Georgia’s income tax conformity bill, HB 265, unanimously passed the state House on February 9, 2021, and is now pending the Senate’s review. Georgia’s conformity to the federal Internal Revenue Code (IRC) is updated annually to adopt the most recent federal tax law changes. As such, HB 265 seeks to conform Georgia’s tax code
The Comity Club: Federal Judge Remands Indiana Franchise Fee Case Back to State Court
Citing to principles of comity, a federal district court remanded back to state court a class action suit brought by Indiana municipalities seeking franchise fees from various streaming video companies.
The Indiana municipalities filed a class action lawsuit against the streaming video companies in state court, asserting that the companies were obligated to pay franchise
Colorado Backs Up Backup: DOR Concludes Backup Service Non-Taxable Sale of Computer Software
The Colorado Department of Revenue has determined that an information technology provider’s sale of its backup service, which allowed its customers to back up business applications, files, and systems, and also included the delivery of computer servers to customers’ locations, constituted a nontaxable service. Although the Department “considered whether the placement of [the] servers constitut[ed]
Business (Income) As Usual: Minnesota Supreme Court Rules Gain From Sale of LLC is Apportionable Business Income
The Minnesota Supreme Court held that the gain from a corporation’s sale of its majority interest in a limited liability company (LLC) was apportionable business income subject to Minnesota corporate income tax. The Court explained that the corporation conducted its business through operating subsidiaries that were owned by the LLC, and that the corporation and
No Double Dipping: Nebraska Supreme Court Upholds Sales Tax On Telecom. Construction Company’s Purchases of Materials and Sales of Construction Services Using Materials
The Nebraska Supreme Court held that a telecommunications construction company was liable for sales taxes on both its purchases of construction materials to build telecommunications infrastructure and for its subsequent sales of services installing and constructing the same telecommunications property.
Nebraska law requires a construction contractor to make an election as to whether it will
Principally Engaged: New York Looks to 50% of Gross Receipts for Determining Filing Status
The New York Department of Taxation and Finance recently published an advisory opinion stating that a taxpayer’s New York corporate income tax filing status should be determined by “what activity [a taxpayer] is principally engaged in” and by whether 50% of its aggregate gross receipts in a taxable reporting period are from such activities. The
Look to Florida: Florida Department of Revenue Provides Guidance for Sourcing Income from Software User Fees
The Florida Department of Revenue determined that a platform software company should source its income from user fees and from its sale of services on a market basis, based on the location of the customer to which the services are provided. The platform software company provided a platform for developers to create and sell software
Podcast: Interstate compacts on tax incentives
This podcast discusses recent state proposals related to the Interstate Compact Agreement to Phase Out Corporate Incentives, which attempt to create an agreement among state governments to curtail company-specific tax incentives and grants as a method to lure companies into relocating existing facilities by member states.
It discusses:
- current states considering adoption of the Interstate
New to the Market: Georgia Enacts Marketplace Facilitator Bill
On January 30, 2020, Governor Kemp signed Georgia’s marketplace facilitator bill, H.B. 276, into law. Effective April 1, 2020, the law will require marketplace facilitators to collect and remit sales and use tax on behalf of marketplace sellers. It will apply to marketplace facilitators with sales in excess of $100,000 in the state.
A
Profits or Salary? New Jersey Tax Court Determines Distributions Are Dividends, Not Compensation for Services
The New Jersey Tax Court held that distributions made to a corporation’s two shareholders constituted dividends, and rejected the corporation’s argument that the distributions should be treated as compensation for managerial services that could be deducted for New Jersey Corporation Business Tax purposes. The Court explained that New Jersey has adopted the federal test to