesses were forced to transition to a remote working model for safety reasons.

In the time since, some companies have returned to the office, while others have adopted a hybrid model or continued with remote working due to ongoing concerns regarding COVID-19 variants.

Regardless of your specific situation, one thing that every company should be paying close attention to is how these workers can impact tax obligations. In this article, we’ll share updates to the situation and how they might impact your business.

The Remote Working Tax Situation So Far
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Business And Tax Climate In Kansas

Business And Tax Climate In Kansas

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. For thousands of years, what is now Kansas was home to numerous and diverse Native American tribes. Tribes in the eastern part of the state generally lived in villages along the river valleys. Tribes in the western part of the state were semi-nomadic and hunted large herds of bison.

The western two thirds of the state, lying in the great central plain of the United States, has a generally flat or undulating surface, while the eastern third has many hills and forests. The land gradually rises from east to west. It is a common misconception that Kansas is the flattest state in the nation. In fact, Kansas has a maximum topographic relief of 3,360 ft, making it the 23rd flattest U.S. state.

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Is Wayfair Simplification On The Horizon?

Monika Miles - Is Wayfair Simplification On The Horizon?

If you’re a business owner, accountant or involved in the tax world in any way, you’ve undoubtedly been made aware of the Wayfair decision.

In short, that decision, which said that South Dakota’s economic nexus law was constitutional and opened the door for other states to do the same, effectively made it easier for companies to create nexus in a state for sales tax purposes, thus creating a collecting and filing responsibility.

Over three years later and every single state that has a general sales tax has implemented some form of Wayfair-related legislation, whether economic nexus or marketplace facilitation. However, because each state has the freedom to do so independently, tax rates and the triggers for these Wayfair laws vary wildly. For businesses, this lack of cohesion has created a tax burden that, for some, is nearly unbearable.

The Complication At The Heart Of Wayfair

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What To Know About Intercompany Service Receipts In Washington

What To Know About Intercompany Service Receipts In Washington

Washington state is known for its evergreen forests, beautiful mountains and for being the home of Starbucks. That said, for remote retailers, it should also be known as a state with several unique tax situations, one of which is its treatment of intercompany service receipts.

In general, the Washington Department of Revenue (DOR) takes a fairly aggressive stance in regards to the taxation of remote companies providing services to customers within the state.

However, companies have several avenues that could provide potential relief for these tax burdens.

Taxation Of Services Within Washington State

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West Virginia Tax And Business Climate

West Virginia Tax And Business Climate

Known for its mountainous landscape and rolling hills, this month we travel north to West Virginia. The state has a rich history and is embedded in the Appalachian Mountains.

West Virginia is known for a wide range of outdoor recreational activities, such as skiing, whitewater rafting, fishing, hiking, backpacking, mountain biking and hunting. The state offers many golf courses as well.

It is also one of the most densely Karstic areas in the world, making it a choice area for recreational caving and scientific research. Karstic topography is a landscape formed from the dissolution of soluble rocks such as limestone, dolomite, and gypsum. It is characterized by underground drainage systems with sinkholes and caves. These underground hydrology systems contribute to much of the state’s cool trout waters.

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How The Paycheck Protection Plan Is Impacting Businesses One Year Later

How The Paycheck Protection Plan Is Impacting Businesses One Year Later

For companies in many industries, staying in business throughout 2020 was a struggle. It meant constantly adapting to new challenges, working harder than ever to just stay afloat and strategically taking advantage of state and federal relief efforts, like the Paycheck Protection Program (PPP), wherever possible.

As a small business, we felt those struggles ourselves, and even as life starts to go back to ‘normal,’ we understand that the financial concerns of the last year are not going to just magically disappear.

Depending on what relief was utilized, many business owners are now considering their best strategy for repayment. In this blog, we’ll discuss your options and help you decide what’s best for your company.

A Recap On The PPP

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