ipt insider · 3 september 2018 ipt insider tax management and technology; and industry updates. in...

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Issue September

STATE INCOME TAX

Kentucky Tax Reform: An OverviewKentucky’s 2018 Regular Session of the General Assembly brought sweeping changes to an overall tax structure. Kentucky’s General Assembly passed not one, but two bills dramatically overhauling Kentucky’s tax system. HB 366 was the first bill to pass, only to have the Governor veto the bill. Ultimately, the General Assembly overrode the veto. Then, on the last day of Session, the Legislature passed the nearly identical HB 487. Because HB 366 could not be amended when the Governor’s veto was overridden, many provisions were changed through HB 487 in part to clean up and amend provisions passed in HB 366. HB 487 became law without the Governor’s signature. Any provision without an explicit effective date became effective on April 27, 2018 when HB 487 became law, though some changes were effective retroactively to January 1, 2018.

Mark F. Sommer, Esq.Frost Brown Todd LLCLouisville, KY Phone: (502) 779-8150 Email: [email protected]

Jennifer Y. Barber, Esq.Frost Brown Todd LLCLouisville, KYPhone: (502) 779-8154 Email: [email protected]

Article begins on page 5

2018

Daniel G. MuddAnders CPA's & AdvisorsSaint Louis, MOPhone: (314) 655-5507 Email: [email protected]

Rachael H. Chamberlain Frost Brown Todd LLC Lexington, KY Phone: (314) 655-5507 Email: [email protected]

President's Corner.....................................2

Calendar of Events....................................4

News You Can Use...................................5

Distance Learning.....................................9

2018 Personal Property Tax School........ 10

2018 Sales Tax Symposium ...................11

2018 VAT Symposium.............................12

2018 Property Tax Symposium................13

2018 Credits and Incentives Symposium...........................................14

2018 Credits and Incentives Special Events........................................15

2018 State Income Tax Symposium.........16

Local Luncheons.....................................17

Property Tax Calendar.............................18

Third-Party Drop Shipment Survey.........19

IPT Educational Resources....................20

New IPT Members...................................21

Just One More.........................................22

CMI & CCIP Candidate Connection.........23

CMI Corner..............................................23

2018 Property Tax School Highlights......24

2018 Real Property Tax School Highlights.....................................26

mailto:[email protected]



2 September 2018 IPT Insider

It is official. This month summer ends, and autumn begins, and IPT’s fall lineup of programs is in full swing. No matter your specialty, IPT has a program for you.

IPT has special pricing if you attend both Sales Tax and the Value Added Tax Symposia, which is very convenient since the programs overlap and are being held at the same location. If you register for both of these symposia, the total registration fee is $1,045... a savings of $195 and a terrific bargain for those looking to expand their knowledge.1

The symposia are a great way to get informed on the latest topics and earn CPE. For example, the Sales Tax Symposium features fifty sessions on topics, such as Wayfair and Quill; tax liabilities and big data; sales

1 Eligible non-members may register for either program; however, a $500 additional fee will be applied. Join IPT today (2018 membership dues apply), and save on registration fees and enjoy other membership benefits. See program brochures for more details.

IPT OFFICERS PresidentRick H. Izumi, CMI ITA, LLC

First Vice President Janette M. Lohman, CMI, CCIP, Esq., CPA Thompson Coburn LLP

Second Vice President David H. LeVan, CMI Walmart, Inc.

BOARD OF GOVERNORS Immediate Past President Robert S. Goldman, CMI, Esq. Dean, Mead & Dunbar

Diane D. Brown, CMI Kinder Morgan, Inc.

Trisha C. Fortune, CMI, CPARyan, LLC

Christopher S. Hall, CMI Ford Motor Company

Mark S. Hutcheson, CMI, Esq., CRE Popp Hutcheson PLLC

Bridget R. Kaigler, CPA, CGMA, CMA, MBA Amedisys, Inc.

Malena S. Marshall, CMI Softlayer, An IBM Company

April M. Nevarez, CMI Ichan Associates Holdings, LLC

Jessica C. Nowlin Best Buy Enterprise Services, Inc.

Mark R. Young, CMIAndeavor

CORPORATE COUNSEL Lee A. Zoeller, CMI, Esq. Reed Smith LLP

EXECUTIVE DIRECTOR Chris G. Muntifering, CMI

ASSISTANT EXECUTIVE DIRECTORS: Brenda A. Pittler

Charles Lane O’Connor

This publication is designed to provide accu-rate information for IPT members and other tax professionals. However, the Institute is not engaged in rendering legal, accounting, or oth-er professional services. If legal advice or oth-er expert assistance is required, the services of a competent professional should be sought. Reprint permission for articles must be grant-ed by authors and the Institute. Send address changes and inquiries to Institute for Profes-sionals in Taxation®, 1200 Abernathy Road, NE, Building 600 Suite L-2, Atlanta, Georgia 30328 Telephone (404) 240-2300/Fax (404) 240-2315.

Pr e s i d e n t’s Co r n e r

Rick H. Izumi, CMI President June 2018 - June 2019

Program Date Location

Sales Tax Symposium September 30 – October 3, 2018

Renaissance Indian Wells Resort Indian Wells, CA

VAT Symposium October 3 – 4, 2018Renaissance Indian Wells Resort Indian Wells, CA

Property Tax Symposium November 4 – 7, 2018Hyatt Regency Grand Cypress Resort Orlando, FL

Credits & Incentives Symposium November 6 – 9, 2018

Hyatt Regency Grand Cypress Resort Orlando, FL

State Income Tax Symposium January 13 – 16, 2019

Hyatt Regency Grand Cypress Resort Orlando, FL

Continued on page 3


tax management and technology; and industry updates. In addition, you can earn up to 19 CPE credits for full attendance!

The VAT Symposium has a variety of sessions on subjects like Brexit and global VAT management and real-time reporting. Attendees at the Sales Tax Symposium also have the opportunity to sit in on the Wednesday, October 3rd, morning sessions of the VAT Symposium, which include Canadian Indirect Taxes and VAT 101. By attending the VAT Symposium, you can earn up to 14 CPE credits.

In November, we look forward to the Property Tax Symposium, which features 30 sessions on diverse topics; includes the advanced property tax forum for those with 15 or more years of experience; and offers fifteen industry roundtables on topics ranging from energy to transportation. There are also many opportunities to network, earn up to 17.5 CPE credits, and keep involved in your industry.

This year, the Credits & Incentives Symposium offers more than 25 sessions; up to 21 CPE credits; a keynote speaker on foreign direct investment, and several exciting extracurricular events including an “IPT Cares” community-based event and trips to EPCOT and the Kennedy Space Center. See the program’s brochure for all of the details!

IPT has one more school to complete the year. IPT’s Personal Property Tax School will be held September 23 - 27, 2018, in Austin. There is still time to register, and space is available.

On October 16, from 2:00 p.m. – 3:30 p.m. EDT, IPT is hosting a new online course that will examine the impact of the US Supreme Court’s recent Wayfair decision on state and local income taxation. During the session, the presenters will cover the case, the decisions and its implications for nexus and state income and franchise taxes. Speakers for this session are Rick Pomp, Marilyn Wethekam, and Steve Wlodychak. See more details here.

Whether a school, symposium, conference, distance learning or other programs, planning and running these programs is a great deal of work and none of them would be accomplished without the long hours and dedication of the events' planning committees. I extend my thanks and gratitude to all of those who serve on these committees.

I am also pleased to announce the IPT’s bi-annual Third Party Drop Shipment Survey is now available at a discounted price of $200 for IPT members. If your company has IPT members and you are not a member, you can purchase the survey for $225, and the non-member price is $275. You can visit the IPT website and order your copy today!

September is also a great time to remind you that Corporate and Consultant Memberships have different annual fee schedules. Effective 2018, IPT implemented the option of an “organizational membership” for Corporate Members,

in which a corporation pays fees based on the number of IPT members it has. Individual Corporate Memberships are $325 per person/year; however, to encourage more tax professionals from corporations to join and become active members, we also offer a tiered pricing structure as follows:

Number of Corporate Memberships

Cost (excluding fees for new applicants)

10 Corporate Memberships $1,000/year

29 Corporate Memberships $2,000/year

Unlimited Corporate Memberships $3,000/year

Consultant Memberships pay a flat annual fee of $375 per person/year; the tiering structure is not available to Consultant Members. As you plan your 2019 budget, now is the time to evaluate your company’s membership and make the decision of adding new members or changing tiers.

