NYC Enacts Economic Nexus for Corporate Tax and Moves Up PTE Effective Date
Recent legislation amended New York City’s tax code to establish an economic nexus threshold for its corporate income tax and to move up the applicable year for pass-through entity tax elections to 2022.
Oregon Rules that Taxpayer’s Activity Exceeds Protection of Public Law 86-272
An Oregon Tax Court case addresses how certain activities actually create income tax nexus because they fall outside the scope of what is considered “sales solicitation” under Federal law P.L. 86-272.
California Addresses Liability for State’s Annual LLC Tax
When determining if an LLC is required to pay California’s LLC tax, the LLC must consider its share – based on its profits interest - of the property, payroll, and sales of any pass-through entity of which it is an owner.
A taxpayer is required to include the net (and not gross) proceeds in the denominator of its gross receipts factor from its inventory hedging transactions, since inventory hedges are not treated as the taxpayer’s inventory.
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