KPMG reports - Massachusetts (computer services); Texas (prepaid calling cards); Washington (B&O tax on intangible rights); Washington (dating service) 

September 16: 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 September 16, 2013, includes the following topics (listen to the podcasts; to read text, click on the links below).

  • Massachusetts - Just weeks after enactment, a Massachusetts law (House Bill 3535) imposing sales and use tax on “computer system design services” is the focus of efforts to repeal it.
  • Texas - The Texas Comptroller ruled that a seller of prepaid calling cards cannot deduct cost of goods sold because under the franchise tax, the prepaid calling cards are not considered to be tangible property.
  • Washington - The Washington State Department of Revenue, Appeals Division, ruled that the sale of fishing quota rights (i.e., intangible rights to a natural resource) is to be sourced to the taxpayer's domicile, not to the location of the natural resource, for business and occupancy (B&O) tax purposes.
  • Washington - A Washington State administrative law judge ruled that an online dating website was providing a service and therefore was to collect and remit retail sales tax on its service receipts and was to report B&O tax under the retailing classification.

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