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Use of independent sales representatives subject out of state company to WA gross receipts tax

Today I want to talk about how your company may have more exposure to states in your market that have a gross receipts tax as opposed to an income tax. Let’s say you are a company that makes goods in

Posted in Taxation

Sale of servers and related computer equipment in divestiture of IT division is an occasional sale under NC sales tax law

Today I want to talk about the sales tax cost of selling or buying the assets of a business.  The buyer and seller of a business often argue over who will pay any sales tax on the tangible personal property,

Posted in Taxation

IL explains its sales and use taxation of a fee for providing a MLM mobile application program to its distributors

Today I want to talk about a multi-level marketing company (“MLM”) that sells its nutritional and diet products through its independent distributors. The MLM charges its distributors a fee to use its mobile application program. The MLM is not based

Posted in Taxation

Sales income earned from product shipped from Indiana to other states thrown back to Indiana

Today I want to talk about how sales income from product shipped out of state can be taxed by the state from which the product was shipped. People in the trade call this the throwback rule. An example of the

Posted in Taxation

South Carolina wants Amazon to collect use tax on sales made on its platform by 3rd party sellers to South Carolina residents

Today I want to talk about selling through Amazon’s Fulfillment by Amazon (“FBA”) program. Let’s say your Arizona based company sells books on Amazon through the FBA program. For a FBA fee, your books are stored by Amazon. Amazon’s website

Posted in Taxation

Profit from sale of joint venture interest apportioned along with company’s other multistate net income

Today I want to talk about a multistate business that grows by joint venturing with another business. Specifically, let’s look at when the company exits from the joint venture with a sizable profit. Most states would tax the profit (or

Posted in Taxation

Colorado exercises discretion and excludes gain from sale of LLC interest of Colorado headquartered company from Colorado sales factor

Today I want to give a state taxing agency credit for doing the right thing. In this case the honors go to the Colorado Department of Revenue. This story involves a manufacturing company. It had a Colorado headquarters and two

Posted in Taxation

Virginia internet vendor challenges Massachusetts attempt to impose use tax collection responsibility on remote vendors supplying apps and cookies to Massachusetts customers

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

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

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