The State and Local Tax Committee is responsible for TEI’s educational and advocacy efforts for U.S. state and local tax issues.
The committee monitors state and local tax developments throughout the country, files amicus briefs with state and federal courts on impending state and local tax issues, and files comment letters addressing various legislative and administrative proposals.
The committee has also developed an extensive set of policy statements reflecting TEI's position on important administrative and procedural issues. These statements facilitate advocacy by providing formal position papers TEI's members can use when communicating with taxing agencies. Finally, the committee regularly conducts liaison meetings with state and local taxing authorities to discuss tax-enforcement and policy matters in those jurisdictions.
TEI Holds Liaison Meeting with the Pennsylvania Department of Revenue
On August 9, 2016, a delegation from TEI's Philadelphia Chapter met with representatives from the Pennsylvania Department of Revenue. The delegation addressed taxpayer concerns arising from the Department's new corporation tax systems and procedures, such as gaps between assessments of tax, interest, and penalties; failure to notify taxpayers when an amended return or RAR adjustment has been accepted or rejected; and difficulties determining the basis for assessments.
TEI Files Amicus Brief in Gillette California Multistate Tax Compact Litigation
On June 30, 2016, TEI filed an amicus brief with the U.S. Supreme Court in The Gillette Company v. California Franchise Tax Board, No. 15-1442, also known as the California Multistate Tax Compact ("Compact") litigation. In the 1960s and 1970s, States persuaded Congress and the business community that then-imminent federal legislation mandating uniformity in state taxation was unnecessary because a number of States had enacted the Compact.
TEI Issues Policy Statements on Alternative Apportionment and State Tax Haven Legislation
On June 15, 2016, TEI issued two new state and local tax policy statements on alternative apportionment and state tax haven legislation.
TEI Holds Liaison Meeting with the Multistate Tax Commission
On May 12, 2016, TEI's State and Local Tax Committee had the opportunity to discuss two of TEI's state and local tax policy statements at the Multistate Tax Commission's Executive Committee meeting. TEI discussed the need to standardize the timing, triggers, and format for reporting federal revenue changes to state governments and best practices for audit procedures, as outlined in TEI's "Reporting Federal Income Tax Changes" and "Audit Procedures" policy statements. Committee member Richard O'Connor and TEI Tax Counsel, Pilar Mata, attended the meeting.
TEI Participates in CFO Magazine’s State Tax Survey
CFO Magazine invited TEI's members and TEI Tax Counsel, Pilar Mata, to weigh in on pressing state and local tax issues and rank state tax environments this past April – March. The resulting article discusses states' efforts to expand their nexus laws, the trend toward market-based sourcing for income tax purposes, and the recent increase in retroactive tax laws. It also presents the results of CFO Magazine’s survey ranking states as "best" and "worst" in six key areas.
TEI Holds Liaison Meeting with the Illinois Department of Revenue
On April 28, 2016, TEI's State and Local Tax Committee held a liaison meeting with Connie Beard, the Director of the Illinois Department of Revenue. TEI discussed the need to standardize the timing, triggers, and format for reporting federal revenue changes to state governments, as outlined in the State and Local Tax Committee's policy statement on "Reporting Federal Income Tax Changes." Committee member Cathleen Stevens and TEI Tax Counsel, Pilar Mata, attended the meeting.
TEI Issues Policy Statement on Statutes of Limitation for State and Local Taxes
On April 26, 2016, TEI issued a policy statement on statutes of limitation for state and local taxes. TEI maintains statutes of limitation for assessments and refund claims should be equal; unilateral administrative actions should only toll statutes of limitation for a reasonable, limited period; and when a federal change reopens a state or local statute of limitation, any resulting assessment should be limited to the impact of the federal change on the taxpayer's tax liability unless the taxpayer has signed an agreement extending/modifying the jurisdiction's statute of limitation.
TEI Comments on Proposed Amendments to Georgia's Direct Pay Permit Regulation
On March 1, 2016, TEI submitted a letter to the Georgia Department of Revenue commenting on the Department's proposed amendments to Rule 560-12-1-.16, Georgia's "Direct Pay Reporting" regulation. TEI urged the Department to remove the provisions denying direct pay permit holders their statutory right to interest on refunds, as the proposed amendment conflicts with Georgia law and principles of sound tax policy.
TEI Urges Washington Legislature to Enact Legislation Establishing an Independent Tax Court
On January 5, 2016, TEI submitted a letter to Senator Braun and Representative Jinkins of the Washington Legislature urging the legislature to enact legislation establishing an independent tribunal to hear appeals of tax assessments and other matters administered by the Washington Department of Revenue.
TEI Files Amicus Brief in Gillette Commercial Operations Michigan Retroactivity Litigation
On January 5, 2016, TEI filed an amicus brief in support of the taxpayer's application for leave to appeal the Michigan Court of Appeals' decision in Gillette Commercial Operations North America v. Department of Treasury, Case No. 152588, and its four companion cases. Gillette upheld the validity of 2014 PA 282, which the Michigan Legislature enacted to retroactively overrule the Michigan Supreme Court's decision in International Business Machines Corp v Department of Treasury, 496 Mich. 642 (2014).