Will the Government Shutdown Have SALT Repercussions?

It is still unclear how long and what lasting consequences the government shutdown will have on the federal government–but what about state governments? An article entitled, “What the Federal Shutdown Means for State and Local Government” from Governming.com claims that states can easily survive for a while, but the longer the government shutdown continues, the larger the effect will be on state and local governments. With the loss of federal funding, the states may be forced to step in for many essential programs like school breakfast and lunch programs, and the Low Income Home Energy Assistance Program. There are also many state employees whose salaries are federally funded. The looming question  is will states step in and pay these people, and how? With the federal government proving an unreliable source of funding, will states have to turn to their own resources to find funds?

To read more about the government shutdown’s effects on state and local governments, visit:

http://www.governing.com/blogs/fedwatch/gov-what-a-federal-shutdown-means-for-state-and-local-governments.html

Government Shutdown, Census Bureau Offline! Information Elsewhere.

As a result of congress being unable to get past their petty squabbles, the government has shut down and the Census Bureau’s website has gone dark. All of the information regarding state and local government spending and tax data would be largely unavailable, had not the Tax Foundation posted it to their website.

To access this data visit:
http://taxfoundation.org/blog/tax-foundation-offers-key-state-tax-and-spending-data-after-census-bureau-website-shuts-down

Tax Relief For Colorado Flood Victems

Both the IRS and the State of Colorado are offering an extension on filing deadlines for taxpayers affected by the floods. For deadlines falling on or after September 11th the deadline has been pushed back to December 2nd.

For details on the federal program visit:
http://judiciary.house.gov/news/2013/09182013.html?goback=%2Egde_797027_member_274772552#%21
For details on the state program:
http://www.colorado.gov/cs/Satellite/Revenue/REVX/1251646219089

Colorado’s Amazon Win

In 2010 Colorado passed a law requiring internet retailers, whose gross sales exceeded $100,000, to mail annual use tax owed notices to customers that bought over $500 worth of merchandise.

Last year a lower court threw the statute out, claiming that it placed an “undue burden on interstate commerce.”

Yesterday the U.S. Court of Appeals for the 10th Circuit remanded the case back to the lower court, claiming that it had overstepped its authority, and that it had to lift the permanent injunction on the tax. The reason cited was the U.S. Tax Injunction Act, which prevents federal courts from taking on state tax disputes when a state court could handle the matter. It also prohibits Federal lawsuits that could restrain the collection of state taxes.

The suit was brought by the Direct Marketing Association (DMA); a trade association based out of New York.

If the lower court reverses the injunction, then the Amazon act will be back in effect; however the DMA could still try to get an injunction in state court.

Read more:

http://www.bizjournals.com/denver/blog/boosters_bits/2013/08/colorados-amazon-tax-isnt-back.html

http://www.denverpost.com/breakingnews/ci_23904271/colorados-internet-tax-law-scores-win-federal-appeals

Colorado Poised for Passage of Marketplace Fairness Act

Colorado has approved a bill that sets parameters and guidelines if the Federal marketplace fairness act were to pass.

Read the bill here:

http://www.leg.state.co.us/clics/clics2013a/csl.nsf/fsbillcont3/5C6B90638BBED01887257AEE0057C8B0?Open&file=1295_01.pdf

ONLINE SALES TAX?

The next time you purchase the new Justin Bieber album or a pair of leg warmers online, you may have to pay sales tax.

This week the Senate will be voting on the Marketplace Fairness Act, which would grant each state the power to collect sales tax from internet sales.

This bill has come into existence partially because of decreased pressure from Amazon, who now has physical distribution centers in almost every state, thus giving the company nexus in those states.

This law would potentially level the playing field between online and brick and mortar retail shops making prices equal for both types of entities.

Read More:

http://taxfoundation.org/blog/senate-voting-week-expanding-state-authority-collect-internet-sales-taxes

Video:

http://nyti.ms/Ux4veT