September kicks off several busy months for IPT, full of exceptional educational opportunities, and I will be traveling to many of the programs. I hope to see you there!

www.ipt.org

https://www.ipt.org/IPT/Programs/Distance_Learning/IPT/Programs/Distance_Learning.aspx?hkey=be0b09a6-072d-4ea7-a137-a284e05b58fb


2018

Personal Property Tax School AT&T Executive Education & Conference Center Austin, TX September 23 - 27, 2018

CMI Sales Tax Exams Renaissance Indian Wells Resort Indian Wells, CA September 28 - 29, 2018

Sales Tax Symposium Renaissance Indian Wells Resort Indian Wells, CA September 30 - October 3, 2018

VAT Symposium Renaissance Indian Wells Resort Indian Wells, CA October 3 - 4, 2018

CMI Property Tax Exams Hyatt Regency Grand Cypress Resort Orlando, FL November 3 - 4, 2018

Property Tax Symposium Hyatt Regency Grand Cypress Resort Orlando, FL November 4 - 7, 2018

CCIP Exams Hyatt Regency Grand Cypress Resort Orlando, FL November 5 - 6, 2018

Credits & Incentives Symposium Hyatt Regency Grand Cypress Resort Orlando, FL November 6 - 9, 2018

CMI Income Tax Exams Hyatt Regency Grand Cypress Resort Orlando, FL January 12 - 13, 2019

2019

State Income Tax Symposium Hyatt Regency Grand Cypress Resort Orlando, FL January 13 - 16, 2019

Sales Tax School I Georgia Tech Hotel & Conference Center Atlanta, GA February 24 - March 1, 2019

ABA-IPT Advanced State Income Tax Seminar Ritz Carlton Hotel New Orleans, LA March 11 - 12, 2019

ABA-IPT Advanced Sales/Use Tax Seminar Ritz Carlton Hotel New Orleans, LA March 12 - 13, 2019

ABA-IPT Advanced Property Tax Seminar Ritz Carlton Hotel New Orleans, LA March 14 - 15, 2019

Sales Tax School II Georgia Tech Hotel & Conference Center Atlanta, GA May 5 - 10, 2019

2019 Annual Conference Hyatt Regency Hill Country Resort San Antonio, TX June 23 - 26, 2019

Property Tax School Hilton DFW Lakes Executive Conference Center Grapevine, TX August 4 - 8, 2019

Real Property Tax School Georgia Tech Hotel & Conference Center Atlanta, GA August 18 - 23, 2019

2019 Sales Tax Symposium The Ritz-Carlton Orlando, Grande Lakes Orlando, FL September 22 - 25, 2019

2019 VAT Symposium The Ritz-Carlton Orlando, Grande Lakes Orlando, FL September 25 - 27, 2019

CALENDAR OF EVENTS

IPT's Upcoming Programs

2019 Personal Property Tax School AT&T Executive Education & Conference Center Austin, TX October 20 - 24, 2019

2019 Property Tax Symposium Hyatt Regency Seattle Seattle, WA November 10 - 13, 2019

2019 Credits & Incentives Symposium Hyatt Regency Seattle Seattle, WA November 12 - 15, 2019

2020

2020 Sales Tax School I Georgia Tech Hotel & Conference Center Atlanta, GA February 23 - 28, 2020

2020 Sales Tax School II Georgia Tech Hotel & Conference Center Atlanta, GA April 19 - 24, 2020

2020 Annual Conference Hilton Chicago Chicago, IL June 21 - 24, 2020

2020 Sales Tax Symposium The Gaylord Texan & Resort Grapevine, TX September 20 - 23, 2020

2020 VAT Symposium The Gaylord Texan & Resort Grapevine, TX September 23 - 25, 2020

2020 Property Tax Symposium JW Marriott Tucson Starr Pass Resort Tucson, AZ November 8 - 11, 2020

2020 Credits & Incentives Symposium JW Marriott Tucson Starr Pass Resort Tucson, AZ November 10 - 13, 2020


NEWS YOU CAN USE

Continued on page 6

Kentucky Tax Reform: An Overview

Mark F. Sommer, Esq.Frost Brown Todd LLCLouisville, KY Phone: (502) 779-8150 Email: [email protected]

Jennifer Y. Barber, Esq.Frost Brown Todd LLCLouisville, KYPhone: (502) 779-8154 Email: [email protected]

Daniel G. MuddAnders CPA's & AdvisorsSaint Louis, MOPhone: (314) 655-5507 Email: [email protected]

Rachael H. Chamberlain Frost Brown Todd LLC Lexington, KY Phone: (314) 655-5507 Email: [email protected]

I. Consumption Taxes

Kentucky’s tax reform efforts broaden the sales tax base to include more consumer type services, including the sale of admissions, as in fitness facilities, swimming pools, and golf courses, with limited exclusions.1 Controversially, there is no exemption for sales by non-profits. New services are also subject to sales tax, including dry cleaning, janitorial services, pet care, and repair and maintenance services.2 A “business to business exception” will exempt gross receipts for labor of services to apply, install, repair or

STATE INCOME TAXmaintain tangible personal property that is directly used in manufacturing or industrial processing.3

Kentucky also enacted remote seller legislation, which requires any remote retailer to collect the sales taxes imposed by Kentucky.4 Kentucky law now provides that a remote retailer is any retailer who sells tangible personal property or digital property that was delivered to a purchaser in the state in 200 or more separate transactions in the previous or current calendar year or if the retailer’s gross receipts derived from these transactions exceed $100,000 in the previous or calendar year.5

Additionally, Kentucky increased the cigarette tax by $.50, moving it from $.60/pack to $1.10/pack.6 Each of these new taxes will have an effective date of July 1, 2018.7

II. Income Taxes

For businesses, the General Assembly moved to a services-based “market sourcing” model for determining taxable activity, which looks to where consumers receive involved services, instead of where the services were produced.8 This means Kentucky will deem receipts from services and sales of intangible personal property to have occurred in Kentucky if the taxpayer’s market for sales is in Kentucky.9 Receipts of tangible property will also be deemed to be in Kentucky if the good is shipped to a purchaser within the state.10 This new structure of taxation will capture businesses that provide services in the state though they may not have a physical presence. Now that services are sourced to Kentucky, more businesses will likely be required to pay taxes in Kentucky. However, if receipts are assigned to a state where the taxpayer is not taxable or the state of assignment is indeterminable, the Department will utilize the “throw-out rule,”11 excluding these receipts from the taxpayer’s denominator of their sales factor in the apportionment calculation if businesses are not taxable in the state where the receipt is assigned, or assignment is indeterminable.12

“Movement to the new “single sales factor” apportionment, as opposed to the former three-factor, double weighted sales formula, is largely favorable to

Kentucky manufacturing business interests.”





Continued on page 7

Movement to the new “single sales factor” apportionment, as opposed to the former three-factor, double weighted sales formula, is largely favorable to Kentucky manufacturing business interests. The “single sales factor” apportionment requires companies to utilize their Kentucky sales for corporate income tax purposes, which means they no longer must incorporate payroll and property in their overall apportionment factor.13 Going forward, the income will be multiplied by a fraction – the numerator being total gross receipts in Kentucky and the denominator being total gross receipts elsewhere.14 Gross income will include income generated from transactions and activity in the regular course of business and income arising from property if its acquisition relates to the operation of the business.15

Importantly, taxpayers may continue to request an alternative apportionment by providing clear and convincing evidence that the apportionment requirements do not adequately represent the taxpayer’s activity in Kentucky.16 Additionally, some taxpayers will not be subject to the new single sales factor formula, including communications, cable, and internet service providers.17

The Department will continue to use a modification of the three factor apportionment for passenger airlines and qualified freight forwarders.18 These changes go into effect retroactively for the tax year beginning January 1, 2018.19

The bill also revived the mandatory combined (unitary) filing method.20 Previously, the state used a nexus-only based consolidation structure, which required multi-entity corporate families to file one return if their ownership interest directly encompassed at least 80% of voting power of all classes of ownership interest.21

For tax years beginning on or after January 1, 2019, the Department will require the use of the unitary filing method.22

