Click here to read our July 2014 posts or read each article by clicking on the title. A printable PDF is also available here. To read our commentary on the latest state and local tax developments as they are published, be sure to download the Sutherland SALT Shaker mobile app.
- Dazed and Confused: Alaska Supreme Court Determines Foreign-Source Dividends are Includable in the Apportionable Tax Base
The Alaska Supreme Court held that a foreign member of a water’s edge unitary group must include its foreign dividend income in the Alaska apportionable tax base, regardless of whether the income is “effectively connected income” for federal income tax purposes.
- Colorado Collection Confusion: Department of Revenue Addresses Application of Sales and Use Taxes to Mail Order Sales
The Colorado Department of Revenue determined that a mail-order seller was required to collect state and local sales tax on orders shipped to localities where it had established nexus and state use tax (and any applicable special district use tax) on all other sales shipped to customers in Colorado.
- No Foul: Out-of-State IT Consulting Business’s Activities are Out of (Colorado) Bounds
The Colorado Department of Revenue determined that an out-of-state S corporation was not subject to Colorado income taxes and was not required to register with the Department.
- SALT Pet of the Month: Lily
Meet Lily, the adorable six-month-old Beagle/Basset Hound mix belonging to Sutherland SALT’s Jonathan Maddison and his fiancée, Molly.
- Conjunction Junction: Michigan Supreme Court Holds “And” Means “And” for Use Tax Exemption
The Michigan Supreme Court held that a taxpayer claiming a Michigan use tax exemption for sales tax “due and paid” on its purchases of tangible personal property must demonstrate that it actually paid sales tax on such property.
- Browns Should Look to Cleveland Tax Administrator for Inspiration
Former Chicago Bears linebacker Hunter Hillenmeyer and former Indianapolis Colts center Jeff Saturday challenged the City of Cleveland’s application of the “games-played” apportionment method to their football salaries before the Ohio Board of Tax Appeals.
- Not Everything is Bigger in Texas: Application of Texas Multistate Benefit Exemption Proves Narrow when Applied to Computer Software Services
The Texas Comptroller determined that a semiconductor manufacturer’s purchases of computer software-related services were subject to sales and use tax because the taxpayer failed to prove that such purchases qualified for the multistate benefit exemption.