KPMG reports - Indiana (prewritten software); Michigan (leased aircraft); Tennessee (drop shipments) 

February 17:  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).


  • Indiana - The Indiana Department of Revenue determined that a taxpayer (a car dealership) owed use tax on Internet-based computer software programs (found to be prewritten computer software) used in its business operations in Indiana and on global positioning system (GPS) units that it installed in vehicles that were in turn sold to customers.


  • Michigan - The Michigan Supreme Court held that a taxpayer owed use tax on the purchase of an airplane that was simultaneously leased to a related entity.


  • Tennessee - The Tennessee Department of Revenue issued guidance concerning drop shipment and direct sales transactions, for purposes of determining how a manufacturer was to source receipts from certain sales of tangible property made to its affiliate for franchise / excise tax purposes.



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