Colorado: Domestic Holding Company Could not be Forcibly Combined with AffiliatesColorado appeals court held that a domestic holding company with no property and payroll could not be included in a Colorado combined report with its affiliates.
Colorado: Employee Conducting Non-Sales Related Activities Created NexusColorado Department of Revenue issued private letter ruling addressing whether an employee’s presence in the state created nexus for an online retailer.
Indiana: Online University’s Revenue from In-state Students Not Attributed to IndianaIndiana tax court rejected the Department of Revenue’s position that an out-of-state service provider’s receipts from Indiana customers should be sourced to the state.
New Jersey: Foreign Taxpayer not required to Pay New Jersey Corporation Business Tax on Worldwide IncomeNew Jersey Tax Court addressed whether a company headquartered and incorporated in India, with a branch location in the U.S., was required to add back worldwide income in computing its NJ Corporation Business Tax (CBT) liability.
New York: Competitive Pricing Reports Not Considered Taxable Information ServicesThe New York Supreme Court, Appellate Division recently held that a taxpayer’s purchase of competitive pricing reports was not a taxable information service.
Pennsylvania: The Statute Of Limitations for a Refund Claim begins on the Return Due DateRecently, the Pennsylvania Supreme Court overturned a Commonwealth Court decision addressing when the three-year statute of limitations commences for filing an income tax refund claim.
Tennessee: Department Issues Summaries of Informal Conference DecisionsRecently, the Tennessee Department of Revenue issued its annual report summarizing several tax topics addressed during informal conferences held in fiscal year 2017.
Utah: Company with no Property or Payroll was not a Foreign Operating Corporation; Receipts from Sell Side of Buy/Sell Agreements Included in the Sales FactorRecently, a Utah Administrative Law Judge addressed two issues arising from an audit of a corporate taxpayer.
Connecticut: Legislation Extends FAS-109 Deduction to 30 Years; Would Push Out the Deduction to 2021Recently enacted legislation extends the FAS-109 Deduction to 30 Years, which if signed, would make 2021 the first tax year that this deduction would be allowed to be claimed.
Pennsylvania: Department Issues Prospective Nextel GuidanceIn the recent Nextel case, the Pennsylvania Supreme Court held that the $3 million net loss deduction limitation in effect for the 2007 tax year at issue violated the Uniformity Clause of the Pennsylvania Constitution.
Tennessee: Cloud-Based Scheduling Product Subject to Sales and Use TaxThe Tennessee Department of Revenue recently ruled that an annual subscription fee for access to a cloud-based scheduling interface was subject to sales tax.
Vermont: Draft Technical Bulletin Clarifies Physical Presence Not Required to Create Corporate Income Tax NexusThe Vermont Department of Taxes has released a draft Technical Bulletin summarizing when taxpayers are considered to have established Vermont corporate income tax nexus.
Pennsylvania: Prospective Enforcement Date added to Ruling that Information Retrieval Products are subject to Sales and Use TaxThe ruling is dated May 17, 2017 and was posted on the Department’s website on August 3, 2017—the new enforcement date.
Colorado: Appeals Court Affirms Decision Excluding a Holding Company from the Combined ReturnRecently, an appeals court affirmed a decision holding that a domestic holding company was not included in a taxpayer’s Colorado combined report for the years at issue.
Mississippi: New Rule Adopts Economic Nexus Standard for Remote SellersThe Mississippi Department of Revenue recently finalized a new regulation that adopts an economic nexus standard for sales and use tax purposes.
Arkansas: Dog Days for Arkansas Dog BreederThe taxpayer, a dog breeder, was contacted by the Department over a decade ago after the state sales and use tax was expanded to include pet grooming and kennel services.
Massachusetts: No Net Worth Subtraction for Subsidiaries Owned Through Pass-Through Entities In Letter Ruling 17-3, Massachusetts Department of Revenue concluded that a parent corporation could not subtract its investments in subsidiaries owned through an LLC taxed as a partnership, from the book value of its total assets.
Indiana: Taxpayer Allowed Use Tax Credit for Local Taxes PaidRecently, the Indiana Tax Court allowed Indiana-based insurance company refund of use tax on purchases of software used in its Indiana operations.
New York: Court Upholds Tribunal Decision Holding that HMOs were included in New York City Combined GroupNew York Supreme Court, Appellate Division, confirmed decision of the New York City Tax Appeals Tribunal holding that Health Maintenance Organizations (HMOs) were subject to New York City general corporate tax for the tax years at issue.
New Jersey: Appellate Court Affirms Decision Allowing Adjustments to Federal BasisRecently, the New Jersey Supreme Court, Appellate Division addressed certain issues that arise when a taxpayer’s basis in assets differs for federal and state purposes.
Ohio: Guidance Issued on Remote Seller Nexus LawThe Ohio Department of Taxation recently issued a new information release, and revised another, to account for recently-enacted remote seller nexus legislation.
