Journal of State Taxation articles from May 2006

Journal of State Taxation archives from May 2006

Controversy over the scope of Quill continues: Kmart wins on statutory grounds in New Mexico, Geoffrey Loses in Oklahoma, and the New Jersey Supreme Court agrees to Review Lanco.
May 1, 2006... Introduction In Quill Corp. v. North Dakota, SCt, 504 US 298 (1992), the U.S. Supreme Court refused to abandon its long-standing physical presence test for determining when sufficient tax nexus exists under the Commerce Clause. While there...

Apportionment issues: independent contractors and costs of performance.
May 1, 2006... UDITPA Cost-of-Performance Rule Most states employ some variation of the UDITPA [section] 17 income-producing activity rule to source gross receipts from sales of services. Under UDITPA [section] 17, for purposes of computing the...

Sales tax corner: new challenges ahead if the streamlined sales tax project is to succeed.
May 1, 2006... Overview The fortunes of the Streamlined Sales Tax Project (SSTP) seem to shift faster than Bode Miller's Olympic medal prospects. In our last installment of the "Adventures of the SSTP" in the March-April 2006 JOURNAL OF STATE TAXATION,...

State of the states: the Texas franchise tax: court rules throwback unconstitutional for earned surplus tax.
May 1, 2006... Introduction On September 22, 2005, the Texas Court of Appeals issued its final decision in Home Interiors & Gifts v. Strayhorn, [Texas Court of Appeals, Third District, No. 03-04-00660 (2005)], holding that the Texas franchise tax earned...

The sales and use taxability of information services: Carol Kokinis-Graves examines the sales and use taxation of information services in various states, including how those services are defined and sourced.
May 1, 2006... Introduction Since the advent of the Internet, the information services industry has experienced a drastic sea-change. Although compiled information about a business or an individual was available before the widespread use of the Internet,...

A review of 2005 California tax law developments: Chris Micheli looks at tax legislation enacted in California during 2005.
May 1, 2006... Assembly Bills A.B. 14 (Ch. 281) prohibits a county assessor from assigning parcel numbers or preparing a separate assessment to divide any existing residential structure into a subdivision until a subdivision final map or parcel map has...

Sampling in sales and use tax audits: Andreanna Giorgi examines state audit sampling methods and discusses how taxpayers should prepare for a sales and use tax audit.
May 1, 2006... State Sampling Statutes Overview In recent years, with the states' greater need for funds, auditing has become more frequent and the sales and use tax area has become many states' greatest focus. In order to save the states time and money...

Property tax audits: applying asset obsolescence in a good way: Greg Leahy discusses appraisal methods, obsolescence, and how taxpayers can be successful when dealing with property tax assessors.
May 1, 2006... Introduction In recent years, states have been struggling to balance their budgets and eliminate deficits while looking for ways to increase revenue. These initiatives have had a cascading effect on local jurisdictions, leading many to...

Frequently asked multistate tax questions: which activities of an out-of-state vendor would create a duty to collect state taxes?
May 1, 2006... Quill v. North Dakota makes it clear that mail-order sales alone will not create nexus for an out-of-state seller. There must be some sort of physical presence. Because physical presence can only come through the presence of either people or...