SC&H Group Blog: "Expertise Beyond the Numbers"

State & Local Tax Updates: Delaware Governor Supports Doubling R&D Credit; Illinois Real Property Update; and Maine Sales and Use Tax Exemptions

Through its content-sharing partnership with Thomson Reuters Checkpoint, SC&H Group’s State and Local Tax practice has compiled the following round up of actionable state tax news.

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AlabamaSales Tax Rates — Mount Vernon rental tax imposed.
The Alabama Department of Revenue has announced that the Town of Mount Vernon will levy a rental tax, effective June 1, 2014. The tax will be imposed at the rate of 4% for general rate items, autos, and linens. Leases or rentals made to lessees outside the town’s corporate limits but within the police jurisdiction are subject to tax at one-half the rates stated above. Town of Mount Vernon rental tax can be remitted online through My Alabama Taxes (MAT), the Department’s online filing system (http://revenue.alabama.gov/salestax/efiling.html). (Mount Vernon, Rental Tax Rates, Alabama Department of Revenue, 05/07/2014.)

AlabamaSales Tax Rates — Dale County lodgings tax.
Dale County has informed the Alabama Department of Revenue that it has levied a lodgings tax at the rate of 2% since April 1, 2014. Dale County lodgings tax should be remitted to: RDS, P.O. Box 830725, Birmingham, AL 35283-0725; phone (800) 556-7274. (Dale County, Lodgings Tax Rates, Alabama Department of Revenue, 05/07/2014.)

AlabamaSales Tax Rates — Columbiana lodgings tax.
The City of Columbiana has informed the Alabama Department of Revenue that it has levied a lodgings tax at the rate of 3% since December 1, 2005. Columbiana lodgings tax should be remitted to: RDS, P.O. Box 830725, Birmingham, AL 35283-0725; phone (800) 556-7274. (Columbiana, Lodgings Tax Rates, Alabama Department of Revenue, 05/07/2014.)

AlabamaSales Tax Rates — Trinity rate changes.
The Alabama Department of Revenue has announced that the Town of Trinity increased its sales, use, and rental tax rates, effective May 1, 2014. The sales and use tax rates for general rate items, admissions to places of amusement and entertainment, and food sold through vending machines increased to 4% from 3%. The rate for farm machinery, manufacturing machinery, and for automotive vehicles, truck trailers, semitrailers, and house trailers remains 0.750%. The withdrawal fee for automotive vehicle dealers remains $5. The rental tax rate for general rate items increased to 4% from 3%. The rental tax rate for automotive vehicles and for linens remains 0.750%. Town of Trinity sales, use, and rental taxes can be remitted online through My Alabama Taxes, the Department’s online filing system (http://revenue.alabama.gov/salestax/efiling.html). (Trinity, Sales, Use, and Rental Tax Rates, Alabama Department of Revenue, 05/07/2014.)

AlabamaSales And Use Tax — Back-to–school sales tax holiday participants.
The following localities have informed the Alabama Department of Revenue that they will participate in the 2014 back-to-school sales tax holiday being held this year from August 1 to August 3: Ashland (locality code: 9351), Choctaw County (7012), and Geraldine (9318). The following localities have informed the Department that they will not participate in this year’s sales tax holiday: Banks (9109), Brantley (9657), Brookwood (9697), Castleberry (9674), Coffee Springs (9698), Coosada (9698), Hobson City (9687), Kennedy (9332), Louisville (9361), Lynn ((9125), Marshall County (7048, 7748), Napier Field (9493), and West Jefferson (9144). A county or municipality can, by resolution or ordinance adopted at least 30 days before the first full weekend of August, provide for the exemption of covered items from county or municipal sales or use taxes during the same time period, under the same terms, conditions, and definitions as provided for the state sales tax holiday. (See RIA State and Local Taxation Service ¶ 21,997 .)

