Shaking things up in state and local tax
Shaking things up in state and local tax
By Derek Takehara and Andrew Appleby
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. Taxable services performed for use in Texas are generally subject to tax. Because some…
By Stephen Burroughs and Andrew Appleby
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. During their careers, both players were nonresidents whose respective NFL teams traveled to the…
By Mary Alexander and Timothy Gustafson
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.
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” (ECI) for federal income tax purposes. Alaska law incorporates the Internal Revenue Code, including the ECI…
By Stephanie Do and Pilar Mata
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. The S corporation provided information technology consulting services and designed accounting software systems. One of the S corporation’s clients was located in…
By Nicole Boutros and Timothy Gustafson
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. The taxpayer provided a marine transportation service to transport asphalt and…
On July 15, the U.S. House of Representatives voted in favor of H.R. 3086, the Permanent Internet Tax Freedom Act (PITFA), by a voice vote. PITFA would permanently extend the moratorium on state and local taxation of Internet access and “multiple” or “discriminatory” taxes on electronic commerce.
View the full Legal Alert.
The Vermont Department of Taxes has released draft regulatory language regarding the collection of sales tax on remotely accessed prewritten software. In an effort to clarify further, the Department of Taxes will publish regulations to provide further guidance regarding the application of the tax. The deadline for comments on the draft rules is October 1.…
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