September 20, 2020

Volume X, Number 264

September 18, 2020

Subscribe to Latest Legal News and Analysis

September 17, 2020

Subscribe to Latest Legal News and Analysis

National Conference of State Legislatures to Tackle Key State Tax Policy Questions

The National Conference of State Legislatures’ (NCSL) Executive Committee Task Force on State and Local Taxation has expanded its scope to include key issues of state tax policy.  The task force— formerly known as the NCSL Executive Committee Task Force on State and Local Taxation of Communications and Electronic Commerce—has been directed by the organization’s Executive Committee to expand its scope to address a broad range of tax policy concerns facing the states.  

A bipartisan organization comprising legislators from all 50 states, U.S. territories and the District of Columbia, the NCSL serves as a forum for an exchange of ideas on various aspects of state governance and represents state legislatures before Congress.  The task force was formed in April 1999 primarily to study electronic commerce and related issues, but in recent years began playing an active role in promoting good tax policy in the area of digital taxation and cloud computing.

The task force’s new scope of responsibility includes all significant tax policy issues facing the states.  Expected to be tackled are combined corporate income tax reporting, contingent fee audits, qui tam liability, independent tax tribunals, the Multistate Tax Commission’s proposed UDITPA rewrite, pass-through taxation, financial institution and insurance company taxation, unclaimed property and digital and cloud taxation issues.  

Educating Legislators

On February 18, 2013, a letter was sent to interested industry representatives by task force co-chairs announcing the change to the task force’s name and scope of responsibility.  The letter also noted the important role the task force plays in educating legislators on the key tax policy issues facing the states:

The Task Force has endeavored to maintain state sovereignty while acknowledging the need for a tax system that can work across state lines.  Our success has been due to our ability to regularly educate state legislators about these issues through meetings, seminars and technical assistance to legislatures.  In turn, it has become one of the most significant forums for discussion and development of tax policy in the states.

As part of its expanded scope, the task force recently met with various industry representatives to identify tax policy topics that would benefit from the task force’s consideration.  The NCSL also noted future plans to address topics such as state tax reform, communications tax reform, unclaimed property, the taxation of advertising services, online travel taxes, credit card surcharges and state tax expenditures (exemptions and incentives).  Additionally, the task force plans to hold educational sessions on the impact state tax policy has on business location and expansion decisions.

Industry Participation Critical to Task Force’s Success

Industry representatives frequently appear before the task force to educate member legislators on various topics under consideration.  This forum, with open discussion and an opportunity for lawmakers to ask critical questions of experts on the topic at hand, has proven to be a valuable incubator for sound tax policy debate.  With the expanded scope of those discussions endorsed by the NCSL Executive Committee, the importance of those meetings will certainly grow.  Companies with a multi-state presence and concern about state tax policy have found participation in task force meetings to be an excellent way to assist legislator understanding of complex tax issues.

© 2020 McDermott Will & EmeryNational Law Review, Volume III, Number 67

TRENDING LEGAL ANALYSIS


About this Author

Stephen P. Kranz Lawyer McDermott Will
Partner

Stephen P. Kranz is a partner in the law firm of McDermott Will & Emery LLP and is based in the Firm’s Washington, D.C., office.  He engages in all forms of taxpayer advocacy, including audit defense and litigation, legislative monitoring, and the formation and leadership of taxpayer coalitions.  Steve is at the forefront of state and local tax issues, including developments arising in the world of cloud computing and digital goods and services.  He assists clients in understanding planning opportunities and compliance obligations for all states and all tax types. ...

202-756-8180
Partner

Jane Wells May is a partner in the law firm of McDermott Will & Emery LLP and is based in the Firm's Chicago office.  Jane heads the Firm’s State & Local Tax Practice Group.  She focuses her practice on state and local tax matters.

312-984-2115
Arthur R. Rosen, Tax Planning Litigator, McDermott Will Emery, New York Law Firm
Partner

Arthur R. Rosen is a partner in the law firm of McDermott Will & Emery LLP and is based in the Firm’s New York office. His practice focuses on tax planning and litigation relating to state and local tax matters for corporations, partnerships and individuals. Formerly the Deputy Counsel of the New York State Department of Taxation and Finance, as well as Counsel to the Governor’s Temporary Sales Tax Commission and Tax Counsel to the New York State Senate Tax Committee, Mr. Rosen has held executive tax management positions at Xerox Corporation and AT&T....

212-547-5596
Counsel

Diann Smith is counsel in the law firm of McDermott Will & Emery LLP and is based in the Firm’s Washington, D.C., office.  Diann focuses her practice on state and local taxation with an emphasis on tax challenges relating to compliance, controversy, planning and legislative activity.   

202-756-8241