Tax Headlines

1827

Virginia ~ Corporate Income Tax: Activities of Prescription Drug Developer Not Protected Under P.L. 86-272

For corporate income tax purposes, an out-of-state partnership that develops and manufactures prescription drugs (the taxpayer) was determined to be conducting some activities in Virginia that exceeded the protections afforded under P.L. 86-272, including activities that would occur during product manufacturing and testing, providing expertise in post-sale situations, tracking relevant state and federal compliance guidelines and regulations, and certain activities aimed at gaining approval as to the safety and effectiveness of a drug.

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Ohio ~ Multiple Taxes: General Assembly Approves Bill to Impose New Tax on Financial Institutions

The Ohio General Assembly has approved a bill that would, among other things, impose a new tax on financial institutions, effective January 1, 2014. As previously reported, the bill would also eliminate the existing dealers in intangibles tax and impose the existing commercial activities tax on dealers in intangibles except dealers that are “small dollar lenders” or affiliates of financial institutions; small dollar lenders and most dealers affiliated with financial institutions would become subject to the new tax.

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Massachusetts ~ Sales and Use Tax: Amazon Agrees to Collect Tax

Massachusetts Gov. Deval Patrick and Amazon have announced that Internet seller Amazon will collect and remit sales tax in Massachusetts starting next fall. According to the governor’s press release, the Patrick-Murray administration continues to support federal legislation allowing states to require remote sellers, including Internet retailers, to collect and remit sales tax.

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