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SALT Blawg

State and Local Tax Blog

SALT Blawg – State and Local Tax Blog

State and Local Tax ("SALT") blog issues require state and local tax knowledge. Chamberlain Hrdlicka's SALT Blawg provides exactly that knowledge with news updates and commentary about state and local tax issues.

You can expect to find relevant information about topics such as income (corporate and personal) tax, franchise tax, sales and use tax, property (real and personal) tax, fuel tax, capital stock tax, bank tax, gross receipts tax and withholding tax. SALT Blawg, offers tax talk for tax pros … in your neighborhood.

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The U.S. Supreme Court has declined to hear the case of New Hampshire v. Massachusetts, but this is not the last we will hear of the underlying issue.  During October 2020, Massachusetts adopted an emergency regulation addressing remote workers’ tax obligations.  The emergency regulation adopted a “status quo” approach, whereby Massachusetts treated employees who had been working in Massachusetts before the pandemic, but were now working remotely, as if they were still working in Massachusetts.  The tax implication of that policy was that nonresidents working entirely out ...

Categories: U.S. Supreme Court

It has been a year since a large portion of the workforce was required to work from home almost overnight.  A majority of employers learned that they could function well remotely and many employees enjoyed the flexibility of remote work, including the ability to work from states different than their traditional work location. Since there seems to be light at the end of the tunnel, many employers are considering whether or not they will maintain a permanent remote workforce.  Such a decision should not be made without consideration of the state and local tax ramifications of a remote ...

The Pennsylvania Department of Revenue (“Department”) released an article discussing the deduction of home office expenses.  Since many residents are working from home due to the pandemic, it may be tempting to claim such deductions – yet, taxpayers should be aware of the potential ramifications of claiming home office deductions.

In order to qualify to take a home office deduction, a taxpayer must work through a three-part analysis.  First, the taxpayer’s employer must either not provide a suitable work area, or the taxpayer must be prohibited from reporting to work due to ...

Philadelphia applies the “requirement of employment” test in order to determine whether a non-resident’s base of operations is the employer’s Philadelphia location. If a Philadelphia employer requires a non-resident employee to perform duties outside of Philadelphia (including working from home), that employee is exempt from the Wage Tax for those days spent fulfilling that requirement.  However, if a non-resident works from home for his or her own convenience, that employee is not exempt from the Wage Tax, even if the Philadelphia employer authorizes the work from ...

The City of Philadelphia Department of Revenue issued Frequently Asked Questions (“FAQs”) regarding its Wage Tax policies in light of COVID-19.  Philadelphia applies the “requirement of employment” test in order to determine whether a non-resident’s base of operations is the employer’s Philadelphia location. If a Philadelphia employer requires a non-resident employee to perform duties outside of Philadelphia (including working from home), that employee is exempt from the Wage Tax for those days spent fulfilling that requirement.  However, if a non-resident ...

Pennsylvania

Earlier this year, the Pennsylvania Department of Revenue issued temporary guidance regarding telework during COVID-19 and the related tax implications thereof.  The Department has now issued an end date to its temporary policies: guidance issued by the Department is in effect until the earlier of June 30, 2021 or 90 days after the Proclamation of Disaster Emergency in Pennsylvania is lifted.

Ordinarily, the presence of employees working temporarily from home within Pennsylvania is sufficient to establish nexus for out-of-state businesses for purposes of the ...

In response to various issues created by COVID-19, the Philadelphia Department of Revenue (“Department”) has issued guidance to taxpayers related to the City’s Wage Tax, Use & Occupancy (“U&O”) Tax, and Business Income & Receipts Tax (“BIRT”).Wage Tax

On November 5, 2020, the Department issued revised guidance regarding Wage Tax withholding requirements for Philadelphia-based employers.  This is not a change in position; the guidance serves to explain the City’s policy that was in effect pre-COVID.  The guidance explains that Philadelphia applies the ...

Categories: SALT, SALT Update

Chamberlain Hrdlicka's Annual Tax and Business Planning Seminar is going VIRTUAL for 2020!

Our three-day webinar will feature attorneys from our Atlanta, Houston, Philadelphia, and San Antonio offices presenting today's most timely Tax and Business Planning topics.

Save the Dates to Join Us!  

Dates and Times:

  • Tuesday, November 10 from 1:00-4:30 p.m. CST
  • Wednesday, November 11 and Thursday, November 12 from 12:00 - 4:30 p.m. CST

Cost: $20 per day or $50/3 days

To request a financial hardship discount, a written request should be sent by email to Chamberlain Hrdlicka at ...

During July, the Commonwealth Court handed down its decision in Synthes v. Commonwealth of Pennsylvania, 108 FR 2016, which was a closely watched case dealing with differing interpretations of Pennsylvania’s costs of performance (“COP”) statute.  Prior to 2014, the statute required services to be sourced to the location of the “income-producing activity.”  Where the income-producing activity occurred both within and without Pennsylvania, receipts were required to be sourced to the state where the greater proportion of income-producing activities occurred, based ...

A Texas appellate court handed down on August 13 reminds taxpayers that the Texas Comptroller refund procedures are laden with traps for the unwary. 

Comptroller Seeks to Dismiss Refund Suit

In the case, Hegar v. El Paso Elec. Co., the taxpayer, El Paso Electric, sued the Texas Comptroller for refund in district court on grounds that it had paid taxes on equipment that qualified for Tax Code section 151.318(a)(4)'s exemption for “telemetry units that are related to ... step-down transformers.”.  No. 03-18-00790-CV (Tex. App. Aug. 13, 2020).  The Comptroller pled that El Paso ...