Click here to read our September 2013 posts on stateandlocaltax.com or read each article by clicking on the title. A printable PDF is also available here.
By Jessica Kerner and Andrew Appleby
The Virginia Tax Commissioner concluded that a taxpayer was not permitted to deduct a portion of the royalties it had paid to an affiliate by narrowly construing the “subject to tax” exception to the state’s addback statute. This exception provides that the deduction will be permitted if the “corresponding
By Zachary Atkins and Douglas Mo
The California Supreme Court held that the State Board of Equalization (SBOE) violated the state’s Administrative Procedures Act (APA) when it promulgated Cal. Code Regs., tit. 18, § 474 (Rule 474). Rule 474, a specialized property tax rule relating to the assessment of petroleum refineries, creates a rebuttable presumption
By Kathryn Pittman and Andrew Appleby
A Washington Superior Court held that using leased specialized railroad cars to transport products in Washington did not rise to the level of “substantial nexus.” The taxpayer, a California company, sold food products into the state by transferring its products into specially leased railroad cars that traveled to Washington.
Meet Skip, the five-month-old Welsh Terrier of Sutherland State and Local Tax Associate Zack Atkins and his fiancé, Emily. Skip hails from a small country town in western Tennessee, but he is quickly becoming an Atlantan. Don’t let his small size fool you; Skip thinks he is the king of the Piedmont Dog Park. He
By Mary Alexander and Andrew Appleby
The Indiana Department of Revenue disallowed a taxpayer’s deduction for interest expenses accrued to a subsidiary because the Department considered the loan a sham. Unless eligible for an exemption under Ind. Code § 6-3-2-20(c), a taxpayer that is subject to Indiana’s adjusted gross income tax is required to add
By Madison Barnett and Timothy Gustafson
In a case involving the exclusion of captive insurance companies from combined reporting groups, the Indiana Tax Court held that a captive must be physically present in Indiana to be “subject to” the insurance premiums tax and therefore exempt from the corporate income tax. The Tax Court initially
By Saabir Kapoor and Andrew Appleby
The Illinois Department of Revenue determined that the redemption of rewards points by a hotel patron was generally not subject to the state’s Hotel Operators’ Occupation Tax (HOOT) because the rewards program was operated by the hotel, and the HOOT was remitted upon a patron’s initial stays at the
The Sutherland SALT team invites you to join us November 7-9 in San Jose for the California Tax Policy Conference (CTPC), California’s premier state tax event. We are pleased to be a Diamond Sponsor of the conference, which provides a unique venue for state tax professionals to pursue continuing education while enjoying significant opportunities to network with government
By David Pope and Timothy Gustafson
The Virginia Tax Commissioner determined that an out-of-state manufacturer was subject to use tax on “local marketing group” fees charged to its customers because the true object of the transaction was the sale of tangible personal property. The taxpayer manufactured heating, ventilating and air conditioning (HVAC) systems for sale
