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State & Local Tax News, September 2022

NYC times square

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.


Bridge in Oregon

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.


San Diego City Skyline

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.


Dallas Texas City skyline

Texas Addresses Proceeds from Inventory Hedges

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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