State Tax Alerts - This Week's Stories Worth a Second Look

Rusty Little

In case you missed them, the following is a summary of a few key state tax developments, news articles, and observations during the past week:

• SALT To Taste: Missouri Got It Right, But Will It Be Of Any Use? - In a recent decision, the Supreme Court of Missouri ruled in favor of a group of travel companies on a sales tax issue for which the travel companies have had limited success in other states.  Although this was a favorable decision, it is a reminder that these internet service business models are susceptible to attack. See full text of article here.
• California Governor Jerry Brown signs bill (AB 155) to delay "Amazon Law" until September, 2012 - from the LA Times
• Massachusetts and New York address sales tax issues relating to Groupon/Living Social arrangements - Massachusetts Working Draft Directive 11-XX and New York TSB-M-11(16)S
• Colorado amnesty program begins October 1 and runs to November 15 - details from their website

SALT To Taste: Missouri Got It Right, But Will It Be Of Any Use?

Marshal Kline; Rusty Little

In a recent decision, the Supreme Court of Missouri ruled in favor of a group of online travel companies, deciding they were not required to collect hotel and tourism taxes on the difference between the discounted amount received for a room by participating hotels and the amount that the travel service received for their services.  Cases similar to this are nothing new to the online travel companies, but it may be only a matter of time before the states begin launching similar attacks on other business models.  

Read the full newsletter here.

State Tax Alerts - This Week's Stories Worth a Second Look

Rusty Little

In case you missed them, the following is a summary of a few key state tax developments, news articles, and observations during the past week:

• Media continues to misinterpret the Amazon.com saga by depicting the issue as a "loophole" as if abiding by the U.S. Constitution and U.S. Supreme Court decisions is now an aggregious tax strategy.
• SALT To Taste - Well Done New Jersey! - from DLP
• Wal-Mart and Amazon.com - Strange Bedfellows?? - from DLP blog at statetaxalerts.com
• Social Media for Tax Professionals: Is It Time for Firms to Kick the Tires? - DLP article in BNA Tax Management Weekly State Tax Report
• Blog post from TEI summarizing the release of the Congressional Budget Office's cost estimate to the states of the Business Activity Tax Simplification Act of 2011 ("BATSA"). Approximately $2 billion in the first year - read more here
• Council on State Taxation files amicus brief in the Washington Supreme Court arguing that a 24-year retroactive period is unconstitutional - pdf copy of the brief here
• One state's Chamber of Commerce's take on corporate tax rates - “Illinois should never have a higher corporate tax rate than our neighboring states”

Reminder - Dow Lohnes Price recently launched its new website design at www.dlptax.com.  Check it out when you have a minute.

SALT To Taste: Well Done New Jersey!

Marshal Kline; Russell Padgett
In a well-founded application of unitary principles and constitutional restraints, the New Jersey Superior Court concluded that BIS LP, Inc. was not unitary with its ninety-nine percent owned limited partnership interest.  After reaching the non-unitary conclusion, the Superior Court determined that BIS LP, Inc. was not subject to New Jersey's corporation business tax.

Read entire newsletter here.