Share with your friends

KPMG reports: California, Massachusetts, Rhode Island, Texas

California, Massachusetts, Rhode Island, Texas

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

  • California: A state appeals court issued an unpublished decision, affirming the trial court’s conclusion that the individual taxpayers did not qualify for a deferral of gain on a like-kind exchange because they failed to satisfy one of the requirements (that is, they failed to identify replacement property within 45 days of the date of transfer of the relinquished property).
  • Massachusetts: Pending legislation (H.4930) would require that amounts included in income under IRC sections 951 and 951A are to be treated as dividends received for Massachusetts corporate excise purposes, and no deduction would be allowed under IRC sections 245A, 250, or 965(c). The cumulative effect of these changes is that the gross amount of GILTI before the IRC section 250 deduction would be treated as a dividend received for Massachusetts corporate excise tax purposes.
  • Rhode Island: A hearing officer concluded that an online retailer did not have substantial nexus with the state even though the retailer had an affiliate with a retail store located in the state that made sales of similar products under the same brand name. Both the online and retail entities (subsidiaries of the same parent company) sold equestrian apparel and horse-related products. The hearing office looked to a number of factors to determine whether nexus existed—such as the retail store’s return policy, cross-advertising, the presence of a common logo and IP, customer service activities, among others. 
  • Texas: The Comptroller determined that a taxpayer’s charges for access to online educational courses (specifically, an online education platform that provided instruction by streaming pre-recorded lectures taught by professors from accredited universities) were not subject to sales and use tax.


Read more at KPMG's This Week in State Tax

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?


loading image Request for proposal