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June 7, 2021

State and Local Tax Weekly for May 26

Ernst & Young's State and Local Tax Weekly newsletter for May 26 is now available. Prepared by Ernst & Young's State and Local Taxation group, this weekly update summarizes important news, cases, and other developments in U.S. state and local taxation.


Missouri legislature approves marketplace facilitator and remote seller nexus rules

The Missouri General Assembly approved Senate Bill 153 (MO SB 153), which would establish marketplace facilitator and remote seller nexus rules for purposes of the state's sales and use taxes effective Jan. 1, 2023. Once in effect, vendors subject to the new nexus rules will be required to collect and remit the taxes covered by this bill separately from any tax they were previously required to collect and remit prior to Jan. 1, 2023. The bill has been sent to the governor, who has publicly supported these provisions.

A significant change under MO SB 153 would be to the definition of "engages in business activities within this state" under Missouri's sales and use tax law to include vendors with cumulative gross receipts exceeding $100,000 from taxable sales in the previous 12-month period of tangible personal property for the purpose of storage, use or consumption in Missouri. Under the revised definition, a vendor would calculate gross receipts from taxable sales at the end of each calendar quarter for the preceding 12-month period ending on the last day of the preceding calendar quarter. If the economic threshold is met, the vendor would be required to collect and remit tax for at least 12 months, beginning within three months after the quarter's close. The vendor would continue to collect and remit the tax for as long as it engages in business activities in, or maintains a substantial nexus with, Missouri.

MO SB 153 would expand the definition of "seller" subject to the seller's gross receipts tax to include marketplace facilitators that meet the economic nexus threshold. Marketplace facilitators would be required to separately state on the invoice the use tax collected and remitted on behalf of the marketplace seller. Specifically excluded from the definition of "marketplace facilitator" would be those who: (1) provide internet advertising services or product listings without collecting payment from the purchase; (2) travel agency service providers; and (3) third-party financial institutions appointed by a merchant or a marketplace facilitator to handle various forms of payment transactions.

MO SB 153 would expand the timely discount on sales tax returns to include timely filed use tax returns by remote retailers and marketplace facilitators.

Additional provisions in MO SB 153 include changes to the individual income tax laws (including additional rate reductions, conformity to certain federal tax law changes effected by the Coronavirus Aid, Relief and Economic Security Act and the establishment and clarification of certain state tax credits), the prohibition of new franchise fees on video service providers and the authorization of the Missouri Department of Revenue to consult and work with the Streamlined Sales and Use Tax Agreement Governing Board.

For more on this development, see Tax Alert 2021-1081.


Alabama: New law (HB 588) modifies Alabama's recently enacted electable pass-through entity (PTE) level tax. Effective for tax years beginning on or after Jan. 1, 2021, any owner, member, partner, or shareholder (collectively "member") of an electing PTE is required to report its pro rata or distributive share of the income of the electing PTE. In addition, members of an electing PTE are entitled to a refundable credit in an amount equal to the member's pro rata or distributive share of the Alabama income tax paid by the electing PTE for the corresponding tax year. The law also authorizes the Alabama Department of Revenue to waive any estimated tax penalties and interest assessments for the quarterly estimated tax payment due April 15, 2021, which may otherwise be assessed on individuals or PTE taxpayers due to the retroactive effective date of the new PTE tax. These changes take effect retroactively to Jan. 1, 2021. Ala. Laws 2021, Act 2021-423 (HB 588), signed by the governor May 14, 2021.

District of Columbia: Approved temporary law (B12-140) would allow corporations, unincorporated businesses and financial institutions "an 80% deduction for apportioned District of Columbia [net operating loss] carryover to be deducted from the net income after apportionment." This change would be effective retroactively to tax years beginning after Dec. 31, 2017. The law also excludes the following from the computation of District gross income, the amount of: (1) small business loans awarded and subsequently forgiven under 15 U.S.C. §9005; (2) public health emergency small business grants awarded under section 2316 of the District's Small and Certified Business Enterprise Development and Assistance Act of 2005 (enrolled version of B24-140); and (3) public health emergency grants under D.C. Code § 1-309.13(m)(1). These provisions are similar to those enacted under temporary law A23-334, which expired May 21, 2021 and on an emergency basis under A24-30 (B24-139), which expires on June 15, 2021. B24-140 (A24-62) was approved by the Mayor on May 3, 2021 and has been transmitted to Congress for a mandatory 30 in-session day review period. As B24-140 is a temporary measure, it will be effective for a period of 225 days.