A business will be required to file under the unitary method if it falls under the definition of “unitary business,” which is defined as a single economic enterprise made up of separate constituent parts whose activities produce an exchange of value between the separate parts.23 This means that one member of a multi-entity corporate family, or combined reporting group, will be the designated taxpayer and will file a single return for the entire group.24 The bill allows an alternative option to file a return based upon a Consolidated U.S. Affiliated Group Return on an elective basis for eight years at a time, though this election is binding on both the business and the Department for the eight-year period.25

As a response concerning Kentucky’s perceived anti-business inventory property tax, the legislature enacted a four-year phased-in income tax credit in lieu of a repeal of the inventory tax.26 This credit will be a nonrefundable and nontransferable credit against income for tax that is timely paid on inventory on or after January 1, 2018.27 For the current tax year, businesses can receive an income tax credit for 25% of the tax timely paid on their inventory.28 This will increase to 50% in 2019, 75% in 2020, and 100% in 2021 and the following years.29 Entities may also apply this tax credit against the Limited Liability Entity Tax if the taxpayer is a pass-through entity.30

Another change that will affect corporate entities, as well as individuals, is the new five percent flat income tax rate, which moves away from the previous graduated tax rates that were between four and six percent.31 The legislation also removes many deductions that were in place, including deductions for domestic production activities, limits deductions to amounts directly or indirectly allocable to income subject to tax, and prohibits the same item from being deducted twice for corporations.32 The state will calculate net income for corporations by computing gross

income in accordance with HB 487, Section 56(1), then subtracting any available deductions under Section 56(2).33 These deductions still include the deduction for depreciation under KRS 141.0101 and deductions allowed by Chapter 1 of the Internal Revenue Code, excluding the following: state tax deductions, deductions to amounts allocable to income subject to tax, deductions paid to organizations that do not afford equal membership, dividends paid deduction to any captive real-estate investment trust, and deductions prohibited by Section 80, which relates to expenses of doing business with foreign corporations.34 For individuals, the previously used unlimited deduction model is eliminated. Relevant eliminated deductions include deductions for investment interest, taxes, certain losses, medical care expenses, moving expenses, as well as other miscellaneous deductions.35 However, both the home mortgage interest and charitable contributions deductions are maintained.

For individuals, the legislation also decreased the amount of pension income that is excluded from income tax from $41,110 to only $31,110.36 Lastly, the Legislature repealed the personal exemption credit, which was $10 per taxpayer and $20 per dependent.37

“As a response concerning Kentucky’s perceived anti-business inventory property tax, the legislature enacted a four-year phased-in income tax credit in lieu of a repeal

of the inventory tax.”


III. Incentive Credit Changes

Other changes to be aware of include several changes to previously created tax credits, several of which the Legislature suspended in an effort to broaden and stabilize the state’s tax base. There were three previous tax credits which the Legislature repealed in the legislated version of HB 366, but which were later reenacted in HB 487 after an outcry by the business community. This was the case for the Kentucky Jobs Retention Act, Incentives for Energy Independence Act, and the Kentucky Industrial Revitalization Act.38 However, while HB 487 saved the Kentucky Industrial Revitalization Act, it also requires new success-type reporting to the Legislative Research Commission by agencies by July 1, 2019.39

Other previously legislated tax credits were not as fortunate. The Legislature suspended the motion picture production company sales tax incentive credit until July 1, 2022.40 The Angel Investment Tax Credit Program and the Kentucky Investment Fund Act were suspended from January 1, 2019 to January 1, 2021.41 As for applications approved for all years prior to December 31, 2020, the Legislature instituted a forty-million dollar total cap per act.42 The Kentucky Film Tax Credit Program will have a cap of one-hundred million on total tax incentives approved annually;43 this will also be nonrefundable and nontransferable for applications approved on or after the effective date of the Act.44 As for applications approved prior to the effective date of the Act, a refundable credit will be issued.45

IV. Kentucky’s Conformity with the Tax Cuts and Jobs Act

HB 487 also addresses PL 115-97 (informally known as the 2017 Tax Cuts and Jobs Act) by adopting the Internal Revenue Code as passed in late 2017 and enacting any amendments necessary to decouple from the provisions Kentucky did not want to implement.46 Kentucky adopted net operating loss provisions and eliminated the long-standing fifty percent net operating loss limitation, for tax years beginning January 1, 2019, choosing to implement the eighty percent federal net operating loss limitation for tax years beginning on or after January 1, 2018.47 They also passed the federal unlimited carry-forward of excess net operating loss.48 The federal net operating loss limitations and the unlimited carry-forward provisions can be found Code Sec. 172.49

Kentucky will also be using the net interest expense limitation, which will apply to all taxpayers except those with average gross receipts of twenty-five million dollars or less, real estate and farming businesses that receive an elected exemption, and some regulated utilities.50 This expense limitation is limited to business interest for the taxable year, thirty percent of the taxpayer’s adjustable taxable income

for the tax year, and the taxpayer’s floor plan financing interest paid by vehicle dealers for the taxable year.51

The Foreign Derived Intangible Income (FDII) rules were also adopted.52 Also adopted was the Globally Intangible Low Taxed Income (GILTI), which refers to excess income of foreign subsidiaries over a ten percent rate of routine return on any tangible business assets.53 This allows a fifty percent deduction allowance taxed at a twenty percent rate through 2025, at which time the deduction will be reduced to 37.5%.54

As mentioned before, Kentucky decoupled from the full expensing provision.55 This would have allowed businesses to deduct the full value of their investments each year and therefore encourage long-term economic growth.56 Kentucky also did not adopt the deduction for qualified business income of pass-through entities,57 which would allow up to a twenty percent deduction from partnerships, LLCs, S corporations, trusts, estates, and sole proprietorships.58

V. Taxpayer Favorable Procedural Changes

The Kentucky Legislature also instituted a number of pro-taxpayer compliance changes in the bill. Among these is an extension of the time period in which a tax related protest must be filed, from forty-five days to sixty days, which will be applicable to notices of tax due issued on or after July 1, 2018.59 The bill also changed the due date for amended returns to be filed with Kentucky after an Internal Revenue Service audit from thirty days to 180 days.60 Lawmakers also removed antiquated text suggesting that taxpayers must pay the amount of tax in dispute or post a bond prior to appealing a tax dispute.61 These changes allow taxpayers more flexibility with time, which will encourage individuals and corporations to evaluate their tax due notices thoroughly and will promote the ability to seek appeal if the tax notices are incorrect.

Furthermore, new requirements prohibit contingency fee contracts for tax administration to promote transparency.62 There is also amending language that clarifies that an individual or corporation can bring an action against the Commonwealth for monetary relief if there is a willful, reckless, or (as opposed to “and”) intentional disregard of the rights of taxpayers by Department employees.63 However, it is important to note that the taxpayer still bears the burden of reimbursing the Department for defending the suit if the commission decides the suit is frivolous.64

Conclusion

The combined effect of HB 366 and HB 487 created sweeping changes to Kentucky’s Tax Code that should be beneficial to individuals and businesses alike. However,

Continued on page 8


because this reform was implemented so quickly, it is reasonable to expect that additional changes will be forthcoming in subsequent legislative sessions. Additionally, the Department is expected to continue to issue guidance on various issues associated with Kentucky’s tax reform.

EN11550.Public-11550 4827-5077-0287v1

1 H.B. 487, 2018 Gen. Assemb., Reg. Sess., § 37(2), 2018 Ky. Laws 207 (2018), 2018 KY LEGIS 207 (Westlaw).2 Id. at §§ 37(g)-(q). 3 Id. at § 121(23). 4 Id. at § 42(2)(g). 5 H.B. 487, 2018 Gen. Assemb., Reg. Sess., § 42(2)(g), 2018 Ky. Laws 207 (2018), 2018 KY LEGIS 207 (Westlaw).6 Id. at §§ 27(1)(b)-(c). 7 Id.8 Id. at § 60(11). 9 Id. at § 60(11)(a).10 Id. at § 60(10).11 Id. at § 60(11)(c).12 Id.13 Id. at § 60(9).14 Id.15 Id. at § 60(1)(a).16 Id. at § 60(12)(c).17 Id. at § 78(3).18 Id. at § 78(2)(a).19 Id.20 Unitary was allowable in Kentucky pre-1995.21 Id. at §§ 79(9)-(14).22 Id. at § 119(3)(a).23 Id. at § 120(2)(f).24 Id. at § 120(9)(a).25 Id. at §§ 79(4)(b)-(d).26 Id. at § 115.27 Id. at § 115(1).28 Id. at § 115(2)(a).29 Id. at §§ 115(2)(b)-(d).30 Id. at § 115(3). 31 Id. at § 58(2).32 Id. at § 56(2)(c).33 Id. at § 56.34 Id. at § 56(2)(c).

