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August 23, 2023

State and Local Tax Weekly for August 4 and August 11

Ernst & Young's State and Local Tax Weekly newsletter for August 4 and August 11 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.


New York's proposed regulations implementing corporate franchise tax reform from 2014 are largely the same as prior drafts and include some notable changes

On Aug. 9, 2023, the New York State (NYS) Department of Taxation and Finance (Department), in accordance with the NYS State Administration and Procedures Act (SAPA), proposed regulations under Article 9-A corporate franchise tax (Parts 1-9) and Article 33 insurance corporation franchise tax (Part 32).1 The proposed regulations, once finalized, will implement comprehensive franchise tax reform for corporations, banks and insurance companies, which was enacted in 2014, with subsequent technical and conforming amendments enacted in 2015 and 2016.

The proposed regulations cover a wide range of areas, such as imposition of tax (nexus) and protected/unprotected activities under PL 86-272; apportionment; computation of tax; combined unitary reporting; and qualified NYS manufacturers (NYQMs). These and other areas addressed in the proposed regulations may impact NYS taxpayers in various industries.

Since Sept. 2, 2015, the Department has released various Parts of Article 9-A corporate franchise tax regulations for comment via its website. According to the Department's Regulatory Impact Statement, "[i]ndustry representatives and individuals submitted over 80 highly detailed and carefully considered comments and suggestions … . While the [D]epartment implemented many comments and suggestions, it resolved some of the issues raised in a different manner than suggested. The [D]epartment also rejected some suggestions as inconsistent with the Tax Law, established Tax Department policy, related Federal provisions or the legislative objectives of Tax Reform, as lacking statutory authority, or as administratively impracticable."

A general table of contents of the proposed regulations is as follows:

  • Part 1 — Imposition of tax (pages 1-39), including corporations that may be subject to tax based upon economic nexus, corporate partner rules and protected/unprotected activities under PL 86-272
  • Part 2 — Accounting periods and methods (pages 39-47)
  • Part 3 — Computation of tax (pages 47-171), including rules on investment and business income and capital, with examples; and capital loss, prior net operating losses and net operating loss provisions, with examples
  • Part 4 — Apportionment (pages 172-305), including general and specific rules; rules on receipts from digital products and services, and from other services and other business activities, with examples
  • Part 5 — Credits (pages 305-313), including the investment tax credit, employment incentive tax credit, and security training tax credit
  • Part 6 — Reports (pages 313-341), including general requirements, and combined reporting
  • Part 7 — Payment of tax, declaration and payment of estimated tax, and collection (pages 341-353)
  • Part 8 — Metropolitan Transportation Business Tax Surcharge (pages 353-367), including the Metropolitan Commuter Transportation District Apportionment Percentage rules
  • Part 9 — Special entities (pages 367-404), including NYQM and contract manufacturers provisions; corporate partner rules with examples; NYS S corporation provisions; and rules for real estate investment trusts and regulated investment companies
  • Part 32 — Combined reports for insurance corporations (pages 404-417)

Based upon our review of all prior draft submissions issued by the Department, First Impressions Alert 2023-1397 outlines our observations around certain key provisions in the latest proposed regulations.

Interested parties have until Oct. 10, 2023, to submit comments on the proposed regulations.

EY will host a webcast on the proposed regulations on Wednesday, Aug. 30, 2023, from 1:00-2:15 p.m. ET New York; 10:00-11:15 a.m. PT Los Angeles. Register for the webcast here.

Texas approved property tax relief and increased franchise tax exemption require voter approval in order to take effect

On July 22, 2023, Texas Governor Greg Abbott signed into law two bills — SB 3, which would increase the franchise tax exemption, and SB 2, which would provide property tax relief. The increase to the franchise tax exemption will only take effect if voters, during the Nov. 7, 2023 general election, approve a constitutional amendment allowing the property tax relief in HJR 2, as implemented by SB 2.

