SALT Blog 

by Stewart Weintraub and Jennifer Weidler

New Jersey's Governor, Chris Christie, recently signed legislation enacting important changes for New Jersey's tax scheme relating to businesses.  The first bill, S2753, provides for a three year phase-in of a single-sales-factor apportionment formula. New Jerseycurrently has a three-factor apportionment formula, consisting of sales, property and payroll factors.  Beginning on January 1, 2012, the sales factor will be weighted as 70% of apportionment, while property and payroll factors will be weighted as 15% each.  During ...

by Stewart Weintraub and Jennifer Weidler

The U.S. Supreme Court's decision in Meadwestvaco Corp. v. Illinois Dept. of Revenue calls into question a recent Virginia Ruling relating to allocation apportionment. Virginia Public Document Ruling No. 11-52, 04/05/2011.  Pursuant to established case law, a state may tax an apportioned share of the value generated by a multistate enterprise's activities that form part of a "unitary business."  In Allied-Signal, Inc. v. Director, the U.S. Supreme Court enunciated the factors to be considered in establishing the existence of a ...

Some two weeks ago, we commented on the passage of House Bill No. 2403, a stand-alone version of the Amazon law that would have clearly required Amazon and other Internet retailers subject to collecting Texas sales and use tax on sales of tangible personal property if there was a link to a physical presence in Texas. Amazon had such a link via its distribution center near Dallas. A bill introduced by Rep. Harper-Brown to protect Amazon from such a requirement to collectTexas sales and use tax was buried in the House Ways & Means Committee.

On May 31, 2011, Texas Governor Rick Perry vetoed this ...

The New York Division of Tax Appeals, an Administrative Court, recently ruled in Decision DTA Nos. 822750 and 822751 on the basis of whether the auditor properly used estimated techniques to determine the amount of tax due in connection with an audit of a full-service Japanese restaurant.  The taxpayer, a full-service Japanese restaurant with small bar, was audited for the period of March 1, 2004 through November 30, 2006 in connection with sales and use tax.  The audit period was subsequently amended to include that period through May 31, 2007.  During the course of the audit, the ...

Virginia, like Texas, treats a contractor as the consumer, or the user, of materials that it purchases in order to perform construction and other contracting services.  See generally, Virginia Field Audit Guidelines. In the case of Texas, this application of this rule depends on the invoice methodology used by the contractor, i.e., whether the contractor uses a separated or completed contract. See generally, Texas Audit Procedures for Contractors and Repairmen.

In the instant case, the taxpayer fabricates and delivers to job sites various tangible personal property (“TPP” ...

 By Paul Masters

With one lone dissent, the Texas Senate passed a bill last Friday, May 13, 2011, relating to Internet retailers doing business in Texas. As previously highlighted HB 2403 attempts to settle the issue raised by the Texas Comptroller on whether Amazon is engaged in business in Texas by setting up a distribution center in Texas. The Comptroller has already estimated a $269 million assessment against Amazon. This bill states that this is a "change in law," and that it does "not affect tax liability accruing before the effective date" of the legislation, being January 1 ...

by Stewart Weintraub and Jennifer Weidler

Oregon Allows Department Discretion in Extending Time of Payment Under Installment Plans Created Pursuant to 2009 Tax Amnesty Program

Pursuant to L. 2011, S305, effective 09/29/2011, Oregon permitted its Department of Revenue ("Department") to grant extensions beyond a previously mandated date of May 31, 2011 for tax amnesty program participants utilizing an installment plan. The extension may be granted for good cause.

During 2009, Oregon conducted its first ever tax amnesty program, whereby the state attempted to encourage ...

 by William Grimsinger

On April 28, 2011, the Senate Finance Committee considered Senate Joint Resolution ("SJR") 52.  SJR 52 was introduced by Senator Steve Ogden and would amend the Texas Constitution to: (1) create an exception to the so called Bullock Amendment (which prevents a business tax from applying to the incomes of natural persons and to income distributed by certain partnerships) and (2) pass a one year constitutional bar on the margin tax from January 1, 2014 to January 1, 2015.  If the resolution is approved, the proposed amendments to the Texas Constitution ...

 By Paul Masters

By unanimous consent, the Texas House passed HB 1841 which establishes that the sole activity of placing a web page on a server of a third party in Texas does not constitute doing business in Texas. Further, the bill provides safe havens for persons providing Texas host services, by ensuring no such person has a duty to (i) examine a user’s data to determine applicability of the sales tax to a user, (ii) report to the Comptroller the user’s activities, or (iii) advise a user as to the applicability of the sales tax in Texas. The Senate is expected to pass similar ...

 By Paul Masters

On Tuesday, the Texas House easily passed HB 2403. The bill addresses the “Amazon” issue, by subjecting a person to tax if the person has a distribution center in Texas, but also expands the definition of doing business in Texas to include any person who “derives receipts from the sale” of tangible personal property in Texas. This would presumably include Amazon affiliates, an issue hotly contested by Amazon in New York and other states.

Specifically, the bill modifies the Texas Tax Code as follows:

(i) redefines "seller" and "retailer" under the Texas Tax ...