KPMG reports - Federal (internet sales tax); Michigan (awards merchandise); Missouri (electricity exemption); Missouri (franchise tax); Ohio (nexus)  

March 18:  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).

  • Federal - The House Judiciary Committee on March 12, 2014, held a hearing to explore alternative solutions to the Marketplace Fairness Act—i.e., the internet sales tax legislation.

  • Michigan - The Michigan Tax Tribunal held that the exchange of award points for merchandise, under the taxpayer’s performance improvement program, was a taxable retail sale of tangible personal property.

  • Missouri - The Missouri Supreme Court held that electricity used by a grocery store bakery was not exempt from sales and use tax, on a finding that the bakery was not engaged in “processing.”

  • Missouri - The Missouri Administrative Hearing Commission determined that an out-of-state corporation employing assets owned by a related (Texas) limited partnership was not subject to franchise tax in Missouri; the partnership’s assets could not be imputed to its corporate partner for purposes of imposing franchise tax on the corporation.

  • Ohio - The Ohio Board of Tax Appeals upheld the “factor presence nexus standards” and affirmed a lower court decision, concluding that an out-of-state retailer had substantial nexus with Ohio and was therefore subject to Commercial Activity Tax (CAT).

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