Overview
Steptoe's David Fruchtman, who chairs the firm's national state and local tax practice, is quoted in a January 3 Law360 article titled "State & Local Tax Policy To Watch In 2021."
Tax professionals are anticipating a broader state sales tax base and the continued expansion of economic nexus, both for income and sales and use taxes.
Fruchtman says states can expand the sales tax base to a wider variety of services. Taxing services always draws a fight from the industry that would be taxed, Fruchtman acknowledges, but says he thinks the revenue to be gained, especially in the wake of the pandemic, will spur some states to try to expand bases to services in 2021.
"There was a time when this seemed to be the smoke from a distant fire," Fruchtman says. "That's no longer the case. It's upon us."
The full article can be read at Law360 (subscription required).