AlabamaSales And Use Tax — Mount Vernon rental tax imposed.
The Alabama Department of Revenue has announced that the Town of Mount Vernon will levy a rental tax, effective June 1, 2014. The tax will be imposed at the rate of 4% for general rate items, autos, and linens. Leases or rentals made to lessees outside the town’s corporate limits but within the police jurisdiction are subject to tax at one-half the rates stated above. Town of Mount Vernon rental tax can be remitted online through My Alabama Taxes (MAT), the Department’s online filing system (http://revenue.alabama.gov/salestax/efiling.html). (Mount Vernon, Rental Tax Rates, Alabama Department of Revenue, 05/07/2014.)

AlabamaSales And Use Tax — Dale County lodgings tax.
Dale County has informed the Alabama Department of Revenue that it has levied a lodgings tax at the rate of 2% since April 1, 2014. Dale County lodgings tax should be remitted to: RDS, P.O. Box 830725, Birmingham, AL 35283-0725; phone (800) 556-7274. (Dale County, Lodgings Tax Rates, Alabama Department of Revenue, 05/07/2014.)

AlabamaSales And Use Tax — Columbiana lodgings tax.
The City of Columbiana has informed the Alabama Department of Revenue that it has levied a lodgings tax at the rate of 3% since December 1, 2005. Columbiana lodgings tax should be remitted to: RDS, P.O. Box 830725, Birmingham, AL 35283-0725; phone (800) 556-7274. (Columbiana, Lodgings Tax Rates, Alabama Department of Revenue, 05/07/2014.)

AlabamaSales And Use Tax — Trinity rate changes.
The Alabama Department of Revenue has announced that the Town of Trinity increased its sales, use, and rental tax rates, effective May 1, 2014. The sales and use tax rates for general rate items, admissions to places of amusement and entertainment, and food sold through vending machines increased to 4% from 3%. The rate for farm machinery, manufacturing machinery, and for automotive vehicles, truck trailers, semitrailers, and house trailers remains 0.750%. The withdrawal fee for automotive vehicle dealers remains $5. The rental tax rate for general rate items increased to 4% from 3%. The rental tax rate for automotive vehicles and for linens remains 0.750%. Town of Trinity sales, use, and rental taxes can be remitted online through My Alabama Taxes, the Department’s online filing system (http://revenue.alabama.gov/salestax/efiling.html). (Trinity, Sales, Use, and Rental Tax Rates, Alabama Department of Revenue, 05/07/2014.)

ColoradoGeneral Administrative Provisions — Extension of time for filing returns—“gap” emergency regulation.
The Colorado Department of Revenue had adopted, effective for a period of 120 days from April 22, 2014, unless sooner terminated or replaced by a permanent rule, 1 CCR 201-1, Rule 39-21-112(1) (Extension of Time for Filing a Tax Return). This reissued emergency rule, which replaces an emergency rule that was originally adopted on October 17, 2013 ( State & Local Taxes Weekly, Vol. 24, No. 44, 10/28/2013) and that expired on February 14, 2014, is intended to be replaced by an identical permanent rule that will take effect on May 30, 2014 (see State & Local Taxes Weekly, Vol. 25, No. 17, 04/28/2014).

ColoradoCigarette, Alcohol & Miscellaneous Taxes — Retail marijuana excise tax—“gap” emergency regulations.
The Colorado Department of Revenue has adopted, effective from April 22, 2014, the date of adoption, until replacement by a permanent rule or 120 days from the date of adoption, emergency retail marijuana excise tax regulations 1 CCR 201-18, Rule 39-28.8-101 (Definitions), Rule 39-28.8-302 (Retail Marijuana Excise Tax), Rule 39-28.8-303 (Books and Records of Retail Marijuana Excise Tax), Rule 39-28.8-304 (Licenses, Returns, and Bonding), and Rule 39-28.8-308 (Retail Marijuana Excise Tax Procedures). These emergency regulations are identical to previously adopted permanent regulations that will take effect on May 30, 2014 (see State & Local Taxes Weekly, Vol. 25, No. 17, 04/28/2014) and are intended to avoid any gap in regulation of the substance and procedures governing retail marijuana excise tax between April 25, 2014, when previously issued emergency regulations (see State & Local Taxes Weekly, Vol. 25, No. 3, 01/20/2014) expired, and May 30, 2014.

