KPMG reports - Colorado (internet access); South Carolina (apportionment) 

August 4: 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).


  • Colorado - A Colorado trial court held that while a taxpayer’s provision of internet access was a telecommunications service, a municipal tax on such internet access by a municipality was not “grandfathered” under the Internet Tax Freedom Act because the city did not “generally collect” sales and use tax on internet access services prior to October 1, 1998. Accordingly, the court concluded that the city could not require a cable and internet service provider to collect and remit local sales tax on its sales of high-speed broadband internet access.


  • South Carolina - Following the Department of Revenue release in March 2014 of a draft staff ruling explaining when combined reporting would be required as a means of alternative apportionment, an advisory committee was formed to study alternative apportionment / forced combination methods. The advisory committee has announced its schedule of meetings for the fall of 2014, at which times, possible solutions may be explored.



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