Tax Headlines

1827

New Jersey ~ Property Tax: Homestead Reimbursement Denied

The denial of an 85-year-old disabled taxpayer’s application for a New Jersey homestead property tax reimbursement for tax year 2010 was upheld because she did not pay her property taxes in full by June 1, 2011, as mandated by statute. The taxpayer acknowledged that the taxes on her property were not paid in full by the deadline but testified that due to a knee injury and rehabilitation, she was physically unable to pay her bills. According to the Director of the New Jersey Division of Taxation’s interpretation of the law, a taxpayer is not eligible for a homestead property tax reimbursement unless all taxes due for the relevant year are paid by June 1.

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Kentucky ~ Property Tax: Land Owned by Nonprofit Industrial Corporation Not Exempt

The Kentucky Supreme Court ruled that a 100-acre parcel owned by Prestonsburg Industrial Corporation (PIC) did not qualify for exemption from property taxes as property belonging to a purely public charity within the meaning of Kentucky Constitution §170. PIC was founded by a group of local businessmen, as a private nonprofit corporation, to attract business and industry to Prestonsburg for economic development.

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Texas ~ Sales and Use Tax: Amazon.Com Agrees to Collect Texas Sales Tax Beginning July 1, 2012

Online retailer Amazon.Com will begin to collect and remit Texas sales tax on July 1, 2012, pursuant to an agreement reached between the company and Texas Comptroller of Public Accounts Susan Combs. Under the agreement, Amazon also plans to create at least 2,500 jobs over the next four years and make at least $200 million in capital investments in the state.

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Idaho ~ Personal Income Tax: Legislative Immunity Did Not Toll Limitations Period for Filing Appeal

The Idaho Supreme Court ruled that Section 7 of the Idaho Constitution (Immunity Clause) did not grant an Idaho legislator privilege from the limitations period to timely file an appeal of a personal income tax deficiency assessment. Consequently, because the taxpayer legislator failed to timely file his appeal, the lower court did not have subject matter jurisdiction to hear the appeal.

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CCH Weekly Report from Washington, D.C.

A bill introduced in the Senate during the week of April 23 would make S corporations with three or fewer employees liable for payroll taxes, Congressional hearings were held on the treatment of state and local governments, improving return preparation and business tax incentives. Meanwhile, the IRS released a number of pieces of guidance, including proposed regulations on the disclosure of return information and local lodging expenses and final regulation on gain recognized on the receipt of a distribution of property from a foreign corporation.

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Washington ~ Business and Occupation Tax: Wireless Company’s Billing of B&O Surcharge Impermissible

In a case involving the conditions under which a business may collect business and occupation (B&O) tax from consumers, the Washington Supreme Court ruled that a seller of wireless telephone services may not recoup its B&O taxes where, prior to the sale of a monthly service contract, the seller discloses that in addition to its monthly service fee, it collects a surcharge to cover gross receipts taxes. Regardless of disclosure, the wireless company’s practice of adding a surcharge on to its monthly service fee was not permitted under RCW 82.04.500.

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Oklahoma ~ Corporate, Personal Income Taxes: Rate Decrease and Credit, Deduction, Exclusion, and Exemption Repeals Passed by Senate

The Oklahoma Senate has passed legislation, known as the Oklahoma Tax Reduction and Simplification Act, that would decrease the top personal income tax rates. If enacted, for the 2013 and 2014 tax years the top personal income tax rate would be reduced from 5.25% to 3.5%. For the tax years beginning after 2014, the personal income tax rates could be decreased in increments of twenty-five hundredths (0.25) per tax year, contingent upon revenue growth until the tax was eliminated.

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