McDermott Will & Emery
Subscribe to McDermott Will & Emery's PostsNew SALT Implications in Proposed House and Senate Tax Reform Bills
By McDermott Will & Emery on Nov 30, 2017
Posted In Federal Tax, Nationwide Importance
The federal tax reform legislation is a work in progress, and its final form will undoubtedly be affected by political considerations and lobbying by interested parties. Both the House and Senate bills deserve careful study by taxpayers and their representatives, as many of the provisions will have an effect on state and local taxes. Continue...
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Preparing for the Repeal of Cook County’s Beverage Tax: Requesting Credits and Refunds
By Mary Kay McCalla Martire and McDermott Will & Emery on Nov 21, 2017
Posted In Illinois, Local Tax, Michigan, Procedure
Earlier this fall, the Cook County Board voted to repeal its constitutionally suspect, politically unpopular one cent per ounce sweetened beverage tax (Tax). The short-lived Tax will expire at the end of the County’s fiscal year on November 30, 2017. Having been tasked with implementing the Tax, the Cook County Department of Revenue (Department) is...
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SALT Implications of the House and Senate Tax Reform Bill
By McDermott Will & Emery on Nov 14, 2017
Posted In Allocation/Apportionment, Constitutional Issues, Income Tax, Nationwide Importance, Transaction Taxes
Many provisions of the House and Senate tax reform proposals would affect state and local tax regimes. SALT practitioners should monitor the progress of this legislation and consider contacting their state tax administrators and legislative bodies to voice their opinions. Continue Reading.
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State and Local Tax Aspects of Republican Tax Reform Framework
By McDermott Will & Emery on Sep 29, 2017
Posted In Allocation/Apportionment, Federal Tax, Income Tax, Local Tax, Nationwide Importance, Property Tax, Tax Base, Transfer Pricing
The White House and Republican congressional leadership released an outline this week to guide forthcoming legislation on federal tax reform. The states conform to the federal tax laws to varying degrees and the extent to which they will adopt any federal changes is uncertain. This memorandum outlines some of the key areas—individual taxation, general business...
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Illinois Court Upholds Cook County’s Beverage Tax Finding It Passes Constitutional Muster and Related Developments
By Mary Kay McCalla Martire and McDermott Will & Emery on Aug 15, 2017
Posted In Constitutional Issues, Illinois, Local Tax
On July 28, Circuit Judge Daniel Kubasiak dismissed the Complaint filed by the Illinois Retail Merchants Association and a group of retailers challenging the constitutionality of the Cook County, Illinois Sweetened Beverage Tax (Tax). A copy of the court’s Order is linked here (Order). The Order also dissolved the June 30 temporary restraining order which...
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Implications of Federal Partnership Audit Rules for State and Local Taxation
By McDermott Will & Emery on Aug 1, 2017
Posted In Federal Tax, Income Tax, Nationwide Importance
The new federal partnership income tax audit rules, scheduled to take effect on January 1, 2018, will have significant implications for the state and local taxation of partnerships and their partners. Most, but not all, states that impose a net income-based tax adopt by reference the federal definition of taxable income, but those that do...
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Favorable Guidance from the New Jersey Tax Court on the ‘Unreasonable’ Exception to the Related-Party Intangible Expense Add-back
By McDermott Will & Emery on Jun 29, 2017
Posted In Audits, Income Tax, New Jersey, Nexus, Tax Base, Transfer Pricing
In a recent decision, the New Jersey Tax Court provided some long-awaited guidance on the “unreasonable” exception to the state’s related-party intangible expense add-back provision. In BMC Software, Inc v. Div. of Taxation, No 000403-2012 (2017), the Tax Court held that payments made by a subsidiary to its parent for a software distribution license were...
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New York State FY 2018 Budget Bill: Sales Tax Highlights
By McDermott Will & Emery and McDermott Will & Emery on Jan 31, 2017
Posted In Audits, Constitutional Issues, New York, Nexus, Procedure, Transaction Taxes
On January 16, Governor Cuomo introduced the 2018 New York State Executive Budget Legislation. The bill proposes a number of changes to the New York State sales tax law. Below is a summary of the highlights. Sales and Use Tax “Marketplace Providers” The governor’s bill proposes to impose sales tax registration and collection requirements, traditionally...
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SALT Implications of Final Section 385 Debt-Equity Regulations
By McDermott Will & Emery on Oct 26, 2016
Posted In Federal Tax, Income Tax, Local Tax, Nationwide Importance
The recently released final regulations under Internal Revenue Code Section 385, addressing the circumstances under which related company debt will be classified as equity for federal income tax purposes, will have a significant impact on state and local taxes. Federal tax practitioners, as well as state and local tax practitioners, must address their implications. Read...
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SCOTUS Asked to Hear Appeal Involving Constitutionality of Retroactive Tax Legislation
By McDermott Will & Emery on Oct 18, 2016
Posted In Constitutional Issues, Income Tax, Nationwide Importance, Washington
The Supreme Court of the United States has been asked to hear an appeal in a case involving the circumstances in which retroactive tax legislation will be constitutional. In Dot Foods, Inc. v. State of Washington Department of Revenue, 372 P.3d 747 (Wash. 2016), the Washington State Supreme Court upheld legislation retroactively removing a corporate...
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