KPMG reports - California (apportionment); Illinois (nexus); Wisconsin (nexus) 

November 12:  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 - Parties have submitted briefs in the Gillette case, currently pending before the California Supreme Court. The case concerns whether a taxpayer could elect to apportion income to California using the evenly weighted three-factor formula of the Multistate Tax Compact, despite statutory language requiring general corporations to use a double-weighted sales factor.

  • Illinois - An Illinois Administrative Law Judge (ALJ) found that a company selling tangible products to in-state distributors had nexus with Illinois and was therefore treated as a taxable member of the Illinois unitary group. The unitary group was engaged in the sale of weight-management, nutritional supplement, and personal care products, and the taxpayer’s principal business was to sell and distribute products manufactured by its affiliates to distributors (either for personal use or for resale).

  • Wisconsin - The Wisconsin Department of Revenue issued a private letter finding that, for corporate income or franchise tax purposes, nexus exists for an out-of-state company selling gift cards and licensing software to Wisconsin nonprofit organizations.

  • Federal legislation - A bill introduced in the U.S. Senate would limit a state’s ability to require withholding and payment of individual (personal) income tax unless the employee is: (1) a resident of the state; or (2) has been present and performing employment duties in the state for more than 30 calendar days during the calendar year.

©2013 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
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


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

Email your contact information.

TaxNewsFlash-United States by year