If voters approve the property tax relief and SB 3 takes effect, the franchise tax exemption will increase to $2.47 million (from $1 million), starting with reports originally due on or after Jan. 1, 2024. Under the increased exemption, a taxable entity will not be required to pay franchise tax and will not be considered to owe any tax for a period if: (1) the amount of its computed tax is less than $1, 000 or (2) the amount of its total revenue from its entire business is $2.47 million or less. The law also prohibits the Texas Comptroller of Public Accounts from requiring an information report be filed by a taxable entity that does not owe any tax because of application of the $2.47 million exemption.

HJR 2, approved by the general assembly on July 13, 2023, is a proposed amendment to the Texas Constitution that would give the Legislature the authority to, among other things, establish a circuit breaker limitation on the maximum appraised value of non-homestead real property valued less than $5 million (as limited by SB 2) for ad valorem tax purposes to the lesser of the most recent market value or 120% (or a greater percentage) of the property's appraised value for the prior tax year. (As specified by SB 2, the 120% or greater is the sum of (1) 20% of the appraised value of the property for the preceding tax year, (2) the appraised value of the property for the preceding tax year and (3) the market value of all new improvements to the property.) If approved by voters, the circuit breaker limitation would take effect as to a parcel of real property on January 1 of the tax year following the first tax year in which the owner owns the property on January 1, and the limitation would expire on the January 1 of the tax year following the tax year in which the owner ceases to own the property. A person that acquired the real property before 2023 is deemed to have acquired the property on Jan. 1, 2023. These temporary limitation provisions expire on Dec. 31, 2026.

In addition, HJR 2/SB 2 would increase the residence homestead exemption from school district ad valorem taxes to $100,000 (from $40,000). The increase of the homestead exemption would be effective for the tax year beginning Jan. 1, 2023. Provisions of SB 2 also would prohibit the governing body of a school district, municipality or county that adopted a local option homestead exemption for the 2022 tax year from reducing the amount of or repealing the exemption. This provision would apply for a four-year period, expiring on Dec. 31, 2027.


Illinois: New law (SB 2047) modifies the Illinois Income Tax Act to allow, effective for tax years ending on or after Dec. 31, 2023, certain tax credits to pass through to partners and S corporation shareholders: (1) in accordance with the determination of income and distributive share of income under IRC §§ 702 and 704 and Subchapter S, or (2) as otherwise agreed by the partners and shareholders. Such agreement must have been executed in writing before the due date of the return for the tax year and meet other requirements established by rules issued by the Illinois Department of Revenue. This change was made for various tax credits, including the following: investment credit, enterprise zone credit, river edge redevelopment zone credit, high impact business construction jobs credit, training expense credit, research and development credit, REV Illinois investment tax credit, tax credits for affordable housing donations, historic preservation credit and data center construction employment tax credit. SB 2047 takes effect Jan. 1, 2024. Ill. Laws 2023, Pub. Act 103-0396 (SB 2047), signed by the governor on July 28, 2023.

Iowa: The Iowa Department of Revenue (IA DOR) issued guidance on the elective pass-through entity tax (PTET), which can be elected starting retroactively for tax years beginning on or after Jan. 1, 2022. The IA DOR's PTET webpage provides guidance and answers to frequently asked questions (FAQs). Business entities taxed as a partnership or S corporation for federal and Iowa income tax purposes and required to file a federal and Iowa partnership income tax return are eligible to make the PTET election; publicly traded partnerships are not eligible to make the PTET election. The IA DOR's guidance explains the process for making the PTET election for tax year 2022 and tax years 2023 and later. The deadline for making the election for 2022 is the later of Dec. 31, 2023 or the due date for filing the 2022 IA 1065 or 2022 IA 1120S, including extensions. For tax year 2023 and later, the election must be made by the due date for filing the PTE's IA 1065 or IA 1120S. The guidance also describes how to calculate and pay the PTET. In response to questions, the IA DOR explained that in calculating the PTET, an electing PTE cannot claim a net operating loss deduction and a qualified business income deduction is not allowed. The guidance also lists the tax credits that a PTE can claim against the PTET and explains the interaction of the PTET with the Iowa composite returns and composite tax payments. Iowa Dept. of Rev., "IDR Releases New Tax Guidance: Pass-Through Entity Tax" (July 20, 2023).

