SALT

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.

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.

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.

On August 9, 2016, a delegation from TEI's Philadelphia Chapter met with representatives from the Pennsylvania Department of Revenue. The delegation addressed taxpayer concerns arising from the Department's new corporation tax systems and procedures, such as gaps between assessments of tax, interest, and penalties; failure to notify taxpayers when an amended return or RAR adjustment has been accepted or rejected; and difficulties determining the basis for assessments.

On June 30, 2016, TEI filed an amicus brief with the U.S. Supreme Court in The Gillette Company v. California Franchise Tax Board, No. 15-1442, also known as the California Multistate Tax Compact ("Compact") litigation. In the 1960s and 1970s, States persuaded Congress and the business community that then-imminent federal legislation mandating uniformity in state taxation was unnecessary because a number of States had enacted the Compact.

On June 15, 2016, TEI issued two new state and local tax policy statements on alternative apportionment and state tax haven legislation.

On May 12, 2016, TEI's State and Local Tax Committee had the opportunity to discuss two of TEI's state and local tax policy statements at the Multistate Tax Commission's Executive Committee meeting. TEI discussed the need to standardize the timing, triggers, and format for reporting federal revenue changes to state governments and best practices for audit procedures, as outlined in TEI's "Reporting Federal Income Tax Changes" and "Audit Procedures" policy statements. Committee member Richard O'Connor and TEI Tax Counsel, Pilar Mata, attended the meeting.

On April 28, 2016, TEI's State and Local Tax Committee held a liaison meeting with Connie Beard, the Director of the Illinois Department of Revenue. TEI discussed the need to standardize the timing, triggers, and format for reporting federal revenue changes to state governments, as outlined in the State and Local Tax Committee's policy statement on "Reporting Federal Income Tax Changes." Committee member Cathleen Stevens and TEI Tax Counsel, Pilar Mata, attended the meeting.

On April 26, 2016, TEI issued a policy statement on statutes of limitation for state and local taxes. TEI maintains statutes of limitation for assessments and refund claims should be equal; unilateral administrative actions should only toll statutes of limitation for a reasonable, limited period; and when a federal change reopens a state or local statute of limitation, any resulting assessment should be limited to the impact of the federal change on the taxpayer's tax liability unless the taxpayer has signed an agreement extending/modifying the jurisdiction's statute of limitation.

On March 1, 2016, TEI submitted a letter to the Georgia Department of Revenue commenting on the Department's proposed amendments to Rule 560-12-1-.16, Georgia's "Direct Pay Reporting" regulation. TEI urged the Department to remove the provisions denying direct pay permit holders their statutory right to interest on refunds, as the proposed amendment conflicts with Georgia law and principles of sound tax policy.