Shaking things up in state and local tax
Shaking things up in state and local tax
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…
By Mary Alexander and Timothy Gustafson
The Colorado Department of Revenue determined that a mail-order seller was required to collect state and local sales tax on orders shipped to localities where it had established nexus and state use tax (and any applicable special district use tax) on all other sales shipped to customers in Colorado.
On July 28, the Multistate Tax Commission (MTC) Uniformity Committee tabled two projects in order to…
In a fact-intensive ruling, the Texas Comptroller determines that the multistate benefit exemption does not apply to the purchase of various services performed in connection with computer software. To qualify for the multistate benefit exemption (which only applies to services that became taxable after 9/1/1987), the Comptroller explains that a taxpayer must prove by…
The Idaho Tax Commission Sales Tax Rule Committee is meeting today to discuss a recently released draft of proposed changes to Idaho Rule 27 “Computer Equipment, Software, and Data Services”. The Commission is in the process of updating the regulation following recent legislation that amended the definition of tangible personal property to exclude electronically delivered…
By Nicole Boutros and Timothy Gustafson
The Michigan Supreme Court held that a taxpayer claiming a Michigan use tax exemption for sales tax “due and paid” on its purchases of tangible personal property must demonstrate that it actually paid sales tax on such property. The taxpayer provided a marine transportation service to transport asphalt and…
The Wyoming Department of Revenue has published guidance addressing the sales tax treatment of a broad range of computer sales and services, including cloud computing, web hosting, and data storage.
On July 15, the U.S. House of Representatives voted in favor of H.R. 3086, the Permanent Internet Tax Freedom Act (PITFA), by a voice vote. PITFA would permanently extend the moratorium on state and local taxation of Internet access and “multiple” or “discriminatory” taxes on electronic commerce.
View the full Legal Alert.
By Ted Friedman and Andrew Appleby
The South Dakota Supreme Court held that a corporation operating a hunting lodge did not owe use tax on its purchases of food, beverages and ammunition because the lodge purchased the goods for resale to the lodge’s customers in the regular course of business. The lodge offered hunting packages…
