corporation franchise tax

The New York State Tax Appeals Tribunal held that an electricity generation company was a qualified New York manufacturer for purposes of calculating New York State franchise tax on a corporation’s capital base, even though the company did not qualify for purposes of the entire net income base.

During the period at issue, a New

The Minnesota Supreme Court held that the state’s standard apportionment method did not fairly reflect the taxpayer’s net income allocable to the state, reversing the Tax Court’s ruling. The taxpayer, a national financial institution, transferred its loan portfolios to two newly formed partnerships. For apportionment purposes, Minnesota requires financial institutions to include loan interest in

By Andrew Appleby and Dmitrii Gabrielov

The New York State Tax Appeals Tribunal released its precedential decision in Stewart’s Shops, affirming an Administrative Law Judge’s determination that payments by a corporation to its captive insurance company did not qualify as deductible insurance premiums because the arrangement did not constitute insurance for federal income tax

By Evan Hamme and Marc Simonetti

The Texas Comptroller upheld a taxpayer’s separate Franchise Tax return filing position, rejecting an Administrative Law Judge’s finding that the taxpayer and its affiliate shared a strong centralized management structure that required a unitary combined report. Although the companies were commonly owned and shared an administrator, the Comptroller found

By Charles Capouet and Andrew Appleby

A New York State Division of Tax Appeals ALJ determined that payments by a corporation to its captive insurance company did not qualify as deductible insurance premiums because the arrangement lacked risk shifting and risk distribution. The taxpayer primarily owned and operated convenience stores and gas stations, and insured

By Evan Hamme and Tim Gustafson

In a rare Chief Counsel Ruling (the first of 2015), the California Franchise Tax Board (FTB) held that the sale of an entire line of business qualified as an “occasional sale” for corporate franchise tax purposes, thus requiring the selling taxpayer to exclude the resulting gross receipts from its

Perhaps no aspect of New York’s expansive 2014 tax reform has generated as much excitement as the incentives for qualified New York manufacturers. The new law spells out the requirements for qualification and has been supplemented by some additional guidance, including legislation passed a few weeks ago.
In their article for State Tax Notes,

There has been significant controversy in New York regarding whether receipts from services—particularly those that may be delivered via the Internet—constitute “service” receipts or “other business receipts” for corporate franchise tax apportionment purposes. The distinction between “service” receipts and “other business receipts” is crucial because prior to 2015, New York Tax Law generally required sourcing