KPMG reports: Illinois, New York, Ohio

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.

  • Illinois: The Illinois Department of Revenue issued a general information letter concluding that taxpayer selling electricity through an electric vehicle charging station was a “delivering supplier” required to collect and remit electricity excise tax on its sales.
  • New York State: The Department of Taxation and Finance concluded that a taxpayer’s service of creating, operating, and hosting websites and applications accessed via mobile devices was not subject to sales and use tax because: (1) the taxpayer did not transfer any software to its clients; and (2) the taxpayer was not providing a taxable information service because the information provided to customers was individual in nature and not incorporated in the reports of other customers.
  • Ohio: A state appellate court rejected a taxpayer challenge of a state law that concerns the rules for municipal income tax withholding during the coronavirus (COVID-19) pandemic emergency period. The legislation mandated that any personal services required to be performed at a location other than the employee’s principal place of work (e.g., an employee’s residence) during the declared period of emergency would be deemed performed at the employee’s principal place of work. A company based in Columbus, Ohio, challenged the law, asserted that: (1) the legislature was not authorized to expand the taxing power of municipalities beyond established limits; and (2) imposing tax on nonresidents on income earned outside Columbus was an exercise of extraterritorial jurisdiction and was unconstitutional under the due process clause of the U.S. Constitution. The state appeals court rejected both of the company’s arguments.

Read a December 2021 report prepared by KPMG LLP

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.