KPMG reports - California (enterprise zones); Indiana (insurance premiums tax); Massachusetts (computer services); Missouri (single-sales factor); Virginia (pension trusts) 

September 23: 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 - Two bills are pending action by the governor—Assembly Bill 106 to extend the time to certify enterprise zone hires to January 1, 2015; and Senate Bill 100 to clarify that for purposes of claiming the income/franchise tax credit for sales and use taxes paid on qualifying property used in enterprise zones and military base recovery areas, property that is purchased before January 1, 2014 (repeal date), and placed in service before January 1, 2015, would qualify for the credit.


  • Indiana - The Indiana Tax Court, in a case concerning the tax treatment of two captive insurance companies, held that physical presence was required in order to be considered "doing business" in Indiana and thus to be subject to the state's insurance premiums tax, and to be exempt from adjusted gross income tax.


  • Massachusetts - The Commissioner of Revenue issued guidance extending the time in which to report and remit taxes on certain newly taxable computer services.


  • Missouri - The Department of Revenue proposed that the new single-sales factor election can be made on all original returns filed after August 28, 2013 (i.e., the effective date of House Bill 128) and that once made, the election would be irrevocable for that particular tax year.


  • Virginia - The Department of Taxation determined that a federally exempt employee pension trust not having a physical presence in Virginia but holding interests in limited partnership doing business in Virginia would likely be subject to tax on any Virginia source income.



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