Colorado: Manufacturing Equipment Exemption Extends to Contract Manufacturing when Finished Goods Not SoldIn recently-issued General Information Letter, the Colorado Department of Revenue addressed the sales and use tax exemption for manufacturing machinery and tools.
Illinois: Metallurgical Coke Used in Manufacturing Zinc Powder Not Exempt from Use Tax The Illinois Independent Tax Tribunal recently held that Metallurgical coke used in manufacturing zinc powder is not exempt from use tax.
Maryland: Pet Detectives’ (and Others’) Activities Exceed Scope of P.L. 86-272 ProtectionThe Maryland Tax Court ruled that a seller of pet products and food was not protected from taxation under Public Law 86-272 and therefore not entitled to a refund of corporate income taxes.
New York: Taxpayer Did Not Establish that It Paid Sales Tax On Behalf of CustomersRecently, an Administrative Law Judge ruled that a taxpayer did not establish that it paid sales tax on behalf of customers and was thus denied sales tax refunds.
Multistate: Dates for MTC Voluntary Disclosure Initiative ExtendedAfter holding a recent emergency meeting, the MTC has decided to extend the deadline for entering into its limited-time voluntary disclosure initiative.
District of Columbia: OTR Issues Guidance on Taxability of Digital GoodsIn recently-issued Notice 2017-06, the District of Columbia Office of Tax and Revenue provides guidance on the taxation of certain digital goods.
New Jersey: Corporate Partner Had Nexus Due to Ownership of Limited Partnership InterestsRecently, the New Jersey Tax Court held that a foreign corporate limited partner had CBT nexus by virtue of owning limited partnership interests in two partnerships operating in New Jersey.
City of Portland: Pay Ratio Surtax Rule IssuedOn December 7, 2016, the Portland City Council approved a City of Portland Business License Tax pay ratio surtax.
California: Acquiring Taxpayer Deemed to Make a Water’s-Edge Election Due to Value of GoodwillRecently, the California FTB addressed whether a taxpayer, as a result of an acquisition, was deemed to have made a water’s-edge election.
Colorado: Charge for Digital Information Subject to Sales and Use TaxThe Colorado Department of Revenue recently issued a general information letter addressing whether a taxpayer’s sales of information provided in electronic format were subject to Colorado sales tax.
South Dakota: South Dakota Asks the U.S. Supreme Court to Overturn QuillOn October 3, 2017, the state of South Dakota filed a 70-page cert petition with the U.S. Supreme Court asking it to retire the Quill physical presence rule.physical presence rule.
Washington: Hearing Officer Addresses Various Tax Issues Stemming From Retailing ArrangementA Tax Hearing Officer for the Washington Department of Revenue recently addressed whether payments received for the use of retail space were subject to Washington B&O tax.
Wisconsin: Budget Bill Includes Corporate Income Tax ChangesThe recently-signed Wisconsin budget bill (Assembly Bill 64) includes a few changes of note for corporate taxpayers.
Illinois: Internet Retailer with Bricks and Mortar Affiliate Did not Have Substantial Nexus with IllinoisAn Illinois appeals court recently addressed whether an Internet retailer with bricks and mortar stores in Illinois had nexus with the state and was required to collect and remit sales tax on sales to Illinois customers.
Alabama: City Business-License Tax Not Barred by Import-Export Clause Recently, the Alabama Court of Civil Appeals addressed whether a trial court erred when it held that the City of Prichard’s business-license tax did not violate the Import-Export Clause of the U.S. Constitution.
Wyoming: Chemicals used in Generating Electricity Not Exempt under Manufacturing ExemptionRecently, the Wyoming Supreme Court addressed whether generating electricity qualified as “manufacturing,” and if so, whether certain chemicals were used “directly” in manufacturing so that they were exempt from sales and use taxes.
Texas: Taxpayer Entitled to Manufacturing Exemption for Packaging SuppliesA Texas ALJ recently addressed whether a taxpayer qualified as a manufacturer so that it was entitled to an exemption for wrapping and packaging supplies.
Alaska: Certain Domestic Dividends Subject to 80 Percent DRDRecently, an Alaska ALJ addressed the treatment of a dividend received from a domestic subsidiary that was excluded from the Alaska combined group because its business activities were primarily outside of the U.S.
Massachusetts: Internet Vendor Nexus Regulation to be published in Massachusetts RegisterThe MA Department of Revenue announced that a controversial regulation addressing nexus for vendors making Internet sales is expected to be published in the MA Register on September 22, 2017.
Illinois: Insurance Premium Financing Entities Were Sales Finance CompaniesThe Illinois Independent Tax Tribunal recently addressed whether certain entities were financial organizations or general corporations.
Alabama: Appeals Court Holds that Losses Can Be Shared Among Affiliated Group MembersThe AL Court of Civil Appeals recently addressed whether losses generated by a parent company, when filing separately, could be carried forward and used to offset the income of related entities in a later year when a consolidated return was filed.
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