KPMG reports - California (sourcing); Indiana (tax rates); Maryland (nexus); Minnesota (sales tax exemptions); Missouri (sourcing) 

March 31:  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).


  • California - The Franchise Tax Board (FTB) concluded that the income earned by a nonresident fund manager (an individual) from providing services to a private equity fund was considered California-source income because the taxpayer’s business was conducted wholly within California.


  • Indiana - Indiana Senate Bill 1 was signed into law, enacting a further reduction of the corporate income tax rate and the financial institutions tax rate.


  • Maryland - The Court of Appeals of Maryland affirmed that two out-of-state subsidiaries with no in-state physical presence nevertheless had nexus with Maryland and were subject to Maryland corporate income tax because of the lack of economic substance independent of the parent company (i.e., the subsidiaries did not have economic substance as separate business entities).


  • Minnesota - Newly enacted law includes sales and use tax changes—many of which repeal tax changes enacted last year—and provides a sales and use tax exemption for certain repair and storage services.


  • Missouri - The Department of Revenue concluded that when a seller's shipping point is outside of Missouri and the purchaser's destination point is inside Missouri, the sale is treated as partly within and partly without Missouri, and only one-half of these sales are to be included in the apportionment factor numerator. The Department also concluded that sales of products produced in Missouri, moved to the third-party logistics company’s warehouse outside the state for storage, and then later sold to customers outside Missouri would be considered sales wholly outside Missouri and would not be included in the Missouri numerator.



©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

Share this

Share this

Subscribe

Current and future KPMG clients may subscribe to TaxNewsFlash email alerts.


Email your contact information.

TaxNewsFlash-United States by year