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A State & Local Tax Newsletter For Clients & Friends Of The Firm Tuesday, Apr 29, 2008

Sales Tax Rate Changes
4/21/2008 - 4/25/2008
4/21 Mon No Changes
4/22 Tue No Changes
4/23 Wed
4/24 Thu No Changes
4/25 Fri No Changes

Sales Tax Webinars

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Upcoming Dates
Apr 30

CPE Certified Webinars

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Whiplash in Ohio

On April 25, the Ohio Department of Taxation issued a press release about a recent bill signed by the Governor switching back to sourcing sales at the origin instead of destination. You may recall that Ohio switched to destination sourcing back in 2006 in an effort to become a full member of the Streamlined Sales Tax Project (SSTP). The SSTP is a multi-state effort to simplify and standardize sales tax rules across state lines. For years, the multistate group required states to move to destination sourcing in order to become full members. Ohio got on board and passed their law to change to destination sourcing. This caused a big problem for delivery sellers like furniture and appliance stores. Suddenly all of them had to put in systems to charge tax based on the tax rate of the delivery.

Now, last summer, in response to concerns from small businesses (according to the press release), the Ohio General Assembly put the shift to destination sourcing of delivery sales on hold. Later, in December, the Governing Board of the Streamlined Sales Tax Project decided to allow "origin states" to become a full member of the organization starting in 2010 as long as at least four other "origin states" are also ready to become full members. So now, Ohio has moved back into the origin camp. Blog Post

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State Tax In The News

Texas Offers 30-Day Extension on Margin Tax Filing

In a Press Release, issued by Texas Comptroller Susan Combs, dated, April 22, 2008 it was announced that businesses unable to meet the May 15 due date for the revised franchise tax, also referred to as the business margin tax, are being granted a 30-day extension to submit their returns or file an extension without penalty.     Read More

Air is TPP in Ohio

Last week I had a piece about how a number of states are beginning to define electricity as tangible personal property. Of course, electricity does meet the definition, since it can be felt, measured, etc. However, many states specifically say that utilities are providing a service, not selling TPP. What about air? Clearly it can also be felt, measured, etc.     Read More

Refund Opportunity in Missouri for Electricity

Hotels in Missouri can purchase electricity for resale to the extent it is used for paying guests and not in common areas. So how do you calculate that amount? You can use the Department's suggested form, but it's complicated and time consuming. Or you can just use the relative square feet for guest rooms and common areas. Find Out Here

Major Defeat Dealt To States Seeking To Apportion Income

The U.S. Supreme Court issued a very interesting ruling affirming its earlier decisions related to the taxation of "unitary businesses". (See MeadWestvaco Corp. v. Illinois Department of Revenue, U.S. Supreme Court, Dkt. 06-1413, vacating the Illinois Appellate Court, April 15, 2008).
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Legal Disclaimer: This newsletter is designed to provide general information. Applying laws and regulations may vary based on your specific facts or circumstances. Due to the ever-changing nature of law and regulations, there may be omissions, delays or inaccuracies in the information contained in this newsletter. Therefore, the information herein is not to be considered tax advice nor a substitute for consulting with professionals who are familiar with your particular factual situation. No client, advisory, fiduciary or professional relationship is implicated or established. Please contact a Peisner Johnson consultant to discuss the impact of this information on your particular situation.