Grant Thornton's printing industry specialists closely monitor new legislation, regulations and court cases that may affect the industry. Check back for state and local tax updates and the full text of various court decisions.
Prominent U.S. Supreme Court decisions
Quill Corp. v. North Dakota (1992)
Mobil Oil Corp. v. Commissioner of Taxes (1980)
Complete Auto Transit, Inc. v. Brady (1977)
National Bellas Hess, Inc. v. The Department of Revenue of the State of Illinois (1967)
Legislative and regulatory updates
National
SEC publishes the final rules on executive compensation disclosure and corporate governance (2010)
Carryback period for corporate net operating losses extended to five years (2010)
Treatment of repairs and maintenance as ordinary and necessary expenses became automatic method of accounting change (2010)
Bringing SSTP direct mail/postage up to date (2007)
Multistate
Several tax exemptions, exclusions and deductions eliminated (2010)
Department of Revenue clarifies new sales and use tax exemptions for computer software (2010)
Arkansas and Wyoming laws conform to Streamlined Sales Tax to meet condition for admission as full members (2008)
Arizona
Court of Appeals determines whether subsidiaries are part of unitary business (2010) (See also State and Local Tax Alert, May 13, 2010)
Voters will decide on temporary state Transaction Privilege Tax rate increase (2010)
Arizona Tax Court determines taxability of advertising flyers (2008)
California
Nexus presumption bill is introduced (2010)
California settles sales and use tax nexus litigation with major internet retailer (2008)
California sales tax does not apply to optional service contracts sold with computers (2008)
California LLC fee case upheld, but uncertainty remains for other LLCs (2008)
Colorado
Utilities are taxable until June 30, 2012
Legislature sends bill to governor imposing sales tax on cooperative direct-mail advertising (2010)
Florida
Film and printing plates may qualify for production of graphic matter exemption (2010)
Newspaper delivery charges not necessarily taxable (2010)
Senate passes its version of a bill that would implement a tax amnesty program beginning July 1, 2010
Exempt newspaper inserts cannot be counted towards meeting threshold requirement for another exemption (2010)
Print advertising services’ sales taxation clarified (2010)
Florida provides technical assistance on drop-shipment issues in TAA 07A-043 (2007)
Georgia
Manufacturers can take deduction or seek refund for taxes paid on exempt machinery and equipment (2010)
Georgia extends manufacturing machinery sales and use tax exemption (2008)
Hawaii
Bill that would have temporarily suspended certain exemptions now dead (2010)
Department of Taxation issues Letter Ruling addressing out-of-state purchasers and third-party vendor transactions (2010)
House Passes bill that would temporarily suspend exemptions (2010)
Idaho
Proposed rule change would relax acceptance of exemption certificates (2010)
Illinois
Manufacturer’s Purchase Credit could be used to pay liability on audit, but could not reduce penalties and interest (2010)
Graphic arts exemption now extends to production of materials for wholesale, retail sale or lease only (2010)
Indiana
Summary of legislative amendments that conform to Streamlined Sales and Use Tax Agreement provided (2010)
Commercial printer was required to file a combined return and disallowed a net operating loss deduction (2010)
Indiana Revenue Ruling No. ST 08-06 finds that separately stating the charge for postage does not exempt it from sales tax (2008)
Indiana Letter of Findings No. 08-0097 states postage may be exempt from tax (2008)
Kansas
Bill would increase state sales and use tax rate from 5.3 to 6.3 percent effective July 1, 2010
Kentucky
Guidance provided on sales and use tax transactions (2010)
Guidance on taxation of newspaper sales provided (2010)
Kentucky updates regulation on sales and use tax requirements for printers (2009)
Louisiana
Free catalogs distributed by out-of-state printer not taxable (2010)
Electronically delivered products and remote access to digital or media products are taxable (2010)
Louisiana Revenue Information Bulletin No. 08-020 discussing Act 9, which extends the manufacturing exemption to newspaper publishers (2008)
Maine
Legislation adopts Finnigan approach for apportioning sales of combined groups, provides tax amnesty programs and updates federal conformity (2010)
