The Council on State Taxation (COST) continues to serve as a key advocate for fair and efficient state and local tax policies across the United States. The February 2025 report, prepared by Senior Tax Counsel Fred Nicely, highlights COST’s latest initiatives, advocacy efforts, and upcoming events aimed at addressing critical issues in state and local taxation (SALT). This report was presented to the American Bar Association’s (ABA) State and Local Tax Committee.

COST’s Upcoming Conferences and Workshops

COST has merged its Sales Tax and Income Tax Conferences into a single event, scheduled to take place in New Orleans from April 28 to May 1, 2025. This event provides an opportunity for tax professionals to gain insights into emerging SALT issues and network with industry experts.

Additionally, the COST Basic and Advanced SALT Schools will be held in Dallas, TX, from May 18-23, 2025. These training sessions cater to both newcomers to SALT and experienced professionals seeking advanced updates.

COST is also planning a series of specialized workshops throughout 2025 and early 2026:

• Tech Industry Tax Workshop – August 2025

• Property Tax Workshop – August 2025

• Canadian Tax Issues Workshop – October 2025

• SALT Issues for European Audiences – March 2026

In addition to these major conferences, COST will conduct approximately 15 regional meetings nationwide this year to address key SALT topics and foster dialogue among tax professionals.

Key Legislative Initiatives and Policy Recommendations

COST continues to track and advocate for several key state tax policies aimed at improving taxpayer compliance, simplifying administration, and ensuring fair treatment of multistate businesses. Key initiatives include:

• Extending Corporate Tax Deadlines: Advocating for states to provide at least one month after the federal extended deadline for corporate taxpayers to file state income tax returns.

• Safe Harbor for Traveling Employees: Supporting a 30-day safe harbor rule for personal income tax filing obligations of traveling employees and corresponding employer withholding requirements.

• Federal Tax Adjustment Reporting: Encouraging states to adopt the Multistate Tax Commission’s (MTC) model legislation for reporting federal tax adjustments efficiently.

• Appeal Deadlines for Assessments and Refund Denials: Promoting a standard 90-day period for taxpayers to file an initial appeal following an assessment or refund denial.

• Enhancing E-Filing and Payment Systems: Urging states to streamline their electronic tax filing and payment processes and improve the mechanisms for resolving tax disputes.

• Participation in the Streamlined Sales and Use Tax Agreement: Recommending greater state participation in this initiative to simplify sales tax collection and compliance.

State Tax Scorecards and Evaluations

COST evaluates state tax administration using four key scorecards:

1. State Tax Administration Scorecard (Updated December 2023) – Recently increased the standard for time to appeal an initial tax dispute from 60 days to 90 days.

2. Sales Tax Systems Scorecard (Updated December 2022) – Highlights disparities in taxation of digital products and states lacking business-to-business exemptions.

3. Property Tax Administration Scorecard – Scheduled for update in 2025.

4. Unclaimed Property Scorecard – Provides an objective assessment of state unclaimed property laws.

These evaluations serve as benchmarks for state tax administrators and policymakers to improve their tax systems.

COST’s Recent Advocacy and Legislative Efforts

Since the last ABA SALT Executive Committee meeting, COST has been actively involved in advocacy efforts, providing comments, testimony, and policy recommendations across multiple states. Recent notable activities include:

Legislative Comments & Testimony

COST’s Amicus Brief Filings

COST frequently files amicus briefs in cases of national interest at the highest state court levels or pending at the U.S. Supreme Court. Notable recent filings include:

• Amazon Services LLC v. South Carolina Department of Revenue (South Carolina Supreme Court, November 2024)

• IBM v. New York State Tax Appeals Tribunal (U.S. Supreme Court, October 2024)

• Walt Disney Co. v. New York State Tax Appeals Tribunal (U.S. Supreme Court, October 2024)

Recent COST Studies and Reports

COST regularly publishes studies analyzing business tax burdens, state tax amnesty programs, and other SALT-related topics. Recent reports include:

• FY23 State and Local Business Tax Burden Study (December 2024)

• 2024 State and Local Amnesty Programs Study (November 2024)

Conclusion

COST continues to play a vital role in shaping state and local tax policies through advocacy, research, and education. With ongoing legislative efforts, scorecard evaluations, and active participation in key court cases, COST remains a leading voice in promoting fair and nondiscriminatory taxation of multistate businesses. Tax professionals and policymakers should stay informed on COST’s initiatives and take advantage of its resources to navigate the ever-evolving SALT landscape.