Hawaii: The Hawaii Department of Taxation adopted federal Revenue Ruling No. 2020-27 (Revenue Ruling) in its entirety for Hawaii income tax purposes. In the Revenue Ruling, the IRS disallowed deductions for business expenses paid with Paycheck Protection Program (PPP) loan proceeds that the taxpayer had a "reasonable expectation" would be forgiven. Thus, for Hawaii income tax purposes taxpayers that have a reasonable expectation of forgiveness of a PPP loan may not claim deductions for expenses paid with PPP loan funds regardless of when the loan is forgiven. Taxpayers who have already filed returns claiming any such deductions relating to a PPP loan reasonably expected to be forgiven will have to file amended returns to remove the disallowed deduction. Taxpayers that do not have a reasonable expectation of forgiveness of a PPP loan may claim the deduction for expenses paid if the expenses are otherwise deductible. If, however, the PPP loan is ultimately forgiven, an amended return removing the deduction will have to be filed. Haw. Dept. of Taxn., Tax Information Release No. 2021-03 (May 10, 2021).

Indiana: New law (HB 1001) updates the state date of conformity to the IRC to March 31, 2021 (from Jan. 1, 2020). Section 72 of the law provides that "[t]o the extent that a federal statute … is enacted or amended in a title other than the Internal Revenue Code on or before March 31, 2021, and affects federal adjusted gross income, federal taxable income, federal tax credits, or other federal tax attributes, the federal statute shall be considered to be part of the Internal Revenue Code as amended and in effect on March 31, 2021." Indiana also adopts federal regulations adopted and in effect on March 31, 2021. Under federal law, wage deductions are disallowed for federal income tax purposes when an employee retention credit (ERC) is claimed based on the same wages. For tax years ending after March 12, 2020, taxpayers claiming the ERC in determining Indiana adjusted gross income, can subtract the amount of any federally disallowed wage deduction. Indiana also (1) decouples from the suspension of the IRC § 461(l) excess business loss limitation rule (special attribution rules apply if a taxpayer subject to this provision has bonus depreciation or IRC §179 adjustments); (2) decouples from the full business meal deduction under IRC §274(n)(2)(D); (3) requires the add back of any above the line charitable contribution deduction under IRC §62(a)(22) and any student loan payments by an employer and excluded from the employee's gross income under IRC §127(c)(1)(B); and (4) requires various adjustments to the Indiana's net operating loss provisions. These changes are retroactively effective as of, or for taxable years beginning, Jan. 1, 2021. Ind. Laws 2021, P.L. 165 (HB 1001), signed by the governor on April 29, 2021. See also, Ind. Dept. of Rev., Information Bulletin #119 (May 2021).

Ohio: In light of Governor DeWine's recent announcement that most health orders related to COVID-19 would be lifted on June 2, 2021, the Ohio General Assembly is considering legislation to clarify the application of Section 29 of House Bill 197 (Section 29), enacted in response to the pandemic. Section 29 allows employers to continue withholding municipal income tax based on an employee's principal place of work for the many employees working from home due to the COVID-19 governmentally ordered restrictions. For more on this development, see Tax Alert 2021-1011.

South Carolina: New law (HB 4017) updates the state's IRC conformity date to the IRC as amended through Dec. 31, 2020 (from Dec. 31, 2019). South Carolina follows the federal tax treatment of forgiven Paycheck Protection Program (PPP) loans. Thus, the proceeds from forgiven PPP loans are excluded from South Carolina income tax and business expenses paid with PPP loan proceeds are deductible. South Carolina also decouples from various amendments made by Coronavirus Aid, Relief, and Economic Security Act (P.L. 116-136) (CARES Act) and the Consolidated Appropriations Act of 2021 (P.L. 116-260) (CAA). Provisions not adopted by South Carolina include the CARES Act's modifications to the income limitations for the use of net operating losses and the excess business loss limitation suspension allowed for non-corporate taxpayers under IRC §461(l), for tax years 2018, 2019 and 2020, and the CAA's temporary allowance of the full business deduction for business meals that are paid or incurred in 2021–2022. The bill took effect upon approval by the governor. S.C. Laws 2021, Act No. 87 (HB 4017), signed by the governor May 18, 2021.

