About This Blog
Noonan’s Notes Blog is written by a team of Hodgson Russ tax attorneys led by the blog’s namesake, Tim Noonan. Noonan’s Notes Blog regularly provides analysis of and commentary on developments in the world of New York and multistate tax law. Noonan's Notes Blog is a winner of CreditDonkey's Best Tax Blogs Award 2017.
Contributors
Timothy Noonan
Brandon Bourg
Mario Caito
Ariele Doolittle
Joseph Endres
Daniel Kelly
Elizabeth Pascal
Emma Savino
Joseph Tantillo
Craig Reilly
Andrew Wright
Stay Connected
Showing 158 posts by Timothy P. Noonan.
Mismatch for Decoupling in New York: Trusts and Estates Not Covered!
A few months ago, we wrote about the recent guidance that the Tax Department issued about itemized deduction decoupling (TSB-M-18(6)). The guidance addresses New York State’s decoupling from the federal treatment of deductions for individuals, but it was not initially clear whether these changes also apply to trusts and estates.
New York’s Potential New Pied-a-terre Tax and Expanded Real Estate Transfer Tax: Nuts and Bolts of the Proposed Law
As reported here last month, a recent purchase of a $238 million apartment in New York City has re-sparked a debate among New York officials about taxing second homes owned by nonresidents. As New York’s lawmakers look to finalize a budget by April 1st, and to find new ways to fund New York City’s subway system, the pied-a-terre tax is viewed as a new quill in the arsenal. (The Assembly Budget Proposal is A. 2009-B).
Online Marketplaces Must Now Collect Sales Tax in New York State
Public relations firms often advise clients to release controversial or negative news late in the day on Friday. People are less likely to pay attention to such news over the weekend and by the time Monday rolls around, the news cycle has typically moved on. That might have been what the New York State Department of Taxation and Finance had in mind when, at 4:39 PM on Friday, March 9th, it released its first sales tax advisory opinion of the year. In TSB-A-19(1)S, the Tax Department announced for the first time that an online marketplace can be held liable for the sales tax due on transactions that the marketplace facilitated. In other words, the Tax Department can hold both the individual vendor using the marketplace infrastructure and the marketplace itself liable for tax due on sales made through the marketplace. This is a dramatic, and we anticipate controversial, change in Tax Department policy.
NY Tax Minutes: Amazon, Congestion Pricing, GILTI Guidance
This article originally appeared in Law360 and is reprinted with permission.
The past month was a busy one for New York tax updates, but don't worry, we have the highlights, and, as always, we're delivering the month's news in a way that's made for New Yorkers. Fast.
Can New York Continue to Ignore the Wynne Case?
Is New York’s taxation of statutory residents unconstitutional? Those who follow state and local tax developments (and readers of this blog) may know that Hodgson Russ has been litigating that question in two parallel cases, Chamberlain and Edelman (past coverage here and here). Both cases hone in on whether the U.S. Supreme Court’s 2015 decision in Comptroller v. Wynne upends New York’s prior precedent on this issue in Tamagni v. Tax Appeals Tribunal, requiring a new constitutional analysis. We think so, and that under an analysis consistent with Wynne, the double taxation faced by people domiciled outside of New York but taxed as statutory residents unconstitutionally burdens and discriminates against interstate commerce.
A Pied-à-terre Tax in New York City?
According to a recent New York Times article, hedge-fund billionaire Kenneth C. Griffin purchased a $238 million apartment in January 2019 located at 220 Central Park South, making it the most expensive residential sale in United States history. Even in Manhattan, where huge real estate sales are downright routine, Griffin, founder and chief executive of the global investment firm Citadel, has managed to set a new record on an unfinished piece of property, a purchase that surpassed the cost of the next most expensive purchase by more than $100 million.
Sports Team Owners Strike-Out with Pass-Through Deduction
This article originally appeared in Law360 and is reprinted with permission.
Much of the fanfare around last year’s federal tax reform was around the special 20% deduction applicable to income from flow-through entities like partnerships, S corporations and LLCs under IRC § 199A. But the new law generated more questions than answers, requiring the IRS to issue new regulations to help taxpayers and practitioners sort through all the details. Just recently, the IRS issued final regulations, and they came with some bad news for owners of your favorite sports team. Specifically, the new regulations confirm that sports team ownership falls within the definition of “athletics” and, therefore, is a disqualified activity, meaning team owners generally will be unable to qualify for the 20% deduction with respect to income generated from the team. In this post, we’ll explain what all the fuss is about.
NY Tax Minutes: Wayfair, Executive Budget, Goldman Offshore
This article originally appeared in Law360 and is reprinted with permission.
The New Year is in full swing here at “NY Tax Minutes,” and we’re sticking with our resolution to deliver all the month’s New York City and state tax news in a way that’s made for New Yorkers. Fast.
Hot off the Press: New NY Tax Proposals in 2020 Budget
On January 15th, Governor Cuomo released the FY 2020 Executive Budget, which is available here. The highlights of certain proposed revenue provisions are summarized below. Keep an eye out for further updates in mid-February when the “thirty-day amendments” to the Executive Budget will be out.
New York Finally Issues Guidance on Sales Tax Economic Nexus
New York is one of the most, if not the most, aggressive states when it comes to tax enforcement. That’s why it was a bit confusing when the New York State Department of Taxation and Finance (the “Tax Department”) remained uncharacteristically silent following the landmark Supreme Court decision in South Dakota v. Wayfair. But that’s finally changed! On January 15, 2019, the Tax Department issued a Notice explaining its position on economic nexus for sales tax purposes. In this article, we’ll (1) provide a brief review of how the Wayfair case changed tax administration, (2) discuss New York’s new guidance, and (3) address some of the potential issues that are likely to arise as a result of this new guidance.