35 Id. at §§ 55(2)(a)-(j). 36 Id. at § 55(1)(g). 37 Id. at § 57(3)(a). 38 Id. at § 149.39 Id. at § 102(2)(j)(5). 40 Id. at § 46(2)(a).41 Id. at §§ 98(2)(c) & 99(1)(d).42 Id. at §§ 98(2)(a) & 99(1)(b).43 Id. at § 62(4)(a).44 Id. at § 62(5)(a)(2).45 Id. at § 62(5)(a)(1). 46 Id. at § 53(14).47 Id. at § 79(11)(c).48 Id. at § 53(14).49 Internal Revenue Code, 26 U.S.C.A. § 172. 50 Id. at § 163(j).51 Id.52 Id. at § 250.53 Id. at § 951(a).54 Id. at § 250. 55 Id. at § 55(1)(m). 56 Internal Revenue Code, 26 U.S.C.A. § 168(k).57 H.B. 487, 2018 Gen. Assemb., Reg. Sess., § 55(1)(n), 2018 Ky. Laws 207 (2018), 2018 KY LEGIS 207 (Westlaw).58 Internal Revenue Code, 26 U.S.C.A. § 199(a).59 H.B. 487, 2018 Gen. Assemb., Reg. Sess., § 106(1)(a), 2018 Ky. Laws 207 (2018), 2018 KY LEGIS 207 (Westlaw).60 Id. at § 114(4)(b).61 Id. at § 101(2).62 Id. at § 100(13)(b). 63 Id. at § 100(14). 64 Id.


Distance Learning

New Distance Learning Session: Way Un-Fair – The Current State of State Income Tax Nexus in an E-Commerce WorldJoin IPT on October 16, 2018, from 2:00 p.m. – 3:30 p.m. EDT, for a new online course that will examine the impact of the US Supreme Court’s recent Wayfair decision on state and local income taxation. During the session, the presenters will cover the case, the decisions and its implications for nexus and state income and franchise taxes.

Speakers for this session are:

• Richard D. Pomp, JD, Alva P. Loiselle Professor of Law Connecticut Law School/NYU Law School

• Marilyn A. Wethekam, Esq., Partner Horwood Marcus & Berk Chartered

• Steven N.J. Wlodychak, Esq., Principal Ernst & Young LLP

By the end of the presentation, participants will be able to:• Identify historical developments of income tax nexus• Recognize the current state of income tax nexus, including P.L. 86-272• Recognize how the Wayfair case may impact income/franchise taxes• Identify, and possibly avoid, pitfalls in a post-Wayfair world

Registration:The cost of the session is $75 for members and $100 for nonmembers, and you can earn 1.5 CPE credits for attending. Register Here

https://www.ipt.org/IPT/Programs/Distance_Learning/IPT/Programs/Distance_Learning.aspx?hkey=be0b09a6-072d-4ea7-a137-a284e05b58fb


Personal Property Tax SchoolSeptember 23 – 27, 2018AT&T Executive Education and Conference Center The University of Texas Austin, TX

IPT's Personal Property Tax School is designed for tax professionals who have a basic understanding of ad valorem principles, but want to gain a comprehensive education in personal property taxation. The school builds on the fundamental knowledge of property tax issues and helps attendees expand their current knowledge of personal property tax issues, including the intricacies of personal property tax in a business environment.

Using a combination of general session lectures, small group exercises, and all-encompassing case study, this school builds on your property tax knowledge by exploring the five key components of personal property taxation:

• Classification• Basic Valuation of Machinery & Equipment• Advanced Depreciation Concepts• Compliance• Audits & Appeals

The school's experienced faculty will help you address and resolve real-world personal property tax issues by providing practical solutions. As an attendee, you will work in a small group to prepare and present a case study to a mock hearing board of review, which will give you the necessary skills to better serve your employer and clients.

In order to attend the school, you must have successfully completed or challenged IPT’s Property Tax School. Successfully completing the Personal Property Tax School is a requirement for earning the Property Tax CMI designation. The Personal Property Tax School is not eligible to be challenged.

In addition to successfully passing the quizzes and the final exam, participants must attend a minimum of 90% of the school lectures and breakouts, as well as the mandatory one-hour ethics session, for full course credit. Enrollment is limited to IPT members or employees of companies that have IPT members.

Personal Property Tax School

Classifi

cation

Complia

nce

Audits & Appeals

Valuation

Please note any registrant not residing at the AT&T Executive Education and Conference Center under the IPT room block will be assessed a supplemental fee of $543.00. See page ten of the “Hotel & Accommodations” section in the school brochure for further information.

Online Registration (You must log on to register)

Registration FormBrochure

SAVE $500

Eligible non-members have an opportunity to save $500 by joining IPT (2018 membership dues apply). See page nine of the school brochure for details.

https://www.ipt.org/core/events/eventdetails.aspx?iKey=PPSCH2018

https://www.ipt.org/iptdocs/Files/ProgramBrochures/2018PPTS%20Brochure.pdf

https://www.ipt.org/iptdocs/Files/ProgramBrochures/2018PPSCHRegistrationForm.pdf


This month, IPT's fall symposia will be getting

underway, and this year IPT has a special offer for those who attend both the Sales Tax Symposium and the Value Added Tax Symposia. If attendees register for both the Sales Tax Symposium and Value Added Tax Symposium, the total fee is $1,045... a savings of $195!

Both symposia are prime opportunities to take an in-depth look at the "hot button" tax issues, get state and regional legislative updates, attend panel discussions, and network with others in the field of sales tax and value added tax.

The sessions at both symposia are crafted by tax professionals and delivered by industry leaders who will provide you with best practices and alternate strategies to tackle the issues you face every day. With sessions focused on such diverse topics as Wayfair and Quill, global taxation, industry updates, and ethics training, there is something for everyone at these two symposia.

Sales Tax Symposium Renaissance Indian Wells ResortIndian Wells, CA September 30 – October 3, 2018

June was an important month for sales tax professionals as the US Supreme Court made its decision on South Dakota v. Wayfair, Inc. IPT’s Sales Tax Symposium offers sessions that analyze the Court’s decision and its potential impact, complemented by a number of diverse sessions that address a variety of complex issues and provide attendees the best practices, alternate strategies, and other skills to effectively navigate them.

The symposium features 50 sessions on a varied range of topics including:

• Wayfair and Quill• Taxability of Technology• Preparing for & Winning Litigation of Sales Tax Cases • Managing Tax Liabilities with Big Data• Obligations for Marketplace Facilitators• State Legislative Updates• Manufacturing: Technical Updates and Audit

Techniques• Refund/Credit Roadblocks• The Internet's Impact on Indirect Taxes

• Audit Defense and Management Strategies• Voluntary Disclosure and Amnesty Programs• Mergers & Acquisitions• Industry Updates

Sales Tax Symposium attendees may also attend the Wednesday, October 3rd, morning sessions of the Value Added Tax Symposium, which include Canadian Indirect Taxes and VAT 101.

Eligible non-members may register for either program; however, a $500 additional fee will be applied. Join IPT today (2018 membership dues apply), and save on registration fees and enjoy other membership benefits. See program brochures for more details.

Registration for IPT members is $745.See program brochure for further details.


Hotel ReservationRegistration Form

Brochure

Sales Tax Symposium2018 Sales Tax SymposiumSpecial Offer on IPT’s Sales Tax

and Value Added Tax Symposium

Renaissance Indian Wells ResortIndian Wells, CA

https://www.ipt.org/core/events/eventdetails.aspx?iKey=STSYM2018

https://www.ipt.org/iptdocs/Files/ProgramBrochures/2018STSYMBrochure.pdf

https://www.ipt.org/iptdocs/Files/ProgramBrochures/2018STSYMRegistrationForm.pdf

https://book.passkey.com/go/IPT2018


Value added Tax SympoSium

Value Added Tax SymposiumRenaissance Indian Wells ResortIndian Wells, CAOctober 3 – 4, 2018

IPT’s Value Added Tax Symposium provides attendees with insight on how to manage unique and emerging issues. It’s also a great opportunity for sales tax professionals to learn more about value added taxation, its intricacies, and its impact on multi-national companies and cross-border transactions. The symposium has a number of sessions, ranging from the fundamental to the advanced, on key VAT issues including:

• Introduction to VAT - Basics• Advanced VAT• General Session: RPA and Cognitive in Action for VAT• Planning for the Impact of Brexit and Beyond• Similarities Between SUT and VAT (with VAT 101)• Canadian Indirect Taxes• General Session: RPA and Cognitive in Action for VAT• Global Real-Time Reporting• VAT & the Digital Economy• General Session: Complex Supply Chains – Common

VAT and Customs Challenges and Opportunities• Ethics• General Session: Global VAT Management in

Practice - Industry Panel • General Session: Major Legislative Changes Around

the Globe• General Session: Working with a Shared Service

Center

If attendees register for both the Value Added Tax Symposium and the Sales Tax Symposium, the total registration fee is $1,045... a savings of $195!

