KPMG reports - Arizona (sales tax); Connecticut (corporate surtax); Indiana (source of income); Multistate (sales tax rates) 

June 24:  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.

Today’s edition, for June 24, 2013, includes the following topics (listen to the podcasts; to read text, click on the links below).

  • Arizona - HB 2111, currently pending the governor's signature, would simplify Arizona's transaction privilege tax (i.e., the state's version of a sales tax).
  • Connecticut - Governor Malloy last week signed the budget bill (HB 6704) into law that, among other provisions, extends a 20% corporate surtax to tax years beginning before January 1, 2016.
  • Indiana - The Indiana Tax Court held that income earned by a corporation / general partner in a partnership operating as a telecommunications service provider in Indiana was income from operations, and not investment income. The court concluded that an operational relationship existed between the taxpayer and the partnership; that the taxpayer was not simply a passive investor; and that the income received by the taxpayer was not akin to "dividends from investment" but was properly sourced to Indiana.
  • Multistate - Many state legislatures have adjourned for the year, and several states—e.g., Kansas, Nevada, and Tennessee—have enacted legislation affecting sales tax rates.

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