State and Local Tax Current Happenings – SC&H Group’s Inaugural Newsletter
November 6, 2014
SC&H Group’s State & Local Tax professionals work to ensure that your tax obligations are accurate and that you are aware of – and take advantage of – all relevant tax saving opportunities.
As a part of our firm’s continued commitment to delivering powerful minds, passionate teams, and proven results, we have produced the first edition of our bi-monthly SALT newsletter – State and Local Tax Current Happenings.
Each edition of State and Local Tax Current Happenings will provide relevant, timely information and case coverage to keep you informed about the current news and events impacting the state and local tax landscape – and ultimately, your tax obligations.
State and local tax issues that will be featured each month cover areas such as property tax, sales and use tax, income/franchise tax, location and incentive strategies, unclaimed property, and much more.
Authored by Karen Syrylo of SC&H Group (aka the “CPA who speaks English”), with input from other SC&H State & Local Tax team members, hot topics covered in this first edition include:
- Extension of ITFA and implications for MFA because of Congress’s H.J. Res. 124
- Controversy surrounding the concept of “federal taxable income” for separate corporate returns in Maryland
- Phase out of Personal Property Tax in Michigan for small businesses and EMPP
- Contractual Real Estate Purchase Price Allocation rejection by the Ohio Supreme Court
Here is a sneak preview of more information on each of these hot topics:
ITFA and MFA – Sales Tax Alphabet Soup in the U.S. Congress
On September 19, 2014, President Barack Obama signed H.J. Res. 124, the Continuing Appropriations Resolution, 2015 (Public Law 113-164). In addition to continuing the funding for U.S. Government programs and services at the current annual cap, the resolution also extends the Internet Tax Freedom Act (ITFA) through December 11, 2014. There may be additional implications for the Marketplace Fairness Act (MFA).
What is “Federal Taxable Income” for a Separate Maryland Corporate Return?
The Maryland Court of Appeals on August 18 upheld a $2 million income tax assessment against a subsidiary of Nordstrom, Inc. The case is more than another “intangibles holding company” decision as it has been billed by some, and it should be of interest to many corporations that file consolidated federal tax returns. The case also involved, but gives no general guidance for, the issue of when to report, for Maryland purposes, a gain that has been deferred under consolidation principles for federal purposes. Is it 100% in the year of the transaction, or in the later year(s) when it is recognized in federal taxable income?
Michigan Phase Out of Personal Property Tax Approved
In August, Michigan voters gave approval during primary election voting to Proposal 1, a plan to proceed with the phase out of personal property tax for small businesses and Eligible Manufacturing Personal Property (EMPP).
Ohio Supreme Court Rejects Contractual Real Estate Purchase Price Allocation
In a real property valuation case, the Ohio Supreme Court recently upheld a determination by the Board of Tax Appeals (BTA) that the property values assigned to real estate parcels in a contractual purchase price allocation were not the proper valuations of the properties for property tax purposes.
For additional insights on any of the information within this edition of our State & Local Tax newsletter, please contact Karen Syrylo. Stay tuned for our next edition later this month, and visit the SC&H Group blog for additional State & Local Tax updates!