KPMG reports: Indiana, Michigan

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.

  • Indiana: The U.S. Court of Appeals for the Seventh Circuit upheld a remand of a franchise fee dispute to state court. The underlying issue was whether certain streaming companies were “video service providers” required to pay quarterly franchise fees to several Indiana municipalities. Before the Seventh Circuit, the issue was whether the federal district court had properly invoked the doctrine of comity abstention to remove the case to state court, as requested by the municipalities. The Seventh Circuit, applying certain factors set forth by the U.S. Supreme Court, concluded that the district court did not abuse its discretion by granting the cities' motion to remand the dispute to Indiana state court. Read a July 2021 report

  • Michigan: A state appellate court, in an unpublished opinion, held that a retailer’s printed advertising materials were not subject to Michigan use tax. The advertising materials were printed outside of Michigan and sent to a mail vendor outside of Michigan to be processed and prepared for mailing. The appeals court concluded that the retailer did not “use” the materials in Michigan because it lacked control over the materials, despite the fact that it provided the mail vendor with the list of its Michigan customers and directed the dates on which mailings were to be distributed. These activities, in the court’s view, did not involve “actual control over the process of delivery of the advertising materials.” Read a July 2021 report

 

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