On April 19, 2021, Governor Cuomo signed into lawS2509C/A3009C, the New York FY 2021-2022 State Budget Bill (“Bill”), which includes provisions for tax rate changes for individuals and corporations, a new elective Pass-through Entity Tax, and clarity on credits with a remote workforce during the COVID-19 pandemic.
It has been nearly three years since the landmark decision of South Dakota v. Wayfair, Inc. (“Wayfair”), which upheld states’ adoption of sales tax economic nexus laws. Notably, the Court partially hinged its ruling on South Dakota’s small seller safe harbor thresholds, which limited the state’s ability to assert sales tax nexus for remote sellers that had more than $100,000 in South Dakota-sourced receipts or 200 or more transactions with South Dakota-based customers.
Sales tax laws are constantly evolving and typically vary by state, making it difficult to stay on top of their complexities and ensure compliance. The construction industry in particular must have a strong grasp on these rules though, as it’s common for contractors to be managing projects and materials across state lines.
The global pandemic has catalyzed the use of remote workforces. As previously discussed in this article, there are challenges and intricacies for employer nexus and employee withholding, and many states have continued to expand and extend relief granted to companies with employees working remotely due to the COVID-19 pandemic.
On January 15, 2021, the state of Texas published new regulations that alter its means of sourcing service revenue for the state’s margin tax. As detailed below, these changes affect sourcing various types of services revenue, including internet hosting, advertising, digital property, capital assets and investments, single-member LLC interests and financial derivatives.
Amidst the commercial shutdowns brought on by COVID-19, state revenue collections have plummeted nationwide resulting in significant budget shortfalls. In response, many states are taking action. In an effort to overcome an estimated budget deficit of over $50 billion, California Governor Gavin Newsom signed Assembly Bill 85 (“A.B. 85”) on June 29, 2020. The bill contains several tax measures to provide much-needed tax revenue.
Despite states relaxing shelter-in-place and work-from-home mandates, most employers continue to allow employees to work remotely. Employees have since transitioned to exclusively working from their home offices, vacation homes or other remote locations.
On November 9, 2020, the IRS issued Notice 2020-75 announcing that Treasury and the IRS plan to issue proposed regulations to clarify that state and local income taxes imposed on and paid by partnerships and S corporations are not subject to the $10,000 SALT cap for their partners or shareholders.
Over the past 15 years, Georgia has established itself as a go-to location for production. The coronavirus pandemic, however, has created challenges for the industry and temporarily brought production to a halt. To discuss how studios can successfully restart production in the state, Entertainment Partners and Barnes & Thornburg hosted the webinar, “Georgia on My Mind: Pushing Play on Production in Georgia.”
While COVID-19 has Americans spending more time than usual in their homes, many are wondering whether “home sweet home” might actually be sweeter elsewhere. Whether for convenience, vocation or quality of life, it is important to understand that moving states may not necessarily change an individual’s state of residence for income tax purposes.
This webinar discusses recent legislative, regulatory and administrative updates that affect companies claiming Georgia entertainment tax credits. Join Peter Stathopoulos, head of Bennett Thrasher’s Entertainment Practice, for a discussion.
In an article for Total Retail published on August 19, 2019, Peter Stathopoulos discusses California’s recent enactment of sales tax legislation aimed at remote sellers and marketplace facilitators following the U.S. Supreme Court’s decision in South Dakota v. Wayfair, which ruled that states can require businesses without a physical presence in the state to collect and remit sales tax from their transactions.