SALT Blawg – State and Local Tax Blog
State and Local Tax ("SALT") blog issues require state and local tax knowledge. Chamberlain Hrdlicka's SALT Blawg (SALT Blog) provides exactly that knowledge with news updates and commentary about state and local tax issues.
You can expect to find relevant information about topics such as income (corporate and personal) tax, franchise tax, sales and use tax, property (real and personal) tax, fuel tax, capital stock tax, bank tax, gross receipts tax and withholding tax. SALT Blawg, offers tax talk for tax pros … in your neighborhood.
Chamberlain Hrdlicka Blawgs
On August 3, 2022, the Pennsylvania Commonwealth Court upheld a panel decision finding that a senior living facility failed to qualify as a “purely public charity” and therefore was not entitled to exemption from sales tax. See Friends Boarding Home of W. Quarterly Meeting v. Commonwealth, No. 332 F.R. 2018 (Pa. Commw. Ct. Aug. 3, 2022) (op. not reported). In order to satisfy the requirements for a “purely public charity,” an institution must satisfy the five-part HUP test, which requires that an institution:
- Advance a charitable purpose;
- Donate or renders gratuitously a ...
Tax Foundation Report Opines Texas Margin Tax Not a Model Act
A recent Tax Foundation report concludes that the Texas margin tax - untried when enacted in 2006 - collected less revenue than expected, caused significant confusion and compliance costs, resulted in litigation and controversy, and should not be tried in other states.
Tennessee and New York Opine Electronic Goods Not Subject to Sales Tax
Tennessee provided a written opinion that paper shop drawings would be subject to sales tax, but not a digital (paperless) version of the same. New York authorities similarly concluded
New Jersey's Governor, Chris Christie, recently signed legislation enacting important changes for New Jersey's tax scheme relating to businesses. The first bill, S2753, provides for a three year phase-in of a single-sales-factor apportionment formula. New Jerseycurrently has a three-factor apportionment formula, consisting of sales, property and payroll factors. Beginning on January 1, 2012, the sales factor will be weighted as 70% of apportionment, while property and payroll factors will be weighted as 15% each. During ...
Over the last two weeks, the dispute between Amazon, the online retailer, and the Comptroller of Public Accounts for the State of Texas has reached new heights. On Friday, February 11, 2011, Amazon advised its employees by letter that it would be closing the distribution facility in Irving, Texas, (which is owned by a subsidiary company), that it would relocate its facility and existing employees outside Texas, and would cancel expansion plans that would have created 1,000 new jobs. This latest move by Amazon follows the $269 million tax bill that Texas issued to Amazon in October 2010 for failing to collect sales tax on sales into Texas and Amazon's lawsuit filed to force the Comptroller to explain the factual and legal basis for the tax bill. Amazon is appealing the tax bill though the administrative appeal process available in Texas.
During January, the Securities & Exchange Commission ("SEC") fined Hudson Highland Group, Inc. ("Hudson") – a staffing company – for failing to implement the requisite internal controls to correctly collect and remit approximately $3.9 million in sales taxes.
A California Court of Appeals recently tackled the question of whether sales tax should be imposed upon a telecommunication company's license for software used to operate its telephone switch hardware. The court held that the software license was exempt from sales and use tax because the license constituted the transfer of patent and copyright interests.