MSDTaxLaw.com

Posts by Jerry Donnini

Taxpayer Takes on Amazon in CA Sales Tax Case

Since 2017, California’s Department of Tax and Finance Administration (CDFTA), formerly the Board of Equalization, has been tormenting businesses that use Amazon’s FBA services for sales tax liabilities. Many FBA sellers received a notice the reminded them that  in California has their company’s name, address, and EIN.  Following that notice California has aggressively pursued FBA sellers for…

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Florida’s Corporate Income Tax Update & TAA 18C1-011

In the area of state corporate income tax, determining the location of the income is critical for companies and states alike.  In general, a company takes its total income and determines, or “apportions” it, to a particular state depending on the amount of activity in that state that resulted in the corresponding income.  Example:  Company…

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FL Taxpayer Challenged State Corporate Income Tax Assessment

In the world of state corporate income tax, companies constantly are at odds with states in determining where the income is properly attributable to.  States often take contradictory positions using cost of performance or market based sourcing to attempt to attribute income to their own state.  Such was the issue in a recent case filed…

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Florida Jumps on Board to Regulate Vapes as Tobacco Products

In Florida, recent legislation seeks to define e-cigarettes as tobacco products and also restrict flavored vape products to be sold at 18 and over stores.   Although some reports have determined that e-cigs and vapes are much safer than traditional cigarettes, the potential harmful effects seem to have motivated the restrictive lawmaking.  Surprisingly, the new law’s…

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Three More States Propose Economic Nexus Legislation

In the growing trend to collect more sales tax, states have turned to economic nexus and marketplace facilitator statutes over the past year. Following the U.S. Supreme Court’s Wayfair decision, which overturned the prior physical presence nexus requirement, states have enacted laws that force companies to collect tax in their state based on sales alone.  The most…

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COUGAR DEN WINS AGAIN IN SCOTUS

On March 19, 2019 the Yakima Nation won an important motor fuel tax case against the state of Washington in the Supreme Court of the United States.  The case centered on whether a fuel importer, who was owned by the Yakima tribe, could be forced to pay $3.6 million of taxes for importing motor fuel…

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FL DBPR Ordered to Pay Blunt Wrap Company’s Attorneys Fees

In 2016, Florida’s appellate court ruled that blunt wraps are not taxable in Florida.  In Brandy’s, the court determined that a blunt wrap was not a taxable “tobacco product,” because it did not meet the statutory definition as ‘loose tobacco suitable for smoking.”  Specifically, the court said that the blunt wraps was a “distinct cohesive…

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Florida New Economic Legislation Bill

Each week, more states continue to propose and/or adopt new legislation in response to the South Dakota v Wayfair US Supreme Court holding on June 21, 2018.  Of the larger states, Florida has remained mysteriously silent on whether it would follow the economic nexus legislation produced by South Dakota and repeated by dozens of other…

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Illinois Takes on Wayfair Legislation

Like so many other states, Illinois has established an economic nexus threshold following the U.S. Supreme Court’s Wayfair decision, that became effective October 1, 2018.  The Supreme Court previously ruled that an out-of-state seller’s liability to collect and remit the tax to the consumer’s state depended on whether the seller had a physical presence in…

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California Continues Fulfill FBA Sales Tax Assessments

Since 2017, California’s Department of Tax and Finance Administration (CDFTA), formerly the Board of Equalization, has been bombarding businesses that use Amazon’s FBA services for sales tax liabilities. Many Amazon sellers received an email in October 2018 reminding them that California has their company’s name, address, and EIN.  Sellers that were already registered and collecting…

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