ColoradoSales And Use Tax — Retail marijuana sales tax—“gap” emergency regulations.
The Colorado Department of Revenue has adopted, effective from April 22, 2014, the date of adoption, until replacement by a permanent rule or 120 days from the date of adoption, emergency retail marijuana sales tax regulations 1 CCR 201-18, Rule 39-28.8-101 (Definitions), Rule 39-28.8-201 (Retail Marijuana Sales Tax Procedures), and Rule 39-28.8-202 (Sales Tax on Retail Marijuana and Retail Marijuana Product). These emergency regulations are identical to previously adopted permanent regulations that will take effect on May 30, 2014 (see State & Local Taxes Weekly, Vol. 25, No. 17, 04/28/2014) and are intended to avoid any gap in regulation of the substance and procedures governing retail marijuana sales tax between April 25, 2014, when previously issued emergency regulations (see State & Local Taxes Weekly, Vol. 25, No. 3, 01/20/2014) expired, and May 30, 2014.

DelawareCorporate Income Tax — Delaware Governor supports doubling R&D credit for small businesses.
Delaware Governor Jack Markell has voiced his support for H318 which, if enacted, would double the research and development tax credit available to small businesses. Under the bill start-up companies and small companies with less than $20 million in receipts would be eligible for an R&D credit of up to 100% of the corresponding federal credit. Large companies would continue to qualify for an R&D credit of up to 50% of the federal credit. Currently, every businesses that conducts research and development in Delaware calculates the R&D credit in the same manner, whether the firm is a start-up or a multinational. (Press Release, Office of the Governor, 05/07/2014.)

DelawareCredits and Incentives — Delaware Governor supports doubling R&D credit for small businesses.
Delaware Governor Jack Markell has voiced his support for H318 which, if enacted, would double the research and development tax credit available to small businesses. Under the bill start-up companies and small companies with less than $20 million in receipts would be eligible for an R&D credit of up to 100% of the corresponding federal credit. Large companies would continue to qualify for an R&D credit of up to 50% of the federal credit. Currently, every businesses that conducts research and development in Delaware calculates the R&D credit in the same manner, whether the firm is a start-up or a multinational. (Press Release, Office of the Governor, 05/07/2014.)

GeorgiaCorporate Income Tax — Federal tax changes affecting 2013 Georgia tax returns.
The Georgia Department of Revenue has released guidelines for filing 2013 Georgia corporate income tax returns brought about by Georgia’s updated conformity with provisions of the federal Internal Revenue Code that were enacted on or before January 1, 2014. The guidelines have specific instructions on how to compute and report federal tax differences, including depreciation, net operating losses, and the allowed IRC § 179 deduction and phase out amounts. (Federal Tax Changes and How They Affect 2013 Returns, Georgia Department of Revenue, 04/01/2014.)

GeorgiaPersonal Income Tax — Federal tax changes affecting 2013 Georgia tax returns.
The Georgia Department of Revenue has released guidelines for filing 2013 Georgia personal income tax returns brought about by Georgia’s updated conformity with provisions of the federal Internal Revenue Code that were enacted on or before January 1, 2014. The guidelines have specific instructions on how to compute and report federal tax differences, including depreciation, net operating losses, and the allowed IRC § 179 deduction and phase out amounts. (Federal Tax Changes and How They Affect 2013 Returns, Georgia Department of Revenue, 04/01/2014.)

GeorgiaPartnership — Federal tax changes affecting 2013 Georgia tax returns.
The Georgia Department of Revenue has released guidelines for filing 2013 Georgia tax returns brought about by Georgia’s updated conformity with provisions of the federal Internal Revenue Code that were enacted on or before January 1, 2014. The guidelines state that the federal deduction for income attributable to domestic production activities (IRC § 199) should be entered on the addition line of the applicable return. An adjustment to the Georgia partnership or S corporation return is not required if the partnership or S corporation is not allowed the IRC § 199 deduction directly, but instead passes through the information, needed to compute the deduction, to the partners or shareholders. Further, Georgia follows the federal separate reporting treatment of the gain from asset sales for which an IRC § 179 deduction was claimed. Accordingly, the gain should not be reported directly on the S corporation or partnership return, but the gain, along with any Georgia adjustment to the gain (due to the Federal law), should be reported separately to the shareholders or partners. (Federal Tax Changes and How They Affect 2013 Returns, Georgia Department of Revenue, 04/01/2014.)

