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States jumping on bandwagon to enact tax reform
State legislatures are working hard to make changes to their tax systems in an attempt to stay competitive with their neighbouring states and broaden their tax base. Taxand USA provides an overview of the latest developments.
As state legislative sessions adjourn, we see a trend of numerous states moving towards mandatory combined filings, single sales factor apportionment, and market sourcing methods of apportionment for sales of other than tangible personal property.
It is imperative for taxpayers to be aware of the tax law changes to accurately comply with their state tax filing obligations. States that continue to clarify and broaden their nexus standards include New York and Tennessee. These new standards may trigger new state income tax obligations for many.
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Taxpayers should stay current with these recent enactments to avoid pitfalls along the way. As more states jump on the bandwagon to enact tax reform, it will be interesting to see the changes implemented, as states are in a tough position to balance their budgets but at the same time enact taxpayer-friendly legislation to stay competitive.