KPMG reports: Indiana, Missouri, Washington

KPMG reports: Indiana, Missouri, Washington

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 the following topics (listen to the podcasts; to read text, click on the links below).

  • Indiana - Corporate tax legislation (Senate Bill 441) was signed into law on May 6, 2015, and amends a number of provisions under Indiana’s corporate income tax laws including a revised definition of “business income” and changes to the throwback rule.
  • Indiana - The Department of Revenue issued a ruling that granted a taxpayer’s request to use an alternative, market-based sourcing methodology to source its receipts from providing a variety of health and insurance-related services and that the “nowhere” service receipts were not subject to the throwback rule.
  • Missouri - Newly enacted legislation amends the rules on sourcing service and intangible receipts and provides: (1) a sale of other-than- tangible personal property is considered to be in Missouri if the taxpayer’s market for the sale is in Missouri; (2) receipts from the sale of a service are attributed to Missouri if the ultimate beneficiary of the service rendered by the taxpayer or the taxpayer’s designee is located in Missouri; (3) receipts from rented, leased, licensed or sold intangible property are generally sourced to Missouri if the intangible property is used in Missouri; and (4) all other receipts from intangible property that are not specifically addressed will be excluded entirely from the numerator and the denominator of the sales factor.
  • Washington - The Appeals Division of the Washington Department of Revenue issued a ruling that concludes that a taxpayer providing web- hosting services to Washington customers had nexus for business and occupation (B&O) tax purposes, and that questions of the constitutionality of Washington’s economic nexus rule presented an issue for the courts to decide.

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