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Retail Law Advisor

Category Archives: Tax

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What Does Tax Reform Mean for Retail?

Posted in Retail, Tax

We all know now that the federal corporate tax rate for many retailers is dropping this year from an industry effective average rate of 32.9% to 21%, as a result of changes implemented by the so-called “Tax Cuts and Jobs Act” which was signed into law on December 22, 2017. Retailers with cash overseas will… Continue Reading

To Tax or Not to Tax Internet Retailers, that is the Question

Posted in Retail, Retail Sales, Tax

Since the dawn of the age of e-commerce, brick-and-mortar retailers have championed “the level playing field”. Their battle cry: Internet retailers should be subject to sales tax just like us! This disparity is largely the result of a 1992 US Supreme Court decision, Quill Corp. v. North Dakota, in which SCOTUS found that a business… Continue Reading

The (Border) Adjustment Bureau: Hold On to Your (Imported) Hats

Posted in Cross Border, Retail, Retail Sales, Tax

Retailers would be wise to pay close attention to the upcoming tax-plan deliberations of the 115th U.S. Congress. A proposal currently being considered would adjust the U.S. corporate tax by making imports a non-deductible expense. This adjustment is intended to create incentives for domestic production, as companies would no longer be able to reduce their… Continue Reading

New Lease Accounting Rules Are Final: Retailers and, Ultimately, Landlords Can Expect Changes

Posted in Landlords, Leasing, Real Estate, Retail, Tax

We recently wrote about expected changes to the rules governing the way leases are accounted for on balance sheets and suggested the changes would have major implications for retailer tenants and longer term implications for landlords. Late last week, as expected, the Financial Accounting Standards Board (“FASB”) issued a suite of now final rule changes… Continue Reading

Change in Lease Accounting Rules to Have Major Impact for Retailers, and Ultimately, Landlords Too

Posted in Landlords, Leasing, Retail, Tax, Tenant

Rules governing the way leases are accounted for on balance sheet rules are expected to change in the first quarter of 2016 with major implications for retailer tenants and longer term implications for landlords. Today, real estate leases are generally not accounted for on most tenants’ balance sheets. That is, such leases are regarded as… Continue Reading

Uber Drivers: Employees or Independent Contractors?

Posted in Employment, Retail, Tax

Since its founding in 2009, Uber has gained both praise and notoriety for shaking up the taxi industry by allowing individuals who meet minimum requirements to provide an on-demand car service via the Uber mobile app.  In December 2014, there were 162,037 active Uber drivers in the United States alone.  In San Francisco, where the… Continue Reading

Internet Sales Tax Update: Senate Introduces Marketplace and Internet Tax Fairness Act

Posted in Retail, Retail Sales, Tax

Senators Enzi, Durbin, Alexander, Heitkamp, Collins and Pryor introduced the Marketplace and Internet Tax Fairness Act (MITFA) and the retail industry is listening! Two of the largest retail industry trade groups in the U.S., the Retail Industry Leaders Association and National Retail Federation, urged Congress to pass a combined version of two bills. Essentially, the… Continue Reading

Report: Internet Sales Taxes Hit Amazon, but Not to Brick and Mortar Benefit

Posted in Retail, Tax

A recent report indicates that new state taxes imposed on purchases from online retailer Amazon drove down purchases from Amazon by almost 10%. The report compared Amazon sales figures in 5 states which recently started collecting taxes from Amazon sales, to online sales before the implementation of taxes and in states that still do not… Continue Reading

Internet Sales Tax Hangs In the Balance In the House of Representatives

Posted in Retail, Tax

On May 6, 2013, the United States Senate overwhelming passed the controversial Marketplace Fairness Act of 2013 (S.743) (the “Act”) by a 69-27 vote, despite strong opposition from online retailers like eBay and small businesses who rely primarily on online sales, sending it to House of Representations for consideration and final passage. A parallel bill… Continue Reading

For Purveyors of Medical Marijuana, Siting Dispensaries Gets Easier in Massachusetts, and Federal Tax Concerns Begin to Settle

Posted in Landlords, Municipalities, Real Estate, Retail, Tax, Zoning

Some retail landlords in Massachusetts will welcome medical marijuana treatment centers as tenants by the end of the year, and treatment center operators have recently had some good news regarding local land use and federal tax regulation of medical marijuana. Although many state governments are easing the path towards legalizing marijuana for medicinal use, local… Continue Reading

Taxing Conditions for Traditional “Brick-and-Mortar” Merchants: Can Marketplace Fairness Be Restored?

Posted in Retail, Tax

If you blinked last Friday you might have missed a rare moment of Senate bipartisan agreement with potentially huge implications for the retail community. And as surprising as any bipartisanship is in the current political climate, even more surprising was the subject of Friday’s accord: taxes. The Marketplace Fairness Act, which received a filibuster-proof 75… Continue Reading