Vermont: The U.S. Supreme Court will not review the Vermont Supreme Court's ruling that capital gain recognized from the sale of two Federal Communications Commission telecommunications licenses by a telecommunications company is nonbusiness income derived from an intangible asset and, as such, the gain is allocated to, and subject to corporate income tax in, Vermont, the company's commercial domicile. Vt. Natl. Telephone Co. v. Vt. Dept. of Taxes, 2020 VT 83 (Vt. S.Ct. Oct. 9, 2020), petition for cert. denied, Dkt. No. 20-1159 (U.S. S.Ct. May 17, 2021).


Arkansas: In response to a ruling request, the Arkansas Department of Finance and Administration determined that a company's sales of a cloud-based software application service to Arkansas customers are not subject to Arkansas sales and use tax because it is not a specifically enumerated taxable service and customers do not receive software in any tangible form. Ark. Dept. of Fin. and Admin., Opinion No. 20200903 "Sales Tax - Sale of License of Software-Defined Wide Area Networks" (March 25, 2021).

Arkansas: A pipe manufacturing company's purchases of steel grit and replacement steel grit are exempt from Arkansas use tax under the state's exemption for manufacturing equipment under Arkansas Code Annotated (A.C.A.) §§ 26-53-114(a)(1) and (a)(2). In so holding, the Arkansas Supreme Court found that (1) although the pipes were customized, the company nevertheless manufactured articles of commerce since the pipes are sold "in the public marketplace" in "all 50 states" to major oil and gas producers and transportation companies; (2) the steel grit is "an item of equipment" as it has continuing utility since it is not immediately consumed in the blasting process but instead is continually recirculated for a number of blasting cycles; and (3) the grit was used to expand an existing manufacturing plant or facility as required by A.C.A. § 26-53-114(a)(1) through an economic expansion (i.e., increased employment and productivity). Walther v. Welspun Tubular, LLC, No CV-19-934 (Ark. S.Ct. April 22, 2021).

Colorado: Adopted Rule 39-26-704-4 (Rule) provides guidance on the exemptions for long-term rentals of rooms and accommodations (collectively "room") subject to state and state-administered local sales tax and the written agreement required for such exemptions. State and state-administered local sales tax is not imposed on charges for any room rented to a person who is a permanent resident of such room and enters into (or has entered into) a written agreement for occupancy of such room for a period of at least 30 consecutive days. A city, county, special district, or other taxing authority, however, may by ordinance or resolution subject all rentals of rooms to tax, regardless of the duration of the rental. The Rule lists local taxes administered by the Colorado Department of Revenue. The Rule took effect May 15, 2021.

Kentucky: The Kentucky Department of Revenue issued guidance on the application of the state's sales and use tax to common machinery and other equipment used in generating solar power. Ky. Dept. of Rev., KY-TAM-21-01 (April 21, 2021).

Maryland: The Maryland Court of Appeals (court) reversed a decision of the Maryland Tax Court and held that an online travel company (OTC) is not liable for sales and use tax on the difference between the net rate paid by hotels and car rental agencies and the marked up rate charged by the OTC, because during the audit period (2003 — 2011) the OTC did not sell or deliver the hotel rooms and rental cars as a "vendor" under the Maryland Tax Code-General in effect at that time. The court found that the contracts the OTC entered into with hotels and rental car companies demonstrate that the OTC did not purchase, acquire inventory, or accept a risk of loss and, therefore, did not acquire title or possession of the hotel rooms or rental vehicles. Rather, it facilitated the right to occupy a hotel room or rent a vehicle. Further, in 2015, the Maryland legislature expanded the definition of "vendor" to include an "accommodations intermediary", such as the OTC. The court found the legislative history of this statutory amendment reflects that the OTC was not liable for tax during the audit period. LP n/k/a TVL LP v. Comptroller of Maryland, No. 14 (Md. Ct. App. April 30, 2021).

Mississippi: The Mississippi Department of Revenue issued guidance on tax and registration requirements for peer-to-peer rentals. Peer-to-peer rental companies with a physical presence in Mississippi must register to collect and remit sales tax at the start of their business; remote peer-to-peer rental companies must register to collect sales tax when Mississippi facilitated transaction exceed $250,000 in any consecutive 12-month period. Peer-to-peer rentals of personal homes, condominiums, or other lodging accommodations are subject to sales tax as a hotel service. The term "hotel" means "any entity or individual engaged in the business of furnishing or providing one or more rooms intended or designed for dwelling, lodging or sleeping purposes that at any one time will accommodate transient guests and that are known to the trade as such and includes every building or other structure kept, used, maintained or advertised as, or held out to the public to be, a place where sleeping accommodations are supplied for pay or other consideration to transient guests regardless of the number of rooms, units, suites or cabins available." Miss. Dept. of Rev., Sales and Use Tax Fact Sheet "Peer-to-Peer Rentals" (April 2021).

