KPMG reports - New Jersey (hurricane-related sales tax); New York (telegraphy services); North Carolina (proposed tax laws); Virginia (prescription drugs) 

December 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.

Today’s edition, for December 17, 2012, includes the following topics (listen to the podcasts; to read text, click on the links below).


  • New Jersey [PDF 23 KB]: The New Jersey Division of Taxation issued a Technical Advisory Memorandum addressing the sales and use tax implications of charges for repair and replacement services due to hurricane-related water damage—including charges for water-damage restoration services performed on household goods and charges for bleaching, deodorizing, and other cleaning services.


  • New York [PDF 24 KB]: A New York appellate court held that a provider of electronic messaging services (including fax, telex, electronic data interchange, and email services) was selling taxable telephony and telegraphy services that were subject to sales tax.


  • North Carolina [PDF 23 KB]: Proposed tax reform measures—draft legislative language is not yet available—would: (1) expand the sales tax base to include services; (2) increase the rate of the sales tax; (3) repeal sales and use taxes on business-to-business transactions; (4) repeal the current franchise tax and replace it with a low-rate license tax; (5) reduce the current 6.9% corporate income tax rate; and (6) require taxpayers to use a single-sales factor apportionment.


  • Virginia [PDF 25 KB]: The Department of Taxation addressed whether Public Law 86-272 protection would apply to a taxpayer that developed and manufactured certain prescription drugs, and generally concluded that the taxpayer’s activities may exceed protection but that more facts and investigation were needed.




©2012 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 us-kpmgwnt@kpmg.com.
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.

Subscribe

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


Email your contact information.

Other TaxNewsFlash publications

TaxNewsFlash-United States by year