IdahoFuels And Minerals — Taxable fuels and users.
The Idaho State Tax Commission issued a publication that discusses the application of Idaho fuel taxes to retail or bulk sales of gasoline and diesel fuel. The publication covers the taxability of fuel sales to various types of fuel users, whether the fuel sold can be used in motor vehicles, and provisions governing undyed or dyed fuels. (Publication FT-2, STC, 04/25/2014.)

IllinoisReal Property — Building tax exemption separate from land.
In an administrative decision, the Illinois Department of Revenue has ruled that a taxpayer is entitled to a property tax exemption as an exempt municipality for buildings it owns even though the land is leased and remains taxable. The taxpayer filed an application for a property tax exemption with the Cook County Board of Review (Board) for five buildings on leased land, but not the underlying land. The Board recommended to the Department that the exemption be granted; however, the Department rejected the Board’s recommendation, concluding that the property was not in exempt use or ownership, and that the applicant, as a lessee, was not the owner of the property. The taxpayer contends that the buildings are exempt municipal property, even if the land is taxable property. The Department noted that the property tax code exempts “taxing district property” under ILCS Chapter 35 § 200/15-60(b) , which includes public buildings belonging to municipalities, “with the ground on which the buildings are erected.” The Department further noted that the taxpayer has proven the buildings belong to it and were used for public purposes. Finally, the Department stated that the exemption is supported by the City of Chicago v. Illinois Department of Revenue, 147 Ill 2d 484 (1992), which ruled that “there appears to be no statutory, constitutional or tax law impediment to exemption of the [buildings] separate from the underlying land.” (Village of South Holland v. The Dept. of Rev. of the State of Ill., Ill. Dept. of Rev., Office of Administrative Hearings, Dkt. No. PT 14-02, 04/08/2014.)

LouisianaSales And Use Tax — LLC created to avoid tax.
An individual was not personally liable for Louisiana sales tax on the purchase of a recreational vehicle (RV) by his limited liability company (LLC) formed under Montana law to avoid the tax. The Revenue Department failed to establish any valid factual or legal basis for assessing the individual personally and in derogation of the protections afforded to members of LLCs. The LLC was clearly listed as the buyer on the purchase agreement, and the individual signed his name on the agreement on behalf of the LLC, rather than for himself. Although the individual was the sole member of the LLC, the LLC was formed solely to avoid paying sales tax on the RV, and the RV purchase was the only business that the LLC conducted, there was no evidence of fraud, which was required to justify piercing the corporate veil to hold him individually liable for the tax. (Thomas v. Bridges, La. S. Ct., Dkt. No. 2013-C-1855, 05/07/2014.)

MaineCorporate Income Tax — Maine Seed Capital Tax Credit Program.
The Finance Authority of Maine has amended the rule concerning the Maine Seed Capital Tax Credit program. Effective May 7, 2014, Code Me. R. § 307 lowers the credit to 50% of the amount of cash invested in an eligible business; eliminates businesses that bring capital into the state as eligible; creates a new eligibility category for value added natural resource enterprises; increases the annual gross sales limits of participating companies; gives credit authority on an annualized, rather than cumulative basis, along with other minor changes.

MaineCredits and Incentives — Maine Seed Capital Tax Credit Program.
The Finance Authority of Maine has amended the rule concerning the Maine Seed Capital Tax Credit program. Effective May 7, 2014, Code Me. R. § 307 lowers the credit to 50% of the amount of cash invested in an eligible business; eliminates businesses that bring capital into the state as eligible; creates a new eligibility category for value added natural resource enterprises; increases the annual gross sales limits of participating companies; gives credit authority on an annualized, rather than cumulative basis, along with other minor changes.

