|
|
Tax Developments
December 04, 2007
In an unprecedented, yet expected, move, the Michigan Legislature reversed an action taken two months ago. The Michigan Use Tax, on certain enumerated services, has been repealed, effective 5:10 p.m., Saturday, December 1, 2007.
>More
November 13, 2007
The Supreme Court of Arkansas (“Court”) held on September 27, 2007, that legal opinions issued by the Arkansas Department of Finance and Administration relating to Arkansas sales taxes, issued under Gross Receipts Tax Rule GR-75, are public records that must be disclosed under Arkansas Code Ann. § 25-19-103(5)(A) (Supp. 2005) with any and all facts that could identify a person or entity fully redacted.
>More
October 31, 2007
On September 25, 2007, the U.S. Supreme Court granted certiorari in the case of MeadWestvaco Corp. v. Illinois Department of Revenue1, a case concerning $1 billion in capital gains realized by the petitioner when it sold the assets of a wholly-owned subsidiary in 1994, which had functioned as an independent and separately managed business for more than 25 years.
>More
August 29, 2007
The Comptroller has decided not to file a Petition for a Writ of Certiorari with the United States Supreme Court, which would have been due on August 29, 2007. As a result, the Court of Appeals’ Opinion in Home Interiors is now final.
>More
July 18, 2007
The recently concluded 94th legislative session produced 12 major tax bills signed by Missouri Governor Matt Blunt. The bills include: Senate Bills 22, 30, 81, 86, 162, 233, 406, 497, and 577; and House Bills 444, 453, and 741.
>More
July 18, 2007
On July 2, 2007, the Michigan Legislature passed the long-awaited replacement tax for the Single Business Tax (SBT), which is due to be repealed on December 31, 2007. There are five bills related to this effort: Senate Bill 94 and House Bills 4369, 4370, 4371, and 4372. The bills enact a new tax to be called the Michigan Business Tax (MBT) and will provide substantial personal property tax relief to Michigan businesses.
>More
June 22, 2007
Beginning July 1, 2007, sales of electricity and natural gas to a manufacturer for direct use in the manufacturing process will be taxed at a reduced rate of four and one-half percent (4.5%) through June 30, 2008 (Act 185 of 2007). Beginning July 1, 2008, the state tax rate will be four percent (4%). Local tax rates will remain as levied by the local governments and are not subject to any reductions.
>More
June 20, 2007
For the first time, House Bill 3 will subject many non-corporate business entities, such as limited partnerships, limited liability partnerships, grantor trusts, and general partnerships owned by corporations, to the new Franchise Tax (a.k.a. Margin Tax) effective for reports due on or after January 1, 2008. If one of these entities becomes subject to the Margin Tax on January 1, 2008, its accounting year for computing the new tax can begin as early as June 1, 2006, if it is a fiscal-year taxpayer, or January 1, 2007, if it is a calendar-year taxpayer.
>More
June 20, 2007
The recently concluded 80th legislative session effected several major tax bills signed by Texas Governor Rick Perry prior to the June 17, 2007 constitutional deadline for gubernatorial action on legislation adopted during session.
>More
June 07, 2007
The 19th Judicial District Court confirmed the Louisiana Board of Tax Appeals' (“Board”) decision on prescription for a chemical plant in Louisiana in Formosa Plastics Corporation, Louisiana v. Secretary, Cynthia Bridges, Department of Revenue.
>More
May 31, 2007
The Texas Legislature made important changes to the state’s new Margin Tax before adjourning its 80th legislative session on May 28, 2007. Beyond the Margin Tax corrections, the Legislature’s work this session on tax matters was marked more by what it rejected than what it passed.
>More
May 31, 2007
Iowa Governor Chet Culver signed the Iowa Tax Amnesty Act of 2007 aimed at collecting delinquent taxes owed by Iowa taxpayers. The Tax Amnesty Program (“Program”) will run from September 4, 2007 through October 31, 2007, during which time taxpayers can pay past due taxes in full and receive waiver of penalty and pay one-half of regular interest charges normally assessed and will not be subject to civil penalties or criminal prosecution.
