Second Quater ND Taxable Sales and Purchases See Largest Increase in Two Years

BISMARCK, N.D. – Tax Commissioner Ryan Rauschenberger announced today that taxable sales and purchases show robust growth for North Dakota’s economy throughout the second quarter of 2014. Seeing its largest increase since the third quarter of 2012, April, May and June of 2014 showed more than an 11 percent growth in total taxable sales and purchases compared to the same months in 2013.
“The second quarter report shows a very strong, yet sustainable growth rate for North Dakota’s economy,” said Rauschenberger. “We haven’t seen this large of an increase in nearly two years.”
North Dakota’s total taxable sales and purchases for the second quarter of 2014 were $7.029 billion. This figure is up $716.7 million compared to the same months in 2013, when taxable sales and purchases were $6.312 billion.

Click here to read more: 2014 2nd Quarter ND Sales Purchases

ND Total Taxable Sales & Purchases





California Issues Legal Rulings Addressing Nexus and

The California Franchise Tax Board (FTB) has recently issued its first legal rulings in
almost 24 months, dealing with complex nexus and apportionment concepts. In the first
ruling, the FTB concluded through a series of examples that a business entity with a
membership interest in a multiple-member limited liability company (MMLLC) that is
classified as a partnership for tax purposes may have California return filing requirements
and may be subject to the LLC tax and fee based solely upon the actions of the MMLLC.1
In the second ruling, the FTB concluded that proceeds from asset sales transactions which
took place during a Chapter 11 bankruptcy plan of reorganization were not “occasional
sales” and were includible in the taxpayer’s sales factor.2

Click here to continue reading…CA-Legal-Rulings-2014-01-and-02-9-9-14

Nevada – Ballot question may create a 2% margin tax

In brief
The Nevada margin tax for public schools initiative will appear as Question 3 on the November 4, 2014 ballot. The ballot measure imposes a 2% margin tax on business entities in Nevada with total revenue in excess of $1,000,000. Proceeds from the tax would be allocated to public schools for kindergarten through grade 12 and kept in the State Distributive School Account. If approved by voters, the tax would be effective January 1, 2015. Ballot Question No. 3

Click here to continue reading: Nevada ballot question

News release: Minneapolis business owner charged with tax crimes

Contact: Lisa Erickson
Phone: 651-556-6397

Minneapolis business owner charged with tax crimes

ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Hennepin County Attorney’s Office recently charged Michael Whitelaw, 46, of Rosemount, with 68 tax-related felonies.

Whitelaw is charged with 34 counts of filing false sales tax returns and 34 counts of failing to pay the correct amount of sales tax.

According to the criminal complaint, Whitelaw has operated Food Group Holdings, LLC (also known as Social House, Zeno Café, and Fusion) since 2006. He allegedly filed fraudulent sales tax returns for the business each month of 2009 and 2010 and for 10 months in 2011. The complaint also claims he failed to pay the correct amount of sales tax he collected during these years.

According to the complaint, Whitelaw underreported sales in excess of $1 million, owing the state $170,000 in sales tax, penalty and interest.

Each felony charge carries a maximum penalty of up to five years in prison and up to a $10,000 fine.

Although most taxpayers comply with tax laws voluntarily, the Minnesota Department of Revenue takes enforcement action against noncompliant taxpayers to ensure tax laws are fairly administered.

The Minnesota Department of Revenue has a 24-hour tip line for anyone who suspects a person or business is violating tax laws. That number is 651-297-5195, or 1-800-657-3500. Tipsters may remain anonymous and can also email the department at In 2013, 85 percent of the department’s criminal case referrals came from citizen tips.

Defendants are presumed innocent unless and until proven guilty.

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and Facebook, and sign up for our email subscription list.

Businesses Paid Nearly $671 Billion in State and Local Taxes Last Year

September 29, 2014

By Liz Malm

Each year, the Council on State Taxation (COST) estimates the share of total state and local taxes that are paid by businesses. The lastest edition of the report found that firms paid 44.9 percent of total U.S. state and local taxes last year—amounting to nearly $671 billion.

Here’s the breakdown by tax type (click to enlarge and share):


Of the $670.8 billion in total business taxes, most went to property taxes on business property ($242.1 billion), followed by sales taxes on business inputs ($139.8 billion). In a perfect world, businesses wouldn’t pay sales taxes. My colleague, Scott Drenkard, summed this up eloquently a few years ago:

Business inputs (products that businesses buy so that they can make other things) should be exempt from sales taxes. This is not because businesses deserve special treatment, but because taxing business inputs results in “tax pyramiding,” the problem where one tax applied many times on a supply chain results in a high effective tax rate at the end of the supply chain. Taxation of business inputs results in the unequal (or non-neutral) treatment of industries or companies that have many capital inputs…

It’s also important to note that corporate income taxes, though they are the most familiar business tax, are only a small share of the total tax bill firms pay each year. But don’t confuse this fact for an argument to increase corporate income tax rates–corporate income taxes are an inefficient tool for collecting state tax revenue due to their low growth and high volatility.

For more information on the types of business taxes outlined in the report, the changes from 2012 to 2013, and a state-by-state breakdown, check out COST’s full report here.

Follow Liz on Twitter @elizabeth_malm.