Congress to Hold Hearings on State Tax Issues

August 23, 2005

It appears Members of Congress are ramping up for hearings this fall on several state tax issues, including telecom taxes, streamlining sales tax collections, and the Cuno v. DaimlerChrysler decision. From Tax Analysts:

Sen. Chuck Grassley, R-Iowa, who chairs the Finance Committee, said he was likely to hear a federal streamlining bill, but that he’d hear all the other state tax issues at the same time.

Such a hearing, [COST Legislative Director] Crosby said, would cover virtually everything generating noise in multistate tax circles: Charlotte Cuno et al. v. DaimlerChrysler Inc. et al, in which a court found an Ohio investment tax credit unconstitutional; state-led efforts for federal legislation to streamline sales and use tax collection; a federal bill that strives to establish a bright-line physical presence standard for state corporate taxes; and telecommunications taxes…

In anticipation of a rewriting of the Telecommunications Act of 1996, such issues as simplifying telecom tax administration and weeding out “discriminatory” taxes — in other words, higher taxes for telecom than those levied on other businesses — have surfaced.

For updates on these and other state tax issues, be sure to keep an eye on the State Tax section of our website.

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