KPMG reports - Arizona (electricity exemption); Illinois (insurance taxation); New Jersey (corporate partners); New York (unitary taxation) 

April 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).

  • Arizona - The governor signed into law legislation providing an exemption from the transaction privilege tax (i.e., a sales tax exemption) for purchases of electricity and natural gas by businesses principally engaged in manufacturing or smelting operations and that use at least 51% of the electricity or natural gas in the manufacturing or smelting operations. The exemption is effective for purchases of electricity after 2014.

  • Illinois - An Illinois court invalidated a retaliatory tax regime as imposed on foreign insurance companies doing business in Illinois (i.e., the regime that requires a foreign insurance company doing business in Illinois to pay a retaliatory tax designed to discourage other states from enacting discriminatory or excessive taxes on Illinois insurance companies).

  • New Jersey - The New Jersey Superior Court, Appellate Division, affirmed a lower court decision providing that a nonresident limited partner (a foreign corporate limited partner) was entitled to a refund of taxes paid on its behalf by the partnership.

  • New York - An Administrative Law Judge ruled that a parent corporation and its numerous subsidiaries were not permitted to file a unitary combined return for the tax years at issue on a finding that the entities were not engaged in a single unitary business.

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