February 2014

By Sahang-Hee Hahn and Pilar Mata

The Texas Comptroller has amended its regulation governing the sales tax treatment of cable television services. The revised regulation defines for the first time several terms related to the cable television services industry; adopts a destination-based sourcing rule for intrastate sales of streaming video; and taxes “bundled cable services.&rdquo

Thumbnail image for Minde 1.jpgMinde 2.jpgMeet Anthony, Dakota and Annabelle, the lovable orange tabbies belonging to Kathy Minde, Director of State and Local Tax at Lennox International. The Minde family is partial to orange tabbies—Kathy’s first cat was an orange tabby, and in addition to these three, Kathy also has two orange tabby “grandcats.” Anthony—known as big cat—is the alpha.

By Jessica Kerner and Charlie Kearns

The Massachusetts Department of Revenue determined that the sale of access to an online database was not subject to sales and use tax because the “object of the transaction” was nontaxable data processing services rather than taxable prewritten software. The taxpayer sells subscriptions to a website that allows purchasers

By Mary Alexander and Timothy Gustafson

In an administrative order, the Oregon Department of Revenue (1) repealed a rule related to Oregon’s Multistate Tax Compact (MTC) statute, (2) changed the method for utility and telecommunication providers to elect a double-weighted sales factor and (3) provided instructions on the time to adjust a return based on

By Kathryn Pittman and Andrew Appleby

A Colorado state district court issued a preliminary injunction preventing the Colorado Department of Revenue from enforcing Colorado’s out-of-state seller use tax reporting statutes and related regulations. These rules require out-of-state sellers that do not collect Colorado sales tax to notify their Colorado purchasers—and the Department—of the amount of

By Derek Takehara and Timothy Gustafson

The Virginia Tax Commissioner ruled that a taxpayer’s provision of electronic document and programming services in conjunction with its delivery of printed materials was not subject to sales and use tax. In addition to its sales of printed materials, the taxpayer provides electronic document services that allow customers and

By Ted Friedman and Andrew Appleby

The New York State Department of Taxation and Finance issued an Advisory Opinion regarding the availability of Qualified Emerging Technology Company (QETC) facilities, operations and training credits pertaining to purchases of patents and other property related to hollow metal golf ball production. The Department stated that QETC credits for

By Derek Takehara and Andrew Appleby

Maine Revenue Services issued a Guidance Document for C-corporations regarding state modifications to federal net operating losses (NOLs). In light of Maine’s inconsistent conformity with the federal NOL rules, the guidance contains helpful explanations and examples of Maine’s NOL methodology through the years. For federal tax purposes, losses generally

By Madison Barnett and Prenitss Willson

The Mississippi Supreme Court held that a casino operator was entitled to use tax credits—specifically, gambling license fee credits—earned by one combined group member to offset the entire combined group’s liability. Mississippi is generally a separate return state, but taxpayers may elect to file a post-apportionment, nexus-combined return. The