SALT Update - August 2015
September 21, 2015
By David Venanzi
Alabama Enacts Factor Presence Nexus Standards
On August 4, 2015, effective for tax years beginning after December 31, 2014, Alabama enacted legislation that establishes factor presence nexus standards for business activities for the purposes of income tax. For more information, click here.
City of Tucson, Arizona Announces It Will Offer Tax Amnesty
On August 24, the City of Tucson announced that it will offer a tax amnesty program running from September 1, 2015 through October 30, 2015. For more information on the amnesty program, click here.
Kansas Makes Amnesty Application Available Online
As mentioned in our July SALT Blog, Kansas has announced that it will run an amnesty; the application for amnesty is now available online. As a reminder, the amnesty will run from September 1, 2015 through October 15, 2015. Payments may be made online at either https://www.kdor.org/TaxCenter/login.aspx or credit/debit card payments can be made at https://www.officialpayments.com/index.jsp. Otherwise, a check can be submitted with the application. For more information, click here.
Kinko’s Receives Refund for Double Taxed Royalties by New Jersey
Kinko’s Network, an affiliate of Kinko’s Ventures, received a post-audit refund for double taxed royalties by New Jersey because Kinko’s Network was required to addback paid royalties to Kinko’s Ventures and Kinko’s Ventures were required to claim the amount as income. For more information, click here.
Missouri to Offer Tax Amnesty
The Missouri Department of Revenue has announced that it will offer a tax amnesty from September 1, 2015 through November 30, 2015. This will provide individuals and businesses with a one-time opportunity to pay back taxes that were due prior to December 31, 2014. For more information, click here.
New Jersey Issues TAM Regarding Convertible Virtual currency
On July 28, 2015, the New Jersey Division of Taxation issued Technical Advisory Memorandum 2015-1(R) regarding tax treatment of transactions that involve virtual currency. For more information, click here.
New Jersey Division of Taxation Issues Technical Bulletins Related to Nexus
On August 13, 2015, the New Jersey Division of Taxation Regulatory Services Branch issued two technical bulletins, TB-78(R) and TB-79(R). These TBs deal with nexus for sales and use tax and nexus for corporation business tax respectively. For more information, click here.
New York Budget Enacts Investment Capital Identification Requirements
Amongst the numerous changes as a result of the 2015-2016 New York State budget, there is an added change to investment capital identification requirements for taking a deduction for investment capital on your New York State corporate tax return. For more information on the requirements, click here.
President Obama Signs Stopgap Highway Bill Changing Federal Due Dates
On July 31, 2015, President Barack Obama signed the Stopgap Highway Bill. Under the bill, the due dates of several different types of tax returns were changed. For more information and the impact this will have on states click here.
Texas Releases Guidance on the Effects of an Unaffiliated Third-Party Manufacturer
On August 12, 2015, the Texas Comptroller of Public Accounts issued Texas Policy Letter Ruling 201508350L which discusses if a taxable entity that uses an unaffiliated third-party manufacturer to produce products is eligible for the 0.5% tax rate (Please note that this rate has changed effective 1/1/2015 and again in 1/1/2016). For more information, click here.
Vermont Discusses Sales & Use Tax on Cloud Software
This past month, Vermont issued a fact sheet describing sales and use tax implications related to cloud software. For more information, click here.
Washington Enacts Amnesty for Unclaimed Property Holders and Other Changes
Effective July 1, 2015 through November 1, 2016, the Washington Department of Revenue allows qualifying unclaimed property holders amnesty for penalties and interest if they report and pay unclaimed property by November 1, 2016. For more information, click here.
Wisconsin Issues Tax Bulletin Summarizing Recent Tax Law Changes
On July 1, 2015, the Wisconsin Department of Revenue issued Tax Bulletin 189 summarizing the various tax changes as a result of Wisconsin tax law changes. For more information, click here.