State and Local Thinking -- September 2015

State and local ThinkingSALT Alerts
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Indiana Tax Court holds taxpayer not required to file combined return
The Indiana Tax Court on Sept. 10 granted a taxpayer’s motion for summary judgment and held that the Indiana Department of Revenue could not require the taxpayer to file a combined return with nonresident affiliates. Read the SALT Alert.

Texas ALJ holds software delivered to Texas is taxable use
A Texas comptroller administrative law judge (ALJ) on July 2 denied a taxpayer’s refund request for a multistate exemption on the purchase of software licenses and software maintenance services. Read the SALT Alert.

Oregon Tax Court denies use of Multistate Tax Compact’s 3-factor apportionment formula election
The Oregon Tax Court on Sept. 9 granted the Oregon Department of Revenue’s motion for summary judgment and denied a taxpayer’s election to use the equally weighted three-factor apportionment formula provided by the Multistate Tax Compact. Read the SALT Alert.

Incentive reform: The Texas Enterprise Zone Program
Effective Sept. 1, several significant amendments have been made to the Texas Enterprise Zone (EZ) Program. Read the SALT Alert.

New Jersey Tax Court finds royalty company must file and pay even though related entity paid tax on same income
The Tax Court of New Jersey ruled on Aug. 14 that an intangible holding company with no physical presence was required to file a New Jersey corporation business tax return and pay the related tax due based on its income.  Read the SALT Alert.

Texas Appeals Court denies Use of Compact’s 3-factor formula as revised Texas franchise tax is not considered an income tax
The Texas Court of Appeals has affirmed a trial court’s decision that a taxpayer cannot elect to use the equally weighted three-factor apportionment formula provided by the Multistate Tax Compact and therefore must use a single receipts factor to compute its revised Texas franchise tax. Read the SALT Alert.

Wisconsin adopts changes to business tax incentive programs
Wisconsin Gov. Scott Walker on July 13 signed legislation making sweeping changes to existing state income tax credit programs. Read the SALT Alert.

Alabama enacts retroactive factor presence nexus standard  
Alabama Gov. Robert Bentley signed legislation on Aug. 11 enacting a factor presence nexus standard for business activity for purposes of the business privilege tax, income taxes and financial institution excise taxes. Read the SALT Alert.

Colorado finds cost of performance sales factor sourcing best fit for receivables company  
The Colorado Department of Revenue issued guidance to a receivables company in the form of a private letter ruling regarding how to apply sales factor apportionment rules. Read the SALT Alert.

Tennessee increases competitiveness with new and expanded tax credits
Effective July 1, 2015, Tennessee has enacted several significant changes to available credit programs while adding a new tax credit. H.B. 291 eliminates existing underutilized tax credits and expands the scope of the job creation tax credit and the sales and use tax exemption for industrial machinery.  Read the SALT Alert.

New Jersey tax court rules no adjustment allowed to state income to reverse consolidated IRC attribute reduction
The Tax Court of New Jersey ruled on July 20 that a company included in a federal consolidated income tax return could not adjust its entire net income for New Jersey corporation business tax purposes to reverse the impact of a reduction in tax attributes required by Internal Revenue Code Section 108(b) and the federal consolidated return regulations.  Read the SALT Alert.

Massachusetts enacts tax amnesty program, further delays FAS 109 deduction and increases earned income credit  
Massachusetts Gov. Charlie Baker signed the state’s budget bill for the upcoming 2016 fiscal year on July 17. The legislation includes a 60-day tax amnesty program that the commissioner of revenue must conduct by June 30, 2016.  Read the SALT Alert.

Thought leadership from our State and Local Tax professionals

  • Sept. 14, State Tax Notes, “New Ways States Are Interpreting Cost of Performance Rules,”  written by  Rick Strohmaier, SALT partner, and Emily Fiore, SALT senior associate.  
  • Sept. 14, State Tax Today,  “Strong Reaction to Court Ruling that Multistate Tax Compact Is Illusory Contract,” Jamie Yesnowitz, SALT principal, quoted.
  • Aug. 31, State Tax Today, "D.C. Tax Office Sees No Controversy About Havens List; Practitioners Disagree," Jamie Yesnowitz quoted.
  • Aug. 26, State Tax Today, “District of Columbia Adopts List of Tax Havens,” Jamie Yesnowitz quoted.
  • Aug. 25, State Tax Today, “States Must Decide How to Respond to Federal Filing Deadline Changes,” Jamie Yesnowitz quoted.

Tax professionals   

Meet Alex Laskowski, SALT partner in the Chicago office
Alex Laskowski is a SALT partner in the Chicago office with more than 23 years of experience working exclusively in state and local taxes.  

He works extensively with clients in the construction, hotel, manufacturing and printing industries. Most of his clients have more than $1 billion in sales and lead their industries. Alex’s state and local tax experience includes consulting on sales and use taxes, representing clients before state and local tax agencies, defending clients in sales and use tax audits and negotiating audit settlements. He has performed multistate sales and use tax reverse audits, as well as sales and use tax matrices for clients.  

Alex also helps lead the firm’s U.S. Sales Tax and Hospitality Tax practices. He has written articles for hospitality trade publications and regularly conducts presentations for tax executives in the hospitality, manufacturing and printing industries.  

Alex earned his bachelor’s degree in accounting from Northern Illinois University.

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