Shaking things up in state and local tax
Shaking things up in state and local tax
By Saabir Kapoor and Timothy Gustafson
Texas has clarified the Comptroller’s authority to disregard certain retail business locations in determining the situs of a sale for local sales tax purposes. Current law requires retailers to collect and remit local sales tax based on the ship-from location on all delivery sales of taxable items that are…
By Sahang-Hee Hahn and Andrew Appleby
Effective September 1, 2013, Texas will refund state sales and use taxes paid by providers of cable television, Internet access or telecommunications services on tangible personal property used in their businesses. On June 14, 2013, Governor Rick Perry signed H.B. 1133 into law, authorizing such refunds. Under the new…
By Stephen Burroughs and Timothy Gustafson
The Texas Comptroller determined that receipts received for the delivery of satellite programming to Texas subscribers should be sourced to the site of the subscriber’s set-top box for apportionment purposes. The taxpayer provides direct broadcast satellite television programming to subscribers in Texas and across the United States. For the…
By David Pope and Pilar Mata
The Texas Comptroller of Public Accounts determined that a taxpayer was not permitted to elect the Multistate Tax Compact’s (Compact) three-factor apportionment formula. This treatment is consistent with prior Texas Comptroller decisions holding that Texas law requires a single-factor apportionment methodology (see Sutherland SALT’s previous articles on this topic…
By Jessica Kerner and Timothy Gustafson
The Texas Comptroller determined that a taxpayer’s email advertisement services were telecommunications services subject to the state’s sales tax. The taxpayer, a producer of real estate television shows for homebuilders, maintained a website through which it offered Internet-based services. The two services at issue were the taxpayer’s “Hot Sheet&rdquo…
By Zachary Atkins and Prentiss Willson
A Texas administrative law judge ruled that a taxpayer was not entitled to make an alternative three-factor apportionment election under Article IV of the Multistate Tax Compact (Compact) for Texas franchise tax purposes. The Texas Tax Code requires taxpayers to use a single gross receipts factor to apportion taxable…
We are pleased to provide the following updates on state tax issues impacting the digital economy. The Sutherland SALT Team will continue to monitor these and other Digital Economy developments. Please visit the Sutherland SALT Digital Economy Forum to learn more, and please contact one of us if you have questions regarding the Forum.
Texas…
By Christopher Chang and Timothy Gustafson
A prepaid telephone card and long-distance service provider’s attempt to source phone card sales receipts outside of Texas was rebuffed by the Texas Comptroller because the taxpayer failed to carry its burden of proof. After initially sourcing 100% of its gross receipts to Texas and unsuccessfully claiming a cost-of-goods-sold…
In two decisions by the Texas Office of Administrative Hearings, the Comptroller affirmed its position that the evenly weighted three-factor apportionment formula contained in an election provided by the Multistate Tax Compact (MTC Election) does not apply to the Texas Margins Tax. See Tex. Compt. Dec. No. 106,503 (Aug. 10, 2012); Tex. Compt. Dec. No.
In two reletter rulings, the Texas Comptroller’s office evaluated the sales and use taxability of certain unique web-based services. In Tex. Policy Letter Ruling 201207531L (July 31, 2012), the Comptroller’s office ruled that Internet marketplace listing fees were not subject to Texas sales and use tax; however, the provision of webstore development services were taxable data processing services.Continue Reading The Lone Star State Swings the Lasso Around E-Commerce Services
