Tax Developments
April 24, 2008
Texas Comptroller Grants Taxpayers Additional Time to File Annual Franchise Tax Reports and Extensions.
The Texas Comptroller of Public Accounts (“Comptroller”) announced today that businesses who
are unable to file their annual franchise tax returns or extensions by the May 15, 2008 due date
will have an additional 30 days to file the returns or extensions without penalty.
More >>
April 4, 2008
Georgia Court of Appeals Exempts Shielding Gases Used Directly in Manufacturing.
In a recent decision by the Georgia Court of Appeals (“Court of Appeals”) in
Ethicon,
Inc. v. Georgia Department of Revenue, Court of Appeals of Georgia, Nos. A07A2024 and
A07A2025 (March 25, 2008), purchases of shielding gases by a medical supply manufacturer
were exempt from sales and use taxes under Ga. Code Ann. § 48-3-8(35)(A)(ii).
More >>
March 19, 2008
Texas Comptroller Addresses Reporting Requirements for Nontaxable Entities.
In the February 2008 edition of
Tax Policy News,
the Texas Comptroller of Public Accounts (“Comptroller”) addressed the reporting
requirements for nontaxable entities.
More >>
March 18, 2008
Texas Comptroller of Public Accounts Releases Revised Franchise Tax Report Forms.
The Texas Comptroller of Public Accounts (“Comptroller”) has released the final report forms and instructions
needed to prepare annual reports under the revised Texas Franchise
Tax, which are due on May 15, 2008.
More >>
March 11, 2008
Alabama Administrative Law Decision Rules Out-of-State Company’s Sale of Stock Not Apportionable to the State Despite Nexus with Alabama.
In a recent Administrative Law Judge (ALJ) decision from Alabama, it was concluded that the
gain from the sale of a 1/3 stock interest in a European company, by an Illinois-based
company, was not apportionable to the state, despite the company having nexus in Alabama.
More >>
February 27, 2008
California Court of Appeals Affirms Annual LLC Fee an Unconstitutional Tax.
In a recent decision, the California Court of Appeals (the "Court") affirmed a trial court decision that
California’s annual levy on limited liability companies (LLCs) imposed under Revenue and
Taxation Code, Section 17942 was in fact a tax and, as imposed on an LLC based outside the state,
violated the Commerce Clause of the U.S. Constitution.
More >>
February 6, 2008
Washington, D.C. Council Adopts Small Business Commercial Property Tax Relief Act.
The Washington, D.C. Council ("the Council") has been trying to help small businesses stay in the District despite the
unrelenting pressure on their profitably due to increased operating costs. One of the
primary causes of their declining profitability has been increased property taxes.
More >>
January 23, 2008
Texas Comptroller Announces a Revised Due Date for Certain Initial Texas Franchise Tax Reports.
On January 18, 2008, the Comptroller of Public Accounts of the State of Texas (the “Comptroller”)
announced a revised due date for initial Texas franchise tax reports originally due from January 1, 2008
through April 30, 2008. The revised due date for all such returns is now May 1, 2008.
More >>
January 18, 2008
Texas Margin Tax Cost of Goods Sold Capitalization: A Review of New Texas Policy Letter Ruling 200801034L.
The Comptroller of Public Accounts of the State of Texas (the “Comptroller”) reconsidered its policy
of requiring taxpayers who elect to capitalize cost of goods sold (COGS) to assign a value of
zero to their beginning inventory for purposes of computing the COGS deduction for report year 2008.
The Comptroller’s new policy will allow said taxpayers to include their beginning inventory in the
COGS computation.
More >>