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 Issues Policy Statement Regarding the State Implementation of Federal Partnership Audit Rules
TEI Updates Policy Statement Regarding the Reporting of Federal Income Tax Adjustments
On January 23, 2017, TEI updated its state and local tax policy statement regarding the Reporting of Federal Income Tax Adjustments. The original policy statement, issued in November 2015, noted that states vary substantially regarding the amount of time to report such changes and the triggers for reporting of such changes. TEI thus recommended a reporting time of at least 180 days, uniform triggers, and the option for taxpayers to report changes using a streamlined report similar to the Federal 1120X rather than filing an amended state tax return.
TEI Advocates Need to Update State Statutes Governing the Reporting Federal Income Adjustments at the National Conference of State Legislatures Meeting
On January 14, 2017, TEI Tax Counsel Pilar Mata, along with Fred Nicely and Nikki Dobay of the Council on State Taxation (COST) and Tom Shimkin of the Multistate Tax Commission (MTC), presented at the National Conference of State Legislatures (NCSL) Taskforce on State and Local Taxation. The panel discussed the need for state legislators to update state statutes governing the reporting of federal income adjustments, noting the problems with current state statutes and the lack of uniformity among states.
TEI Meets with State Commissioners at the Federation of Tax Administrators Midwinter New Commissioners Meeting
On January 11, 2017, TEI Tax Counsel Pilar Mata presented at the Federation of Tax Commissioners’ Midwinter New Commissioners Meeting and met with state commissioners of revenue from around the country. Pilar was invited to provide an overview of TEI’ mission, organization, and anticipated state and local tax priorities for 2017.
TEI Files Amicus Brief With U.S. Supreme Court in Michigan Retroactivity and Compact Cases
On December 22, 2016, TEI filed an amicus brief with the U.S. Supreme Court in support of the taxpayers’ Petitions for a Writ of Certiorari in International Business Machines Corporation v. Michigan Department of Treasury, No. 16-698, Sonoco Products Company, et al. v. Michigan Department of Treasury, No. 16-687, Skadden, Arps, Slate, Meagher & Flom, LLP, v. Michigan Department of Treasury, No. 16-688, Gillette Commercial Operations North America and Subsidiaries, et al. v. Michigan Department of Treasury, No.
TEI Urges the Multistate Tax Commission to Update its Model Statute Governing the Reporting of Federal Income Adjustments
On December 14, 2016, TEI Tax Counsel Pilar Mata, along with Nikki Dobay of the Council on State Taxation (COST), presented at the Multistate Tax Commission’s (MTC) Fall Meeting and urged the MTC’s Uniformity Committee to undertake a project updating its 2003 model statute governing the reporting of federal income adjustments. Pilar and Nikki noted the problems with current state statutes and the lack of uniformity among states. They also maintained now would be opportune to update the 2003 model statute because states will soon need to consider how to update their reporting statutes to r
South Carolina Permits Reporting of Federal Income Adjustments Based on TEI Policy Statement
On December 8, 2016, the South Carolina Department of Revenue issued SC Revenue Procedure #16-1, which addresses how corporations may report federal income tax adjustments made by the Internal Revenue Service. Generally, corporations may report corrections or changes to a previously filed South Carolina return by filing an amended South Carolina corporate income tax return. However, under SC Revenue Procedure #16-1, corporations may opt to report changes to taxable income resulting from IRS adjustments using a streamlined reporting method, along with a copy of the taxpayer’s federal final
TEI State Tax Havens Policy Statement Covered in the News
The Hill Extra interviewed TEI Tax Counsel Pilar Mata and covered TEI's State Tax Havens Policy Statement in a recent article regarding state tax haven legislation. The article notes that although only six states and the District of Columbia have enacted such legislation to date, other states are likely to follow suit in upcoming legislative sessions. The article also notes that state tax haven laws raise many constitutional questions and referenced TEI's policy statement on state tax haven legislation, which was issued on June 15, 2016.
TEI Files Amicus Brief With U.S. Supreme Court in Washington Dot Foods Retroactivity Case
On October 11, 2016, TEI filed an amicus brief with the U.S. Supreme Court in Dot Foods, Inc. v. State of Washington, Department of Revenue, No. 16-308. The petition seeks review of the Washington Supreme Court's decision in Dot Foods, Inc. v. State of Washington, Department of Revenue, 372 P.3d 747 (Wash. 2016) ("Dot Foods II"). Dot Foods II upholds 2010 legislation amending Washington's business and occupation tax in response to the Washington Supreme Court's decision regarding the interpretation of a statute in Dot Foods, Inc. v.
TEI Issues Policy Statement on Retroactive Tax Legislation
On September 20, 2016, TEI issued a new policy statement on retroactive tax legislation. The policy statement takes the position that sound tax policy and administration require governments to provide taxpayers with certainty and fairness, and these principles are not satisfied when legislatures are permitted to enact retroactive tax legislation without meaningful limits. TEI's policy statements reflect TEI's position on important administrative and procedural issues, and facilitate advocacy by providing formal position papers TEI's members can use when communicating with taxing agencies.