KPMG reports: Florida, Maryland, Virginia

KPMG reports focus on recent state and local tax developments

KPMG reports focus on recent state and local tax developments

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.

  • Florida: A state appeals court concluded that because the state’s tobacco tax (a tax imposed on tobacco products other than cigarettes and cigars) is a regulatory measure and not a sales and use tax, the physical presence nexus standard was not applicable with regard to an out-of-state corporation. Note the case concerned tax years before the Wayfair decision. Read an April 2021 report

  • Maryland: A state special appellate court remanded a sales and use tax refund case back to the lower court (the Maryland Tax Court had held for the taxpayer, but the holding was not based on the taxpayer’s position that it had made its purchases for resale but was based on the state’s preemptive argument that the taxpayer was not an agent of its customer). When an appeals court subsequently reversed the Tax Court’s reasoning, the taxpayer sought to have the special appellate court address its original argument, but this special appellate court could not affirm based on grounds not appearing in the record and ordered the case back to the Tax Court with instructions to enter a new final decision denying the taxpayer’s refund claim based on the Tax Court’s prior rejection of the taxpayer’s reseller theory. Read an April 2021 report

  • Virginia: The budget bill requires corporations that are members of a unitary business to file a report disclosing the unitary combined net income of the combined group, and the report is to be based on the 2019 tax year computations and must include, at a minimum, the difference in tax owed as a result of filing a unitary combined report compared to the tax owed under the current filing requirements. The report is due before July 1, 2021. Read an April 2021 report

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