KPMG reports - Illinois (bonus depreciation); Michigan (voluntary disclosure); Missouri (use tax); New York (sales tax exemption) 

October 21:  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.

This week’s edition includes the following topics (listen to the podcasts; to read text, click on the links below).

  • Illinois - The Department of Revenue issued a general information letter addressing the bonus depreciation adjustments required to be made when a partnership undergoes a “technical termination.”
  • Michigan - House Bill 4586 (effective October 15, 2013) clarifies that the look-back periods for taxpayers entering into voluntary disclosure agreements are not to be “stacked,” but rather combined, and may not exceed four years for all taxes.
  • Missouri - The Missouri Supreme Court held that a taxpayer owed use tax on an aircraft purchased from an in-state seller. While the vast majority of in-state purchases are exempt from use tax because they are subject to sales tax, in this case, no sales tax was collected because the seller qualified for an occasional sale exemption.
  • New York - The U.S. Supreme Court declined to address a First Amendment challenge to a sales tax exemption (the taxpayer argued that admissions charged to enter its juice bar that also provided private dances would be exempt for sales tax because the dances were choreographed, and thus qualified for the New York sales tax exemption for dramatic or musical arts performances).

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