MainePersonal Income Tax — Maine Seed Capital Tax Credit Program.
The Finance Authority of Maine has amended the rule concerning the Maine Seed Capital Tax Credit program. Effective May 7, 2014, Code Me. R. § 307 lowers the credit to 50% of the amount of cash invested in an eligible business; eliminates businesses that bring capital into the state as eligible; creates a new eligibility category for value added natural resource enterprises; increases the annual gross sales limits of participating companies; gives credit authority on an annualized, rather than cumulative basis, along with other minor changes.

MichiganSales And Use Tax — Effective date of use tax exemptions amended.
L. 2014, S622 (P.A. 121), effective 05/06/2014, amends the effective date of L. 2012, H5937 (P.A. 474), to make the use tax amendments in the 2012 bill effective retroactive to January 1, 2005 (originally, the bill was effective retroactive to January 1, 2006). The 2012 bill enacted a use tax exemption for property purchased or manufactured by a person engaged in the business of constructing, altering, repairing, or improving real estate for others, to the extent that the property is affixed to and made a structural part of real estate located in another state; the property is exempt regardless of whether sales or use tax was due and paid in the state where the property was affixed to real estate. The 2012 bill also provided that property eligible for an industrial processing exemption includes property affixed to and made a structural part of real estate. The 2012 bill also provided that the industrial processing exemption does not apply to tangible personal property affixed and becoming a structural part of real estate in Michigan including building utility systems such as heating, air conditioning, ventilating, etc. The 2012 bill also amended the definitions of “industrial processing” and “industrial processor” to include activity involving property that is affixed to and made a structural part of real estate located in another state and provided that paging services are subject to use tax.

MinnesotaCigarette, Alcohol & Miscellaneous Taxes — Cigarette stamp design change—due date for returns.
The Minnesota Department of Revenue has announced that it is producing a new cigarette tax stamp for regular “20 rolls.” This new stamp is similar to the one the Department used before the current Fuson Oasis stamp. Only the regular “20 roll” is being replaced. Distributors should continue to use regular pads of 1,500 stamps and native stamps. The updated stamp should be available for purchase by May 15, 2014. This stamp will cost 90¢ per 1,000 ($27 per roll of 30,000 stamps), a reduction from the current price of $2 per 1,000 stamps ($60 per roll). In addition, the Department is announcing two changes to ordering cigarette or tobacco stamps: (1) the Department’s fax number has changed to 1-(651) 556-5236; and (2) orders for stamps can now be emailed to the Department at: cigarette.tobaaco@state.mn.us. Finally, since the regular due date falls on a Sunday this month, Cigarette Tax and Tobacco Tax returns are due by May 19, 2014. (Cigarette and Tobacco Tax Update, Minn. Dept. of Rev., 05/08/2014.)

NebraskaSales And Use Tax — Revised Nebraska and local use tax forms released.
The Nebraska Department of Revenue has released two revised Nebraska and local use tax forms. Nebraska and Local Business Use Tax Return, Form 2, and Nebraska Local Individual Use Tax Return, Form 3, have been revised. Businesses that are not licensed to collect sales tax must file Form 2 to report use tax on purchases where the Nebraska and local sales taxes were not paid. Form 2 is due on or before the 20th day of the month following the tax period. Individuals report use tax on Form 3, if they do not otherwise report the use tax on their Nebraska individual income tax return, Form 1040N. Who Must File. Form 3 may be filed at any time: after each purchase, monthly, quarterly, or annually.

NebraskaSales And Use Tax — Revised Nebraska Limited Focus Examination Questionnaire issued.
The Nebraska Department of Revenue has posted a revised Nebraska Limited Focus Examination Questionnaire to its website. The Nebraska Limited Focus Examination Questionnaire is used prior to a sales and use tax examination. The Nebraska Limited Focus Examination Questionnaire includes questions pertaining to company ownership structure, locations in the state of Nebraska, type of business, sales information, such as out-of-state sales, exempt sales and invoicing, as well as purchase information and use tax reporting.

