• Some Observations on Gross Receipts Taxes
  • June 16, 2017 | Author: Eric J. Coffill
  • Law Firm: Sutherland Asbill & Brennan LLP - Sacramento Office
  • Full Article

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    The majority of states impose a form of a corporate income tax. However, currently five states-Delaware, Ohio, Nevada, Texas, and Washington-impose a broad-based, statewide corporate gross receipts tax. The most recent addition to that list is Nevada, which in its 2015 Legislative Session enacted a new Commerce Tax that is imposed on gross revenue. More recently, there have been and are, at the time of writing, ongoing efforts in Oregon to enact a corporate gross receipts tax, either as a separate tax or as an alternative tax to the existing Oregon corporate income/excise tax. Even more recently, both West Virginia and Louisiana have considered a gross receipts tax.

    Such existing and proposed gross receipts taxes present a variety of policy and legal issues. In their article for the Journal of Multistate Taxation and Incentives, Eversheds Sutherland (US) attorneys Eric Coffill and Jessica Allen discuss a number of those issues and what appears to be a recent upsurge in interest in gross receipts taxes, with a discussion of the most recently enacted gross receipts tax (Nevada) and the most serious current effort to enact a gross receipts tax (Oregon).