KPMG reports - Florida (communications services); Illinois (non-combination rule); Indiana (out-of-state purchase); Maryland (combined reporting) 

March 11: 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 March 11, 2013, includes the following topics (listen to the podcasts; to read text, click on the links below).


  • Florida [PDF 23 KB]: The Department of Revenue issued a technical assistance advisement (TAA) concluding that communications services purchased for “internal use” were not subject to Florida’s communications services tax.


  • Illinois [PDF 22 KB]: The governor, in his March 2013 budget address, proposed closing certain “corporate loopholes” such as the deduction for foreign dividends, decoupling from the IRC 199 deduction, and repealing the non-combination rule.


  • Indiana [PDF 22 KB]: The Department of Revenue concluded that Indiana individuals who purchased an aircraft in Nevada, had the plane titled in Montana, but kept the plane in a hangar in Indiana were subject to Indiana use tax on the out-of-state purchase of the airplane.


  • Maryland [PDF 22 KB]: The Comptroller released a report summarizing data collected from the 2010 combined information reports. The report indicates that if combined reporting had been in effect in 2010 with a Joyce apportionment rule, the state would have collected $4.5 million less in tax revenue, but that if combined reporting with a Finnigan apportionment rule had been implemented, the state would have generated an additional $30.1 million dollars. There are currently three bills pending in the Maryland General Assembly that, if enacted, would adopt mandatory unitary combined reporting.



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