Indiana, New Mexico, South Carolina, Washington State - KPMG United States
Share with your friends

KPMG reports: Indiana, New Mexico, South Carolina, Washington State

Indiana, New Mexico, South Carolina, Washington State

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.


Related content

  • Indiana: The Department of Revenue denied a taxpayer’s refund request based on the taxpayer’s sourcing of certain of sales to out-of-state customers to the places where the customers were located. It was determined that the Indiana-based company was a service provider of a galvanization process and that its income-producing activity occurred in Indiana.
  • New Mexico: A hearing officer determined that two pharmaceutical companies were not protected from corporate income tax by virtue of Public Law 86-272* in part because of their own activities (through ownership of an LLC that was the selling entity of a branch of a French pharmaceutical company) and in part because of activities attributed to them from another affiliate. The Multistate Tax Commission (MTC) conducted an audit of the U.S. subsidiaries and determined that the LLC’s activities in New Mexico exceeded the protection under Public Law 86-272, and therefore, the corporations were subject to New Mexico corporate income tax on their flow-through income.

*A federal law—Public Law 86-272, 15 U.S.C. sections 381-384—restricts a state from imposing a net income tax on income derived within its borders from interstate commerce if the only business activity of the company within the state consists of the solicitation of orders for sales of tangible personal property, which orders are to be sent outside the state for acceptance or rejection, and, if accepted, are filled by shipment or delivery from a point outside the state. The term "net income tax" includes a franchise tax measured by net income.

  • South Carolina: An administrative law court held that a bookseller’s sales of memberships to customers—i.e., the membership fees—were subject to sales tax.
  • Washington State: An administrative law judge found that accessories added to vehicles after import "interrupted" the availability of the state’s import transportation exemption, so that the taxpayer owed wholesaling B&O tax on imported vehicles later delivered to Washington dealers.
  • Washington State: An administrative law judge concluded that the resale exemption did not apply to beverage mixers used by airlines in mixed drinks (containing alcohol) sold to customers. 


Read more at KPMG's This Week in State Tax

© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


Request for proposal