The 9th Annual New England State & Local Tax Forum took place online and ran through November 17-19, 2020. Due to the unprecedented year we are having due to COVID-19, the Forum’s Joint Boards made the decision to convert the 2020 live conference in Newton to a virtual conference. This year the Forum was held over three consecutive afternoons for 2 hours each day. Each year, the Forum provides the opportunity to learn about new developments in the area of tax law.
Topics: State tax, Sales Tax, sales and use tax, state and local tax (SALT), new england state and local tax, Ann Brown, New England SALT Forum
As more options become available to work virtually, people are considering where they want to maintain a home or “domicile,” both for convenience and for personal fulfillment, since they may no longer be strictly tied to working from an office. One of these considerations may be moving to a state with lower taxes, particularly in the wake of changes made in the tax reform law commonly known as the Tax Cuts and Jobs Act (TCJA). Before planning a move to another state, it is important to understand the concept of “domicile” or “residence,” and how these are defined for state and local tax purposes to avoid unwanted attention from states desperate to find revenue during this pandemic.
Topics: state and local tax (SALT), SALT, COVID19, Coronavirus, Coronavirus Aid, Relief, and Economic Security Act
The state and local tax implications for your business will require careful attention in the COVID-19 pandemic environment. Remote work during shutdown orders led to many workers finding themselves working for an organization from a different state. Some may even opt to change locations now that working virtually has become a more permanent option.
Topics: Tarra Curran, state and local tax (SALT), new england state and local tax, Ann Brown, COVID19, Coronavirus, COVID-19, remote work
When the Coronavirus Aid, Relief, and Economic Security (CARES) Act was first passed in late March to help alleviate financial strains from the Coronavirus pandemic, a lot of the media coverage focused on stimulus checks and business loans. The CARES Act also changed many tax laws to be responsive to taxpayer needs, and reversed some of the more onerous provisions that went into effect in 2017 and 2018 as part of the tax reform law more commonly known as the Tax Cuts and Jobs Act (TCJA).
Topics: State tax, Sales Tax, sales and use tax, state and local tax (SALT), new england state and local tax, SALT cap tax, Ann Brown, Coronavirus, COVID-19
Remote work arrangements during the COVID-19 pandemic have presented several challenges for operational continuity, particularly for the tax department function. Even in normal operating environments, tax departments often operate somewhat autonomously from the rest of the business. Tax departments respond to internal-facing demands that require gathering information from their company; as well as external-facing demands, such as submitting necessary information to state and local tax authorities. This dynamic has become more difficult during the pandemic, and it is worthwhile for companies to check in with their tax departments to see how things are progressing, particularly with state and local tax reporting.
Topics: State tax, Sales Tax, sales and use tax, state and local tax (SALT), new england state and local tax, SALT cap tax, Ann Brown, Coronavirus, COVID-19, remote work
As more states are extending their COVID-19 shelter-at-home orders into the summer months, businesses may be operating remotely longer. The logistics of allowing employees to work from home can be difficult, given the increased demand on IT infrastructures alone, but complying with state and local tax laws will also be a challenge.
Topics: state and local tax (SALT), new england state and local tax, Ann Brown, COVID19, Coronavirus, COVID-19, remote work
On April 3, the Massachusetts Department of Revenue (“DOR”) released a Technical Information Release (“TIR”) that announced tax filing and payment relief for personal income tax and payment relief for corporate excise tax, in response to the COVID-19 pandemic.
Topics: state and local tax (SALT), new england state and local tax, SALT cap tax, Ann Brown, COVID19, Coronavirus, COVID-19
It is a well-known fact that states and local governments have been grappling with falling sales tax revenues in recent years. The decline in sales tax revenue is a result of a shift in consumer habits trending towards more frequent online shopping and purchases of personal services. These shifts in purchasing habits directly affect sales tax collections because historically online vendors lacking physical presence were not subject to state sales tax requirements. Furthermore, services are typically not subject to sales tax.
Topics: Tarra Curran, State tax, Sales Tax, sales and use tax, state and local tax (SALT), new england state and local tax, SALT cap tax, Ann Brown
A New York U.S. District Court recently dismissed a case that challenged federal limits on state and local tax deductions. Certain high tax states have long taken issue with the tax reform change that placed a $10,000 “cap” on individual taxpayer deductions for state property taxes and state and local income taxes. The opinion issued in late September deals another hit to the effort to overturn the provision. In June, the IRS put an end to state attempts to bypass the cap through workarounds such as state tax credits. It appears that for the time being, the state and local tax (SALT) cap is here to stay.
Topics: State tax, Sales Tax, sales and use tax, state and local tax (SALT), new england state and local tax, SALT cap tax, Ann Brown
Tax collections were lower than expected in Massachusetts, Rhode Island and Connecticut, leaving the states scrambling to minimize the damage to their budgets. New England isn’t alone in state taxation troubles. The National Association of State Budget Officers reported last fall that 25 states had collections below their budget forecasts in the 2016 fiscal year and 24 reported lower-than-estimated general fund revenues for 2017.
Topics: Massachusetts, State tax, Cap Willey, Rhode Island Budget, state and local tax (SALT), new england state and local tax, Grafton Cap Willey, RI Budget, MA Budget, Connecticut