John B. McCauley Law Blog

We have discussed the federal law that exempts a non California based business from California income and franchise tax of net income from the sale of tangible personal property to California customers under certain circumstances. The... Read More

This is a third in a series about the exemption from California taxation of income from a non California based income from sale of tangible personal property to California customers. See Read More

Yesterday we talked in general about the exemption from California taxation of income from the sale of tangible personal property to California customers provided by federal Public Law 86-272.  See Federal law shields... Read More

Many out of state businesses can sell their products into California without subjecting their income to the California income or franchise tax. That is because of the federal Interstate Income Tax Law; commonly referred to as Public... Read More

Historically, a non Illinois based service provider would pay Illinois income tax on that service revenue only if its performance cost in Illinois for the service was greater than the performance cost for the service in any other... Read More

North Carolina revised its law this year concerning taxation of certain intercompany transactions; effective for tax years beginning in 2012. The new law was adopted in response to widespread criticism of the old forced combined tax return law and its implementation by the Department of Revenue. The new law is N.C. Gen. Stat. § 105-130.5A

In 2011, California made it easier for a non California based businesses to know whether it was subject to California franchise or income taxation. Now, a non California based business will be subject to California franchise or income taxation if it meets any of the following three conditions: (1) the lesser of 25% of its sales coming from California or $500,000 of California sales; (2)... Read More

A Michigan court recently held that a Tennessee resident’s Michigan income tax on his profit from two Michigan nursing homes was to be determined by combining their profit and loss with the profit and loss of 25 out of state nursing homes, and then apportioned to Michigan.  See Preston v. Dep’t of Treasury, No. 295055 (Mich. Ct. App. May 26, 2011), Read More

A hearing officer of the New Mexico Taxation and Revenue Department ruled that the activities of the state’s Barnes and Noble stores on behalf of its affiliated online retailer did not establish substantial nexus. (See in the Matter of the Protest of Barnesandnoble.Com LLC to Assessment Issued under Letter Id No. #L1806543104 No. 11-10), Read More

The Texas Supreme Court recently dealt with the sourcing for franchise tax purposes of receipts from the licensing of trade secrets. See TGS-NOPEC Geophysical Co. v. Combs, No. 08-1056 (May 27, 2011), http://caselaw.findlaw.com/tx-suprem e-court/1569194.html. The... Read More