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Tax Developments
December 22, 2005
On December 9, 2005, the U.S. Court of Appeals for the District of Columbia Circuit
affirmed the District Court's judgment in National Passenger Corp. vs. United States,
D.C. Cir., No. 04-5421, 12/9/05. The Court of Appeals agreed that the 3% Federal
Excise Tax is not due upon telephone calls for which the toll charge only varies by
time, and not by distance. The vast majority of toll telephone calls made today
are billed only upon the basis of the duration of the call and not upon the
distance between the individuals participating in the call. >More
December 14, 2005
Effective January 1, 2006, Wisconsin Statute § 77.54 (30)(a)(6) provides that "fuel and
electricity consumed in manufacturing tangible personal property" shall be exempt from
sales and use tax. This exemption, enacted by 2003 legislation, replaces the existing
manufacturers' income tax credit for sales and use tax paid on fuel and electricity. >More
December 09, 2005
On December 5, 2005, the petition for a writ of certiorari was denied by the United States
Supreme Court for Kirkwood Glass Company v. Missouri Director of Revenue, Docket Number 05-452.
The court's refusal to review the case affirms the denial of a taxpayer's refund claim by the
Missouri Supreme Court holding that Missouri's statutes permitting local use taxes are
constitutional. The taxpayer, Kirkwood Glass, had sought a refund on the basis that its
purchases from out-of-state suppliers were taxed more heavily than purchases from certain
in-state suppliers. >More
October 10, 2005
Interest is paid on refunds of tax collected by the Texas Comptroller of Public
Accounts only if the tax was paid on a report due beginning January 1, 2000.
Prior to this date, no interest was paid on such tax refunds. The rate of interest
paid on refunds was previously linked to the rate charged on delinquent taxes, which
is included in Texas Tax Code § 111.060. >More
October 04, 2005
On September 27, 2005, the petition for a writ of certiorari was granted
by the United States Supreme Court for the DaimlerChrysler Corp., et al. v.
Cuno, Charlotte, et al. enjoined with Wilkins, Tax Commissioner, OH, et al.
v. Cuno, Charlotte, et al. (collectively "Cuno"). >More
September 27, 2005
On September 22, 2005, the Third District Court of Appeals (the "Court") issued a substitute Opinion in Home Interiors & Gifts, Inc. v. Strayhorn, No. 03-04-00660-CV, 2005 Tex. App. LEXIS 7788 (Tex. App.--Austin September 22, 2005) reversing the district court's grant of summary judgment in favor of the Comptroller. The Opinion was issued as a result of the grant of the taxpayer's Motion for Rehearing filed in response to the original Opinion issued July 28, 2005.
>More
August 25, 2005
Use taxes are generally imposed upon the use or consumption of an item in the state. The following article is a compilation of state tax cases which argue the taxability of the use tax imposed for the use of raw materials that were purchased outside of the state, manufactured into components outside of the state, and subsequently brought into the taxing state for use or further processing by the taxpayer.
>More
August 07, 2005
On July 28, 2005, the Third District Court of Appeals (the "Court") issued an
Opinion in Home Interiors & Gifts, Inc. v. Strayhorn, No.
03-04-00660-CV, 2005 Tex. App. LEXIS 5908 (Tex. Ct. - App. July 28, 2005)
reversing the district court's grant of summary judgment to the Comptroller.
The primary issue involved is whether the earned surplus throwback provision of
the Texas franchise tax unconstitutionally burdens interstate commerce as a
result of unfairly apportioning the tax base. >More
July 19, 2005
On February 8, 2005, during Ohio Governor Bob Taft's State of the State address
"Unleashing Ohio's Economic Potential," he called for "tax reform" and stated
that it was his "number-one priority." He went on to address the fact that Ohio
cannot be competitive with surrounding states under its current tax structure
and stated "Ohio's corporate tax is a nightmare. And we've got to fix it." >More
May 12, 2005
Governor Mitch Daniels signed House Enrolled Act 1004 on May 12, 2005,
authorizing the Indiana Department of Revenue ("IDOR") to establish a tax
amnesty program providing for the waiver of unpaid interest, penalties, and
fees upon payment of unpaid listed taxes for tax periods ending before July 1,
2004. As a result, the IDOR is offering a tax amnesty period from September 15,
2005 to November 15, 2005. >More
March 01, 2005
"…the case focuses on the discrimination against interstate commerce which may occur
if a Missouri purchaser makes an out-of-state purchase taxed at a higher rate than a
purchase from in-state…" "the courts will be asked to decide if Missouri's new
local use tax…violates the U.S. Constitution…"
(Tax Talk Article in The Asset,
April, 30, 1992, "Missouri's new local use tax faces constitutional challenge") >More
January 19, 2005
The recently announced California Amnesty Program is not just the typical opportunity
for non-filers to clean up outstanding liabilities. It is a double-edged sword that
can impact every company doing business in the state. Every company doing business in
California should carefully evaluate whether an amnesty filing is in their best interest.
Decisions must be made quickly, as the amnesty application period ends March 31, 2005. >More
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