Journal of State Taxation articles from March 2007

Journal of State Taxation archives from March 2007

West Virginia Supreme Court holds that "significant economic presence" creates Nexus for MBNA.
March 1, 2007... Introduction The Commerce Clause prohibits states from imposing tax obligations on an out-of-state business unless it has a "substantial nexus" with the taxing state. (1) Although the application of this rule has not always been clear in...

New York amends corporate partner apportionment rules.
March 1, 2007... Overview On October 17, 2006, the New York Department of Taxation and Finance adopted amendments to the corporate franchise tax regulations in order to provide additional guidance regarding how a corporation that is a partner in a...

"Do you have a coupon for that?".(state sales tax)
March 1, 2007... What is the "Sale Price?" Disputes over the fundamentals in tax never really end; they resurface time and time again. An excellent example in sales tax is the continuing dispute over what constitutes the "sale price" in sales tax...

State of the states: state tax considerations of reporting IRS audit adjustments.
March 1, 2007... Introduction The conclusion of an IRS audit may provide closure and finality to a taxpayer's federal income tax liability, but when it comes to navigating the requirements of subsequent state compliance, it is only the beginning of what...

Unmined gold for your clients: location-based credits and incentives: Charles Swenson discusses state and federal location-based incentives and their value to tax practitioners and their clients.
March 1, 2007... Introduction Location-Based Tax Incentives (LBTI) = Lower Effective Tax Rates, Enhanced Profits and Cash Flow, and Improved Market Share for tax practitioners and their clients. This simple formula can be a critical differentiator for both...

The significant economic presence test: the shape of nexus to come: Andrew Swain and John Snethen discuss recent cases that use economic nexus to impose tax on out-of-state entities with no in-state affiliates and the effect of those cases on the understanding of economic nexus.
March 1, 2007... Introduction Nexus is the term used to describe the connection that must exist between the taxing jurisdiction and an entity in order for the former to impose some type of tax duty on the latter. That duty can take the form of, for...

The sales and use tax physical presence rule: Eric Rothenburg discusses the impact of Quill on e-commerce transactions.
March 1, 2007... Introduction During the past decade, there has been a great deal of controversy regarding whether or not a business has to collect sales and use tax when the business does not have a physical presence within a certain taxing authority's...

Audit selection standards in California: Carol Kokinis-Graves examines California's audit policies and provides a comprehensive overview of the factors that trigger an audit.
March 1, 2007... Introduction The criteria used to select a particular taxpayer for audit are most often closely guarded and undisclosed by the taxing jurisdiction, and California is no exception to this rule. There is, however, current information...

Frequently asked multistate tax questions.
March 1, 2007... When is Use Tax Usually Due? Use tax is imposed on the storage, use or consumption of tangible personal property purchased at retail and upon which no sales tax was paid. Use tax serves as a complement to sales tax and, as such, shares the...