State Tax Quarterly Insights: July - Sept 2013

This quarter we highlight three state tax changes with significant impact to taxpayers.

California made sweeping changes to its enterprise zone program, including the creation of a new hiring credit and a new state-wide sales and use tax exemption.

Missouri recently provided taxpayers with an election to use a new single sales factor apportionment method. Because the legislation provided no effective date, there remained some uncertainty regarding the first year the election would be applicable. Under a proposed rule, corporate taxpayers may generally take the new election on original corporate returns filed on or after August 28, 2013.

Pennsylvania enacted several state tax changes in July, including (1) a corporate tax addback for intangible expenses and for interest relating to intangibles, effective for tax years beginning after 2014 and (2) market-based sourcing for sales other than sales of tangible personal property, effective for tax years beginning after 2013.

The developments section summarizes significant state and local tax developments over the last three months.  Each item is linked to a PwC Insight that provides analysis and observations regarding the development.

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