Eligible non-members may register for either program; however, a $500 additional fee will be applied. Join IPT today (2018 membership dues apply), and save on registration fees and enjoy other membership benefits. See program brochures for more details.



Brochure

Special Offer for Attending

Both Programs

Renaissance Indian Wells ResortIndian Wells, CA

Registration for IPT members is $545.See program brochure for further details.

https://www.ipt.org/core/events/eventdetails.aspx?iKey=VAT2018

https://www.ipt.org/iptdocs/Files/ProgramBrochures/2018VATSYMBrochue.pdf

https://www.ipt.org/iptdocs/Files/ProgramBrochures/2018VATSYMRegistrationForm.pdf

https://book.passkey.com/event/49703177/owner/1792/home


Property Tax Symposium Hyatt Regency Grand Cypress

Property Tax SymposiumHyatt Regency Grand Cypress ResortOrlando, FLNovember 4-7, 2018

IPT’s Property Tax Symposium is the premier event for state and local property tax professionals. It is IPT’s longest running annual symposium and carries on the legacy of educational excellence and provides attendees with great opportunities to meet and greet colleagues from across the country. The program includes 30 sessions that are designed to address the topics most relevant to those in the state and local property taxation field and provide real-world strategies to help produce positive outcomes and by attending, you can earn up to 17.5 CPE credits.

Topics for the symposium include:

• Challenges to Market Value and Fee Simple• The Impact of Real vs. Personal Property – How It

Can Be Used to Maximize Savings• eCommerce and Industrial Property • Avoiding Transfer Tax Traps in Transactions and

Restructuring • Demystifying Property Tax Automation and

Technology • Equal and Uniform Appraisal – The Fourth Approach

to Value in Texas• Hotel Valuation• Presenting Complex Legal Concepts to a Lay

Tribunal• Beyond the Balance Sheet – The Story of Inventory• Tax Reform and Tangible Assets• Property Tax Incentives• Assessors’ “Dark Store” Theory and Its Effect on

Personal Property • Defending “Reverse” Appeals and Increase Claims• Winning the Big Box Case at Trial

The symposium also includes the advanced property tax forum for those with 15 or more years of experience, and it features fifteen industry roundtables on topics ranging from energy to transportation.

Industry Roundtables

• Energy• Equipment

Leasing• Golf/

Recreational• Healthcare/

Senior Living• High-Tech/Tele-

communications

• Hotel• Industrial (Ware-

house, Flex, Light Assembly)

• Manufacturing Plants (Personal & Real)

• Multi-Family• Office

• Oil & Gas• Property Tax

Technology• Retail• Retail - Big Box/

Anchor Tenants• Transportation

If members register for both the Property Tax Symposium and Credits & Incentives Symposium, the total early registration fee is $1,290 or $1,390 after October 5, 2018... a savings of $100!*The symposia are being held at the Hyatt Regency Grand Cypress Resort. Reservations requested after IPT's room block is filled or beyond the cut-off date of October 5, 2018, whichever comes first, are subject to availability.*Eligible non-members may register for either program; however, a $500 additional fee will be applied. Join IPT today (2018 membership dues apply), and save on registration fees and enjoy other membership benefits. See program brochures for more details.



Brochure

By October 5, 2018

Individual Holds Membership in IPT: $695

Individual Not a Member but Company Has Members: $1,195

After October 5, 2018



Save $50

Register by October 5

https://www.ipt.org/core/events/eventdetails.aspx?iKey=PTSYM2018

https://www.ipt.org/iptdocs/Files/ProgramBrochures/2018PTSymRegistrationForm.pdf

https://book.passkey.com/go/PropertyTax2018

https://www.ipt.org/iptdocs/Files/ProgramBrochures/2018PTSYMBrochure.pdf


Credits & Incentives Symposium2018

This symposium offers more than 25 sessions on a variety of topics including:

• Foreign Direct Investment• General Session: New Disclosure Requirements

for Credits & Incentives FASB/GASB

• General Session: Economic Outlook with Tax Reform

• Creative Financing • State Updates• Strategies and Best Practices for Reducing

the Tax Burden• General Session: Ethical Do’s and Don’ts of

Credits and Incentives Negotiations• General Session: Space (NASA) Discussion

& Creative Financing• Accounting for Incentives• Disaster Relief Credits• General Session: Negotiations/Remedies• Real Estate Incentives• Auditing, Compliance and Clawbacks• Leveraging RFPs to Maximize Project Returns• Global Credits & Incentives Update• Incentives for Retail and Distribution• Federal Credits Update• Transferable Sale Credits

Credits & Incentives SymposiumHyatt Regency Grand Cypress ResortOrlando, FLNovember 6-9, 2018



Brochure

By October 5, 2018



After October 5, 2018



Save $50

Register by October 5

IPT’s Credits & Incentives Symposium is the premier event for C&I professionals; no other program equals the in-depth insight you will get from it, with sessions designed for those new to C&I all the way to the seasoned professional. By attending, you can earn up to 21 CPE credits.If members register for both the Property Tax Symposium and Credits & Incentives Symposium, the total early registration fee is $1,290 or $1,390 after October 5, 2018... a savings of $100!*The symposia are being held at the Hyatt Regency Grand Cypress Resort. Reservations requested after IPT's room block is filled or beyond the cut-off date of October 5, 2018, whichever comes first, are subject to availability.*Eligible non-members may register for either program; however, a $500 additional fee will be applied. Join IPT today (2018 membership dues apply), and save on registration fees and enjoy other membership benefits. See program brochures for more details.

Join us in Orlando for IPT’s Credits & Incentives Symposium, the place to learn about industry trends and topics from credit and incentives experts and network with some of the best and brightest in the business!

https://www.ipt.org/core/events/eventdetails.aspx?iKey=CISYM2018

https://www.ipt.org/iptdocs/Files/ProgramBrochures/2018CISYMRegistrationForm.pdf

https://book.passkey.com/go/CreditsAndIncentives2018

https://www.ipt.org/iptdocs/Files/ProgramBrochures/2018CISYMBrochure.pdf


Credits & Incentives Symposium2018

IPT Cares 1:00 - 3:00 pmOn Tuesday, November 6th from 1:00 to 3:00 p.m., IPT is starting a new tradition - IPT Cares! IPT is partnering with a local food bank Second Harvest Food Bank of Central Florida, which is a member of Feeding America - the largest charitable domestic hunger-relief organization in the United States. Second Harvest secures and distributes food and grocery products to approximately 550 local nonprofit feeding programs throughout Central Florida. Activities usually include sorting food goods and checking acceptability. See the brochure for more details!

Evening at EPCOT - Dessert and FireworksHosted by Enterprise FloridaThursday, November 8, 2018 6:30 – 10:00 pm (Advance reservation is required. Space is limited.)

This is no ordinary networking reception! Join Enterprise Florida for a uniquely Florida event at the spectacular Epcot® IllumiNations: Reflections of Earth fireworks show. Enjoy appetizers and drinks while stunning fireworks burst over the World Showcase Lagoon. This event is complimentary but available on a first-come, first-served basis. Sign up on the registration form to indicate whether you will attend. See the brochure for more details. Disclaimer: IPT has included information about this event for the convenience of symposium attendees. However, IPT accepts no responsibility or liability for the event, nor any loss, damage, or disappointment experienced by participants. ©Disney

Kennedy Space Center TourFriday, November 9th! 11:45 am - 7:00 pm Fee: $50.00 (Off-site Event; Advance reservation is required.)

