Indiana’s Department of Local Government Finance issues proposed rule regarding application of the 50% property tax deduction for “residences in inventory”

Today, the Department of Local Government issued a proposed rule intended "to establish procedures to govern the application for the deduction for residences in inventory established under IC 6-1.1-12.8."  50 IAC 28-1-1. See Ind. Code § 6-1.1-12.8-1 defines "residence in inventory" … [Read more...]

Gillette: What a California Case Could Mean for Minnesota Taxpayers

My partner Walter Pickhardt authored this article, see California's recent Gillette case holds that a state that is a member of the Multistate Tax Compact must offer taxpayers, as an alternative to any state-specific apportionment formula, the option to use the Compact's … [Read more...]

State Tax Developments for Energy and Resources for July 2012 – wind turbines, oil and gas, mining equipment and petroleum products

My colleague Benjamin Blair has prepared this legal update which “outlines some of the developments in state tax that occurred during July 2012 and that affect taxpayers in the energy and resources sectors.”  See  The topics include: Wind turbine … [Read more...]

Avoiding the “chill” in resolving property tax appeals: Indiana Board of Tax Review refuses to use settlement agreements to determine application of the 5% burden-shifting rule in property tax appeals.

Settlement agreements are common in all types of litigation, including in property tax appeals.  As this blog has previously discussed, the Indiana General Assembly passed a law which became effective on July 1, 2011, that shifts the burden of proof on appeal to the assessor, where the disputed … [Read more...]

Game of “Throwback” Sales: Pharmaceutical Company had nexus in states where it conducted clinical trials, so Company’s sales to customers in those states could not be “thrown back” to Indiana in calculating its sales factor for income tax apportionment purposes.

In Letter of Findings No. 02-20110552 (posted July 25, 2012), see, the Taxpayer (herein, "PharmCo") manufactured and marketed various pharmaceutical products and services. PharmCo also was involved in the research and development, production, and marketing of the pharmaceuticals. PharmCo … [Read more...]

Taxable Flower Power: Department of Revenue finds that Florist “constructively possessed” flowers delivered by clearinghouse members, so “relay or service charges” were subject to Indiana sales tax

An Indiana company (for purposes of this post, “Blossom”) simply had too much “flower power.”  Blossom belonged to a florist telegraphic delivery ("FTD") association – a clearinghouse – and offered delivery of flowers within and outside of Indiana.  Blossom operated … [Read more...]