New YorkPersonal Income Tax — Dismissal of untimely refund claim proper.
The challenge to the disallowance of a claim for refund of personal income tax paid for the period April 1, 2008 through December 31, 2008 was properly denied as not filed within the applicable period of limitations. The amended withholding tax returns seeking a refund for the year 2008 based on a claim of overpayments made for 2008 were timely filed on April 21, 2009. However, by a letter dated June 3, 2009, the Division notified the taxpayer that its refund claim was denied. The taxpayer supplied additional information and, by an essentially identical letter dated October 23, 2009, the Division again notified the taxpayer that its claim for refund was denied. Each of these denial notices advised that in order to challenge the refund denial, a request for a conciliation conference must be filed within two years of the date of the denial. The taxpayer acknowledged receiving the second denial notice, dated October 23, 2009, in October of 2009. A refund denial or disallowance may be challenged by filing either a Request or a petition within two years after issuance of the notice of denial or disallowance. The taxpayer opted to file a Request challenging the refund denial and it was signed as dated on March 21, 2013, and the envelope in which it was mailed bore a machine metered postage stamp also dated March 21, 2013. However, the envelope did not bear any USPS dated postmark, and the Request is date stamped as received on May 9, 2013. Under these circumstances, where there is no USPS postmarked mailing date, the sender-affixed dates are disregarded as insufficient to establish the actual date of mailing, and the Request is deemed filed on the date it is received. Accordingly, as measured from either of the dates on which the taxpayer admitted its actual receipt of the Division’s notice of disallowance of its refund claim, the Request was not filed within the period of limitations and was properly dismissed as not timely filed. (In the Matter of the Petition of Infusiondev Corporation, NYS Division of Tax Appeals, ALJ, DTA No. 825737, 05/01/2014.)

New YorkSales And Use Tax — Estimated audit methodology proper.
An administrative law judge (ALJ) upheld the estimated audit methodology used by the Division of Taxation to determine additional sales and use taxes due from the taxpayer. The ALJ determined that the Division was entitled to resort to the use of indirect methods, including the use of an observation test, to determine the taxpayer’s sales and sales tax liability because the record established the unavailability of the required books and records. Further, the law is clear that the results of a 1-day observation test may be extrapolated over a multiple-year audit period. To determine cash sales, the Division monitored the taxpayer’s sales during a one-day audit and generated a cash-to-credit card sales ratio. The Division then estimated cash sales by applying this ratio to credit card sales, and assessed the taxpayer based on the total underreported amount. The taxpayer failed to carry its burden of showing the audit to be unreasonably inaccurate or clearly erroneous by failing to adduce any source documentation, such as sales invoices, complete purchase invoices or cash register tape records, either or audit or at hearing, that would establish the actual amount of the taxpayer’s sales throughout the audit period. (In the Matter of the Petition of Beijing China Buffet, Inc., NY Division of Tax Appeals, ALJ, Dkt. No. 824804, 05/01/2014.)

Rhode IslandReal Property — Homestead exemption.
The Rhode Island Superior Court has held that the taxpayers were not entitled to the homestead exemption for tax year 2012 because the taxpayers were not the owners of the property on the date of assessment for that year. The taxpayers purchased the property in early 2012 and contended that they fulfilled the requirements of a town ordinance by being the record owners when they applied for the exemption and by timely filing their application. The Rhode Island Superior Court determined that the taxpayers’ reliance on a town ordinance was not persuasive because the clear and unambiguous language of the ordinance merely sets a procedure and a deadline for applying for the homestead exemption; it does not purport to determine at what date the exemption is to be assessed. The Rhode Island Superior Court ruled that statutory law, R.I. Gen. Laws § 44-5-1 , was determinative of whether or not the taxpayers had a right to a homestead exemption for tax year 2012 because the statute states the date of assessment of December 31 in each year for all tax liabilities and benefits accruing to a property owner in the state of Rhode Island. Since the taxpayers were not the owners of the property on or before December 31, 2011 at 12:00 a.m., the taxpayers were not entitled to the homestead exemption for 2012. Further, the homestead exemption could not be apportioned between the taxpayer and the former owner because no statutory law allows for the apportionment of a homestead exemption. (Andrade v. Town of Lincoln, R.I. Super. Ct., Dkt. No. PC 2012-5720, 05/06/2014.)