Join the IPT Excursion to Kennedy and rekindle your childhood dreams of space! Guests will view active launch sites, learn about the history and future of the spaceport, and stop at Space Florida’s Launch and Landing Facility (formerly the Space Shuttle Landing Facility). You will also see the Vertical Assembly Building or VAB, one of the largest structures in the world, used to assemble and prepare the Saturn V Lunar Launch Vehicles and the Space Shuttle. At the conclusion of the base tour, we’ll return to the Kennedy Space Center Visitor Complex, where you’ll have the option of riding the Atlantis Experience, a full motion – astronauts view - shuttle launch simulator, followed by a walk around tour of the Space Shuttle Atlantis, on permanent exhibition at the center. See the program brochure for more details.

This Year’s Symposium Has Much to Offer with Three Special Events!


Save the Date for IPT’s State Income Tax Symposium

State Income Tax Symposium Hyatt Regency Grand Cypress Resort – Orlando, FL January 13 – 16, 2019

IPT's Income Tax Symposium is your opportunity to take a deep dive into the topics, that are top of mind for income tax professionals, delivered by experts, who will provide you with best practices, alternate strategies and ways to demonstrate the value of your work to clients and employers.

The program includes a variety of topics important to income tax professionals, including updates on income taxation from global, national and state perspectives. The symposium is designed to help income tax professionals understand the new and emerging issues you encounter daily, as well as provide attendees with in-depth analyses on strategies for operating effectively in an ever-changing SALT environment.


Mark Your Calendars!

https://www.ipt.org/core/events/eventdetails.aspx?iKey=ITSYM2018


Dallas Fort Worth Area Local Luncheon GroupDate: Tuesday, October 23, 2018Time: 11:30 AMLocation: Cowboys Golf Club in Grapevine

Topic: TBD

Speakers: TBD

Contact: Lynn Krebs, CMI, PhD [email protected]

Atlanta Area Local Luncheon GroupDate: Wednesday, September 26, 2018Time: 11:30 AM

Location: Maggiano's Little Italy Perimeter Mall Upstairs Banquet Hall

Topic: "Tax Automation: The Future of Tax"

Speakers: Matt Burton, Sr. Principal Team Leader, Tax Technology, Chick-fil-A, Inc.

Contact: Terri Lynne Rosenblatt [email protected] or visit http://www.atlantaipt.org/

Local Luncheons

St. Louis Area Local Luncheon GroupDate: Tuesday, October 23, 2018Time: 11:30 AM

Location: Maggiano’s Little Italy St. Louis, MO

Topic: TBD

Speakers: TBD

Contact: Amy Salamone [email protected]



http://www.atlantaipt.org/



Personal Property Filing Dates:

None

Assessment Dates:

AL CT 10/1

* Dates vary, check jurisdiction

Appeals Due:

IL* MA* ME* VA* WI*

NY NYC (Court Appeals)PA 10/1 Philadelphia CountyRI* 90 days from tax bill (Generally Appeals Due in October)

Property Tax Calendar ~ October 2018This information is provided by International Appraisal Company (IAC) and is provided for quick reference/reminder purposes only. IPT and IAC make no guarantee to completeness or accuracy and are not responsible for errors or omissions or for any results from the use of this information. We strongly suggest confirmation of all information with local taxing jurisdictions.


INSTITUTE FORPROFESSIONALS INTAXATION®1200 Abernathy RoadBuilding 600, Suite L-2Atlanta, Georgia 30328

Tel: 404/240-2300Fax: 404/240-2315

www.ipt.org

2018 THIRD-PARTY DROPSHIPMENT SURVEY

Facts...

• Buyer Corporation is a registered wholesaler or retailer in State A.

• Buyer Corporation has no nexus in your state and is not required to collect sales/use tax in your state (State B).

• Seller Corporation has a valid exemption certificate from Buyer Corporation for State A.

• Seller Corporation is required to collect sales/use tax in your state (State B).

The Board of Governors has set a member price of $200.00 per copy. The non-member cost is $275.00 and if someone from the company belongs to IPT, the cost is $225.00. (Georgia residents should include in the remittance appropriate Georgia sales tax)Please fill out the order form and mail it to the IPT Office in Atlanta, or scan the order form and mail it to [email protected]. Once received in the office, your survey will arrive within five to seven business days. If you have any questions, please call the IPT Office at (404) 240-2300.

2018 Third-Party Drop Shipment Survey

Ordering

Survey Questions(See Scenario on Cover)

Survey Questions (continued)

1. Given that Buyer Corporation is not registered in, and has no nexus with, your state (State B), will your state recognize the sale from Seller Corporation to Buyer Corporation as a scale for resale not subject to sales or use tax in your state? (“Yes” or “No”) If the answer is “Yes”, what documentation will your state accept to evidence that the sale from Seller Corporation to Buyer Corporation is sale for resale?

2. Does it matter if Seller Corporation delivers in its own equipment, rather than by common carrier?

3. Do the FOB terms of sale matter in the taxation of this type of transaction? If so, please explain.

4. Does it matter if Seller Corporation ships from an inventory pool in your state as opposed to an inventory pool in another state?

5. What if Seller Corporation has a Direct Pay Certificate from Buyer Corporation instead of a resale certificate from State A?

6. If Other Corporation is a consumer, would the execution of an Affidavit (see Exhibit A) from Other Corporation to Buyer Corporation, furnished to Seller Corporation, be sufficient to relieve Seller Corporation from further responsibility or liability for your state’s tax?

7. Does it matter if Other Corporation is reselling as opposed to consuming? Does it matter that Other Corporation is an exempt or immune entity or purchasing for an exempt purpose other than for resale?

8. What if Other Corporation is installing the items shipped in the performance of a construction contract with an exempt agency in your state?

9. If Seller Corporation is required to remit or collect and remit the tax, is the tax measured by the price paid by Buyer Corporation, or by the price paid by Other Corporation? If measured by the price paid by Other Corporation, what is the Seller Corporation required to do if it does not know, and had no right to know, the price paid by the Other Corporation?

10. What is the code section the State relies on to reach its conclusion in each answer?

The Institute is pleased to announce that it has published a Fourteenth Edition of the Third-Party Drop Shipment Survey. The first edition was published in 1990 and the survey has been fully updated biannually thereafter.Accordingly, forty-five states and the District of Columbia were again contacted using the original fact pattern. The ten survey questions, scenario, and a sample 2016 reply appear in this brochure. This is the format that was used for all the states’ responses.We received a 100% response rate from the jurisdictions contacted, and those individuals involved in these sorts of tax transactions will find this to be an invaluable reference source.

EXHIBIT A

To: Seller Corporation

I /We hereby certify that I /We paid use tax in the amount of $ _____________to the state of ________ with my/our return for the _____/_____ (month & year). Registration / License No. ___________________________________ , to cover the tax liability resulting from your sale to (Buyer Corporation) (Seller Corporation’s invoicee)Address ________________________________________City/State _______________________________________

on your (Seller Corporation’s) invoice number(s) ________

___________________________, dated _____/____/____ .

Signature/Title for (Other Corporation) ________________________________________________________________(Ship-To) Business Name matching above registration number:

Address _______________________________________

City/State _____________________________________

State______________ County of _________________

Sworn to and subscribed before me this

_______ day of _____________, 20_____.

Notary Public ______________________________

Institute for Professionals in Taxation®

2018Third-Party

Drop Shipment SurveyFourteenth Edition


1200 Abernathy Road, NE, Suite L-2600 Northpark Town Center

Atlanta, Georgia 30328Tel: (404) 240-2300 ~ Fax: (404) 240-2315

Other Corporation

(Located in your state-STATE B)

Facts...

SHIP PRODUCTS

SHIP PRODUCTS SELLS PRODUCTS

SellerCorporation

RE-SELLS PRODUCTS

BuyerCorporation

(Located in STATE A)







Ordering














EXHIBIT A




___________________________, dated _____/____/____ .


Address _______________________________________

City/State _____________________________________

State______________ County of _________________


_______ day of _____________, 20_____.

Notary Public ______________________________


2018Third-Party





Other Corporation


Facts...

SHIP PRODUCTS


SellerCorporation

RE-SELLS PRODUCTS

BuyerCorporation








Ordering














EXHIBIT A




___________________________, dated _____/____/____ .


Address _______________________________________

City/State _____________________________________

State______________ County of _________________


_______ day of _____________, 20_____.

Notary Public ______________________________


2018Third-Party





Other Corporation


Facts...

