State Tax Headlines

1789

New York ~ Sales and Use Tax: Exemption for Clothing and Footwear Costing Less Than $110 Restored

The New York Department of Taxation and Finance has issued a memorandum reminding taxpayers that beginning April 1, 2012, clothing, footwear, and items used to make or repair exempt clothing sold for less than $110 (per item of clothing or per pair of footwear) will be exempt from the state’s 4% sales and use tax. The exemption will also apply to the 3/8% state sales tax in those localities in the Metropolitan Commuter Transportation District (MCTD) that provide for the exemption from their local sales tax.

read more

Tennessee ~ Multiple Taxes: 2011 Return and Payment Due Date Extended to April 17

The Tennessee Department of Revenue has announced that returns and payments of franchise and excise tax, Hall income tax, and gift tax normally due April 15, 2012, will be due April 17, 2012, due to the federal observance of Emancipation Day on April 16, 2012. (TAXDAY, 2012/02/02, S. 28) Legislation enacted in 2011 permits the due dates to be extended when the due date falls on any federal holiday recognized by the Internal Revenue Service.

read more

New Jersey ~ Corporate Income Tax: Telecommuting Employee Established Sufficient Nexus

A Delaware corporation with offices in Maryland that regularly and consistently permitted one of its employees to telecommute full-time from her New Jersey residence was doing business in New Jersey, was subject to the corporation business tax (CBT), and was required to file CBT returns. The employee developed and wrote software code from a laptop computer from her residence in New Jersey and then uploaded it to a repository on the company’s computer server in another state.

read more

Arizona ~ Corporate, Personal Income Taxes: Renewable Energy Production Tax Credit Rules Adopted

The Arizona Department of Revenue has adopted new rules relating to the corporate and individual income tax credits for renewable energy production. The new rules specify the types of information that must be included on initial and renewal applications, require that copies of invoices or receipts be made available to the department upon request, and note that an owner must submit separate applications for each qualified energy generator.

read more

Kansas ~ Personal Income, Sales and Use Taxes: Late Filing Fees Waived for Businesses Impacted by Tornado

The Kansas Department of Revenue has announced that in light of the recent tornado in the city of Harveyville, the department will waive late filing fees associated with withholding tax and state sales tax liabilities for businesses in Harveyville and Wabaunsee County that were affected by the weather and that file these taxes late. Businesses not affected by the storms are required to file monthly state sales and withholding taxes on time. Businesses needing replacement copies of their tax returns can call the department at (785) 368-8222 for free replacements.

read more

California ~ Personal Income Tax: Update Provided on Nonconformity to Self-Employment Tax Deduction

The California Franchise Tax Board (FTB) has announced that self-employed taxpayers who have already filed a California personal income tax return for 2011 using the higher federal self-employment tax deduction rate do not need to file an amended California return. This is a change from the FTB’s original guidance, which stated that previously filed returns had to be amended. As previously reported, California does not conform to the increased federal deduction percentage for 2011 and 2012. (TAXDAY, 2012/03/01, S.4)

read more

Virginia ~ Sales and Use Tax: Senate Agrees to Substitute Bill to Require Tax Collection for Online Retailers With In-State Distribution Facilities

The Virginia Senate has agreed to a substitute bill passed by the House of Delegates that would create a presumption that a dealer has sufficient activity within Virginia to require it to register for the collection of retail sales and use taxes if any commonly controlled person maintains a distribution center, warehouse, fulfillment center, office, or similar location within Virginia that facilitates the delivery of tangible personal property sold by the dealer to its customers.

read more