KPMG reports - Alabama (distribution rights); Illinois (franchise reporting); Virginia (sales and use tax) 

March 4: 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 4, 2013, includes the following topics (listen to the podcasts; to read text, click on the links below).


  • Alabama [PDF 23 KB]: An Alabama Administrative Law Judge held that beer distribution rights acquired as part of a taxpayer’s purchase of a beer distributorship: (1) were includable in the calculation of the taxpayer’s net worth; and (2) clearly did not fit the definition of goodwill; thus, the Revenue Department’s additional assessment was upheld.


  • Illinois [PDF 22KB]: Proposed legislation (Senate Bill 2169) would require franchisors to report certain information to the Department of Revenue, including:(1) certain identifying information on franchisees; (2) information on the amount of gross sales in Illinois as reported by franchisee to the franchisor; (3) sales between the franchisor and franchisee; and (4) any income of the franchisee that is reported to the franchisor.


  • Virginia [PDF 23 KB]: Legislation (House Bill 2313) effective July 1, 2013, will increase the sales and use tax rate to 5.3% (up from 5%), impose an additional 0.7% sales and use tax on certain counties; and impose an additional 3% transient occupancy tax in any county or city subject to the Northern Virginia Transportation Authority.


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