The Lake View Memorial Hospital and Clinic in Minnesota was denied a property tax exemption in February 2018. The Minnesota Tax Court stated that the Memorial Hospital failed the auxiliary-property test. Minnesota’s statute says that in order to qualify for the exemption a taxpayer must provide evidence of its not-for-profit status. The hospital did not provide the physician compensation, article of incorporation, and documentation related to the interdependence of the hospital and clinic.
For more information on this and other property tax issues, contact your state and local tax professional.
Pennsylvania is getting creative when it comes to determining a taxpayer’s domicile.
A Florida resident completed a questionnaire to the best of her knowledge. However, unbeknownst to the Florida resident, the document would implicate her as a Pennsylvania resident. Although the Florida resident had owned a rental property in Pennsylvania during the years in question, there were no other ties to the state. The taxpayer’s defense was that she had visited Pennsylvania part of that time she was caring for an ill family member. The Pennsylvania Department of Revenue up-held that the Florida taxpayer failed the residency “Days Test” and must therefore file and pay taxes for years 2004 through 2012.
Domicile laws can be tricky! Contact a member of our state and local tax team with any questions.
In late March 2018, Idaho Governor, Butch Otter officially signed into law a house bill that will require all out of state or remote retailers to collect and remit sales and use tax. This is only applicable to out of state retails that generate over $10,000 dollars through their Idaho affiliates. Idaho is one of the few states that has enacted legislation related to the establishment of nexus through a parent entity or affiliates.
Do you or any of your affiliates do business in Idaho? If yes, you might have a filing requirement. Contact our state and local tax team for more information.
The state of Wisconsin has just issued a new publication outlining tax incentives. The publication contains tax incentives that may be available to businesses that are doing business in Wisconsin for taxable years beginning in 2017. This publication reflects the department’s position concerning laws enacted by the Wisconsin Legislature effective on December 31, 2017. It includes guidance on 15 different credits including business development, development zone credits, and manufacturing and agriculture credits.
For more information on this and similar tax incentives for other states, contact our state and local tax team.
Senate Bill 50 was signed into law amending Wyo. Stat. §39-15-107 to allow collection agencies to charge delinquent taxpayers additional fees for their collection efforts. They may now charge the taxpayer up to 20 percent of the value of the tax. This fee will be charged on top of the tax, interest, and other penalties. Those debt collection fees were previously paid for with funds from the Department of Revenue prior to the passage of this new law.
Contact a member of our state and local tax team for more information on similar laws that may be in the works for other states.
Recently, a taxpayer in New York challenged the assessment of additional income tax, stating that: “There is no law requiring me to pay taxes. Therefore I do not have a debt. Please grant me $1,500 for the years of inconvenience.” He also attached a copy of the Thirteenth Amendment to the U.S. Constitution (Prohibition against slavery). By dismissing the suit as “frivolous,” the court was empowered to assess an additional penalty of $500 which it chose to do in addition to upholding the Tax Division’s assessment.
While this may be a bit comical, frivolous law suits are no joke. Contact your local SALT professional to learn more about this case and others that might be deemed frivolous.
Amazon recently notified sellers that it would begin collecting and remitting sales tax on behalf of third party sellers starting April 1. This is the result of the newly enacted “Marketplace Facilitator Law” which Washington has also enacted. Amazon is also collecting tax on all sales in Washington. Normally, Amazon does not collect sales tax on third party sales that are not “fulfilled by Amazon.” Guidance on whether market place sellers have other compliance or filing requirements is still evolving.
For more information on how this new law may impact your business, contact your state and local tax professional.