Apportionment
Name the three factors that make up a three-factor apportionment formula.
Property, Payroll and Sales
What is Nexus?
Minimum connection between a taxpayer and the taxing state that is sufficient for the jurisdiction to impose a corporate net income or franchise tax.
What year was P.L. 86-272 enacted?
Federal Law was enacted in 1959.
How often does the SALT team issue a State Cheat Sheet capturing law changes?
Quarterly
Approximately how many states have adopted a one-factor sales formula as of tax year 2022?
33
What is Jurisdiction?
A state's power to impose tax.
True or False: P.L. 86 272 limits the power of the states to impose income taxes on out-of-state companies
True
Name a commonly used state income tax software.
1) OIT
2) Corptax
What is multiplied by 8 with respect to state apportionment?
Rents
Name a type of Nexus.
•Economic Nexus
•Factor Presence (”Bright-Line”) Nexus
•Agency Nexus
•Affiliate Nexus
Is providing automobiles to sales personnel for their use in conducting protected activities a protected activity under P.L. 86-272?
Yes
What features can be used in CCH Intelliconnect to determine the due date of a state return?
Smart Chart or Tax Calendar
What is it called when sales of tangible personal property are excluded from the denominator of the sales factor?
Throwout Rule
According to Factor Presence (”Bright-Line”) Nexus, a corporation has nexus in a state if it exceeds what sales ($) threshold?
•$500,000 of sales
Is providing repairs, maintenance, or installation, including supervision and technical assistance a protected activity under P.L. 86-272?
No
Who is the Managing Director of the State and Local Tax Practice?
Chau Tran
Is it more beneficial for companies to do business in states that utilize one factor sales formulas or evenly weighted 3-factor formulas?
It depends
Name 3 of the cases mentioned today related to Nexus.
»Bellas Hess, Inc v. Department of Revenue Illinois, 386 U.S. 753 (1967)
»Complete Auto Transit v. Brady, 430 U.S. 274 (1977)
»Quill Corp v. North Dakota, 504 U.S. 298 (1992)
»South Dakota v Wayfair, Inc., 138 S. Ct. 2080 (2018)
Which Supreme Court Case rejected a narrow definition of “solicitation"?
Wrigley Supreme Court Case- (Wis. Dep't of Revenue v. William Wrigley, Jr., Co. - 505 U.S. 214, 112 S. Ct. 2447 (1992))
Name the three State Resources mentioned in todays presentation.
CCH Intelliconnect, BNA, and GTM's SALT SharePoint Site.