Nexus Assistant Results

Transcription

1 Nexus Assistant Results Tax Type: Corporate Income Legend: N/A - Not Applicable Alabama --Company Business income includes income from intangible personal property, the acquisition, management, and disposition of which constitute integral parts of the taxpayer's regular trade or business operations. Ala. Code (a) (3) Alaska --Company N/A Instructions to Form , 14,503 Arizona --Company N/A No C, 03/27/2008; Arizona Corporate Tax Ruling No. 99-5, 05/25/1999 Arkansas --Company N/A Arkansas Policy Statement No , 11/16/1995; Ark. Regs California --Company An entity is considered as doing business in California if its sales Cal. Rev. & Tax. Cd (b) ; California FTB Tax News No.

2 (including sales by an agent or independent contractor) in California exceed the lesser of $509,500 (effective for tax years beginning on or after January 1, 2012; was $500,000) or 25% of the taxpayer's total sales. 01/01/2013, 01/01/2013; FTB Reply to RIA Nexus Questionnaire, 11/10/2009 Colorado --Company A business entity is deemed to be doing business in Colorado if the minimum nexus standards of Public Law are exceeded, and the business entity exceeds any of the following thresholds during the tax period: $50,000 of property; $50,000 of payroll; $500,000 of sales; or 25% of total property, total payroll, or total sales. Colo. Code Regs Connecticut --Company Under the state's economic nexus standard, which is not based on physical presence, a company that engages in active solicitation of Connecticut residents and has significant receipts ($500,000 or more per year) will have nexus unless federal law P.L applies Conn. Gen. Stat a ; Connecticut Informational Publication No (29.1), 12/28/2010; Delaware --Company Does not create nexus N/A Del. Code Ann District of Columbia

3 --Company Business income includes income from intangible personal property, the acquisition, management, and disposition of which constitute integral parts of the taxpayer's regular trade or business operations. D.C. Code Ann (a) ; D.C. Code Ann (Art. IV) (1)(a) ; D.C. Mun. Regs Florida --Company Physical presence is not required to impose Florida's corporate income tax. Making sales approved in the state through independent contractors or making sales through the use of representatives in Florida; selling, managing, or providing consulting services in Florida for intangible assets; selling or licensing the use of intangible property such a trademark or patent to a business entity in the state; and earning or receiving interest by a financial organization from loans secured by real or tangible personal property in the state, regardless of where the interest is received create nexus. Florida Technical Assistance Advisement No. 07(C)1-007, 10/17/2007 ;Fla. Admin. Code Ann. 12C Georgia --Company N/A Ga. Code Ann (a) ; Ga. Comp. R. & Regs (1) Hawaii

4 --Company N/A Hawaii Tax Information Release No. 95-3, 09/12/1995; Statement of Information Concerning Practices of Multistate Tax Commission and Signatory States Under Public Law (Phase Two Statement), Miscellaneous 301 Idaho --Company N/A Idaho Code ; Idaho Form 41 Instructions, 14,501; MTC Phase II Statement, 07/29/1994, Miscellaneous 301 Illinois --Company N/A Ill. Admin. Code (c)(2)(D) Indiana --Company N/A Ind. Admin. Code Iowa --Company N/A Iowa Admin. Code (1)(a) Kansas

5 --Company N/A Statement of Information Concerning Practices of Multistate Tax Commission and Signatory States Under Public Law (Phase One Statement), Miscellaneous 305 Kentucky --Company Kentucky has not adopted an economic nexus standard but uses a doing business standard to determine nexus, which is similar to the economic presence standard. Ky. Rev. Stat. Ann Louisiana --Company N/A MTC Phase II Statement, 07/29/1994, Miscellaneous 301 Maine --Company N/A Maine Tax Alert, Vol. 18 No. 2, 02/01/2008 Maryland --Company N/A Maryland Administrative Release No. 2, 09/01/2009 Massachusetts --Company N/A Geoffrey, Inc. v.

6 Commissioner of Revenue (MA Sup. Jud. Ct., 2009)899 NE2d 87 Michigan --Company Effective 1/1/2012, for purposes of the corporate income tax, the tax applies to every taxpayer that actively solicits sales within Michigan and has gross receipts of $350,000 or more sourced to Michigan Until 12/31/2011, for purposes of the Michigan Business Tax, the tax applies to every taxpayer that actively solicits sales within Michigan and has gross receipts of $350,000 or more sourced to Michigan. Mich. Comp. Laws Ann (1) ; Mich. Comp. Laws Ann (2)(b) ; Corporate Income Tax FAQ Nexus & Apportionment 5, 12/22/2011 ; Michigan Revenue Administrative Bulletin No , 10/21/2008 Minnesota --Company N/A Minn. Stat , subdivision 1(b) ; Minn. Stat , subdivision 1(c) Mississippi --Company N/A Miss. Administrative Code 35.III.8.06 (203.02) Missouri --Company N/A Phase I Statement Art. I, Miscellaneous 305 Montana