North Dakota: New law (SB 2137) provides a sales and use tax exemption for the purchase of enterprise information technology equipment and computer software, including upgraded or replacement enterprise information technology equipment and computer software, used by a qualifying data center. To qualify for the exemption, the enterprise information technology equipment or computer software, must be incorporated into or physically located within the qualified data center. The future owner of a proposed data center must apply to the North Dakota tax commissioner to be certified as a qualified data center. If a qualified business does not receive an exemption certificate before purchasing the enterprise information technology equipment or computer software, it can apply for a refund. Further, if such equipment is purchased or installed by a contractor, the qualified business may apply for a refund of the difference between the amount remitted by the contractor and the exemption. The law defines various terms; provides for computing total square footage of a qualified data center; and sets forth documentation and reporting requirements. The exemption applies retroactively to purchases made after Dec. 31, 2020. N.D. Laws 2021, SB 2137, signed by the governor April 21, 2021.


Federal: In Announcement 2021-10, the IRS said the boundaries of designated qualified Opportunity Zones (OZs) did not change because of the 2020 decennial census. For more information on this development, see Tax Alert 2021-1001.

Florida: New law (SB 7072) establishes restrictions for contracting with the state of Florida and any of its departments of agencies (each hereinafter, a public entity) and receiving certain tax incentives for a natural person or entity operating a social media platform (collectively, "person") convicted of or held civilly liable for an antitrust violation and placed on the antitrust violator vendor list. A person or an affiliate that has been placed on the antitrust violator vendor list required to be kept by the Florida Department of Management Services (Department) may not submit a bid, proposal, or reply for any new contract with a public entity to provide goods or services, the construction or repair of a public building or public works, or new leases of real property. Further, such person or affiliate may not be awarded or perform work as a contractor, supplier, subcontractor, or consultant under new contract with a public entity and may not transact new business with a public entity. A public entity may not accept such bid unless the person or affiliate has been removed from the antitrust violator vendor list maintained by the Department. Further, a person placed on the antitrust violator vendor list is not a qualified applicant for economic incentives under Fla. Stat., ch. 288 (Commercial Development and Capital Improvements) and is not qualified to receive such economic incentives. These provisions do not apply to contracts awarded before, business transactions that began, or incentives awarded before a person (or affiliate in certain instances) was put on the antitrust violator vendor list by the Department or before July 1, 2021, whichever is later. These prohibitions do not apply to certain contracts (e.g., contract with a public entity to provide any goods or services for emergency response). Fla. Laws 2021, ch. 2021-32 (SB 7072), signed by the governor May 25, 2021.

Indiana: New law (HB 1001) establishes the Regional Economic Acceleration and Development Initiative (READI) fund, which will provide grants and loans to support economic development and regional acceleration and development. The law also modifies the Indiana venture capital investment tax credit and the Hoosier business investment tax credit. For purposes of the venture capital investment tax credit, the definition of qualified investment capital is expanded to include investment capital provided to certain qualified Indiana investment funds, the maximum amount of credit that can be claimed is increased to 25% (from 20%) of the qualified investment capital provided (further increased to 30% if the business is a minority or women's business enterprise), and the annual credit cap is increased to $20 million (from $12.5 million). The law allows the Indiana Economic Development Corporation to pay a qualifying taxpayer for unused credit (at a discount) in lieu of the taxpayer carrying forward the unused amount. These changes have various effective dates. Ind. Laws 2021, P.L. 165 (HB 1001), signed by the governor April 29, 2021.

Montana: New law (HB 252) establishes an employer tax credit that can be claimed against the individual and corporate income tax for the provision of certain education and training of employees for a trade profession who work or are anticipated to work in Montana for at least six months of the year in which the education or training occurs. The credit equals 50% of the qualified education and training expenses incurred by the employer for the employee's benefit, not to exceed $2,000 per employee annually, with the total amount of credit for an employer capped at $25,000 per year. The credit may not exceed the employer's tax liability and unused credit may not be carried forward or carried back. The credit may not be claimed by an employer if the employer has included the qualified expenses upon which the credit was computed as a deduction in computing income tax or for any amount of the qualified expense that are paid for with a grant or other similar program to provide money for education and training of employees. If during any tax year the employer recovers a qualified expense it incurred, the employer must (1) include as income the amount deducted in any prior year that is attributable to the qualified expense the employer incurred to the extent the deduction reduced the employer's income tax; and (2) increase the amount of corporate or individual income tax due by the amount of credit allowed in the tax year the credit was taken. Provisions of the bill are retroactively effective to income tax years beginning after Dec. 31, 2020 and terminate Dec. 31, 2026. Mont. Laws 2021, ch. 248 (HB 252), signed by the governor April 19, 2021.