Hawaii: The Hawaii Department of Taxation (HI DOT) issued guidance on the state's elective pass-through entity tax (PTET) and provided notice of proposed temporary rules related to the PTET and accompanying credits. While the new PTET law takes effect Jan. 1, 2024, it applies to tax years beginning after Dec. 31, 2022. The election to be subject to the PTET is made annually, and once made it is irrevocable for that tax year and binding on all of the electing PTE's eligible members. The PTET election for tax year 2023 must be filed with the HI DOT by April 20, 2024; for tax years thereafter, the election must be filed with the HI DOT by April 20 of the tax year (or by the 20th day of the fourth month for fiscal-year filers). The HI DOT's guidance explains how to calculate the PTET, due dates for estimated tax payments (which must be made starting in 2024), electronic filing and tax remittance requirements, credits available to members for PTET paid and PTET paid to another state, and refunds for overpayment of the PTET. The guidance also includes temporary administrative rules. Haw. Dept. of Taxn., Tax Information Release No. 2023-01 (July 21, 2023).

New Hampshire: New law (SB 189), for gross business profits tax purposes, decouples from IRC § 163(j) and allows previously disallowed interest be deducted equally over three years. This change is effective for tax years beginning on or after Jan. 1, 2024. N.H. Laws 2023, ch. 169 (SB 189), signed by the governor on July 28, 2023.

New Jersey: In response to recently enacted corporation business tax (CBT) reform, the New Jersey Division of Taxation has updated various CBT guidance. Updated guidance includes: (1) TAM 2011-6 "Foreign Corporations Subject to Tax" (revised July 25, 2023); (2) TAM 2011-22(R) "International Affiliate Transactions Involving Intangibles and Intellectual Property for Privilege Periods Ending Before July 31, 2023" (revised July 25, 2023); (3) TAM 2011-13R "Add Back of Related Member Interest Expense for Privilege Periods Ending Before July 31, 2023" (revised July 25, 2023); and (4) TB-93(R) "The Unitary Business Principle and Combined Returns" (revised Aug. 14, 2023). Additional information the CBT reform is available here.

Pennsylvania: The Pennsylvania Department of Revenue (PA DOR) issued an updated bulletin describing the IRC §179 property deduction for personal income tax (PIT) purposes. Under the PIT, taxpayers can treat the cost of Section 179 property as a currently deductible expense "to the extent described in this [b]ulletin." The Section 179 deduction is tied to the federal deduction, depending upon when the property was placed in service. A taxpayer can claim a Section 179 deduction even when the taxpayer does not currently expense the cost of the Section 179 property for federal income tax purposes. The PA DOR further explained that since Section 179 is a business expense, it can only be used to offset gain from net profits, or Schedule C income, for PIT purpose. The cost of Section 179 property is subject to a dollar limitation as well as a business income limitation. The amount of the Section 179 deduction that cannot be used in a tax year due to the business income limitation can be carried over (carryover deduction) until exhausted. In addition, any carryover deduction that cannot be used because of the dollar limitation can be carried forward until it is used. The PA DOR also provides guidance for when a pass-through entity (PTE) elects to expense the cost of the Section 179 property, noting that the election is made at the entity level and the dollar and business income limitations also are calculated and applied at the entity level. A carryover deduction does not pass-through to the owner. The bulletin includes illustrative examples, including the general IRC §179 calculation, carryover deduction, the Section 179 calculation with carryover, and pass-through entity/entity owner IRC §179 deduction calculation. Pa. Dept. of Rev., Personal Income Tax Bulletin 2023-02 "Section 179 Property Deduction" (Aug. 3, 2023) (supersedes Informational Notice Personal Income Tax 2012-05).

