The aftershocks of occasions on the federal stage continued to have main tax repercussions on the state stage all through 2019.
As was the case final yr, the annual checklist of the top developments in the state tax area compiled by Jamie Yesnowitz, principal and SALT observe and National Tax Office chief at Top Five Firm Grant Thornton, is dominated by two points: the Tax Cuts and Jobs Act, which was enacted on the finish of 2017, and the Supreme Court determination in South Dakota v. Wayfair, Inc. which was determined six months later in June 2018..
In reality, “The top two spots, and 4 of the top seven spots take care of the states response to Wayfair,” Yesnowitz mentioned. “The states’ and localities’ overwhelming reactions to Wayfair by gross sales tax and earnings tax nexus modifications and the growth of gross sales tax obligations to market facilitators are impacting all companies in a major method. On the gross sales tax aspect, distant sellers and on-line market operators face a courageous new world with expanded compliance, and the necessity to acquire the proper tax quantity — not an excessive amount of,and definitely not too little.”
Here are Yesnowitz’s top SALT tales of the yr, listed this yr, for the primary time, in order of significance: