State Tax Quarterly Insights: Jan - March 2013

With legislative sessions in full swing, it is not surprising that state budget and other legislative proposals dominate this quarter’s developments. PwC Insights over the last three months summarize nearly twenty proposals, including state efforts to reduce income and sales tax rates, broaden tax bases, expand sales tax nexus, move to market-based souring, and even impose mandatory worldwide reporting.  In this quarterly publication, we highlight California’s attempt to reform the state’s Enterprise Zone program.

Also summarized below is one successful proposal. Delaware enacted incentives for companies to participate in the Secretary of State's Voluntary Disclosure Agreement initiative for Abandoned and Unclaimed Property.

Four major nexus or doing business court decisions were decided last quarter, and we detail one of them below - the Maryland Court of Special Appeals’ Gore decision, which held that the Comptroller may tax a company that lacks physical presence in Maryland based on its unitary relationship with an affiliate operating in the state.

Every item in the developments section, starting on page 7, links to a PwC Insight that provides analysis and observations regarding the development.  Insights this quarter examine the Multistate Tax Compact apportionment election, business/nonbusiness income decisions, state adjustment powers, and other significant state and local tax matters.

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