West Virginia: The West Virginia Tax Division has approved a new rule W.V. Admin. Code 110-21G "Income Tax Paid at the Entity Level by Electing Pass-Through Entities" for legislative approval. Retroactive to tax years beginning on or after Jan. 1, 2022, a qualifying pass-through entity (PTE) can make an annual irrevocable election to be subject to the personal income tax at the entity level (PTET) for that year. The rate of the PTET equals the top marginal rate imposed on individuals. Owners of an electing PTE are eligible for a nonrefundable tax credit equal to their proportionate share of West Virginia income tax paid by the electing PTE — this is referred to as the "reconciliation tax credit". Excess credit can be carried forward for up to five years. The PTET is in addition to any other tax that may be imposed on the PTE, e.g., local or municipal taxes, withholding taxes. An owner can only claim the reconciliation tax credit for tax paid by the electing PTE in the tax year for which the tax was paid by the PTE. Owners must wait until the PTE makes the PTET election and pays the tax before claiming the reconciliation tax credit. If such election is made after the due date of the owner's return, the owner may make extension payments and file the return by the extension period or file an original return without the credit and claim the credit on an amended return filed after the PTE makes the election and pays the tax. Owners of an electing PTE also may claim a credit for taxes paid to another state for (1) income taxes paid by the PTE to another state for the same tax year and under laws substantially similar to West Virginia's PTET, and (2) income taxes paid directly by the West Virginia resident PTE owner on pass through income that is taxed by another state, if certain conditions are met. The rule also (1) explains how a PTE makes the PTET election and when the election must be made; (2) describes which PTEs are qualified to make the PTET election; (3) explains how to calculate an electing PTE's West Virginia taxable income, with specific provisions for resident owners and nonresident owners, and how to compute the PTET, noting that the federal income tax deduction under IRC §199A is not an allowed adjustment in determining the electing PTE's tax liability; (4) describes the annual PTET return filing requirements, the filing requirements for nonresident owners of an electing PTE, and making estimated tax payments (note, electing PTE should not make nonresident withholding payments or composite return payments). The rule was approved on July 28, 2023.


Colorado: In response to a ruling request, the Colorado Department of Revenue (CO DOR) determined that food products sold by a remote seller that has no physical presence or retail locations in the state, are food for home consumption and, as such, it is exempt from the state's sales and use tax. The remote seller purchased food products from independent third parties and resells the products to customers through its website. An out-of-state third-party cooks, packages, attaches a nutrition label and ships the food products to the remote seller's customers; the food products are delivered through the postal service and not by an on-demand delivery service. The food products are not for immediate consumption and require further preparation. The CO DOR explained that the state relies on the USDA's definition of food for purposes of the sales and use tax exemption. The exemption generally applies to food sold for home consumption but does not apply to prepared food or food for immediate consumption (i.e., hot food, food kept above room temperature). In addition, Colorado specifically excludes prepared salads, cold sandwiches and deli trays from the definition of food. The CO DOR found the exemption applies to the food products at issue — meat and plant-based protein, vegetables and whole grains that require further preparation to be consumed as intended — as these items are food for home consumption. Colo. Dept. of Rev., PLR 23-003 (June 14, 2023).

Illinois: New law (HB 1497) amends the Automobile Renting Occupation and Use Tax (rental tax) to provide that if tax due on an automobile under the Retailers' Occupation Tax Act (ROTA) or Use Tax Act (UTA) was paid at the time it was purchased or when it was brought into Illinois, then: (1) "renting" does not include peer-to-peer car sharing, and (2) "rental price" does not include consideration paid for peer-to-peer car sharing to a shared-vehicle owner or a car-sharing program. The rental tax does not apply to any amounts paid or received for peer-to-peer car sharing or the privilege of sharing a shared vehicle via a car-sharing program if the shared vehicle owner paid the applicable taxes when the automobile was purchased. A car-sharing program must ask a shared vehicle owner if they paid applicable tax at the time the automobile was purchased; the car-sharing program has a right to rely on the owner's response and to be held legally harmless for such reliance. HB 1497 took effect upon becoming law. Ill. Laws 2023, Pub. Act 103-0520 (HB 1497), signed by the governor on Aug. 11, 2023.

Michigan: The Michigan Department Treasury issued an updated revenue administrative bulletin (RAB) on the state's sales and use tax exemption for rolling stock (i.e., property used by interstate motor carriers engaged in interstate commerce). To qualify for the rolling stock exemption, the property must meet the following requirements: (1) it must be rolling stock; (2) the rolling stock must be purchased by, or for rental or lease to, an interstate motor carrier (for sales tax purposes) or purchased, rented or leased by an interstate fleet motor carrier (for use tax purposes); and (3) the rolling stock must be used in interstate commerce. The RAB describes each of these requirements in greater detail and includes examples. Mich. Dept. of Treas., RAB 2023-12 "Sales and Use Tax Treatment of Interstate Motor Carriers" (Aug. 10, 2023) (replaces RAB 2016-2).

Missouri: In response to a ruling request, the Missouri Department of Revenue (MO DOR) said digital music and signature subscription services are not subject to sales and use tax. Under Missouri law, charges for access to interactive computer services are specifically excluded from the sales tax on telecommunication services. The MO DOR determined that the interactive digital subscription, in this instance, also are excluded from tax on telecommunications services. Mo. Dept. of Rev., LR 8248 (June 28, 2023).

Tennessee: In response to a ruling request, the Tennessee Department of Revenue (TN DOR) determined that a technology company's fees for staff augmentation services and payment processing services accessed through a digital platform are not subject to the state's sales and use tax because these services are not specifically enumerated as taxable. While these services are not taxable, the TN DOR found that since the company's "platform is accessed through an app, which is arguably subject to Tennessee sales and use tax as the use of computer software", the company's fees are for taxable and non-taxable items. The TN DOR applied the true object test and found that the provision of staff augmentation service was the true object of the transaction, and the app was merely incidental to the non-taxable service as the app "would be worthless without the non-taxable services." Tenn. Dept. of Rev., Letter Ruling # 23-05 (June 30, 2023).


Louisiana: New law (HB 562) extends the motion picture production tax credit through July 1, 2031 (from July 1, 2025). Further, on or after July 1, 2023, as a condition of receiving the tax credit, a state-certified production must acknowledge the financial assistance from the state through the inclusion of a Louisiana promotion graphic. The law also a prohibits a motion picture production company, irrevocable designee, taxpayer or claimant (collectively "company") from earning a credit, transferring a credit, or having a credit certified or issued to it, if the company has a delinquent federal, state or local tax obligation, including the filing of returns and remittance of taxes. The company must certify compliance with this requirement before a credit can be certified, transferred or sold. This prohibition does not apply to any tax liability that has been properly protested or appealed by the company. La. Laws 2023, Act 411 (HB 562), signed by the governor on June 15, 2023.

Louisiana: New law (HB 483) extends and enhances the rehabilitation historic structures tax credit, which can be claimed against income and corporation franchise tax. The credit is extended through 2028. The amount of the credit equals 25% of the eligible costs and expenses of the rehabilitation incurred on or after Jan. 1, 2023 and before Jan. 1, 2029, regardless of when the property is placed in service. The amount of the credit is increased to 35% of eligible costs and expenses if the historic structure is located in a rural area. Credit is not allowed for expenses incurred on or after Jan. 1, 2029. La. Laws 2023, Act 426 (HB 483), signed by the governor on June 27, 2023.

