KPMG reports - California (software transfer); Colorado (reporting requirements); Illinois (pass-through miles); Indiana (source of revenue); Massachusetts (computer services); New York (credit services) 

October 7: 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).

  • California - A Los Angeles court found that a taxpayer's sale of licensed software under a “technology transfer agreement” (when a person who holds a patent or copyright interest assigns or licenses to another person the right to make and sell a product or to a use a process that is subject to the patent or copyright interest) was exempt from sales and use tax.

  • Colorado - A federal appeals court denied a petition for rehearing en banc, in a challenge to an injunction granted by a federal district court with respect to Colorado law requiring tax reporting by retailers selling goods to Colorado purchasers when sales and use tax was not collected and remitted.

  • Illinois - An Illinois appeals court held that the taxpayer—an interstate trucking company—must include “pass-through miles” (miles driven through Illinois when the trucks did not pick up or deliver goods in-state) in the numerator of the taxpayer's revenue miles factor.

  • Indiana - The Department of State Revenue determined that an out-of-state taxpayer's receipts from sales of information services to Indiana customers must be sourced to Indiana.

  • Massachusetts - The Department of Revenue issued guidance to taxpayers affected by repeal of the Massachusetts computer services tax.

  • New York - The New York State Department of Taxation and Finance determined that the taxpayer's credit rating services on debt offerings for issuers of structured products, insurers, and others were subject to a "destination tax" in New York City if the services were delivered to a customer in the city, but were not subject to the state sales tax.

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