Journal of State Taxation articles from July 2006

Journal of State Taxation archives from July 2006

Blowing the whistle on private nexus enforcement - an update on false claims suits against remote sellers.
July 1, 2006... Introduction Although there are differences of detail, the fundamental landscape for assessing, protesting and litigating state tax claims varies little from state to state. By and large, each state has a comprehensive statutory scheme for...

Dock sales.
July 1, 2006... Place of Delivery or Ultimate Destination Under UDITPA [section] 16(a), for purposes of computing the sales factor, sales of tangible personal property other than sales to the U.S. government are attributed to the state in which the...

Simplifying sales tax on leases and rentals, and other pipe dreams.
July 1, 2006... Overview Is there anything more difficult, more confusing, or more complex than applying sales tax to leases? Sure, calculus was tough and sometimes those finance classes were a bit overwhelming with their discounted present values,...

Potential refunds of California's LLC fee.
July 1, 2006... Introduction On April 13, 2006, the San Francisco Superior Court held that California's limited liability company (LLC) fee violates the U.S. Constitution's fair apportionment standards. [Northwest Energetic Services LLC v. Franchise Tax...

What is so passive about passive investment companies? Joseph Robinson examines the tax-planning strategy that uses passive investment companies to save on state income taxes.
July 1, 2006... Introduction Of course, it depends on one's perspective. Distinguished U.S. Circuit Court Judge Learned Hand wrote in Heavering v. Gregory [F.2d 809, 810 (2d Cir. 1934)], "Any one may so arrange his affairs that his taxes shall be as low...

California SBE rules in favor of Costco in MIC appeal, affirms earlier Save Mart decision: Chris Micheli discusses the issues involved in the Costco manufacturers' investment credit decision.(State Board of Equalization, Manufacturers' Investment Credit)
July 1, 2006... Introduction In November 2005, the California State Board of Equalization (SBE) rendered a decision favorable to the taxpayer in the Appeal of Costco Wholesale. The unpublished decision came on a split vote with three board members in...

Use of the cost, income and sales-comparison approaches in the valuation of real estate: Carol Kokinis-Graves describes different approaches used in the valuation of real estate, and state court decisions that explain when each may be appropriate.
July 1, 2006... Introduction The basis for the assessment of real property is market value. Various underlying economic principles affect the value of real estate and are given commensurate weight by appraisers. Appraisers traditionally use three...

Economic nexus means trouble for tax-haven mavens: Andrew Swain and John Snethen examine state court decisions and the actions taken by states regarding the taxation of out-of-state passive investment companies.
July 1, 2006... Introduction Recent state court decisions have expanded the power of states to tax the income of corporations with which they lack physical nexus. Each of these decisions found that an "economic nexus" existed between the taxing state and...

Frequently asked multistate tax questions: How is the location of a sale of tangible property determined?
July 1, 2006... Generally, the determination of a sale's location is found in a state's statutes or regulations under its definition of sale, a sale at retail, or a retail sale. The statutory elements common to all three terms usually include a transfer of...