Home      Login


The Tide Continues to Rise: State Tax Trend Considerations for Investment Funds and Managers  


Author:  Tamar Arslanyan.; Francesca Bianchini.; Roburt Waldow.; Shirley Wei.


Source: Volume 40, Number 01, Fall 2022 , pp.17-46(30)




Journal of Taxation of Investments

< previous article |next article > |return to table of contents

Abstract: 

In the wake of the 2018 U.S. Supreme Court decision in South Dakota v. Wayfair, Inc., which abandoned the Court’s long-standing precedent requiring physical presence for sales/use tax nexus, states have embraced nexus standards based on “economic activity” in the state. Further, over the past decade, most states have moved from a cost-of-performance approach to market-based sourcing for receipts from services and intangibles. This article explores how these new rules apply to investment funds and investment managers.

Keywords: investment management, asset manager, state tax trends, South Dakota v. Wayfair, nexus, economic nexus, apportionment of business income, cost-of-performance sourcing, market-based sourcing, Multistate Tax Commission model regulations

Affiliations:  1: Deloitte Tax LLP; 2: Deloitte Tax LLP; 3: Deloitte Tax LLP; 4: Deloitte Tax LLP.

Subscribers click here to open full text in PDF.
Non-subscribers click here to purchase this article. $35

< previous article |next article > |return to table of contents