Shaking things up in state and local tax
Shaking things up in state and local tax
By Jessica Kerner and Madison Barnett
Colorado determined in two private letter rulings that a number of electronic messaging services are not subject to Colorado sales or use tax as a telephone or telegraph service or any other taxable service. The Company, which is not a regulated provider of telecommunications services, provides various messaging services…
By Charles Capouet and Open Weaver Banks
The Kansas Department of Revenue addressed the taxability of sales of video game access codes, subscription cards, point cards, and notional dollar value cards. Initial sales of access codes that allow customers to download video games or video game add-ons directly to the customer’s computer or other device…
By Stephen Burroughs and Open Weaver Banks
The South Carolina Department of Revenue requested public comment on a draft Revenue Ruling and a draft Revenue Procedure that detail how it will prospectively apply alternative apportionment to multistate taxpayers. This represents the Department’s second attempt at drafting alternative apportionment guidance (previous coverage). The Ruling describes…
By Evan Hamme and Timothy Gustafson
The Maryland Tax Court held that the Comptroller can subject an out-of-state subsidiary holding company to tax because the subsidiary did not have real economic substance separate from its parent, which conducted business in the state. The Comptroller assessed ConAgra Brands, Inc. (Brands) for the 1996-2003 tax years, arguing…
On April 13, 2015, Governor Andrew Cuomo signed New York’s 2015-2016 budget legislation, which, among other changes, conforms the New York City general corporation tax to the most significant changes from last year’s New York State corporation franchise tax reform.
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The Multistate Tax Commission’s Arm’s-Length Adjustment Services Advisory Group met via teleconference to continue the design of a program to analyze intercompany transfer pricing. Since they last met on March 4, the Group sent invitations to 48 states to join the program. Of the responding 21 states, 4 states indicated an interest in joining the…
By Charles Capouet and Timothy Gustafson
The Mississippi Chancery Court held that the state’s dividend exclusion statute is unconstitutional because it violates the Commerce Clause of the U.S. Constitution. The statute excludes from a taxpayer’s gross income intercompany dividends received from domestic affiliates doing business and filing income tax returns in Mississippi. In so doing,…
By Stephen Burroughs and Jonathan Feldman
Following up on our coverage of Georgia tax reform, late last night the Georgia Assembly passed a committee substitute to the House’s Transportation Funding Bill, H.B. 170. The bill represents a compromise of the House and Senate proposals, establishing a 26-cents-per-gallon excise tax on gasoline and a…
New York Governor Andrew Cuomo introduced his 2015-2016 budget and accompanying legislation on January 19, 2015. After much negotiation, the Legislature just enacted the Budget Bill. As a result, New York’s tax law has been significantly altered for the second time in two years.
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By Stephen Burroughs and Jonathan Feldman
Georgia’s Transportation Funding Bill may lead to significant tax reform for the state in 2016. In response to a nearly $1 billion transportation budget shortfall, on March 5 the Georgia House of Representatives passed H.B. 170, which would convert Georgia’s sales tax on motor fuel to a 29.2…