New Jersey: New law (SB 3748) makes various modifications to New Jersey's Garden State Film and Digital Media Jobs Act, which provides corporate and individual income tax credits for expenses incurred for producing certain films and digital media content. The law increases the amount of credit the New Jersey Economic Development Authority (EDA) annually can make available to New Jersey film-lease production companies (formerly referred to as New Jersey film-lease partners) to $250 million (from $100 million) and to $400 million (from $350 million) for New Jersey studio partners. The law allows the EDA to make a capital investment in a New Jersey film-lease partner facility of up to $10 million per project. In addition, the law modifies definitions for "incurred in New Jersey", "New Jersey film-lease production company", "New Jersey studio partner" and "qualified film production expenses" and adds a definition of "New Jersey film-lease partner facility". The definition of "qualified film production expenses", for purposes of the credit available to New Jersey studio partners, is expanded to include certain deferred compensation payments in calculation of wages and salaries. Lastly, the law allows the EDA to make available to New Jersey studio partners and New Jersey film-lease production companies the uncommitted balance of the total value of tax credits authorized for award by the EDA under the Aspire Program Act and the Emerge Program Act. N.J. Laws 2023, ch. 97 (SB 3748), signed by the governor on July 6, 2023.


Delaware: New law (HB 62) requires all property subject to assessment be assessed at its present fair market value (instead of its true value in money). All real property must be reassessed by the county in which it is located once every five years. The five-year period begins on the date a county board of assessments certifies the completion of a general reassessment of all real property within that county. HB 62 took effect Aug. 9, 2023. Del. Laws 2023, HB 62, signed by the governor on Aug. 9, 2023.


Maine: New law (LD 1808) provides an additional 30 days to file a return for a corporation or financial institution that is granted an extension of time to file its federal income tax return. Thus, a corporation or financial institution that is granted a federal filing extension, for Maine purposes, will automatically be granted an equivalent period from the date prescribed for filing the return plus 30 days. This change applies to tax years beginning on or after Jan. 1, 2023. Maine Laws 2023, ch. 441 (LD 1808), signed by the governor on July 26, 2023.


Alabama: The Alabama Department of Revenue (AL DOR) announced that beginning Sept. 1, 2023, access to its nexus questionnaire and voluntary disclosure agreement (VDA) process is being moved to its My Alabama Taxes portal. The AL DOR explained that the first two weeks of September will be a transition period. During this time, the AL DOR said that it will accept the questionnaire and VDA applications through the old portals but is encouraging submission of these documents via the My Alabama Taxes portal. Beginning Sept. 15, 2023, it will no longer accept electronic submission of the questionnaire or VDA application through the old portals. Ala. Dept. of Rev., Notice: Nexus Questionnaire and Voluntary Disclosure Processes Moving to My Alabama Taxes (Aug. 2, 2023).

Oregon: New law (HB 2576) confers exclusive jurisdiction on the Oregon Tax Court the judicial review of questions of law and fact regarding local income taxes, provided that the person first exhausted all administrative remedies before the local government. The tax court, however, does not have jurisdiction to review local government determinations related to the collection, enforcement, administration or distribution of a local income. These local income tax rulings can be appealed to the Oregon Supreme Court. This change applies to petitions filed on or after Sept. 24, 2023. Ore. Laws 2023, ch. 313 (HB 2576), signed by the governor on July 18, 2023.

Pennsylvania: The Pennsylvania Department of Revenue announced that it modified its voluntary disclosure program (VDP), changing the lookback period for taxpayers with a corporate tax liability to three years plus the current year, from five years plus the current year. This change applies to voluntary disclosure agreements entered into on or after Aug. 1, 2023. Pa. Dept. of Rev., Tax Update Number 226 (June/July 2023).


Ohio: On July 3, 2023, Governor Mike DeWine signed HB 33, which retroactive to Jan. 1, 2023, gradually reduces the Ohio personal income tax rates over two years, collapsing the current four tax brackets to two by 2024. As under current law, those with Ohio annual taxable income of less than $26,050 are exempt from Ohio personal income tax. The supplemental rate of withholding for bonuses and irregular wage payments is set by law at 3.5%. For additional information on this development, see Tax Alert 2023-1372.

