Tax Headlines


Alabama ~ Sales and Use Tax: Online Travel Companies Not Subject to Lodgings Taxes

The Alabama Supreme Court affirmed a trial court’s order holding that a group of online travel companies (OTCs) were not subject to Alabama state or local lodgings taxes because the OTCs were not engaged in the business of renting or furnishing hotel rooms. Specifically, the Alabama Supreme Court adopted the trial court’s order in its entirety as its opinion.

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Senate Rejects “Buffett Rule”

The Senate on April 16 rejected, by a 51-to-45 margin, a procedural motion with a 60-vote threshold to take up a Democrat-backed bill (the Paying a Fair Share Bill of 2012 (Sen 2230)) that would levy a minimum 30-percent tax rate on the adjusted gross incomes of households earning more than $1 million annually.

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Idaho ~ Property Tax: Pre-Tax Repossession and Sale of Property by High-Value Security Interest Holder Addressed

Recently enacted Idaho legislation addresses a taxpayer’s repossession and sale of personal property before the payment of the applicable tax where the taxpayer holds a high-value purchase money security interest. Specifically, if a taxpayer holding a purchase money security interest wants to repossess and sell a specific piece of personal property, and the market value of that personal property exceeds $20,000, then that taxpayer must provide the local tax collector with a request to segregate that specific piece of personal property from the rest of the taxpayer’s taxable personal property.

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Nebraska ~ Corporate Income Tax: Sourcing of Sales for Apportionment Amended

Newly enacted legislation amends the apportionment sourcing rules for sales of property other than tangible personal property applicable to the Nebraska corporate income tax purposes. Under the current law, sales of property other than tangible personal property are Nebraska sales if the corporation performed the income-producing activities which gave rise to the sales in the state. If the corporation performed the activity both in and out of Nebraska, the sale is a Nebraska sale if a greater proportion of the activity was performed in Nebraska than in any other state based on the costs of performance. Amendments to the sourcing rules are outlined below.

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