KPMG reports - Alabama (sourcing rule); Illinois (use tax); Michigan (use tax); New Jersey (refunds) 

November 5: 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 November 5, 2012, includes the following topics (listen to the podcasts; to read text, click on the links below).


  • Alabama [PDF 24 KB] - The Department of Revenue proposes to adopt a rule on “sourcing methodology” with respect to the market-based sourcing provisions for service receipts that became effective for tax years beginning after December 31, 2010.
  • Illinois [PDF 23 KB] - Cook County (Chicago) proposes to impose use tax on non-titled property and/or registered tangible personal property purchased outside of the county and brought into the county for use.
  • Michigan [PDF 23 KB] - A Michigan appeals court concluded that a purchaser of an airplane that was simultaneously leased to a related entity was not liable for use tax because at no time did the purchaser take possession of the aircraft or take responsibility for its repairs, maintenance, insurance, or warranties.
  • New Jersey [PDF 23 KB] - The New Jersey Tax Court held that a nonresident limited partner could file a claim for refund of corporation business tax remitted by the partnership because the tax was remitted on behalf of the nonresident partner and, under the statute, was deemed paid by the partner.



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The KPMG logo and name are trademarks of KPMG International.


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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.




©2012 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.

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