Oklahoma: New law (HB 2860) creates the Oklahoma Remote Quality Jobs Incentives Act (Act). Under the Act, a proxy establishment1 that facilitates the attraction of remote workers to Oklahoma which meets the qualifications in the Act may receive quarterly incentive payments for a 10-quarter period. The amount of the payments will equal the net benefit rate multiplied by the actual gross payroll of new direct jobs for a calendar quarter as verified by the Oklahoma Employment Security Commission. To qualify for the incentives payments, a proxy establishment located in counties with a total population of less than 500,000 must (1) have an annual gross payroll for new direct jobs projected to equal or exceed $500,000 within one year of the first complete calendar quarter after the start date; and (2) have a number of full-time equivalent employees working an average of 30 or more hours per week in the new direct jobs equal to or in excess of 80% of the total number of net new jobs. For proxy establishments located in counties with a total population exceeding 500,000, the amount of gross payroll is increased to $1.5 million. Approved proxy establishments after the end of the first complete calendar quarter after the start date must file a claim for the payment with the Oklahoma Tax Commissioner specifying the actual number and gross payroll of new direct jobs of remote workers for the proxy establishment for such calendar quarter. The law describes when the proxy establishment may be removed from the incentives payment program and when payments may be paused and when they may resume. Further, a qualified proxy establishment that receives the incentives payments, and the companies associated with the remote workers, will not be eligible to receive credits or exemptions in connection with the activity for which the incentive payment was received for the following provisions: Oklahoma Quality Jobs Program Act, Small Employer Quality Jobs Incentives Act, 21st Century Quality Jobs Incentives Act, among other provisions. The Act takes effect July 1, 2021. Okla. Laws 2021, HB 2860, signed by the governor April 26, 2021.


Kentucky: The Kentucky Department of Revenue issued guidance on the application of the state's ad valorem tax to solar power companies and common machinery and other equipment used in generating solar power. Ky. Dept. of Rev., KY-TAM-21-01 (April 21, 2021).

South Carolina: New law (HB 4064) amends the manufacturing property tax exemption under the South Carolina property tax law to make clear that the manufacturing property owned or leased by a public utility regulated by the South Carolina Public Service Commission does not qualify for the 14.2857% exemption regardless of whether the property is used in manufacturing. This clarification first applies to property tax years beginning after 2020. S.C. Laws 2021, Act No. 39 (HB 4064), signed by the governor May 6, 2021.


Puerto Rico: The Puerto Rico Treasury Department issued guidance (Administrative Determination (AD) 21-05) for complying with the requirement to submit a transfer pricing study to claim expenses paid to related entities that do not carry out operations in Puerto Rico or have a home office located outside of Puerto Rico (intercompany charges) on the income tax return. For more on this development, see Tax Alert 2021-0985.


Florida: Recently enacted law (SB 50) reduces the 2021 Florida state unemployment insurance (SUI) tax rates by recalculating experience rates without applying the fund balance adjustment factor that was triggered initially due to the effect COVID-19 UI benefits had on the Florida's unemployment insurance (UI) trust fund balance. For additional information on this alert, see Tax Alert 2021-1005.


Washington: The Washington Department of Revenue (WA DOR) issued guidance on the taxation under Washington's business and occupations tax of shared loss payments received by a bank from the Federal Deposit Insurance Corporation (FDIC). The guidance describes what a share loss payment is for purposes of this guidance; addresses allocation of shared loss payment between gross income and the reduction of purchase price and the calculation of net gain realized from disposition of assets covered by shared loss payments; and provides illustrative examples. The WA DOR noted that the scope of this guidance "is limited to the shared loss payments described in the following section and should not be applied in other situations." Wash. Dept. of Rev., ETA 3224.2021 "Taxability of Shared Loss Payments from FDIC" (May 12, 2021).


