Florida Manufacturing Machinery and Equipment Exemption Approved

 

Florida expands Manufacturing Machinery and Equipment Exemption

House Bill 391 was approved by the Economic Development and Tourism Subcommittee to expand the sales tax exemption for the purchase of machinery and equipment. The exemption would apply to all manufactuer' machinery and equipment purchases not just machinery and equipment for new business or companies who can show new equipment increased produciton by five percent. 

 

Urgent: Fiscal Cliff Provides 15 Month WOTC Credit Look Back (April 29, 2013 Deadline)

A very important note regarding the Work Opportunity tax credit. If you are not already claiming these credits, you have time to claim them in arrears through the end of April!

Have you claimed  “WOTC” (Work Opportunity Tax Credits) for 2012?” 

Normally, employers have merely 28 days to claim their credits for recently hired qualified employees. 

Due to the recent ”fiscal cliff” deal by Congress and the President, however, the IRS is now providing a 15-month look back opportunity to claim these credits. 

WOTC can reduce an employer’s federal income tax liability by as much as $9,600 per employee hired.

Additionally, there is no limit on the number of individuals an employer can hire to qualify to claim the tax credit.

Even tax-exempt organizations can take advantage of WOTC by hiring eligible veterans and receiving a credit against the employer’s share of Social Security taxes.  

Eligible employees include:

Veterans

• Disabled persons
• Food stamp recipients
• Long-term Temporary Assistance for Needy Family Recipient
• Short-Term Temporary Assistance for Needy Family Recipient
• Designated Community Resident
• Ex-felon
• Supplemental Security Income Recipient
• Summer Youth Employee

Employers may receive from $1,200 to $9,600. per eligible employee, depending on the target group of the new employee.     

The Work Opportunity Tax Credit (“WOTC”) is a federal income tax credit incentive program that was created to promote the hiring of individuals who face significant barriers to employment.  This program was on a prolonged hiatus in 2012 and has affected employer’s hiring and tax planning. 

 How to Apply - we will help you complete federal and state forms to obtain tax credit and we will deal with federal and state agencies to ensure that your company receives federal income tax credit that You Are Entitled To for all of your eligible employees.

Time is running out!  The deadline to submit claim requests is this coming April 29, 2013.
Please contact me at 305.960.1202 for more information on how we can assist you with meeting this deadline.

 

Florida - Reminder Estmated Payment Due June 28, 2013

The accelerated income tax estimated payment due on June 30, 2013 must be paid by June 28 2013. HB 5701 (signed Apr. 20, 2012

Nebraska: Update on Pending Tax Legislation

Nebraska Governor Heineman recently announced proposals to overhaul the Nebraska tax structure.
The proposals generally focused on reducing or eliminating the corporate and personal income taxes as well as eliminating certain sales tax exemptions. The proposals were formalized in two bills introduced in the Nebraska legislature in late January, LB 405 and LB 406.

On Saturday, February 16, 2013, Governor Heineman held a press conference where he stated that he has asked the tax policy committee to kill both bills so as to start a new and more inclusive discussion regarding Nebraska tax reform.

Florida: Auto Repair Provided Under Car Manufacturer's Warranty Not Taxable

 

Dep't of Revenue v. General Motors LLC, Fla. Dist. Ct. App. (12/5/12).

 

A Florida Court of Appeal recently held that an auto manufacturer was not subject to state sales/use tax on vehicle parts/repairs made pursuant to its customer warranty because the right to participate in the warranty progam and to receive repairs was part of the consideration that its customers received in exchange for the purchase price of the vehicles.

 

The Court affirmed that the trial court did not err in concluding that the tax due for such repairs was paid as part of the original sales transaction, and that to impose a second round of tax on the transaction would amount to double taxation or “pyramiding of tax” prohibited under Florida law.

The Florida Department of Revenue unsuccessfully argued that the discretionary nature of repairs provided under the Case-By-Case program by dealers distinguished it as taxable relative to the nontaxable repairs provided under the manufacturer’s base warranty program. The Court explained that the substantial repair costs associated with the warranty program furthered the position that such repairs were factored into the original vehicle sales price.

California Mandatory Single Sales Factor Apportionment for Most

California votes cast their ballots in favor or mandatory single sales factor apportioment for most multistate taxpayers. Propostion 39 requires most mulistate taxpayers to use a sales factor-only apportionment formula, combined with market-based sales sourcing for sales other than sales of tangible personal property. The new law is effective for tax years beginning on or after January 1, 2013. California's rules regarding market-based sorucing of sales of other than tangible personal property had previously been applicable only to taxpayers electing to apportion on a sales factor-only basis. The recent change in California's laws to single sales factor apportionment combined with market based sales sourcing for sales other than sales of tangible personal property may have an significant impact on the amount of tax that your company or your client's pay to the State of California.

Oregon Issues Guidance on Protective Claims for Refund

Oregon’s apportionment statutes appear to allow taxpayers to elect to use either Oregon’s single-sales factor for apportioning business income or the Multistate Tax Compact’s equally-weighted three-factor formula. However, the Oregon Department of Revenue (the “Department”) believes that legislation adopted in 1993 prevents taxpayers from making this election. The issue of whether a taxpayer may make the election is the subject of ongoing litigation in the Oregon Tax Court. Pending the resolution of this litigation, the Department has published guidance explaining how taxpayers may submit protective claims to secure the right to a tax refund until the outcome of the Tax Court case is known.