South CarolinaSales And Use Tax — Guidance issued on sales of utility trailers.
The South Carolina Department of Revenue has issued a new ruling on the sale of utility trailers. Sales of utility trailers that are capable of being pulled by an automobile, minivan or pick-up truck, and that are not recreational vehicles, fire safety education trailers or horse trailers, are subject to the state sale and use tax at a rate of 6%, plus any applicable local sales and use tax. In addition, these utility trailers are not subject to the $300 maximum sales and use tax cap. S.C. Code Ann. § 12-36-2110(A) establishes a maximum sales and use tax cap of $300 for each sale or lease of each of the following trailers and semitrailers: (1) recreational vehicles, including tent campers, travel trailers, park trailers, and fifth wheels; (2) trailers or semitrailers capable of being pulled only by a truck tractor (this does not include house trailers or campers as defined in S.C. Code Ann. § 56-3-710 ); (3) fire safety education trailers; and (4) horse trailers. Finally, local taxes administered and collected by the Department on behalf of local jurisdictions do not apply to the sale or lease of tangible personal property subject to a maximum tax. If the $300 maximum sales and use tax cap does not apply to the sale of a particular type of trailer or semitrailer, then the sale of that trailer or semitrailer is subject to any applicable local sales and use tax. ( South Carolina Revenue Ruling 14-2, 05/06/2014 .)

WisconsinGeneral Administrative Provisions — My Tax Account, TeleFile and e-file outages.
The Wisconsin Department of Revenue has announced that My Tax Account, TeleFile, and Wisconsin e-file applications will be unavailable Sunday, May 11, 2014, from 5:00 a.m. – 12:00 noon, because of system maintenance. These times are approximate. Messages will also be posted on the launch pages for all applications. ( Wisconsin News for Tax Practitioners 05/07/2014, 05/07/2014 .)

WisconsinReal Property — Valuation of warehouse/distribution complex.
The circuit court erred by denying the taxpayer summary judgment as to the 2007 and 2009 assessments of the taxpayer’s property, which contained two warehouse distribution buildings as well as two office buildings, an activities center, and a day care center (hereafter, office buildings), because issue preclusion barred the parties from re-litigating the 2006 fair market value set at $25 million by a circuit court in a previous action. Issue preclusion applies because the city assessor testified that he relied on the 2006 appraisal and value in setting the property’s assessment for 2007 and 2009, and it was undisputed that the value of the property remained essentially the same between 2006 and 2009. Issue preclusion did not require the 2010 value to be set at the 2006 level because the assessor did not start with the 2006 appraisal, but relied on new appraisals and information. The circuit court properly weighed competing testimony in adopting the city’s appraiser’s values for the warehouse/distribution buildings and the taxpayer’s appraiser’s value for the remaining buildings in arriving at a fair market value of $34,716,600 for the 2010 assessment. The taxpayer failed to show that the city’s appraiser’s value represented the value in use or intrinsic value rather than the fair market value of the property. The city failed to show that the circuit court erred in using the taxpayer’s appraiser’s lower, blended value for the non-warehouse/distribution property, given that the evidence showed there was no independent market demand for the office buildings. Finally, the circuit court lacked discretion to deny the taxpayer’s request for statutory interest on the 2007 property tax refund under Wis. Stat. § 74.37(5) , because once a claimant includes interest in its claim, any refund must include interest at the interest rate and from the starting date prescribed by the statute. (Lands’ End, Inc. v. City of Dodgeville, Wis. Ct. App., Dkt. Nos. 2013AP1490; 2013AP1491; 2013AP1492, 05/08/2014 (not for publication).)

 

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