Shaking things up in state and local tax
Shaking things up in state and local tax
By Zachary Atkins and Andrew Appleby
The Indiana Department of State Revenue upheld an audit determination that an intellectual property arrangement between a parent company and its wholly owned subsidiary distorted the parent company’s income. The parent company, a separate-return filer for Indiana, adjusted gross income for tax purposes, and transferred to the subsidiary, in…
By Charles Capouet and Timothy Gustafson
The South Carolina Administrative Law Court found that South Carolina does not source sales of services with a strict cost of performance method. The taxpayer, a broadcasting corporation, provides access to digital television entertainment via satellite dishes across the United States, including South Carolina. On audit, the South Carolina…
By Charles Capouet and Andrew Appleby
The Virginia Supreme Court held that the Arlington County Commissioner must defer to the Virginia Tax Commissioner regarding the methodology for calculating a local Business, Professional, and Occupational Licenses tax (“BPOL”) deduction. Arlington County levies a BPOL tax based on the gross receipts attributed to activities conducted at an…
New York’s corporate tax reform includes sweeping changes affecting nearly every aspect of its corporation franchise tax.
In their article for State Tax Notes, Sutherland Partners Leah Robinson and Marc A. Simonetti review what New York corporate taxpayers should be doing now to be ready for the state’s corporate tax reform measures that will…
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…
New York Governor Andrew Cuomo introduced his 2015-2016 budget and accompanying legislation on January 19, 2015 (the 2015 Budget Bill). If enacted, New York’s tax law will be significantly altered for the second time in two years. The sales tax provisions of the legislation will tax most intercompany transactions and will also accelerate the payment…
By Robert P. Merten III and Open Weaver Banks
The Washington Court of Appeals held that a Honda automobile dealership was subject to state business and occupation (B&O) tax on more than $1 million in “dealer cash” payments the dealership received over a four-year span from manufacturer American Honda as part of an incentive program.
By Derek Takehara and Andrew Appleby
The New Mexico Department of Taxation and Revenue granted a combined reporting group’s corporate income tax protest by allowing the group to claim a deduction for net operating losses (NOLs) that two of its members generated and reported previously on a separate entity basis. The taxpayer was the parent…
Undoubtedly, New Jersey Governor Chris Christie, the State Legislature, the Tax Court and the Division of Taxation have their own lists of resolutions for 2015.
However, in their article for State Tax Notes, Sutherland attorneys Leah Robinson and Open Weaver Banks suggest numerous New Year’s resolutions for New Jersey, including publishing an audit manual and…
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,…
