Starting the new year off with legislation aimed directly at the pockets of corporate taxpayers, New York has issued a legislative proposal to nearly cut in half corporate taxpayersâ available GILTI exemptions, and at the same time almost double the top corporate franchise tax rate. Senate Bill 953 (âSB953â), pre-filed in the state senate on January 8, 2025, has the potential to significantly increase New York franchise tax exposure for corporations doing business in the…
The one-time IRC §965 income inclusion for untaxed foreign earnings generated by a controlled foreign corporation (âCFCâ) is not eligible for deduction from Nebraska taxable income as a âdeemed dividendâ according to a recent Nebraska Supreme Court decision, Precision Castparts Corp. v Nebraska Dept. of Revenue, 317 Neb. 481 (2024). Precision Castparts Corp. (âTaxpayerâ), an aerospace component manufacturer, sought a declaratory order from the Nebraska Department of Revenue (âDepartmentâ) authorizing the company to amend its…
The Massachusetts Supreme Judicial Court held that an online retailer was not required to collect and remit the stateâs sales and use tax prior to the United States Supreme Courtâs 2018 decision in South Dakota v. Wayfair because its use of apps, cookies, and content delivery networks (CDNs) did not create âphysical presenceâ nexus, as required prior to the Wayfair decision, and the Wayfair âeconomic nexusâ standard could not apply retroactively. U.S. Auto Parts Network,…
On October 17, 2022, a Maryland state judge in the Circuit Court of Anne Arundel County struck down the stateâs Digital Advertising Tax (âDigital Ad Taxâ) as violating the Internet Tax Freedom Act (âITFAâ) and the Commerce Clause and First Amendment of the U.S. Constitution. Comcast of California/Maryland/Pennsylvania/Virginia/West Virginia LLC, et al. v. Comptroller of the Treasury of Maryland, Case No. C-02-CV-21-000509 (Md. Cir. Ct. Anne Arundel Cnty.).  The judge issued her ruling from the…