exemption

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In a significant rebuff of the California State Board of Equalization (BOE), the California Second District Court of Appeal held that a manufacturer’s sale of software on tangible media was exempt from sales tax under the technology transfer agreement (TTA) statutes. Lucent Technologies, Inc. v. State Bd. of Equalization, No. B257808, 2015 WL 5862533.

By Mike Kerman and Charlie Kearns

The Indiana Department of Revenue (Department) found that a medical research company that purchased software licenses was entitled to an exemption from use tax for purchases of taxable computer software as long as it could show the licenses were ultimately used outside of Indiana. The Department added that an…

In his State of the State address at the beginning of the year, Texas Governor Greg Abbott tasked the Legislature with enacting meaningful business tax relief. The Legislature responded by reducing the franchise (also called the margin) tax rate and creating new exemptions and incentives for sales tax. At the same time, however, the Legislature…

By Charles Capouet and Timothy Gustafson

The Supreme Court of Missouri denied a Missouri corporation’s sales tax refund claims on its sales of trade show displays shipped to out-of-state customers because it did not prove that the title to the goods transferred outside of Missouri. Missouri exempts from sales tax retail sales made in interstate…

Proposed revisions to the Uniform Unclaimed Property Act were under debate this past week in Washington, DC as the Uniform Law Commission Committee to Revise the Uniform Unclaimed Property Act continued the process of crafting a new Uniform Act. The Drafting Committee focused on seven priority issues, including (1) the definition of address; (2) gift…

The Georgia Tax Tribunal has held that an electric utility’s transmission and distribution equipment was not “necessary and integral to the manufacture of tangible personal property” and thus did not qualify for an exemption from Georgia sales and use tax. See Georgia Power Company v. MacGinnitie, Dkt. No. Tax-S&UT-1403540 (Ga. Tax Tribunal, Jan. 5…

By Kathryn Pittman and Andrew Appleby

The Virginia Tax Commissioner determined that an ink manufacturer’s purchase of cleaning chemicals did not qualify for the industrial manufacturing exemption from sales and use tax. To avoid color contamination, the taxpayer had to regularly clean the equipment used to produce the ink with special cleaning chemicals. The taxpayer…

By Derek Takehara and Andrew Appleby

The Texas Comptroller determined that a semiconductor manufacturer’s purchases of computer software-related services were subject to sales and use tax because the taxpayer failed to prove that such purchases qualified for the multistate benefit exemption. Taxable services performed for use in Texas are generally subject to tax. Because some…