The following were originally printed in the Weekly State Tax Report, part of the State Tax Library.

Weekly State Tax Report

Volume 2008 Number 29
Friday, July 18, 2008

California SBOE Finds No Nexus Trigger for Amazon.com Affiliates Under State Law

Affiliate relationships between Amazon.com and entities that refer customers through links on their sites do not trigger nexus under California law, the State Board of Equalization staff told board members. The links are similar to a banner advertisement placed on Web sites, and are not evidence of nexus or presence in the state that would impose a duty to collect tax, the SBOE said.

IRS Issues Summonses in Investigation of Colorado Conservation Easement Tax Credits

The IRS has issued summonses in connection with its investigation of Colorado's conservation easement tax credit program under which landowners receive transferable income tax credits for easements donated to a qualified organization. The IRS has been investigating tax credits linked to conservation easements nationally and of the 400 cases it has audited recently, approximately 290 are in Colorado.

Wisconsin Illegally Collected Sales, Use Tax on Custom Software, State High Court Says

In Wisconsin Dept. of Rev. v. Menasha Corp., a case that tested the definition of customized software under Wisconsin law, the state's Supreme Court held that Wisconsin illegally collected a 5 percent sales tax on customized computer software. The decision upholds a lower court finding that a taxpayer's purchase of specialized software was exempt custom software because the company needed to expend substantial resources to install and implement the software.

Cato Report Estimates States Would Save Billions With Education Tax Credit System

A state that enacts an education tax credit system would save money over the program's first decade of operation, perhaps generating billions of dollars in savings, the Cato Institute said in a policy report. Under the Cato's Public Education Tax Credit model legislation, public education tax credits would lower the state and local taxes that anyone who pays for a child's private schooling owed, the report states.

Perspective: Business Interests Will Try to Persuade Uniform Law Commission to Drop Review of UDITPA

The National Conference of Commissioners on Uniform State Laws will address a request to reconsider its earlier decision to launch a review of the 50-year-old model apportionment law, UDITPA. In this article, BNA looks at both sides of the controversy, with industry interests arguing that NCCUSL should table the project and supporters arguing that a review of UDITPA is necessary to bring the law up to date.