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SALT Blawg – State and Local Tax

State and Local tax issues require state and local tax knowledge. 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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  • Posts by Jennifer Weidler Karpchuk
    Senior Counsel

    Jennifer Weidler Karpchuk represents clients in various matters related to state and local taxation, with an emphasis on the minimization of state and local tax obligations. Ms. Karpchuk advises clients in all aspects of state ...

Starting March 1, 2018, a remote seller, marketplace facilitator, or referrer, with no physical presence in Pennsylvania but with $10,000 of annual sales into Pennsylvania, must elect to either collect sales tax on transactions, or to abide by various notice and reporting requirements. See HB 542, Act 43 of 2017. If no election is made, the remote seller, marketplace facilitator, and/or marketplace seller is deemed to have elected to comply with the notice and reporting requirements. The Department has begun mailing forms to taxpayers it believes qualify as referrers ...

The U.S Supreme Court has agreed to hear South Dakota v. Wayfair - a facial challenge by South Carolina to the U.S. Supreme Court's 1992 decision in Quill v. North Dakota, requiring physical presence.

As previously reported, during August the South Dakota Supreme Court held oral arguments wherein South Dakota urged the court to reject its petition, which would allow it to expeditiously file a petition for cert with the US Supreme Court.  The South Dakota Supreme Court abided and quickly affirmed a March 2017 trial court decision granting the remote seller’s motion ...

 


 

By: Jennifer Weidler Karpchuk

Pennsylvania recently joined 29 other states and D.C. in legalizing medical marijuana. With the growing acceptance of the use of marijuana for medicinal — and in some states, recreational — purposes, a new industry booms. With that boom comes revenue to the states in the form of new taxes.

As with any tax and policy, it is important to understand the history of how we got to where we are today. But it is particularly important to see what has framed our cultural views of marijuana. Medicinal marijuana has a long history, dating back to ancient cultures ...

On October 2, 2017, South Dakota filed a petition for writ of certiorari with the United States Supreme Court, bringing the first facial challenge to Quill Corp. v. North Dakota in front of the Court.

As previously reported, during August the South Dakota Supreme Court held oral arguments wherein South Dakota urged the court to reject its petition, which would allow it to expeditiously file a petition for cert with the US Supreme Court.  The South Dakota Supreme Court abided and quickly affirmed a March 2017 trial court decision granting the remote seller's motion for ...

On August 29, oral arguments were held in South Dakota v. Wayfair, Inc. S.D., No. 28160, which challenges the state’s remote sales tax legislation, S.B. 106. 

Enacted during March 2016, S.B. 106 requires remote sellers to collect and remit tax to the state – even if they have no physical presence in the state – if they have more than $100,000 in sales or make more than 200 separate sales into South Dakota annually. The Bill was specifically crafted as a vehicle to undo the U.S. Supreme Court’s ruling in Quill Corp. v. North Dakota, 504 U.S. 298 (1992), which prohibits states from ...


By: Jennifer Weidler Karpchuk

On June 19, the House unanimously voted to approve H.R. 327, thereby establishing a subcommittee on tax reform and modernization.  You can see our previous discussion of H.R. 327 here.

Since H.R. 327 was a House Resolution, it does not need to be approved by the Senate.  The subcommittee will have nine Finance Committee members who will be responsible for submitting their findings and recommendations by November 30, 2018.

During May 2017, H.R. 327 was introduced and reported as committed by the House on June 13, 2017.  H.R. 327 would establish a select subcommittee on tax modernization and reform to investigate, review, and make recommendations concerning the process, rates, and methods by which revenue in Pennsylvania is collected and assessed on taxpayers.

The purpose of the Resolution is to examine and review Pennsylvania’s system of taxation to ensure an equitable and efficient means by which taxes are assessed and collected and to facilitate a fair and competitive marketplace in an ...

During 2016, Tennessee amended its law to join the growing list of states challenging Quill Corp. v. North Dakota, 504 U.S. 298 (1992) (see past coverage here).  Pursuant to Tenn. Comp. R. & Regs. § 1320-05-01.129(2) (“Rule 129”), out-of-state dealers were required to register by March 1, 2017 and begin collecting sales tax by July 1, 2017.  Essentially, Rule 129 requires an out-of-state seller to collect and remit Tennessee sale and use tax based solely upon solicitation of sales from outside of Tennessee  in excess of the $500,000 statutory minimum in the state.  Thus, Rule 129 is a ...

As our previous post explains, the U.S. Supreme Court had extended the time to file petitions for certiorari in Crutchfield Corp. v. Joseph W. Testa, Tax Commissioner of Ohio (U.S. Supreme Court Docket No. 16A774), involving the Ohio Commercial Activity Tax (“CAT”).  However, prior to the deadline, the parties agreed to forego further litigation and entered into an undisclosed settlement agreement.  As such, the Ohio Supreme Court’s decision upholding the Ohio CAT stands. See Crutchfield Corp. v. Joseph W. Testa, Tax Commissioner of Ohio, 2016 WL 6775765 (2016).

Those hoping ...

As of today, April 21, 2017, Pennsylvania’s 2017 Tax Amnesty Program has officially commenced.  Those individuals with potential Pennsylvania tax liabilities should consider taking advantage of the program, which is slated to run through June 19, 2017.  During those sixty (60) days, the Pennsylvania Department of Revenue will waive all penalties and half of the interest for anyone who participates.  For more information, see our previous blog post hereContact us to find out if amnesty is the right choice for you.