Journal of State Taxation articles from May 2007

Journal of State Taxation archives from May 2007

Group reporting and the Ohio Commercial Activity Tax: the long arm of the law?
May 1, 2007... Introduction The Ohio Commercial Activity Tax (CAT), which took effect in July 2005, is a broad-based excise tax levied on taxable gross receipts for the privilege of doing business in Ohio. (1) The CAT has been the subject of a fair...

Massachusetts adopts new rules for sourcing royalties and licensing fees.
May 1, 2007... Overview On October 6, 2006, the Massachusetts Department of Revenue amended its rules for apportioning income to Massachusetts and provided guidance for determining whether royalties and licensing fees are attributable to Massachusetts....

Contractors, construction and building your own tax exposure.
May 1, 2007... Overview Take it from us; there are dozens of careers with less anxiety, stress and potential problems than being a construction contractor. What with potential problems in materials supply, delivery holdups, wayward subs, liability risks,...

Recent cases in support of preferential treatment for domestic dividends: analysis of the Apple Computer and General Electric cases.
May 1, 2007... Introduction The New Hampshire Supreme Court recently held against a taxpayer in a case involving the business profits tax (BPT), regarding a provision allowing a deduction for dividends received from subsidiaries that are subject to the...

Michigan's shifting nexus standard for the SBT: bait and switch? Patrick Van Tiffin discusses the saga of two unsuspecting out-of-state Michigan taxpayers.(Single Business Tax)
May 1, 2007... Introduction At one time, the Michigan courts protected Michigan taxpayers from the harsh results which inevitably flow from retroactive change taxation. Unfortunately, that is no longer the case. On January 5, 2007, the Michigan Supreme...

Determining market value: reconciling the three approaches to real estate valuation for Ad Valorem taxes: Christina Berger discusses the three methods for the valuation of real estate, and how to determine which is the most appropriate method to use in different situations.
May 1, 2007... Introduction Throughout the United States, state and local government are funded, in part, from ad valorem taxes on real property. (1) The property tax functions as the primary local tax in the United States, and provides the major portion...

Do gambling-friendly states have something up their sleeves? The unlucky 11: Donald Morris examines state tax treatment of gambling activities.
May 1, 2007... Introduction The longstanding rule for federal income taxation is that gambling losses may offset gambling winnings. For 11 states, however, there is no provision for offsetting gambling losses against gambling winnings. Literal compliance...

Is state taxation of telecommunications services constitutional?
May 1, 2007... Yes. The U.S. Supreme Court has upheld the constitutionality of a tax on the gross charges for interstate telecommunications services in Illinois. The Court held that such a tax would be constitutional so long as it met two of three tests; the...

Which states impose a sales tax on telecommunications services?
May 1, 2007... Forty-two states and the District of Columbia impose either a sales or an excise tax on telecommunications services. Georgia (four percent) taxes only local exchange service. Hawaii (four percent) taxes only interstate service. Fourteen states...