Maryland
Maryland releases form for additional reporting requirement for manufacturing corporations (2008)
Massachusetts
Guidance provided addressing limited tax amnesty program (2010)
Michigan
Michigan Court of Appeals decision in Ameritech Publishing, Inc. v. Department of Treasury (2008)
Minnesota
Minnesota enacts income and franchise tax protection for customer-provided paper (2009)
Missouri
Printed materials delivered out-of-state not subject to sales tax (2010)
Registered sellers making drop shipments to Missouri customers of non-registered out-of-state resellers can accept resale certificates (2010)
Delivery charges for newspapers can be taxable (2010)
Charges for scanning and imaging documents onto a CD are exempt (2010)
Newspapers’ purchases of required tangible personal property exempt (2010)
Missouri DOR Private Letter Ruling on photographs downloaded over the Internet (2008)
Missouri Letter Ruling 4859 on downloadable information products (2008)
Missouri Regulation 12 CSR 10-111.100 provides sales tax exemptions for commercial printers (2008)
Missouri Letter Ruling LR4157 finds separately stated newspaper delivery charges exempt from sales tax (2007)
Nebraska
Information guide confirms prohibition against retailers advertising that they will pay sales tax on behalf of their customer (2010)
Nevada
Tax amnesty program will run from July 1 through Sept. 30, 2010
New Mexico
Purchasers may provide sellers with Multistate Tax Commission (MTC) member states’ resale certificates as alternative to MTC's uniform certificate (2010)
Governor signs bill increasing gross receipts and compensating tax rate (2010)
House passes bill that would increase general sales tax rate (2010)
New Mexico Court of Appeals determines taxability of catalog sales in Dell Catalog Sales L.P. (2008)
New Mexico court upholds decision to require out-of-state seller to pay gross receipts tax on in-state sales (2008)
New York
Governor proposes to narrow sales tax vendor definition (2010)
Proposed legislation would repeal the promotional materials exemption (2010)
New York Advisory Opinion TSB-A-08 finding that electronic claims submission services are not taxable (2008)
New York Advisory Opinion TSB-A-08(36)S limiting nexus for advertising on satellite or cable television stations (2008)
New York Pub. 831 update on collecting and reporting instructions (2008)
New York rules that e-newsletters are exempt from sales and use tax (2008)
New York issues guidance on newly enacted “Amazon” rule (2008)
North Carolina
Commercial printers must use the Streamlined Sales and Use Tax Agreement certificate of exemption to claim resale exemption (2010)
Magazines sold door to door no longer exempt (2010)
Digital property delivered or accessed electronically subject to sales and use tax (2010)
Recent North Carolina decisions against taxpayers in forced combination and bonus depreciation controversies (2008)
Oregon
Oregon adopts rule to provide economic nexus standard (2008)
Pennsylvania
Tax amnesty program will run from April 26, 2010 through June 18, 2010
Caps on corporate net loss carryforwards increased, corporate net income tax apportionment formula changed and 2010 tax amnesty program announced (2010)
Texas
Clarification provided on tax treatment of newspapers, advertising and free publications (2010)
Utah
State conforms to Streamlined Sales Tax Project (2010)
Direct mail sellers provided with recipient location information are obligated to collect tax (2010)
Utah Private Letter Ruling 07-004 addresses printed materials (2007)
Virginia
Bloomingdales’s, Inc. v. Virginia Department of Taxation (2007)
Washington
Tax rate for services temporarily increased (2010) (See also State and Local Tax Alert, May 12, 2010)
Resale permits replace resale certificates (2010)
Washington Admin. Code 458-20-102 resale certificates (2008)
Washington Special Notice on proposed sourcing change for direct mail sellers (2008)
Washington enacts legislation that redefines newspaper (2008)
West Virginia
West Virginia amends a variety of state tax provisions (2008)
Wisconsin
Sellers or manufacturers can accept out-of-state purchaser’s resale certificate for drop shipments (2010)
Wyoming
State released information regarding exemption certificates and credits for taxes paid in another state (2010)
Exemption for manufacturing equipment extended until Dec. 31, 2010
