PwC 3rd annual state and local tax journal, State and local trends affecting businesses in 2008: Looking back, looking ahead which is a compilation of articles that address some of the year's major state tax issues
In 2008, the world joined the United States in undergoing an economic crisis of confidence, to say the least. State and local governments, hardly immune from the difficulties of this past year, continue to change their laws in efforts to increase revenues.
More states have moved to unitary combined reporting; the new Massachusetts legislation is an example of how onerous this tax regime can be. At the same time, states, through statutes and case law, have continued to expand the imposition of economic nexus for sales tax as well as income tax. New York’s new vendor law is an example of this effort.
Other areas in which we have seen greater efforts to collect taxes include withholding on pass-through entities and more complex administrative burdens laid on international assignees.
To make matters even more difficult, the Financial Accounting Standards Board is considering changes in FAS 5 that would impose more disclosure requirements for non-income tax contingencies and the International Financial Reporting Standards are coming in the not-too-distant future.
This year's journal is intended to help you work through the 2008 changes with efficiency and effectiveness. Our intent is not to cover all of the year's changes or to provide specific information on how businesses should deal with them. However, we believe you will find this overview of selected 2008 changes valuable as you incorporate them into your business decisions in 2009 and beyond.