The SALT Shaker – June 2016

June 1, 2016

By Keith Habel, CPA
Partner, SALT Practice Leader


Farm Machinery and Equipment Exemption:  Farm machinery and equipment used primarily for production agriculture at least 60% of the time qualified for exemption from use tax. Administrative Hearing Decision No. UT16-03 and Administrative Hearing Decision No. UT 16-04.

Taxpayer Personally Liable for Entity’s Unpaid Taxes: Taxpayers responsible for a business’ sales tax may be found liable for the entity’s unpaid tax if found competent of the obligations and is found negligent.  Administrative Hearing Decision No. ST 16-03


Environmental Protection Charge Expiration Date Change: The expiration date of the one cent per gallon Environmental Protection charge was set to expire June 30, but has been scheduled to be repealed December 31, 2016. EPC Notice and House File 2464

Farm Equipment not Eligible for Capital Gain Deduction: State law treats capital gains and losses the same as federal law. Crispin v. Iowa Department of Revenue


Remote Sellers Required to Collect Sales Tax: Retailers doing business in Oklahoma without a physical presence must register, collect and remit OK sales and use tax to instate customers. Some retailers who register by May 1, 2017 may be protected from penalties for previous unpaid tax. Sales tax may be collected at point of purchase or through annual notice at year’s end. House Bill 2531

South Carolina

Draft Ruling on Nexus-Creating Activities Issued: The South Carolina Department of Revenue has released a draft revenue ruling discussing varying topics from licensing of intangibles to internet-based activities. There are some aggressive positions of the draft that would create nexus for many out-of-state businesses. SC Revenue Ruling #16-xx


Hall Income Tax to be Eliminated: A bill signed into law in Tennessee will gradually reduce and eliminate income tax on interest and dividends by 2022.  Senate Bill 47


Independent Contractor Establishes Nexus: An out-of-state taxpayer establishes nexus due to hiring third-party independent contractors who directly served the taxpayer’s clients which constituted payroll and exceeded the necessary threshold for nexus. Determination Letter No. 15-0202


Updated Sales and Use Tax Publications: The Wisconsin Department of Revenue has updated the following sales and use tax publications: #233 Newspaper Publishers, #234 Printers and #240 Digital Goods. Publications 233, 234 and 240

For more information or assistance on state and local tax (SALT), call 888-556-0123, email or submit our online form.

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