2017 year-end state and local tax considerations
INSIGHT ARTICLE |
In 2017, the states pushed forward with their own agendas as Congress considers federal tax reform. The prospects of federal tax reform have been on the minds of many in both business and political spheres, but without a draft bill and with only general frameworks to go on, states had little choice but to push forward with their own agendas. States faced weaker tax collection growth in 2016 resulting in shortfalls in well over half the states. The key was to address those shortfalls and for most states, approach federal reform as it occurs.
Doing business in multiple states can mean addressing a variety of state and local tax challenges, including new and constantly changing statutory frameworks. Sales tax nexus once again took center stage, with dozens of proposals introduced addressing remote sellers, and a number becoming law. State income and franchise developments were again incremental, shying away from any significant new trending, and credits and incentives activity took the spotlight in a number of states. Learn about significant state legislative activity from the last 12 months and catch up on what you may have missed.
Our 2017 state and local tax year-end tax planning guide introduces information on the following (and more):
- Sales tax on remote sales
- Introduced federal legislation affecting state and local tax
- The assault on physical presence nexus
- Expanded sales tax nexus
- Significant state rate changes, taxability, exemptions and tax base
- Practice and procedure changes
- Apportionment and allocation update
- City-specific individual income and employment tax
- Credits and incentives