State Tax Assessment
Friday, February 20, 2004
Upcoming State Tax Administrators Conferences
By Ronald K. Bodtcher, Publisher of State Tax Assessment
FTA Annual Conference
Providence, RI
June 6 - 9, 2004
SEATA (Southeastern States)
Asheville, NC
July 5 - 8, 2004
MSATA (MidWestern States)
Des Moines, IA
August 15 - 17, 2004
WSATA (Western States)
Seattle, WA
September 26 - 29, 2004
NESTOA (NorthEastern States)
Oqunquit, ME
September 26 - 29, 2004
COMMENT:
These are conferences of state tax administrators. They involve technical sessions, as well as informal gatherings. If you want to meet the top state tax administrators in the country and find out what they are "up to", these conferences are a great opportunity.
Personally, I like SEATA, because the Southern states are so friendly and hospitable. Also, the conference is family-oriented: there are shopping trips and sightseeing for the wife and activities for the kids. I like MSATA also, for the same reasons. The people there are friendly, too. WSATA is one to look forward to, especially when Montana hosts the conference. It's usually in Whitefish, MT and the setting is spectacular.
I haven't been to NESTOA in a while. Anyone know where Oqunquit, Maine is?
Thursday, February 19, 2004
Arkansas Amnesty July 1, 2004, through December 31, 2004
By Ronald K. Bodtcher, Publisher of State Tax Assessment
"It is found and determined by the General Assembly that the State of Arkansas is in great need of additional revenues for improvements, construction, or repair of public school facilities and that providing a tax penalty and interest amnesty program will result in substantial additional revenues. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval."
COMMENT:
Well now, if the condition of public schools in Arkansas has created a public emergency, then I'm all in favor of an amnesty program to help preserve peace, health and safety.
Like many other states, Arkansas needs more money, and an amnesty program is a popular and effective way to raise funds. Arkansas's last amnesty program was conducted from 9/1/87 through 11/30/87 and raised almost $2 million.
Note that this is a penalty and interest Amnesty Program. There is no limit to the "look-back" period. If you owe more than 3 years worth of taxes, you may want to consider negotiating a "Private Amnesty." You can Ask the Experts at State Tax Central for more details.
Note also that if you are under audit during the amnesty period, you won't be granted a waiver of penalty and interest for amounts included in a proposed assessment. However, depending on how the Department of Finance interprets the new law, you may be able to negotiate penalty and interest waiver for contested amounts that have yet to be assessed.
Stay tuned for more details as we approach the July 1 start date.
Wednesday, February 18, 2004
Blagojevich targets business tax 'loopholes'
February 15, 2004
BY CHRISTOPHER WILLS ASSOCIATED PRESS
"Gov. Rod Blagojevich said Sunday he will ask lawmakers to end more than $300 million worth of business tax "loopholes"....
The tax "loopholes" Blagojevich is targeting include provisions letting businesses avoid taxes on some income. Businesses headquartered in other states can avoid taxes on investment income, for instance, and banks can get around some taxes by having Illinois customers send loan payments out of state."
COMMENT:
It seems that the Governor may be going after Investment Holding Companies, a tax-saving device that the Big-4 accounting firms have been selling for years. How he will go about it is unclear; however, a provision to include IHCs in the unitary group would do the trick.
The other "loophole" has to do with sourcing rules for banks. Presumably, the rules would be changed to source loan interest to the state of residence of customers rather than to the state in which a loan servicing subsidiary is located. A number of states use this same approach.
Tuesday, February 17, 2004
Tax cuts? Not everyone will see relief
By David R. Francis
The Christian Science Monitor
"In some cases, the cuts in federal taxes and programs have shoved some of the tax burden down to states and municipalities. Faced with the need to balance budgets, 36 states enacted tax and fee increases for fiscal 2004, which ends June 30, notes the National Association of State Budget Officers. These are expected to bring in $9.6 billion. Other measures, such as ending tax amnesty programs and accelerating payment of sales taxes, are aimed at raising an additional $3 billion."
COMMENT:
Will someone please explain to us how ending tax amnesty programs will raise additional revenue? I think that ongoing "private amnesty" programs--especially for out-of-state businesses--are a better way to increase revenues.
