KPMG reports - Arizona (manufacturing exemption); Minnesota (apportionment); Virginia (intercompany addbacks) 

December 23:  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).

  • Arizona - The Arizona Department of Revenue issued a letter ruling concluding that lubricants used in a taxpayer’s manufacturing process were subject to use tax. The Department determined that the manufacturing exemption did not extend to gear oil used on the equipment.

  • Minnesota - A taxpayer filed suit in the Minnesota Tax Court, alleging that it was entitled to a refund of over $1.8 million because of an election to use the allocation and apportionment provisions of the Multistate Tax Compact on its corporate income tax returns for the tax years at issue.

  • Virginia - The Virginia Tax Commissioner issued a ruling concluding that the Department of Taxation could make certain adjustments to a taxpayer’s net operating loss (NOL) deductions for years not barred by the statute of limitations, but that certain intercompany addbacks for interest prior to enactment of the related-party disallowance rules were not required.

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