SHIP PRODUCTS


SellerCorporation

RE-SELLS PRODUCTS

BuyerCorporation


Get Your Copy Today!

2018 Third-Party DropShipment Survey

Member Discount

Order Your Copy Today!

2018 Third-Party Drop Shipment Survey Brochure

Purchase Third-Party Drop Shipment Survey Online

IPT Publications Order Form

The Board of Governors has set a member price of $200.00 per copy. The non-member cost is $275.00 and if someone from the company belongs to IPT, the cost is $225.00. (Georgia residents should include in the remittance appropriate Georgia sales tax).

Please fill out the order form and email it to the IPT Office in Atlanta, or scan the order form and email it to [email protected]. Once received in the office, your survey will arrive within five to seven business days. If you have any questions, please call the IPT Office at (404) 240-2300.

The Institute is pleased to announce that it has published a Fourteenth Edition of the Third-Party Drop Shipment Survey. The first edition was published in 1990 and the survey has been fully updated biannually thereafter.Accordingly, forty-five states and the District of Columbia were again contacted using the original fact pattern. We received a 100% response rate from the jurisdictions contacted, and those individuals involved in these sorts of tax transactions will find this to be an invaluable reference source.

http://www.ipt.org

https://www.ipt.org/IPT/Publications/Books_and_Surveys/IPT/Publications/Books%20and%20Surveys.aspx

https://www.ipt.org/core/events/eventdetails.aspx?iKey=EB3PDS2018

https://www.ipt.org/iptdocs/Files/MiscForms/PubsForm2018.pdf



The Institute’s Sales and Use Taxation, 2nd edition, is available for purchase. Click here to order

The text is on a convenient and portable flash drive, so you can easily access the essential information every sales tax professional needs whether you are in or out of the office.

The discounted price for IPT members is $100 and $125 for those employed by companies with IPT members. The cost for non-members is $175. The text was edited by William F. Fox, Ph.D., Professor of Economics and Director of the Center for Business & Economic Research, Haslam College of Business at the University of Tennessee, Knoxville.

Sales and Use Taxation, 2nd edition, is just one of several publications that are currently available from IPT. The others include:

Property Taxation 4th Edition (2014)State Business Income Taxation 1st Edition (2012)

IPT’s Sales and Use Taxation 2nd edition

Careers

IPT Educational Resources

IPT can help match great people with great opportunities. Visit the Career Opportunities page on the IPT website for career position descriptions and requirements.

~CANON 8~Code of Ethics

IT IS UNETHICALto pay, retain, or accept a share of a fee or other monetary compensation for the referral of a person to another for the provision of tax services in which the recipient of such compensation does not participate, unless advance notice is given to the person for whom such services are to be performed. The amount of the compensation for the referral need not be disclosed unless requested by the person for whom the services are to be performed.

https://www.ipt.org/core/events/eventdetails.aspx?iKey=EBSTBK

http://www.ipt.org/IPT/Careers/CI_Positions/IPT/Career_Opportunities/Credits_and_Incentives_Positions_Available.aspx?hkey=01e019a0-f877-4355-b2b5-e199d4609e5f

https://www.ipt.org/core/events/eventdetails.aspx?iKey=EBPTBK

https://www.ipt.org/core/events/eventdetails.aspx?iKey=EBITBK


New Members

John Henry Abbvie, Inc.Olivia Petrielli Abbvie, Inc.

David Childs, Esq. ADP Added Value ServicesGolda Vanchipurakel Amazon.Com

Sairym Ibarra Amazon.Com

Mericka Booker Anheuser-Busch Companies, LLC

Kathy Jackson Anheuser-Busch Companies, LLC

Victor Pagac, Esq., CPA Appian CorporationMichael Howard Avalara, Inc.Jacqueline Bravo BankUnited

Rachel Baker BDO USA, LLPJulia Owen C&S Wholesale Grocers Inc.

Christa Tuck CBIZ MHM, LLCKiley Surritt Cerner CorporationEmily Lomeli Chevron Corporation

Lee H. Edenfield Corporate Tax Incentives, LLCBrandon Ratkovich Crowe LLP

Christopher M. Davis, CPA, MBA, CFST Crowe LLP

Paul Yoder, CPA Crowe LLPGeorge Francis, CEcD Deloitte Tax LLP

Christopher Minor Deloitte Tax LLPNolan Thompson DPR Cosntruction

Dana Cockrell Encompass Health CorporationRobert Hendrich Encompass Health Corporation

Robert W. McCallum, III Encompass Health CorporationShawn Patzkowsky Encompass Health Corporation

Todd Radde Encompass Health CorporationKaren Spencer Encompass Health Corporation

Mary Cummings Entertainment PartnersJames M. Normand Ernst & Young LLP

Fredika Mercier Ernst & Young LLPRyan Peace ESRI, Inc.

Stephen Harle FedEx CorporationSusan McKay FedEx Corporation

Jennifer Ardrey, J.D. Grant Thornton LLPRoss Benitz Grant Thornton LLP

Lauren Bernardino Grant Thornton LLPEmily Tracy Grant Thornton LLP

Jennifer Hower, Esq. Herman Katz Cangemi & Clyne, LLP

Clifford Pedroza Howard Midstream Energy Partners, LLC

Ninfa Cepeda Isagenix International LLCEmily Durette Isagenix International LLC

Kevin Gonzalez Isagenix International LLCMelissa Kent Isagenix International LLC

Josephine Koziol Isagenix International LLCFroy Leon Isagenix International LLC

Mathew A. Riggs Isagenix International LLCNeil Scott Isagenix International LLC

Amy McDonald, CPA Katz, Sapper & Miller, LLPLance Davis Kiewit CorporationReji Thomas KPMG LLP

Felisha Gainey Martin Marietta MaterialsTaylor Davis Marvin F. Poer and Company

Terri R. Robers Michelin North America, Inc.Angela Huerta Moss Adams LLP

Peter Kansakear Moss Adams LLPCharles G. Dannis, MAI,

SRANational Valuation Consultants,

Inc.

Victoria Laidlaw Nationwide Consulting Company, Inc.

Johnny Dupree Poteat, III NN, Inc.

Carrie Williams Paradigm Tax GroupOmar Copa Moya Park Hotel & Resorts Inc.Kay Miller Hobart Parker Poe

Amy Jones Paul Jones Law, LLCAndrew Albright, Esq. Popp Hutcheson PLLC

Michelle Corriveau PricewaterhouseCoopersMark De Luca PricewaterhouseCoopers

Rafael Diefenthaeler PricewaterhouseCoopers LLPFernando Gallardo, CPA Ryan, LLC

Christine Ho Ryan, LLCHaven L. Willis SALTA, PLLC

Sherry Mussachio School Health CorporationErica Raut, CPA Verizon

Mark Volpe Worsek & Vihon, LLP

Name Company Name Company


New Members

1JUST MORE M

embers who refer at least one new member to IPT will be entered into a prize drawing at IPT’s Annual Business Meeting. Each time you refer a new member to IPT, your name will be placed in the drawing. In order to receive recognition and

the opportunity to participate in the drawing, please make sure the person(s) you refer includes your name on his or her application. As we grow our membership, IPT can bring you better benefits, such as greater educational opportunities. Please participate in the Just One More Campaign and help in the continued growth of IPT. Individuals who referred one or more new members during the previous month are listed below.

Robyn P. Bowen, CMIClark R. Calhoun, Esq.David CardJackson Kyle Chrisman, CMIIndhira Franco, CPADelia GaonaJeffrey C. Glasspool, CMIVicki C. Harris, CMIJames M. HopperCarissa Laughlin

Philip B. Lee, CMIRichard B. Lenehan, CMIGary S. Lindsey, CMIJeremiah T. Lynch, CMI, CCIPJay MagallanezCharles P. Maniace, Esq.P. Scott Manning, Esq.Angela MarksLeslie Mitchell, CPABrenton MudieGeorge H. Pretty, II, Esq.

Roshawn ReidDavid RemiaszIsmail Y. Sattar, CPAJohn E. Schmidt, CPABruce Shanks, Jr.Viriam A. Vazquez, CMI, CISAKylie WrightAmy M. YandoJacob Yungblut, CMI

Pending New Consultant Members

Rich CorrellCORRELL Comercial Real Estate Services

Susanna Lydic Miller Cooper & Co. Ltd.

