Tag Archives: bradley marsh

Imposing a Tax Collection Obligation on Internet Sellers–South Dakota v. Wayfair

This week the U.S. Supreme Court heard oral arguments for South Dakota v. Wayfair, regarding whether physical presence is required within a state for sales and use tax purposes, specifically addressing internet sellers. The case is challenging the Court’s 1992 decision in Quill v. North Dakota, 504 US 298, which upheld a decision from 1967 … Continue Reading

California Documentary Transfer Tax Litigation Update

California’s Documentary Transfer Tax Act (Rev. & Tax. Code §§ 11901, et seq.) is based upon the former federal Documentary Stamp Tax Act first enacted by Congress to raise revenues for the Spanish-American War.  The federal law was repealed, effective Jan. 1, 1968, and simultaneously California, like many other states, picked up the tax with … Continue Reading

Taxpayers Bear Risk of State’s Proposals to Counter Elimination of SALT Deduction

Several states are considering proposals in an attempt to reduce the impact of federal tax reform’s $10,000 limit on state and local tax (SALT) deductions. In New York, the Governor’s budget proposal includes establishing two charitable organizations (one for health care and one for education) that will enable taxpayers to make a contribution to those … Continue Reading

California Proposes Legislation to Impose Sales and Use Tax on Services

Recently proposed legislation would require sellers to collect sales and use tax on the sales price of certain services to California businesses. On Feb. 5, 2018, California Senator Robert Hertzberg introduced a bill, which if enacted, would impose sales and use tax on purchases of services by businesses for benefit and use in California, effective … Continue Reading

California Court of Appeal Holds Passive LLC Interest Does Not Create Nexus

A non-California corporation’s only connection with California was its passive minority interest in a limited liability company (LLC) that was doing business in California. The California Court of Appeal held that this limited connection was not sufficient to subject the out of state corporation to California’s Corporation Franchise Tax. All taxpayers that have filed and … Continue Reading
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