David Jasphy
Subscribe to David Jasphy's PostsDavid Jasphy focuses his practice on state and local tax matters. He represents clients in all stages of tax controversy from audit through appellate litigation. He also provides planning and compliance strategies for clients with complex multistate tax concerns. Read David Jasphy's full bio.
California Legislatively Overturns Recent Office of Tax Appeals Taxpayer Win
By Stephen P. Kranz, Michael J. Hilkin and David Jasphy on Jul 3, 2024
Posted In Allocation/Apportionment, California, Federal Tax, Income Tax, Nationwide Importance, Tax Base
The California State Legislature overturned Microsoft’s recent win at the Office of Tax Appeals, which held that the gross amount of dividends received from foreign affiliates outside its water’s-edge group should be included in its sales factor denominator, regardless of the application of a dividends-received deduction excluding 75% of such dividends from its taxable base....
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Governor Murphy Saddles Taxpayers With the Nation’s Highest Corporate Tax Rate
By Stephen P. Kranz, Michael J. Hilkin and David Jasphy on Jul 2, 2024
Posted In Income Tax, New Jersey
New Jersey Governor Phil Murphy’s proposed flip-flop, which reneges on his promise to allow the state’s 2.5% corporate business tax surtax to expire, has now passed both the New Jersey State Assembly and Senate and been signed by the governor. As a result, New Jersey will once again have the highest corporate income tax rate...
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Colorado Changes Rules for Determining Members of Combined Filing Group
By Stephen P. Kranz, Michael J. Hilkin and David Jasphy on May 20, 2024
Posted In Colorado, Income Tax, Tax Base, Unitary Business
Colorado Governor Jared Polis has signed legislation that would replace Colorado’s unique “3 of 6” rule for determining the members of a unitary group for combined reporting purposes and instead adopt what Legislative Council Staff has called “the Multistate Tax Commission’s standard” for determining the members of a combined filing group. Under current law, a...
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Microsoft Scores Massive Win in California, Opens the Door for Others Nationwide
By Stephen P. Kranz, Diann Smith and David Jasphy on Mar 15, 2024
Posted In Allocation/Apportionment, California, Federal Tax, Income Tax, Nationwide Importance, Tax Base
The Office of Tax Appeals (OTA) handed Microsoft an enormous win in its controversy with the California Franchise Tax Board (FTB) over the inclusion of qualifying dividends in the sales factor denominator for which it also claimed a dividends received deduction (DRD). Microsoft filed a water’s-edge combined report for the years at issue and deducted...
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ALJ Rules That a Taxpayer Is a Qualified New York Manufacturer Even Though Qualifying Property Was Operated by a Third Party
By Stephen P. Kranz, Michael J. Hilkin and David Jasphy on Mar 4, 2024
Posted In Incentives, Income Tax, New York
The New York State Division of Tax Appeals determined that E. & J. Gallo Winery is a qualified New York manufacturer (QNYM) even though its only property in New York that could allow it to qualify for QNYM classification – a vineyard – was operated by a third-party contractor and Gallo did not have any...
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New Jersey Governor Flip-Flops on Corporate Business Tax Surtax Expiration
By Stephen P. Kranz, Michael J. Hilkin and David Jasphy on Feb 27, 2024
Posted In Income Tax, New Jersey
After months of insisting that he would not allow New Jersey’s 2.5% corporate business tax surtax to be extended – and previously having allowed it to lapse for tax years beginning on January 1, 2024 – New Jersey Governor Phil Murphy is now proposing that the surtax be revived for companies earning profits that exceed...
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Vermont Considers Imposing Mandatory Worldwide Combined Reporting
By Stephen P. Kranz, Michael J. Hilkin and David Jasphy on Feb 2, 2024
Posted In Federal Tax, Income Tax, Local Tax, Nationwide Importance, Tax Base, Unitary Business, Vermont
The Vermont House Committee on Ways and Means is actively exploring a proposal to become the first state to enact mandatory worldwide combined reporting for corporate income tax purposes. While legislation has not been formally proposed, the Committee has examined a working draft that could be embedded into a broader tax legislation package. In Committee...
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New York Formally Adopts Corporate Tax Reform Regulations
By Stephen P. Kranz, Richard C. Call, Michael J. Hilkin and David Jasphy on Dec 28, 2023
Posted In New York
On December 27, 2023, the New York State Department of Taxation and Finance (Department) adopted corporate tax reform regulations addressing New York’s corporate tax reform effective in 2015. The adopted regulations are consistent with the proposed regulations released in August 2023 and only include what the Department has called “minor clarifying and technical changes.” Although...
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Massachusetts Adopts Single-Sales-Factor Apportionment; Manufacturing Classification Becomes Less Controversial
By Stephen P. Kranz, Richard C. Call and David Jasphy on Oct 11, 2023
Posted In Allocation/Apportionment, Massachusetts
On October 4, 2023, Massachusetts Governor Maura Healey signed House Bill 4104 into law. The most significant change it introduces is the adoption of single-sales-factor apportionment (SSF) for all corporate taxpayers, not just manufacturers and mutual fund service corporations. Massachusetts joins more than 30 other states that have adopted either mandatory or elective SSF. The...
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At the 10-Yard Line: New York Formally Proposes Corporate Tax Reform Regulations
By Stephen P. Kranz, Richard C. Call, Michael J. Hilkin and David Jasphy on Aug 11, 2023
Posted In Allocation/Apportionment, Income Tax, Local Tax, Nationwide Importance, New York, Nexus, Unitary Business
On August 9, 2023, the New York State Department of Taxation and Finance (Department) released 417 pages of proposed regulations, an important step toward concluding a now almost decade-long process to implement corporate tax reform. The journey began in 2014 with the enactment of legislation modernizing the state’s corporate tax law. Thereafter, the Department released...
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