KPMG reports - California (apportionment); Illinois (tax initiatives); Nebraska (income tax repeal); Tennessee (online advertising) 

February 25: 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 February 25, 2013, includes the following topics (listen to the podcasts; to read text, click on the links below).


  • California [PDF 22 KB]: The Franchise Tax Board obtained a second extension of time (now April 17, 2013) for filing opening briefs in the pending Gillette litigation before the California Supreme Court (i.e., whether taxpayer could apportion its income to California using the Multistate Tax Compact’s evenly weighted three factor formula, despite statutory language mandating the use of a three-factor double-weighted sales formula for most corporations for the years at issue).


  • Illinois [PDF 23 KB]: The Department of Revenue released a comprehensive agenda of tax initiatives that it hopes lawmakers will consider during the 2013 legislative sessions, including proposals concerning combined group reporting and apportionment of gain of pass- through entities.


  • Nebraska [PDF 22 KB]: Two tax bills that would repeal individual and corporate income taxes, and would offset the revenue loss by repealing sales tax exemptions, are pending before the legislature.


  • Tennessee [PDF 22 KB]: The Department of Revenue, in a revenue ruling concerning whether online advertising and database services are subject to Tennessee sales and use taxes, concluded the taxpayer’s sales were not subject to sales and use tax because (1) the taxpayer’s various services and products did not include the transfer of tangible personal property, final artwork, or advertising materials in Tennessee and (2) were not enumerated taxable services.



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