David Sangree Hotel & Leisure Advisors


Candidate ConneCtion

CMi &

CCiP

CMI & CCIP Candidates interested in pursuing the designation in 2019 should start planning now to be sure they meet the minimum criteria needed to sit for the exams. Our website contains invaluable information for candidates including a checklist to help them determine the CE requirements needed to sit for the exam. Each discipline has its own checklist. Please use the links below to help plan your future:

CMI-State Income Candidate Page

CMI-Property Candidate Page

CMI-Sales Candidate Page

CCIP Candidate Page

CMI FAQ

Q: How can I check on my CE credits earned towards my designation?

A: You may now request a copy of your CMI Status Report through the IPT website. Detailed directions follow. Please review the Continuing Education Requirements for active CMIs on the IPT website.

To access your CMI Status Report:

1. Sign In at www.ipt.org. 2. Click on your name in the top right corner. 3. Click on the “CMI Members” tab.4. In the top right corner of this section, there is an option to request your Status Report. Click that link and fill out the form. 5. An email will be sent to the email address on file with IPT.

If you have questions about the CMI Professional Designation that are not answered on our website, please contact Emily Archer, Certification Officer, at [email protected].

CMi CornerCERTIFIED MEMBER

CMI • INST

ITUTE

FO

R PROFESSIONALS IN TAXATION® •

IPT will be offering an additional exam opportunity for CMI Sales Tax Candidates. The exam will be held February 22 - 23, 2019, at the Georgia Tech Hotel & Conference Center in Atlanta, Georgia. This exam opportunity is open to eligible CMI candidates and new applicants. The deadline for receipt of new applications for the February 2019 Exams is November 26, 2018.

http://www.ipt.org

https://www.ipt.org/IPT/Professional_Designations/CMI_IncomeApplicants/IPT/Professional_Designations/CMI_Income__Applicants.aspx

https://www.ipt.org/IPT/Professional_Designations/Certified_Credits_Incentives/IPT/Professional_Designations/Certified_Credits_and_Incentives_Professionals.aspx

http://www.ipt.org/IPT/Professional_Designations/CMI_Property_Applicants.aspx

http://www.ipt.org/IPT/Professional_Designations/CMI_Sales_Applicants.aspx



143 tax professionals attended the Property Tax School, which was held August 5 - 9, 2018, at the DFW Lakes Hotel and Conference Center in Grapevine, Texas. A total of thirteen instructors and committee members made up the faculty led by Committee Chair Thomas “Del” Blair, CMI, and Co-Vice Chairs Joshua E. Estes, CMI, Esq; and Mark R. Young, CMI. The Institute wishes to thank all of them for their time, expertise and dedication to the preparation and presentation of the materials as well as for their contribution to the success of the school.

2018 Property Tax School

Instructors (Top row) Co-Vice-Chair Mark R. Young, CMI; John C. Balboa, CMI; Susan B. Starnes, CMI; IPT President Rick H. Izumi, CMI; Mindy McLees, CMI; Jennifer S. Keierleber, CMI; and Rebecca Sobel, CMI. (Bottom row) Montgomery E. Brantley, CMI; Co-Vice-Chair Joshua E. Estes, CMI, Esq.; Chair Thomas D. Blair, CMI; Ann Marie Person, CMI; Robert J. Sperling, CMI; and William J. Dearien, CMI.

Attendees gain valuable information as Co-Vice-Chair Joshua E. Estes, CMI, Esq., covers Valuation Theory and Principles.

IPT President Rick H. Izumi, CMI and Robert J. Sperling, CMI.

Attendees chat during a break.At Tuesday evening’s networking event at the Austin Ranch, attendees share dinner and light conversation.

Instructors Mindy McLees, CMI and Ann Marie Person, CMI

William J. Dearien, CMI and Thomas D. Blair, CMI

The general sessions that took place during the school included an array of topics such as Ethics in Property Tax, Sales Comparison Approach and Tax Research.


Chair:Thomas D. Blair, CMI

OwnerBlair Tax Consulting

Midlothian, TX

Co-Vice-Chair:Joshua E. Estes, CMI, Esq.

Shareholder and Attorney Estes & Gandhi, P.C.

Dallas, TX

Co-Vice-Chair: Mark R. Young, CMI

Property Tax Manager Andeavor

Carson, CA

John C. Balboa, CMI Tax Manager

John C. Balboa North Hollywood, CA

Montgomery E. Brantley, CMIProperty Tax Manager

Martin Marietta MaterialsDallas, TX

William J. Dearien, CMI Senior Manager

Baden Tax Management Frisco, TX

Rick H. Izumi, CMI Partner

ITA, LLCChatsworth, CA

Jennifer S. Keierleber, CMI Senior Manager

Altus Group Richardson, TX

Mindy McLees, CMI Director

Great American GroupDallas, TX

Ann Marie Person, CMI Senior Manager - Property Tax International Paper Company

Memphis, TN

John M. Schindler, CMI Senior Manager Real Estate Tax

Target Corporation Minneapolis, MN

Pat W. Sloan, CMI, ASA Principal - Property Tax

Merit Advisors, LLC Gainesville, TX

Rebecca Sobel, CMI Manager

Ernst & Young LLP Milwaukee, WI

Robert J. Sperling, CMITax Professional

Irvine, CA

Susan B. Starnes, CMI Business Personal Property

Compliance Manager Paradigm Tax Group

Dallas, TX

2018 Property Tax School Committee

Ernst & Young LLP

Marvin F. Poer and Company

National Association of Property Tax Attorneys

R.E. McElroy, LLC

Tax Advisors Group, LLC

Thank You to our Sponsors

Overall Chair, Property Tax Education:Paul A. Wilke, CMI

Director, Ad Valorem TaxWeingarten Realty Investors

Houston, TX


The Real Property Tax School was attended by 79 tax professionals on August 19 - 24, 2018 at the Georgia Tech Hotel and Confernce Center in Atlanta, GA. A total of eleven instructors presented the program and the Institute would like to thank Chair Todd W. Heinrichs, CMI; Vice Chair Sara H. Coers, MAI and the committee for making the program a success.

Ted C. Jones, Ph.D holds up a prop to illustrate one of the concepts of sales ratio studies and equalization in the Sales Ratio Studies and Mass Appraisal workshop.

Attendees chat during a break. Nathaniel Skolnick, Jake Hernandez, and Trevor Mason

2018 Real Property Tax School

Chair Todd W. Heinrichs, CMI

Melanie B. Brigante,CMI and Brett A. Harrington, CMI

Attendees are enjoying the outdoors before returning to their sessions.

Michael D. Larson, CMI, ASA and O. Victor Grant, III, CMI


2018 Real Property Tax School Sponsors

T h a n k You

Melanie B. Brigante, CMIDirector, Property Taxes Simon Property Group

Garland, TX

O. Victor Grant, III, CMISenior Manager

Altus Group Southlake, TX

Brett A. Harrington, CMI

PresidentInternational Appraisal Company,Inc.

Upper Saddle River, NJ

Ted C. Jones, Ph.D.Chief Economist

Stewart Title Guaranty CompanyHouston, TX

Michael D. Larson, CMI, ASAVice President

Simon Property Group Indianapolis, IN

Leonard J. Patcella, Jr., CMI, MAI President

Equity Appraisal Co., Inc. Springhouse, PA

Jonathan W. Ponader, MAI, MRICS Director

PricewaterhouseCoopers LLPFt. Myers, FL

Amy Reilly Sallusti, Esq. Attorney / Shareholder

Geary, Porter & Donovan, P.C. Addison, TX

Overall Chair, Property Tax EducationPaul A. Wilke, CMI

Director, Ad Valorem TaxWeingarten Realty Investors

Houston, TX

2018 Real Property Tax SchoolCommittee/Faculty

Chair Todd W. Heinrichs, CMI

Senior Vice-President, West Region Operations Paradigm Tax Group

Mountlake Terrace, WA

Vice ChairSara H. Coers, MAI

Senior Vice President Pillar Valuation Group, Inc.

Indianapolis, IN

Mark F. Semerad, CMI, Esq. Senior Manager - Property Tax

CenturyLinkBroomfield, CO

Ernst & Young LLP

Gangloff & Gangloff, Attorneys at Law

Marvin F. Poer and Company

National Association of Property Tax Attorneys

Property Tax Assistance Co., Inc.

R. E. McElroy, LLC

Tax Advisors Group, LLC

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