Tax Law

Recent Posts

No Mixed Signals – Texas Appellate Court Finds Telecomm Signal Sales Are Not Tangible Personal Property
Posted on 10 Sep 2019 by Eversheds Sutherland LLP

Consistent with a prior decision of a sister appellate court, Texas’ Texarkana Court of Appeals held that the sale of telecommunication products and signals constitutes the sale of a service for purposes of Texas’ franchise tax. The taxpayer sold electrical... Read More

Montana Supreme Court Holds Actual Dividends Fully Deductible in Water’s-Edge Case
Posted on 27 Aug 2019 by Eversheds Sutherland LLP

The Montana Supreme Court held that the Department erred in determining that Exxon Mobil was entitled to only an 80% exclusion for dividends received from domestic corporations excluded from the water’s-edge combined return, and concluded that 100% of... Read More

New York Says Real Property Tax Exemption Doesn’t Apply to Telecom Cables
Posted on 22 Aug 2019 by Eversheds Sutherland LLP

The New York Appellate Division ruled that telecommunication companies’ fiber optic cables do not qualify for a property tax exemption for such property that transmits radio and television signals. (New York Real Property Tax Law, §102(12)(i)(D).) The... Read More

Legal Alert: Third time’s not the charm—New York Tribunal rejects market-based sourcing
Posted on 8 Aug 2019 by Eversheds Sutherland LLP

The New York State Tax Appeals Tribunal  held  that a taxpayer was required, for years before 2015, to apportion its receipts based on the location of the work that generated its receipts, and not based on the location of its customers. Read our full... Read More

This Blows! Tennessee Court of Appeals Says Blow-In Cards, Other Printed Materials Did Not Qualify for Sales Tax Exemptions
Posted on 6 Aug 2019 by Eversheds Sutherland LLP

The Tennessee Court of Appeals held that a commercial printing company’s sales of bank checks and other printed products were subject to Tennessee sales tax even though the products ultimately were sent to out-of-state destinations. Under the company... Read More

Utah Tax Commission Doesn’t Want a Piece of Your Video Streaming
Posted on 1 Aug 2019 by Eversheds Sutherland LLP

On April 10, 2019, the Utah Tax Commission issued a private letter ruling to a video streaming provider (“Taxpayer”) finding that the Taxpayer’s sales of subscriptions entitling subscribers to enhanced features on the Taxpayer’s streaming platform, are... Read More

Eversheds Sutherland SALT Scoreboard Publication—Second Quarter 2019
Posted on 1 Aug 2019 by Eversheds Sutherland LLP

This is the second quarter edition of the Eversheds Sutherland SALT Scoreboard for 2019. Since 2016, we have tallied the results of what we deem to be significant taxpayer wins and losses and analyzed those results. This edition of the SALT Scoreboard... Read More

At Your Service: Premium Finance Companies are Financial Organizations Subject to Illinois’ Special Income Tax Apportionment and Combined Reporting Rules
Posted on 22 Jul 2019 by Eversheds Sutherland LLP

On June 14, 2019, an Illinois Appellate Court held that a taxpayer’s subsidiaries are financial organizations that were excluded from the taxpayer’s Illinois combined return. During 2006, 2007 and 2008, Illinois excluded from a combined return those affiliates... Read More

Get Your Refunds: New Jersey’s Alternative Minimum Tax Preempted by P.L. 86-272, Tax Court Says
Posted on 17 Jul 2019 by Eversheds Sutherland LLP

On June 28, the New Jersey Tax Court held that the state’s alternative minimum tax (known as the “Alternative Minimum Assessment,” or AMA) – which was repealed for tax years beginning on or after January 1, 2018 – is preempted by P.L. 86-272... Read More

What Can You Rely On? New York Upholds Retroactive Application Of Amended Statute
Posted on 15 Jul 2019 by Eversheds Sutherland LLP

The New York Division of Tax Appeals (DTA) held that the retroactive application of an amended statute did not violate a non-resident individual’s due process rights.  In 2009, the individual entered into an agreement to sell his shares in an S corporation... Read More

Survey Says: Online Survey Results Not a Taxable Communication Service in South Carolina
Posted on 12 Jul 2019 by Eversheds Sutherland LLP

The South Carolina Department of Revenue issued a private letter ruling advising a company that its charges for developing and conducting surveys tailored to its clients’ needs are not subject to sales and use tax as communications services. Although... Read More

Sticker Shock! New York Court of Appeals Holds Price Comparison Services Are Subject To Sale Tax
Posted on 11 Jul 2019 by Eversheds Sutherland LLP

On June 26, 2019, the New York Court of Appeals held that a price comparison service was taxable as an information service because the information was not personal or individual in nature, which would exclude the service from sales tax. The taxpayer... Read More

Where’s the Substance? Maryland Court of Special Appeals Upholds Assessment of Tax Against Out-of-State Holding Company Based on Parent Company Nexus
Posted on 11 Jul 2019 by Eversheds Sutherland LLP

The Maryland Court of Special Appeals upheld the Maryland Tax Court’s decision holding that the State Comptroller can subject an out-of-state holding company to tax because the holding company did not have economic substance apart from its parent, which... Read More

INSIGHT: Decision on Participatory Sports Exemption From NYC Sales Tax Leaves Heads Spinning
Posted on 8 Jul 2019 by Eversheds Sutherland LLP

While group exercise classes led by instructors are especially popular these days, a recent decision subjects such classes to a special New York City sales tax. In a May 23, 2019, decision, a New York Administrative Law Judge (ALJ) determined that SoulCycle... Read More

Why a taxpayer’s carbon reactivation process is ineligible for Texas’ manufacturing sales tax exemption
Posted on 3 Jul 2019 by Eversheds Sutherland LLP

A taxpayer’s spent carbon reactivation process did not qualify as “manufacturing” for the purposes of Texas’ manufacturing sales tax exemption, according to recently released guidance from the Texas Comptroller of Public Accounts. In a private letter... Read More