KPMG reports - Idaho (apportionment); Missouri (exemption for asphalt); Rhode Island (combined reporting); Texas (subcontractor payments) 

March 24:  KPMG’s This Week in State Tax—produced weekly by KPMG’s State and Local Tax practice—focuses on recent state and local tax developments and features a series of short podcasts presented by KPMG tax professionals. Text of the podcasts is also available.

This week’s edition includes the following topics (listen to the podcasts; to read text, click on the links below).

  • Idaho - The Idaho Tax Commission upheld tax assessments, after finding that the taxpayers failed to provide the 51 state tax apportionment factor data or any documentation; the tax auditors imputed a sales factor for the tax year at issue, that was roughly the same as the sales factor for other years.

  • Missouri - The Administrative Hearing Commission ruled that sales of rock aggregate and hot mix asphalt—i.e., materials used to create asphalt pavement—were exempt from state level sales taxes.

  • Rhode Island - The Rhode Island Division of Taxation released a report analyzing the policy and fiscal ramifications for the state if it were to move from separate entity reporting to unitary combined reporting.

  • Texas - A Texas appeals court held that a taxpayer (in the business of hauling, delivering, and depositing aggregate at real property construction sites) could exclude certain payments made to subcontractors in computing its total revenue. In other words, the taxpayer was allowed to deduct subcontractor payments in calculating its taxable margin.

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