>More
May 17, 2007
On May 1, 2007, the Texas Third Court of Appeals ("Court") reversed the Travis County District Court's grant of the taxpayer's Motion for Summary Judgment, which held that the independently procured insurance tax (IPIT) is invalid because it violates the McCarran-Ferguson Act (15 U.S.C.A. Sec. 1011-15).
>More
May 04, 2007
The Texas Franchise Tax (a.k.a. Margin Tax) “Technical Corrections” bill was passed by the Texas House of Representatives (the "House") on May 2, 2007 and is now on its way to the Senate. The new Margin Tax, which is effective for tax returns filed in 2008, is based on deducting the taxpayer’s choice of either cost of goods sold (COGS) or compensation from total revenue.
>More
May 01, 2007
The Court of Appeals of Georgia (“Court of Appeals”) reversed the trial court’s decision and ruled in favor of Owens Corning in Owens Corning v. Georgia Department of Revenue.
>More
April 25, 2007
Texas Comptroller of Public Accounts Susan Combs (“Comptroller”) launched Project Fresh Start, an amnesty program aimed at collecting delinquent taxes owed by Texas businesses. The amnesty program will run from June 15, 2007 to August 15, 2007, during which time taxpayers can pay past due taxes in full and receive waiver of penalty and interest charges normally assessed.
>More
March 30, 2007
The Texas Legislature is considering three bills that would significantly affect the ability of a business to qualify for sales and use tax refunds under the state’s Enterprise Zone Program.
>More
March 27, 2007
On March 9, 2007, the Texas Supreme Court denied the Comptroller's petition for review. The Third Court of Appeals found that the earned surplus throwback provision of the Texas franchise tax unconstitutionally burdens interstate commerce as a result of unfairly apportioning the tax base. See Home Interiors & Gifts, Inc. v. Strayhorn, 175 S.W.3d 856 (Tex. App.--Austin 2005, pet. denied).
>More
March 12, 2007
The much anticipated Texas Franchise Tax (a.k.a. Margin Tax) “Technical Corrections” bill was filed on March 9, 2007. The new Margin Tax, which is effective for tax returns filed in 2008, is based on deducting the taxpayer’s choice of either cost of goods sold (COGS) or compensation from total revenue.
>More
March 09, 2007
During his 2007 budget address on March 7th, Governor Blagojevich announced his intention to impose new taxes on businesses, estimated to raise $7 billion, to fund a comprehensive health care plan labeled “Illinois Covered.”
>More
February 19, 2007
Recently, the Texas Comptroller of Public Accounts (Comptroller) transferred the administrative law judges (ALJs) from her office to a separate agency, the State Office of Administrative Hearings (SOAH). As an immediate consequence, oral hearings scheduled for January and February have been postponed pending the development of new procedures and rules to govern the administrative hearings process. We expect the delayed hearings to be rescheduled in the near future.
>More
January 23, 2007
As the Texas Legislature opened its 80th session, business taxes are once again at the top of its agenda. Over the next five months, lawmakers are expected to consider numerous clarifications and revisions to the new franchise tax adopted last spring, residential property tax reforms, and other proposals, including one to authorize private companies to collect some taxes.
>More
January 17, 2007
Effective January 3, 2007, the Texas Comptroller of Public Accounts (Comptroller) transferred the administrative law judges to the State Office of Administrative Hearings (SOAH). Comptroller Susan Combs announced that removing the judges from the umbrella of her office would ensure that they remain independent, fair, and impartial when presiding over tax hearings.
>More
The Ryan Tax Gateway ® is a free service provided to tax
professionals. Ryan disclaims responsibility for applying the information
contained on these sites to any specific set of facts. For questions and
suggestions, please e-mail
info@ryan.com.
|
|