Tag Archives: David M. Kall

ILN Today Post

The Supreme Court of Utah gave taxpayers a sweet victory recently in Utah State Tax Commission v. See’s Candies.

The Supreme Court of Utah gave taxpayers a sweet victory recently in Utah State Tax Commission v. See’s Candies.  In See’s Candies, the Utah State Tax Commission challenged an arrangement between two wholly owned subsidiaries of Berkshire Hathaway that provided Utah corporate franchise tax benefits. The Utah Supreme Court, however, ultimately ruled in favor of the taxpayer, See’s Candies.

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ILN Today Post

Cincinnati Reds score Ohio tax break

The Ohio Supreme Court recently issued a divided ruling in Cincinnati Reds, LLC v. Testa allowing a use tax break for the Cincinnati Reds baseball team for bobblehead dolls and other promotional items given to some attendees at their home games. Though the Court split 5-2 in the ruling, the majority opinion that Justice Patrick Fischer authored quoted longtime Reds radio announcer Marty Brennaman to hold that “[T]his one belongs to the Reds.”

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Ohio Supreme Court offers guidance on “agency exclusion” under Ohio commercial activity tax.

One controversial issue that commonly arises in Ohio commercial activity tax (CAT) audits is whether taxpayers qualify for the so-called “agency exclusion” for gross receipts received on behalf of others. The CAT is Ohio’s entity-level tax for the privilege of doing business in the state, as measured by the taxpayer’s “taxable gross receipts” in Ohio. Some other states impose a net income tax at the entity-level, which removes expenses from the base of the tax, or have no entity-level business tax at all.

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Wayfair update: States begin imposing economic nexus rules as Congress mulls federal legislation

Effective Oct. 1, 2018, economic nexus rules take effect for remote sellers in 11 states, including Alabama, Illinois, Indiana, Kentucky, Michigan, Minnesota, New Jersey, North Dakota, Washington, and Wisconsin. That means that remote sellers must begin collecting sales tax in these states if they meet the state’s economic nexus threshold, whether they have a physical presence in the state or not.

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More states respond to South Dakota v. Wayfair

The legal environment of business is continuing to change following the U.S. Supreme Court’s landmark decision in South Dakota v. WayfairAs we have reported, the case fundamentally alters sales and use tax obligations for many online and remote merchants. States are now free to require online and remote sellers to collect sales tax from their customers based solely upon in-state economic activity, even if they do not have a physical presence in the taxing state.

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Minnesota: High court strikes down tax on trust income from the sale of shares in Minnesota corporation

The Supreme Court of Minnesota recently struck down the State Tax Commissioner’s attempt to impose an income tax on trust income from the sale of shares in a Minnesota corporation.  The Court issued its opinion in Fielding v. Commissioner of Revenue on July 18, 2018, finding that the tax violates constitutional due Process protections against extraterritorial taxation.

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Federal tax reform spurs tax cuts

In a number of our recent articles, we have addressed various states’ responses to the changes in federal tax law brought about by the late 2017 Tax Cuts and Jobs Act. A report by the Council On State Taxation and State Tax Research Institute predicts that the act “will result in corporate income tax reductions over the first 10 years of $329.4 billion, [which is a] reduction of about 10 percent year in corporate income taxes at the federal level.”

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