Journal of State Taxation articles from September 2006

Journal of State Taxation archives from September 2006

Affiliate nexus - what's new?(Commerce Clause)
September 1, 2006... Introduction The concept of affiliate nexus--which reflects the notion that the local presence of one company can create nexus for its related out-of-state affiliate--is certainly not new. Even before the U.S. Supreme Court decided Quill...

Throwback of foreign sales.
September 1, 2006... UDITPA Throwback Rule UDITPA [section] 16(a) provides that 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 property is...

Unfriendly aspects of the growing trend among states opting for the "un-income" tax regime.
September 1, 2006... Introduction and Scope In recent years, there has been a discernible trend among state and local tax jurisdictions toward varying forms of alternative tax structures. Increasingly, a hallmark of these revamped tax schemes is that they are,...

State sales tax liquor audits of the bar and restaurant industry: an overview of state efforts and common issues: Michael Dillon discusses methodologies used by the state to conduct liquor audits of the bar and restaurant industry, and how taxpayers can reduce potential assessments and avoid penalties.
September 1, 2006... Overview According to most recent U.S. Census figures, sales, use and gross receipts taxes comprise, on a national average, approximately 30 percent of annual state and local revenues by type of tax. (1) This figure is further supported by...

Texas' new margin tax: Giles Sutton, Jamie Yesnowitz, Pat O'Shea, John LaBorde and Doug Maziur discuss the mechanics of Texas' new tax and its implications for taxpayers.
September 1, 2006... Introduction On May 18, 2006, Governor Rick Perry signed House Bill 3, the widely discussed Texas Margin Tax (TMT) designed to replace the current franchise tax. (1) Although styled as a "franchise tax," (2) the tax represents a...

BOE unanimously decides MIC case for lumber mill's cogeneration equipment: Chris Micheli discusses the issues involved in the California Sierra Pacific Industries case.(Manufacturers' Investment Credit)
September 1, 2006... Overview In a rare unanimous decision in a Manufacturers' Investment Credit (MIC) case, the State Board of Equalization (SBE) rejected a Franchise Tax Board (FTB) attempt to deny the MIC to a lumber mill for its cogeneration assets. The...

Sales tax on e-commerce transactions: Eric Rothenburg discusses the controversy surrounding state sales and use taxability of Internet transactions.
September 1, 2006... Introduction There is a great deal of controversy regarding assessing sales tax on e-commerce transactions. By that, we are referring to final sales transactions subject to sales tax that take place through the Internet. These transactions...

Frequently asked multistate tax questions.
September 1, 2006... What Are the Rights of the Buyer Against the Seller? Until the seller remits the tax to the proper authority, a buyer retains the right to sue for erroneously collected sales tax. [Kesbec v. Taylor, 16 N.E.2d 288 (N.Y. 1958); Cohon v. Oscar...