KPMG reports: New York, South Carolina, Tennessee, Washington

KPMG reports: New York, South Carolina, Tennessee

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.


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  • New York: A state tax appellate tribunal affirmed the findings of an administrative law judge, concluding that a corporate owner of a disregarded single member limited liability company (SMLLC) that was an SEC-registered broker-dealer could not source receipts that were derived outside of that SMLLC broker-dealer using the state’s broker-dealer customer sourcing rules. Accordingly, investment advisory service revenues, earned in the pre-2015 years at issue outside of the SMLLC broker-dealer, were to be sourced using the relative costs of performance approach. Read an April 2020 report

  • South Carolina: The Department of Revenue issued guidance that the operator of a peer-to-peer vehicle sharing platform was a marketplace facilitator required to collect and remit sales taxes on peer-to-peer short-term motor vehicle rentals. The taxpayer’s charges were also subject to sales and use tax. Read an April 2020 report

  • Tennessee: Senate Bill 2182 (signed into law on April 1, 2020) imposes a sales and use tax collection obligation on a marketplace facilitator that facilitates sales of tangible personal property or taxable services to customers in Tennessee, effective October 1, 2020. For these purposes, a collection obligation does not apply to a marketplace facilitator that has $500,000 or less in total sales to Tennessee customers during the previous 12-month period. Read an April 2020 report

  • Washington State: An appellate court issued a decision concerning how an online loan marketplace must source fees derived from referring potential borrowers to various lenders. Under Washington’s B&O tax law, service receipts are attributed to the state if a “customer received the benefit of the taxpayer’s service” in the state. In this case, the Department of Revenue asserted the fees must be sourced to the location of the potential borrowers. However, the court held that because the taxpayer’s customers were the lenders, the receipts are to be sourced to the location where the lenders received and used the information in a referral to potentially generate a loan. Read an April 2020 report

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