Multistate Tax Roundup June 2026: CA, NY, Nexus & BATSA
State and local tax never sits still — and for any business with multistate footprint, a few weeks of court decisions, enacted budgets, and nexus changes can reshape filing positions. This multistate tax roundup distills the early-to-mid June 2026 developments from primary sources: the U.S. Supreme Court, state legislatures and tax agencies, and pending federal legislation.
At SW Accounting & Consulting Corp, we track multistate developments for Los Angeles area companies. Below: the California apportionment fight, the New York budget, the federal nexus bill, and notable state-by-state items.
California: Supreme Court declines Florida’s apportionment challenge 🌴
On June 1, 2026, the U.S. Supreme Court denied Florida’s motion for leave to file a bill of complaint seeking to declare California’s single-sales-factor apportionment provision (CCR §25137(c)(1)(A)) unconstitutional (Docket No. 22O163). Florida had argued the rule — which excludes certain receipts from a substantial and occasional sale from California’s single sales factor — “operates as a tariff” on goods made in other states. Two justices dissented from the denial. Practical effect: California’s apportionment approach stands, and the dispute over single-sales-factor mechanics remains live policy, not settled constitutional law.
New York & New York City 🗽
- New York enacted budget — extends the top corporate tax rate, decouples from some One Big Beautiful Bill Act (OBBBA) provisions, and creates a “pied-à-terre” surcharge. Multistate corporations should re-check New York conformity before relying on federal OBBBA benefits at the state level.
- New York City — a new law extends expiring General Corporation Tax rates for another three years.
Federal: a nexus bill to watch (BATSA) 🏛
A reintroduced U.S. House bill — the Business Activity Tax Simplification Act of 2025 (BATSA) — would, if enacted, establish a federal “physical presence” nexus standard for state income and business taxes and modernize P.L. 86-272 (the federal law that shields certain solicitation-only activity from state income tax). The bill would generally bar a state from imposing income or other business taxes on an out-of-state entity lacking physical presence, with carve-outs for limited or transient activity. It’s introduced, not enacted — but it would significantly reshape state nexus if it advances.
While BATSA would expand P.L. 86-272 protections federally, states keep narrowing them administratively. New Jersey, for example, updated its Corporation Business Tax nexus bulletin to clarify how P.L. 86-272 applies to certain digital activities (including NFT transfers). If your only state contact is internet-based, don’t assume P.L. 86-272 still protects you — the state guidance is moving.
State-by-state quick hits 🗺
| State | Development |
|---|---|
| Texas | Adopted franchise-tax cost-of-goods-sold (COGS) rule changes reflecting new IRC conformity policy and a net depreciation adjustment |
| Minnesota | H.F. 2438 enacted (May 27, 2026) — multiple tax-code changes with varying effective dates |
| Colorado | H.B. 1289 signed (June 3, 2026) — several tax measures, including corporate reporting changes effective for years beginning on/after Jan 1, 2027 |
| Arizona | Tax Court: data center colocation and server rentals are prospectively subject to transaction privilege tax (TPT) |
| Illinois | Federal court permanent injunction on the interchange-fee ban; proposed rules reflect the repealed 200-transaction nexus threshold |
| Arkansas / Iowa | State high courts: reusable shipping pallets don’t qualify for resale exemption (AR); propane tanks are nontaxable equipment, not real-property improvements (IA) |
| Indiana | Guidance implements S.B. 243 decoupling from certain federal income provisions (e.g., §168(n) qualified production property depreciation under OBBBA) |
The throughline: conformity & nexus 🧭
Two themes tie these together. First, state conformity to OBBBA is selective — New York, Indiana, and others are decoupling from specific federal provisions, so a federal tax benefit doesn’t automatically flow to your state return (see our prior coverage on state decoupling from the federal QSBS exclusion). Second, nexus is in flux — BATSA could expand federal protections while states narrow P.L. 86-272 administratively. Multistate filers should re-verify both before taking positions for 2026.
How can SW Accounting help? 💼
At SW Accounting & Consulting Corp, we help LA-area businesses manage multistate exposure — nexus studies, apportionment and P.L. 86-272 analysis, state conformity checks against OBBBA, and registration/compliance across jurisdictions. If you sell or operate across state lines, we’ll keep your filing positions current as the rules shift.
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Disclaimer: This article is for informational purposes only and is not legal or tax advice. Always consult a qualified professional regarding your specific facts. Primary sources: U.S. Supreme Court (Docket No. 22O163, motion denied June 1, 2026); New York and New York City enacted legislation; Texas Comptroller adopted franchise-tax COGS rule; Minnesota H.F. 2438; Colorado H.B. 1289; New Jersey Corporation Business Tax nexus bulletin; Arizona Tax Court; Illinois federal court order and proposed rules; Arkansas and Iowa Supreme Courts; Indiana S.B. 243; Business Activity Tax Simplification Act of 2025 (BATSA); P.L. 86-272.
