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 Files Amicus Brief in Kentucky Johnson Controls Retroactivity Litigation
On March 24, 2010, TEI filed an amicus brief with the U.S. Supreme Court in Johnson Controls v. Kentucky. TEI argued that Kentucky legislation retroactively eliminating a taxpayer's ability to claim tax refunds undermines protections afforded by the Due Process Clause and raises fundamental questions about the availability of remedies.
TEI's brief was prepared under the aegis of TEI's State and Local Tax Committee. TEI Tax Counsel Daniel B. De Jong coordinated the preparation of the brief and was its principal author.
Wisconsin Responds to TEI Comments on Combined Return Regulations
On February 22, 2010, the Wisconsin Department of Revenue sent TEI a letter confirming TEI's comments had a significant impact on Wisconsin's final combined return regulations.
TEI Comments on Proposed Wisconsin Combined Reporting Regulations
On October 15, 2009, TEI filed comments on Wisconsin's proposed combined reporting regulations. TEI's comments focused on: (1) the basis of assets owned by corporations that have not previously filed Wisconsin corporate income tax returns; (2) the calculation and sharing of research credits and carryforwards between members of a combined group; (3) the sharing of net business loss carryforwards between members of a combined group; (4) the mechanics of the controlled group election; and (5) the selection of a designated agent for a combined group.
TEI Comments on Proposed Colorado Doing Business Regulation
On October 6, 2009, TEI filed comments opposing Colorado's economic nexus regulation. TEI maintains that if the Proposed Regulation is not revised to require some physical presence in the State, it will violate controlling Commerce Clause jurisprudence and subject both taxpayers and the State to months, and even years, of uncertainty and expense.
TEI Comments on North Carolina Legislation Affecting the Taxation of Business
On June 27, 2009, TEI filed comments with the Republican and Democratic leaders of the House and Senate Finance Committees of the North Carolina General Assembly concerning North Carolina Senate Bill 202, which would expand the State's franchise tax to pass-through entities and implement a "throwback rule" for taxpayers selling tangible products from locations in North Carolina to States in which they have no income tax obligations.
TEI Files Amicus Brief in Massachusett's Geoffrey Economic Nexus Litigation
On April 28, 2009, TEI filed an amicus brief with the U.S. Supreme Court in support of the taxpayer in Geoffrey, Inc. v. Massachusetts Department of Revenue. In Geoffrey, the Massachusetts Supreme Judicial Court concluded substantial nexus could be established where a taxpayer's only business in the state was licensing intangible property that generates income for the taxpayer. TEI maintains the Massachusetts court erred by concluding the bright-line, physical presence test embraced by the U.S.
TEI Files Amicus Brief in Massachusetts' Capital One Economic Nexus Litigation
On April 28, 2009, TEI filed an amicus brief with the U.S. Supreme Court in support of the taxpayer in Capital One Bank v. Commissioner of Revenue. In Capital One, the Massachusetts Supreme Judicial Court held the imposition of the Massachusetts Financial Institution Excise Tax on out-of-state taxpayers having no physical presence within Massachusetts did not violate the Commerce Clause of the United States Constitution. TEI maintains the Massachusetts court erred by concluding the bright-line, physical presence test embraced by the U.S.
TEI Comments on California Sales and Use Tax Audit Penalty Legislation
On April 20, 2009, TEI filed comments with the Committee on Revenue and Taxation of the California State Assembly urging the defeat of legislation that would impose a 25-percent penalty on taxpayers who fail or refuse to furnish any information requested during a sales and use tax audit. TEI maintains the proposed legislation cannot achieve its stated purpose of advancing fairer and more efficient tax administration because it is vague, overbroad, and unnecessary and recommends the development of comprehensive administrative guidelines in lieu of a statutory amendment.
TEI Files Amicus Brief in Alabama's VFJ Ventures Addback Litigation
On February 23, 2009, TEI filed an amicus brief with the U.S. Supreme Court in VFJ Ventures, Inc. v. Surtees, urging the Court to hear challenges to Alabama's addback statute. Alabama's addback statute denies a deduction for ordinary business expenses paid to related corporations located outside Alabama. TEI's brief argues that the addback statute discriminates against interstate commerce in violation of the Commerce Clause and is unconstitutional.
U.S. STATE & LOCAL
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.