In a decision that addresses the complications of how to compute sales and use tax, the Kansas Court of Appeals scrutinized the state's taxing statutes to clarify that reimbursement of travel expenses were exempt from sales tax because they were not sold at retail. In its effort to shed light on the issue, however, the court, in In Re Cessna Employees Credit Union, No. 105,139, (Kan. Ct. App. April 6, 2012),may have muddied the waters and created an opportunity for the government to impose what some would argue is nothing short of double taxation.
On top of this, just one month after the Kansas Court of Appeals' ruling in Cessna, the Kansas Department of Revenue issued an opinion letter that appeared, at first glance, to contradict the Cessna ruling.
In Cessna, the court of appeals ruled that JHA's reimbursement of travel expenses was not subject to sales tax because they were not “sold” at retail, and therefore not includable in the total selling price. However in the opinion letter, the department found reimbursement of repair or service payments must be included in the tax base and subject to sales tax.
How do we reconcile the department's decision above with the court of appeals decision in Cessna, which prohibited the inclusion of reimbursement expenses in the total selling price? To find out, check out the complete article by Bloomberg BNA State Tax Law Editor Jeanne Rauch-Zender in this week's issue of the Weekly State Tax Report. [which can be read in its entirety here]
In other developments…
State credit ratings as of July 13, 2012 , by Nick Kasprak of the Tax Foundation.
Indiana finds taxpayer must calculate consolidated return on post-apportionment basis , PricewaterhouseCoopers reports.
States optimistic about their chances of taxing remote sellers , Accounting Today reports.
Amazon, forced to collect a tax, is adding roots , according to theNew York Times.
Answers to Indiana DOR’s $526 million in tax mistakes expected in December , Tom Lo Bianco of Bloomberg Businessweek explains.
Amazon shoppers will squeeze through California tax loophole ,CNET reports.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)