KPMG reports - Illinois (phone service plans); Louisiana (tax reform); New Jersey (late payment penalties); Texas (resale exemption); Utah (nexus) 

March 18:   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 18, 2013, includes the following topics (listen to the podcasts; to read text, click on the links below).


  • Illinois [PDF 24 KB]: A Cook County circuit court held that a taxpayer was not subject to the retailer’s occupation tax on commissions earned from selling certain cell phone service plans.
  • Louisiana [PDF 25 KB]: Louisiana Governor Jindal announced his state tax reform plan, the centerpiece of which would repeal the individual and corporation income tax as well as the corporate franchise tax and increase the sales tax rate.
  • New Jersey [PDF 23 KB]: The New Jersey Superior Court, Appellate Division, affirmed abatement of statutory late payment and post-amnesty penalties. Agreeing with much of the state tax court’s discussion, the appellate court likewise held that the taxpayers, in good faith, did not know and could not have known after a reasonable inquiry that the liabilities at issue would later be due.
  • Texas [PDF 23 KB]: The Texas Supreme Court affirmed an appeals court decision holding that a taxpayer was entitled to a refund of sales tax paid on “plush toys” used to stock coin-operated amusement crane machines. The high court held tangible personal property used to perform taxable services is not considered resold unless care, custody, and control of the property transfers to the purchaser.
  • Utah [PDF 24 KB]: The Utah Tax Commission determined that the new affiliate nexus law did not alter its earlier decision that the sales of gift codes (i.e., redeemed for goods and services from Internet vendors) to Utah residents were not subject to Utah sales and use tax, and therefore, the gift code issuer was not required to collect and remit the tax.



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