Shaking things up in state and local tax
Shaking things up in state and local tax
By Alla Raykin and Tim Gustafson
The Colorado Department of Revenue determined that energy purchased by a television broadcaster is exempt from sales tax when used to transmit broadcasts, but taxable when used for other office purposes. Colorado imposes sales tax on electricity and natural gas for commercial consumption. The Department analyzed possible exemptions applicable…
By Mike Kerman and Jonathan Feldman
The Florida Department of Revenue advised that certain materials and labor a taxpayer plans to use to construct a combined heating and power plant will be exempt from Florida sales and use tax. The plant will produce electricity for sale. Florida exempts purchases of machinery and equipment necessary to …
By Jessica Eisenmenger and Jeffrey Friedman
The New York State Tax Appeals Tribunal sustained a determination by a Department of Taxation and Finance Administrative Law Judge that receipts obtained from the sale of retail pricing information services are subject to sales tax. Under New York law, information services are taxable, but services that are personal…
By Charles Capouet and Eric Coffill
In Private Letter Ruling ST 15-0016-PLR, the Illinois Department of Revenue explained the application of the temporary storage exemption to the imposition of use tax on the in-state storage of equipment. Illinois’ temporary storage exemption applies where the property is acquired outside Illinois and, after a temporary stay in…
By Evan Hamme and Charlie Kearns
Purchases of “data center equipment for assembly, use, or consumption in the operations of a qualified data center” on or after January 1, 2016, are exempt from Michigan sales and use tax. M.C.L. §§ 205.54ee, 205.94cc; see generally Notice Regarding Data Center Exemption, Feb. 5, 2016…
By Hanish Patel and Jonathan Feldman
The Georgia Department of Revenue held a public hearing on a proposed regulation amendment that would materially affect the use of direct pay permits in Georgia. The proposed regulation would cause all current permits to expire on December 31, 2016, and require all current holders to reapply and agree…
Applying the “true object” test to the taxpayer’s web-based services, the Tennessee Department of Revenue ruled that charges for granting access to the taxpayer’s website for purposes of obtaining information would not be subject to sales tax. While the access to web-based services is tax-exempt as a sale of…
By Hanish Patel and Open Weaver Banks
A New York Division of Tax Appeals Administrative Law Judge (ALJ) held that an electricity producer’s purchases, installations and repairs of “step-up transformers” were not subject to sales and use tax because the transformers were “used directly” in the production of electricity. Step-up transformers are used to “step…
By Samantha Trencs and Madison Barnett
The Rhode Island Supreme Court held that a wind turbine owned by a non-utility private party was exempt from personal property tax under a manufacturing exemption because the turbine converted wind into electricity. The court rejected the taxing authority’s argument that the turbine was ineligible for the exemption because…
By Mike Kerman and Maria Todorova
The Illinois Appellate Court held that a property tax exemption for nonprofit hospitals which provided certain services or subsidies equal in value to their estimated property tax liabilities was facially unconstitutional because it did not require exclusive charitable use of the property, as prescribed under the Illinois Constitution. Carle …
