Shaking things up in state and local tax
Shaking things up in state and local tax
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On August 24, 2021 (released November 2021), the Virginia Department of Taxation (the Department) concluded that a provider of professional and information technology services was entitled to payroll apportionment of gross receipts for a local Business, Professional and Occupational License Tax (BPOL Tax) refund claim. Virginia localities may impose a BPOL Tax on the gross…
The New Mexico Taxation and Revenue Department recently updated FYI-206, describing the gross receipts tax collection responsibilities for online marketplace providers and marketplace without physical presence in New Mexico. Marketplace providers and marketplace sellers with at least $100,000 of taxable gross receipts in New Mexico in the previous calendar year have a tax collection…
Effective July 1, 2021, Kentucky has enacted sales tax and utility gross receipts exemptions for certain transactions involving the commercial mining of cryptocurrency. The Kentucky DOR explained the two recently enacted bills here. HB 230 exempts the sale or purchase of electricity used or consumed in the commercial mining of cryptocurrency from sales tax and…
On Aug. 11, the California Assembly Appropriations Committee held a hearing on S.B. 972, a controversial bill that authorizes the disclosure of otherwise confidential taxpayer information.
S.B. 972 requires the Franchise Tax Board (FTB) to compile an annual list of all taxpayers, including combined reporting groups, subject to California’s Corporation Tax Law with gross…
The court held that the taxpayer, a freight broker, could deduct freight and delivery charges, which it received from its customers and remitted to third-party delivery providers, from gross receipts before calculating a city’s business privilege tax. A local regulation provides an exemption for freight delivery or transportation charges “paid by the seller for the…
The Arizona Department of Revenue ruled that custom video production, marketing and graphic design services are not subject to Transaction Privilege Tax (TPT). The retail classification of the TPT is imposed on the gross receipts from the business of selling tangible personal property at retail, and there is an exemption for gross receipts of “[p]rofessional…
The Minnesota Supreme Court held that the state’s gross receipts tax on prescription drugs did not violate the Due Process or Commerce Clauses when applied to transactions between out-of-state pharmacies and in-state customers, reversing the Minnesota Tax Court. After concluding that Minnesota’s “legend drug tax” legally applied to the taxpayer under the imposition statute (Minn.…
This is the eleventh edition of the Eversheds Sutherland SALT Scoreboard, and the third edition of 2018. Each quarter, we tally the results of what we deem to be significant taxpayer wins and losses and analyze those results. This edition of the SALT Scoreboard includes a discussion of California combined reporting, insights regarding the Washington…
The New Mexico Court of Appeals upheld the imposition of gross receipts tax on certain trademark-related royalty fees received by an out-of-state corporation pursuant to its franchise agreements with New Mexico businesses. The court examined whether, following statutory amendments in 2007, the royalty fees flowing from a limited trademark license provision contained within the franchise…
