KPMG reports: Alabama, Louisiana, Maryland, New York

KPMG reports: Alabama, Louisiana, Maryland, New York

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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  • Alabama: Recently enacted legislation—House Bill 170—moves Alabama to single-sales factor apportionment and repeals the throwback rule. The legislation also:
    • Adopts a new subtraction for “global intangible low-taxed income” (GILTI) purposes
    • Allows a deduction for any amount included in income that relates to contributions made by Alabama or its political subdivisions
    • Confirms that unless a taxpayer or the taxpayer’s consolidated group has a IRC section 163(j) limitation, then there is no Alabama limitation
    • Addresses how the IRC section 163(j) interest expense limitation intersects with the state’s related-party interest addback provisions
    • Confirms that certain amounts received under the federal Paycheck Protection Program (PPP) or other federal COVID-19 relief bills will not be included in a taxpayer’s income for Alabama purposes
    • Adopts a new, elective pass-through entity tax regime

Read a February 2021 report

  • Louisiana: The Board of Tax Appeals released two corporate income and franchise tax opinions.
    • In the first, the Board concluded that a taxpayer was not entitled to the tax credit for property taxes paid on inventory because its equipment was primarily rented out to customers.
    • In the second, the Board concluded that interest from Louisiana retail installment contracts was included in the franchise tax sales factor numerator, but the contracts themselves were excluded from the franchise tax property factor numerator. 

Read a February 2021 report

  • Maryland: The general assembly voted to override the governor’s veto of House Bill 932 (a bill that expands Maryland’s sales and use tax to retail sales of digital products and digital codes, including permanent downloads and streaming of these products). Read the February 2021 report

  • New York State: The Department of Taxation and Finance issued two advisory opinions addressing the taxability of equipment provided along with an operator. Under New York law, sales and use tax is imposed on leases and rentals of equipment when the right to use or to direct control of the use of the equipment transfers to the lessee. When an equipment lease includes the services of an operator, possession is deemed to be transferred only when the lessee has the right to direct and control the use of the equipment. In both opinions, the Department concluded that there was no rental of equipment because control was never provided to the lessee. Read a February 2021 report

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