KPMG reports - California (corporate tax rate); Michigan (assessment notice); Michigan (cloud computing); Missouri (sourcing) 

April 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 - Proposed legislation (Senate Bill 1372) if enacted would increase the corporate tax rates in California. Publicly held corporations would be subject to income tax at a rate ranging from 7% to 13%, depending on the “compensation ratio” of the corporation.

  • Michigan - The Michigan Supreme Court held that when a taxpayer has a duly designated representative, a notice of assessment must be provided to both the taxpayer and to the representative in order to trigger the 35-day period for filing appeals to the Tax Tribunal.

  • Michigan - A Michigan court of claims held that remote access to third-party computer networks, servers, data storage, and software applications—i.e. “cloud computing”—is not subject to Michigan use tax.

  • Missouri - Proposed legislation (House Bill 2215) if enacted would provide guidance to taxpayers seeking to elect the new single-sales factor apportionment methodology with how to source service and intangible receipts.

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