International — Costa Rica: Costa Rica's General Directorate of Customs has published a resolution authorizing a new category of imported goods under the temporary import regime called "Temporary Imports of Goods by National Emergency Declaration, by means of Resolution RES-DA-186-2021." The resolution makes it easier for certain government agencies to import goods needed for national emergencies. For more on this development, see Tax Alert 2021-1035.


International — Nigeria: The Finance Act, 2020 (the Act) was signed by the President of the Federal Republic of Nigeria in December 2020 and took effect from Jan. 1, 2021. From a Value Added Tax (VAT) perspective, the Act intends to reinforce existing VAT rules and introduce new rules, among others. As the 23rd largest consumer market globally with close to 200 million consumers, the new rule regarding services rendered to businesses and individuals in Nigeria will impact many global service suppliers with customers in Nigeria. For more on this development, see Tax Alert 2021-0988.


Tuesday, June 8. Tax in a dynamic global sustainability landscape (1 p.m. ET). Environmental sustainability is increasingly the focus of policy discussions around the globe. Because Tax will play a critical role in the global solutions, tax professionals need to be aware of the issues and the options. On this webcast, we will focus on tax considerations and opportunities in the global effort to make the environment a top policy priority. The tax department is a critical voice in the environmental, social, governance (ESG) conversation and should work hand-in-hand with sustainability, operations and the C-suite as businesses both proactively develop strategies to align with the "E" in the ESG framework and respond to legislative and policy developments across the globe. Register.

Wednesday, June 9. Rescheduled — New Time. Domestic tax quarterly webcast series: a focus on state tax matters (3:30 p.m. ET, 12:30 p.m. PT). For our second quarterly webcast in 2021, our panelists will discuss important state tax policy developments and federal tax developments that could affect state and local taxes. Topics will include: (1) state transfer pricing issues and advance pricing agreements; (2) IRC conformity carousel: a discussion of scheduled Tax Cuts and Jobs Act base expanders, Coronavirus Aid, Relief, and Economic Security Act modifications, and other notable and emerging issues; (3) federal, state and local tax credits and incentives related to sustainability initiatives; and (4) state and local tax judicial, legislative and administrative developments from the past quarter. Register.

Thursday, June 17. Telework and other employer challenges in 2021 and beyond (3:30 p.m. ET). COVID-19 impacts continue to challenge employers, particularly around the demand for telework arrangements after state and local mandatory work-from-home orders have expired. Another challenge is the lasting impact COVID-19 unemployment insurance claims will have on current and future unemployment insurance costs as many states grapple with how they will finance unemployment insurance trust-fund shortages. To help you navigate these topics, our panelists will bring together their insights and experience to discuss: COVID-19 unemployment benefit claims and the impact on employers' current and future state unemployment insurance costs; the employer's role in managing unemployment insurance fraud; identifying work and resident location for teleworkers and why it matters; multistate payroll tax implications for hybrid teleworkers; teleworker payroll tax calculations — case studies; teleworker tax legislation and legal challenges; and employer considerations in evaluating and managing telework arrangements. Register.

Wednesday, June 23. The indirect tax technology journey: Now. Next. Beyond. (1:00-2:00 p.m. EDT). Join our EY team of tax technology professionals for the first in a series of six webcasts focused on the evolving technology landscape. During these 60-minute webcasts, we will share our insights into how market-leading organizations are using technology to adapt to new legislation and market trends, and to effectively transform tax operations. Because technology is a vital component for every business looking to build a resilient, future-ready tax function, these webcasts will be relevant across all sectors and to businesses of every size. During our first webcast in the series, we will focus on the following topics: (1) current business issues impacting technology decisions, (2) trending indirect tax technology developments, and (3) key focus areas for becoming "future-ready" Register.

Because the matters covered herein are complicated, State and Local Tax Weekly should not be regarded as offering a complete explanation and should not be used for making decisions. Any decision concerning matters covered herein should be reviewed with a qualified tax advisor.


1 A "proxy establishment" is defined as "(a) a public trust which: (1) is organized and existing under Section 176 of Title 60 of the Oklahoma Statutes for the benefit of a geographic area which includes a city or county or some combination thereof, and (2) benefits a geographic area where new direct jobs which meet the requirements of the Oklahoma Remote Quality Jobs Incentive Act are created by an establishment, other than the proxy establishment, or (b) an establishment which facilitates the attraction of remote workers to the State of Oklahoma." Okla. Stat. tit. 68, §4503(A)(3) (as added by Section 3 of HB 2860) (defining "proxy establishment").