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.



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