KPMG reports: Louisiana, Massachusetts, New Jersey, South Carolina

Louisiana, Massachusetts, New Jersey, South Carolina

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.

  • Louisiana: Certain taxpayer-favorable legislative changes were made to the state’s inventory tax credit. Under Louisiana law, an income and franchise tax credit is allowed certain businesses on property taxes paid to political subdivisions for inventory located in the jurisdiction. If the amount of the credit exceeds the taxpayer’s liability for the tax year, the credit is either fully or partially refundable with the remainder being carried forward. The legislation extends the carryforward period from five to ten (10) years, and treats certain property tax payments made after December 31, 2020, as being made in 2020 for purposes of the property tax credits.  Read a December 2020 report

  • Massachusetts: The 2021 appropriations legislation includes provisions requiring certain vendors to make accelerated remittances of sales tax. Before this legislation, sales tax payments and returns generally were due the 20th day of the month after the period ends. Under the revised law, vendors with sales tax liability of more than $150,000 in the preceding calendar year are required to remit taxes collected on any taxable sale made on or before the 21st day of the filing period by the 25th day of that period. This change is effective April 1, 2021. Read a December 2020 report

  • New Jersey: The Division of Taxation issued guidance—TB-97 [PDF 108 KB]—concerning technical corrections to the corporation business tax (CBT) law. The technical corrections included clarifying and procedural changes, as well as certain substantive CBT law changes. One of the retroactive changes requires taxpayers that make the affiliated group election to include certain non-U.S. entities in the group. The guidance explains that the change may affect a combined group’s filing method decision and that the Division of Taxation will be issuing a notice to address this issue shortly. Read a December 2020 report

  • South Carolina: An administrative law court held that a taxpayer (a home improvement retailer) was properly assessed retail sales tax on items/materials that it subsequently installed in customers’ homes. The taxpayer had remitted use tax on the materials and items identified in the contract, based on the wholesale cost. On audit, the Department of Revenue disagreed with the taxpayer’s treatment, and the administrative law court ultimately agreed with the tax authority, holding that the taxpayer’s customers were the final purchasers of the items. Read a December 2020 report

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