KPMG reports: California, Maryland, Oregon

KPMG reports: California, Maryland, Oregon

KPMG’s This Week in State Tax—produced weekly by KPMG’s State and Local Tax practice—focuses on recent state and local tax developments and features a series of short podcasts presented by KPMG tax professionals. Text of the podcasts is also available.

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This week’s edition includes discussions of the following topics (listen to the podcasts; to read text, click on the hyperlinks provided below).

California - The Franchise Tax Board issued guidance addressing when payments received with respect to cost sharing arrangements are gross receipts for purposes of the sales factor, and concluding: (1) platform contribution transaction payments will be treated as gross receipts for purposes of the California sales factor; but (2) cost sharing transaction payments will not be treated as gross receipts unless they exceed the costs being reimbursed.

California - The Board of Equalization released a report estimating that approximately $122.6 billion in new revenue could be generated if California imposed sales and use tax on currently non-taxable services. The estimate was based on an analysis of 15 categories of service industries, including health care, agriculture, construction, real estate, finance, transportation and warehousing, and various professional services.

Maryland - A new tax amnesty period applies from September 1, 2015, through October 30, 2015, and qualifying taxpayers may be eligible for a waiver of civil penalties and of half of the amount of interest otherwise due on unreported taxes, underreported taxes, and unpaid tax liabilities.

Oregon - The Oregon Supreme Court held that electricity is tangible personal property, and addressed application of ultimate destination test.

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