KPMG reports - California (temporary storage); Nevada (ticket service charges); New York (franchise tax reform); Wisconsin (partnership surcharge) 

March 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).


  • California - The Franchise Tax Board ruled that receipts from sales of tangible personal property by a taxpayer that shipped to a third-party distributor, with distribution centers located both inside and outside California, for temporary storage were not California-sourced sales because the property was not used in California and was subsequently transported to another state.


  • Nevada - The Nevada Supreme Court held that “convenience fees” collected by a service provider from individuals purchasing tickets to the taxpayer’s venue were service charges because the services allowed consumers to obtain tickets without picking them up at “will call.” The high court also rejected the argument that the service charges were included in the admissions tax base.


  • New York - The governor unveiled comprehensive tax reform legislation that incorporates proposals for changes to the New York banking and corporate franchise tax reform legislation—including a proposal to repeal the franchise tax on banking corporations and to subject both banks and general corporations to a revised corporate franchise tax.


  • Wisconsin - The Wisconsin Tax Appeals Commission held that an upper-tier partnership receiving pass-through income derived from a lower-tier partnership was subject to the “recycling surcharge” (i.e., for the year at issue, the recycling surcharge was imposed on all partnerships deriving income from business transacted in Wisconsin that had more than $4 million in gross receipts).



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