Texas Rules that Net Proceeds from Inventory Hedging Transactions are Included in Apportionment

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By: Aspen Fairchild, SALT Senior Associate At a glance The main takeaway: In Texas, taxpayers are required to include the net proceeds from their inventory hedging transactions in the denominator of their gross receipts factor, since inventory hedging is not treated the same as physical inventory. Assess the impact: It’s important to apply the appropriate…

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Oregon Rules that Taxpayer’s Activity Exceeded Protection of Public Law 86-272

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By Jess Johannesen, SALT Senior Manager At a glance The main takeaway: An Oregon Tax Court case addresses certain activities that create income tax nexus because they fall outside the scope of “sales solicitation” under Public Law 86-272. Assess the impact: Each state may interpret Public Law 86-272 differently, which illustrates the complexity for businesses…

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