Today I want to talk about another facet of the use tax battle being waged by states against out of state internet vendors. For years internet vendors were not pressured by states to collect use tax from the state’s residents…
Monthly Archives: February 2018
Virginia internet vendor challenges Massachusetts attempt to impose use tax collection responsibility on remote vendors supplying apps and cookies to Massachusetts customers
Posted in Taxation
New Mexico taxes share of Louisiana multistate company’s gain from disposition of 49% subsidiary which provided critical product and services to it
Today I want to talk about a multistate company selling a 49% subsidiary. State income taxation of the gain would be taxed to your home state if the company owned the subsidiary as an investment. On the other hand, in…
Posted in Taxation
Mississippi requires remote online vendors to collect use tax even without physical presence if there is substantial economic presence
Today I want to talk about online vendors selling into a state where it has no physical presence. In 1992 the United States Supreme Court said that a state could not require an out of state vendor to collect its…
Posted in Taxation
An out of state online vendor must now collect sales and use tax when selling into Virginia if it stores inventory in Virginia with a third-party
Today I want to talk about selling online into a state where your only connection is your in-state customers and inventory that you store in the state with a third party. In the past, it was not clear under Virginia…
Posted in Taxation
California documentary transfer tax applies to all M&A change of control deals involving target California real estate
Today I want to talk about the addition of the city and county documentary transfer tax as a cost in change of control acquisitions of a target company’s equity interest, when the target owns California real property. Before last year…
Posted in Taxation
Company establishes nexus in Canada and avoids throwback of Canadian sales revenue to Indiana sales factor
Today I want to talk about Indiana state income tax ruling involving a company that shipped product from its plant in Indiana and delivered it to customer sites in Canada. The company excluded the Canada sales revenue from its Indiana…
Posted in Taxation
Colorado can’t tax $6.4 B foreign stock sale gain by domestic holding company in defiance of Colorado statute and regulation
Today I want to talk about Colorado’s attempt to tax $6.4 billion gain from the sale of stock of a Japanese subsidiary by ignoring its own statute and regulation. This case involves Oracle Corporation (Oracle), based out of California, and…
Posted in Taxation
Indiana Tax Court Says that Indiana cannot tax online course revenue earned from Indiana Students from an Arizona company
Today I want to talk about state income taxation of service revenue provided to a state’s residents through the internet. This case involved online courses provided to Indiana students by the University of Phoenix, a company providing its services from…
Posted in Taxation
Colorado requires out of state online retailer to collect use tax because it had a non-sales employee working out of a Colorado home office
Today I want to talk about the sales and use tax issue raised when an online retail company located outside of Colorado permits an employee to work out of a Colorado home office. This company sells product to customers throughout…
Posted in Taxation
Texas finds sales tax nexus without physical presence through use of independent local service providers
Today I want to talk about an Ohio electrical contracting company that expands its business to Texas. This Ohio company has been successful for years providing electrical repair and maintenance services throughout the state of Ohio. One of its customers…
Posted in Taxation
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