KPMG reports - Massachusetts (computer services); Minnesota (software installation); Tennessee (internet access); Virginia (in-state employee nexus); Washington (nexus) 

September 30: 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).

  • Massachusetts - As of September 27, 2013, legislation (H. 3662) to repeal the computer services tax had been passed by both the House and Senate, and was expected to be sent to the governor for action.

  • Minnesota - The Minnesota Tax Court concluded that certain consulting services provided by the taxpayer in relation to a customer’s license and installation of enterprise resource planning software were not subject to sales and use tax.

  • Tennessee - The Tennessee Court of Appeals affirmed a trial court decision that certain wholesale internet access services sold to other internet service providers (ISPs) were not taxable telecommunications services under Tennessee law for the tax years at issue.

  • Virginia - The Virginia Tax Commissioner determined that an out-of-state entity appeared to have nexus with Virginia as a result of having one employee living in the state and working from her home. The Virginia employee travelled throughout the United States, conducting training sessions for her employer’s customers. The employer had no Virginia customers; the employee was not conducting training in Virginia; however, the employee was engaged in the development of “test methods” in Virginia for use in providing the consulting and training services.

  • Washington - A Washington Superior Court decision affirms the judgment of the Board of Tax Appeals that a taxpayer’s one in-state visit in seven years plus the presence of leased railcars did not create nexus with the state for Business and Occupation (B&O) tax purposes.

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