Shaking things up in state and local tax
Shaking things up in state and local tax
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…
By Evan Hamme and Madison Barnett
The Tennessee Department of Revenue determined that computer-related services provided on an hourly basis by an IT staffing agency are subject to sales tax in certain instances. Under Tennessee law, the sale of computer software is subject to sales tax, including when the software is created on a customer’s…
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…
By Jessie Eisenmenger and Timothy Gustafson
In a Technical Assistance Advisement, the Florida Department of Revenue determined the proper sourcing methodology for income from twelve different types of sales by an online service provider (OSP) for Florida sales factor purposes. The OSP collects data that it distributes to its customers by a variety of methods,…
By Stephanie Do and Open Weaver Banks
The Indiana Department of Revenue determined that an out-of-state taxpayer improperly sourced tuition received from its Indiana students taking online learning courses on a cost of performance basis. The taxpayer provided educational services through local campus courses and online learning programs. In computing its Indiana sales factor, the…
The South Carolina Supreme Court issued its decision in CarMax Auto Superstores West Coast, Inc. v. S.C. Dep’t of Revenue, Opinion No. 27474 (S.C. Dec. 23, 2014), holding that the South Carolina Department of Revenue bore the burden of proof to invoke the use of an alternative apportionment method and failed to meet its…
By Open Weaver Banks and Pilar Mata
The Indiana Department of Revenue ruled that a limited liability corporation (LLC) that elected to be taxed as a corporation was entitled to use net operating loss (NOL) deductions generated by its former members. The NOLs in question were generated in tax years 2003, 2005, and 2007 by…
