News Blog

State & Local Tax Update - 3/30/12

Posted 4:10 PM by

Indiana Updates EITC Bulletin: The Indiana Department of Revenue has updated its information bulletin concerning the individual earned income tax credit to reflect the state's changes to EITC. 2011 legislative bill H1001 provided that the EITC for tax years beginning after December 31, 2010, was to be calculated based on Code Sec. 32 as it existed before being amended by P.L. 111-312. P.L. 111-312 extended expiring provisions that were contained in Code Sec. 32. Indiana is not recognizing extensions contained in P.L. 111-312. See Information Bulletin 92 for details.

Missouri Department of Revenue Issues Ruling on Sales Tax Exemptions for Trucking Companies: The Missouri Department of Revenue ruled that sales by a vendor that sells products to common carriers of certain products that attached directly to a vehicle or trailer such as placards, decals, trailer seals and load tie down straps are exempt from sales and use tax because the products are used directly on motor vehicles operated by common carriers. However, the sales of certain products such as driver's logbooks, safety pocket books, vehicle inspection forms, bill of lading forms, wallet cards, and safety kits are not exempt because these items do not meet the requirement that they be used directly on motor vehicles operated by common carriers. Sales of certain products for office usage such as interactive Internet service and information access are also exempt, because no tangible personal property is received. But, sales of mileage tracking software on CDs are taxable because the software is a transfer of tangible personal property. Sales of manuals and newsletters on hazardous material handling, fleet safety compliance, and vehicle maintenance are subject to sale tax if the manuals and newsletters are transmitted in the form of tangible personal property. See LR 7068 for details.

Wisconsin Sales Tax Applies to Parking Charges for Common Carriers: The Wisconsin Department of Revenue has clarified the sales and use treatment of parking charges for common and contract carriers. Generally, parking or providing parking spaces for motor vehicles is subject to Wisconsin sales and use tax. There is no exemption for common or contract carriers; such carriers cannot claim an exemption on the vehicle that is being parked. For instance, if a contract carrier who claimed a sales and use tax exemption on its purchase of trucks because it uses the trucks exclusively as a contract carrier enters into a contract with another company to pay $100 a month to park its trucks in the company's lot in Wisconsin, the $100 charge is subject to WI sales and use tax. No exemption may be claimed. Further, while a common carrier may claim a sales and use tax on its purchase of trucks because it uses the trucks exclusively as a common carrier, parking charges to park the trucks in another company's parking lot are subject to Wisconsin sales and use tax. See 3/23/12 Article for additional information.