7 --Company Certain activities, including entering into franchising or licensing agreements, may give rise to nexus Mont. Admin. R Nebraska --Company Licensing of intangibles may create nexus Neb. Admin. R. & Regs ;Phase III Statement of information concerning practices of Multistate Tax Commission and signatory states under P.L , Miscellaneous 300 Nevada --Company N/A N/A N/A N/A New Hampshire --Company New Hampshire imposes the business profits tax on business organizations carrying on business activity in the state. N.H. Rev. Stat. Ann. 77-A:1, I New Jersey --Company N/A Lanco, Inc. v. Division of Taxation, 180 N.J. 380 (2006). New Mexico --Company has economic presence in- New Mexico corporate income tax could be Kmart Properties, Inc.v. Taxation and Revenue

8 state imposed on a corporation even though the corporation had no physical presence in the state Department, NM App., (2001) 131 P3d 27, Dkt. No. 21,140, 11/30/2001.FYI-350, 11/01/1999. New York --Company Does not create nexus N/A NYCRR ; See In re Wascana Energy Marketing Inc., NYS Division of Tax Appeals, ALJ, Dkt. No , 08/08/2002 North Carolina --Company Doing business in North Carolina includes the owning, renting, or operating of business or income-producing property in North Carolina including trademarks, tradenames, franchise rights, computer programs, copyrights, patented processes, and licenses. N.C. Admin. Code 17 5C.0102(a)(5) North Dakota --Company Licensing of intangibles creates nexus Statement of information concerning practices of Multistate Tax Commission and signatory states under P.L , July 27, 2001,Miscellaneous 300 Ohio --Company Tax is imposed on outof-state corporation that does business in Ohio; owns or uses a part or all of its capital or property in Ohio; Ohio Rev. Code Ann (A) ; Ohio Rev. Code Ann (B) ; Ohio Tax Information Release No. CFT 2001-

9 holds a certificate of compliance with the laws of Ohio authorizing it to do business in Ohio; or otherwise has nexus with Ohio under the Constitution of the United States. Note: The Department of Taxation's position as stated with respect to the commercial activity tax (CAT) and with reference to personal income tax, is that in Ohio, the Quill physical presence standard applies only to sales and use taxes and does not apply to other taxes such as an income tax. Nexus is created when an out-ofstate corporation, directly or through others acting on its behalf, is regularly present in Ohio conducting activities to establish or maintain a market. 02, 05/19/2003 Ohio Tax Information Release No. CAT , 09/01/2005 ; Couchot v. State Lottery Comm. (1996), 74 Ohio St. 3d 417 Oklahoma --Company N/A Geoffrey, Inc v. Oklahoma Tax Commission, Okla. Ct. Civ. App., Dkt. No. 99,938, 12/23/2005 ; Mandate issued 03/29/2006 Oregon --Company Must engage in profit seeking activity in Oregon Or. Admin. R (4)(1) Pennsylvania --Company If physical presence maintained through agents or representatives Pa. Stat. Ann

10 Rhode Island --Company N/A R.I. Gen. Laws (2) South Carolina --Company The South Carolina Supreme Court held that nexus existed even when a taxpayer was not physically present in the state in Geoffrey, Inc. v. SC Tax Comm. (1993) 313 SC 15, 437 SE2d 13, cert. denied (1993) 510 US 992, 114 SCt 550. Geoffrey, Inc. v. SC Tax Comm. (1993) 313 SC 15, 437 SE2d 13, cert. denied (1993) 510 US 992, 114 SCt 550. South Dakota --Company N/A N/A N/A N/A Tennessee --Company Does not create nexus Provided certain agency relationships do not exist; different rules apply for financial institutions Dillard National Bank v. Johnson, Tennessee Chancery Court, Dkt. No III, 10/19/2004 Texas --Company Does not create nexus N/A Tex. Admin. Code Utah

11 --Company Businesses that earn income from Utah sources, other than from merely soliciting sales of tangible personal property, are subject to the Utah corporation franchise or income tax. For example, a corporation has nexus and is subject to tax if it (1) sells or performs services in Utah in which the customer receives the greater benefit of the service in Utah, or (2) earns income from the use of intangible property in Utah. Corporations that make loans or issue credit cards to Utah customers (e.g., banks) are subject to the Utah corporate franchise or income tax whether or not they have a business location in Utah. Utah Admin. R. R865-6F-6(10) ; Utah Informational Publication No. 37, 05/01/2012 Vermont --Company Nexus established through engaging in business activities not protected under P.L Vt. Stat. Ann (15) ; Vt. Stat. Ann Virginia --Company If business activities in Virginia exceed the limitation of P. L Consideration is given to the nature, continuity, frequency, and regularity of the activities in Virginia, compared with the nature, continuity, frequency, and regularity of its activities elsewhere. Va. Admin. Code (G)(1) Washington

12 --Company N/A N/A N/A N/A West Virginia --Company Significant economic presence test is applied; a financial organization is presumed to be regularly engaging in business in-state if it obtains or solicits business with 20 or more people in-state or if with at least $100,000 gross receipts in-state W. Va. Code a(a)(11) ; W. Va. Code b(d) ; West Virginia Administrative Decision No. S N, 01/06/2010 West Virginia Administrative Decision No W, 01/06/2010 Wisconsin --Company N/A Wis. Stat (1r) ; Wis. Stat ; Wis. Admin. Code Tax 2.82(4) ; Wisconsin Dept. Rev. Tax Bulletin No. 94, 10/01/1995 Wyoming --Company N/A N/A N/A N/A Information current as of 4/30/2013 2:59 PM CDT 2013 Thomson Reuters/RIA. All rights reserved.