KPMG reports - California (apportionment); California (proprietary software); D.C. (transfer pricing); Michigan (property vs. service); New York (satellite services); Oregon (nexus) 

January 7:   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 January 7, 2013, includes the following topics (listen to the podcasts; to read text, click on the links below).


  • California [PDF 23 KB]: The California Franchise Tax Board filed a petition asking the California Supreme Court to review the appellate court's decision in Gillette Co. v. Franchise Tax Board (holding 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 general corporations).
  • California [PDF 39 KB]: A California Court of Appeal held that, for the tax years at issue, receipts from licensing the right to install and replicate proprietary software were receipts from licensing an intangible right.
  • District of Columbia [PDF 23 KB]: The D.C. Office of Tax and Revenue filed a motion to drop its appeal of an administrative ruling that overturned a significant assessment with respect to a transfer pricing dispute.
  • Michigan [PDF 23 KB]: The Michigan Court of Appeals held that for purposes of sourcing receipts under the former Single Business Tax Act (SBT), a Michigan- based taxpayer was selling tangible personal property (and not providing a service) with respect to proprietary coatings applied to automobile parts owned by its customers.
  • New York [PDF 24 KB]: New York’s highest court held that a satellite television-programming provider’s purchases of equipment used to deliver its satellite services were exempt as sales for resale. The court noted that requiring the taxpayer to pay sales and use taxes on the equipment purchases while at the same time retaining the sales and use taxes collected on the equipment fees would amount to an unwarranted “windfall” to the state.
  • Oregon [PDF 25 KB]: A federal bankruptcy judge held that the parent company of a banking group that filed a mandatory Oregon unitary consolidated return could not be held jointly and severally liable for taxes attributable to its subsidiary entities because the parent corporation did not have Oregon nexus.


©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 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.

Contact Us

Media/reprint requests


Technical concerns and questions

Other TaxNewsFlash publications


TaxNewsFlash - United States

TaxNewsFlash-United States by month

TaxNewsFlash-United States by year