Oregon: On July 10, 2023, the Salem City Council passed Ordinance Bill No. 12-23, which, effective July 1, 2024, creates a new Safe Salem payroll tax of 0.814% on wages and self-employment income earned within the city limits. The tax on wages applies only to employees earning more than the minimum wage. Revenues from the Salem payroll tax will address a budget deficit of $19.4 million that is anticipated by fiscal year 2028. Oregon Business & Industry (OBI) announced that it filed a petition on July 14, 2023, to add the Salem payroll tax to the city's November 2023 ballot. For more on this development, see Tax Alert 2023-1376.

Vermont: On June 20, 2023, the Vermont House and Senate overrode Vermont Governor Phil Scott's veto of HB 217 which, effective July 1, 2024, imposes a new childcare tax of 0.44% on wages and 0.11% on self-employment income. The tax will be administered by the Vermont Department of Taxes. The additional revenue will be used to fund increased access to quality childcare services and afterschool and summer programs across Vermont. For additional information on this development, see Tax Alert 2023-1338.


Illinois: New law (HB 3808) excludes from "gross revenue" subject to local fees for the provision of cable or video services revenue received from video programming accessed through a service allowing users to access content, information, electronic mail or other service of the Internet, including Internet streaming content. In addition, the definition of "video service" under the Public Utilities Act has been amended to specifically exclude direct-to-home satellite services and video programming accessed through a service allowing users to access content, information, electronic mail or other service of the Internet, including Internet streaming content. These changes take effect on Jan. 1, 2024. Ill. Laws 2023, Pub. Act 103-0360 (HB 3808), signed by the governor on July 28, 2023.


Federal — International: The latest issue of EY's TradeWatch publication is now available. In this edition, we continue to focus on trade trends, specifically disruption, technology, sustainability, trade facilitation, controversy and customs reform. Trade disruption continues, becoming effectively the "new normal". But how should businesses respond? This is a topic that is explored in depth in our latest report 'Refocusing on the global trade functional organizationa global trade perspective', which is based on in-depth conversations and benchmarking studies with trade leaders in global companies. In this edition, we also (1) continue the conversation on the trade function by looking at steps companies can take for 'Future-proofing the customs and trade function'; (2) look at other trade trends, including sustainability and ESG regulations, the effective use of trade facilitation measures and managing controversy; and (3) look at customs reform in the EU and Canada and provide an update on Section 301 in the US. In addition, our latest series of articles 'How three global trends are shaping Indirect Tax' identifies how business leaders should respond to three global megatrends — transformation, sustainability and trade disruption — to help their organizations thrive in turbulent times.


Wednesday, Aug. 30, 2023. Insights into New York's proposed Article 9-A corporate franchise tax regulations webcast. (1:00-2:15 p.m. ET New York; 10:00-11:15 a.m. PT Los Angeles). On Aug. 9, 2023, the New York State (NYS) Department of Taxation and Finance issued proposed Article 9-A corporate franchise tax reform regulations and Article 33 insurance corporation franchise tax regulations that cover a wide range of issues and may impact NYS taxpayers in various industries. Topics that will be covered during the webcast include: imposition of tax (nexus) and protected/unprotected activities under PL 86-272; apportionment; computation of tax; combined unitary reporting; qualified NYS manufacturers; financial services industry-specific provisions. Panelists also will discuss the regulation finalization process and deadlines for submitting comments, as well as other actions taxpayers may want to consider before the proposed regulations become final. Register.

Thursday, Sept. 7, 2023. Domestic tax quarterly webcast series: a focus on state tax matters. (1:00-2:30 p.m. ET New York; 10:00-11:30 a.m. PT Los Angeles). For our third quarterly webcast in 2023, please join our panel in discussing: (1) local tax issues, considerations, and pitfalls for the unwary, including local sales and use taxes in Colorado, local business taxes in California and a variety of other local taxes (e.g., bag taxes, personal property lease taxes); (2) sales and use tax developments, including hot topics in navigating multistate compliance; and (3) latest trends in state business tax credits and incentives, including electric vehicles and battery incentives, jobs credits, investment credits. 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 The notice of proposed rulemaking was published in the Aug. 9, 2023 NYS Register.