Shaking things up in state and local tax
Shaking things up in state and local tax
New York’s corporate tax reform includes sweeping changes affecting nearly every aspect of its corporation franchise tax.
In their article for State Tax Notes, Sutherland Partners Leah Robinson and Marc A. Simonetti review what New York corporate taxpayers should be doing now to be ready for the state’s corporate tax reform measures that will…
By: Stephen Burroughs & Timothy Gustafson
The Georgia Tax Tribunal held that for sales and use tax purposes contractors are per se consumers of tangible personal property and thus are ineligible for: (1) the sale for resale exclusion, and (2) a regulatory exclusion for property temporarily stored in Georgia while in interstate commerce. The taxpayer…
New York Governor Andrew Cuomo introduced his 2015-2016 budget and accompanying legislation on January 19, 2015 (the 2015 Budget Bill). If enacted, New York’s tax law will be significantly altered for the second time in two years. The sales tax provisions of the legislation will tax most intercompany transactions and will also accelerate the payment…
By Robert P. Merten III and Prentiss Willson
Massachusetts has published its final revised market-sourcing regulation (830 CMR 63.38.1), effective for tax years beginning on or after January 1, 2014. The final revisions to these rules, among other things, conform the regulation with recent state law amendments requiring taxpayers to use market-based sourcing…
By Derek Takehara and Andrew Appleby
The New Mexico Department of Taxation and Revenue granted a combined reporting group’s corporate income tax protest by allowing the group to claim a deduction for net operating losses (NOLs) that two of its members generated and reported previously on a separate entity basis. The taxpayer was the parent…
By Zack Atkins
Reversing a district court decision, the Iowa Supreme Court held that a cable company selling Voice over Internet Protocol (VoIP) service can be assessed centrally as a telephone company for property tax purposes. Historically cable property has been assessed at the local level in Iowa. The property of telephone companies—owners or…
The Washington Department of Revenue finds that video games are not the same kind of property as a video game controller or the video game console for purposes of qualifying for “like kind” property under RCW 82.08.010. Det. No.13-0263, 33 WTD 562 (December 30, 2014).
By Jessica Kerner and Open Weaver Banks
The South Carolina Department of Revenue determined that charges for a web-based application used to process insurance claims are the sale of a non-taxable data processing service rather than a communications service. The company providing the service collects claims information for a customer from the customer’s insurance carrier(s)…
By Evan Hamme and Madison Barnett
Applying the “true object” test to software-related services, the Tennessee Department of Revenue determined in a letter ruling that optional services offered in connection with the sale of software would not be subject to sales tax, at least in some circumstances. The taxpayer in this case sells – and…
By Mary Alexander and Timothy Gustafson
The Indiana Department of Revenue applied the State’s throwback rule to an Indiana company’s sales to California customers based on a determination that the taxpayer was not subject to tax in California due to P.L. 86-272. Under Indiana law, a sale is attributed to Indiana for sales factor apportionment…
