KPMG reports - Alaska (unitary business); Missouri (corporate income tax); Missouri (bad debts); South Dakota (exempt pipeline services) 

November 4: 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).


  • Alaska - The Alaska Supreme Court held that a taxpayer, a petroleum company headquartered in Texas constitutes a unitary business because the taxpayer’s business segments were functionally integrated; therefore, the alternative apportionment formula applies.
  • Missouri - The Missouri Administrative Hearing Commission ruled that amounts from a taxpayer’s sale of certain intangible assets (such as proprietary software, customer lists, and goodwill) was not subject to Missouri’s corporate income tax.
  • Missouri - Missouri’s Administrative Hearing Commission ruled that a retailer (a department store operating in Missouri) that offered financing to its customers in the form of a private label credit card (maintained by a third-party bank) was allowed a sales tax refund for amounts written off by a third-party bank as bad debts.
  • South Dakota - The South Dakota Supreme Court held that a taxpayer—operating a refined petroleum products pipeline system that generates revenue by charging a transportation tariff and providing certain services—provided additive injection and equipment calibration services that classify as pipeline services exempt from sales tax.



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