Tax Law

Recent Posts

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held that the state’s alternative minimum tax (known as the “Alternative Minimum Assessment,” or AMA) – which was repealed for tax years beginning on or after January 1, 2018 – is preempted by P.L. 86-272...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

Washington Court Games the Sales Tax Trade-In Exclusion
Posted on 21 Jun 2019 by Eversheds Sutherland LLP

The Washington Court of Appeals upheld the Washington Department of Revenue’s denial of a sales tax exclusion for trade-ins of software and hardware. GameStop provides customers with a trade-in credit for software and hardware and allows customers to... Read More

Alabama Leaves No One Behind: All Software is Taxable
Posted on 17 Jun 2019 by Eversheds Sutherland LLP

The Alabama Supreme Court ruled that all software, including custom software, is tangible personal property subject to Alabama sales tax. The taxpayer filed refund claims for sales tax paid on computer software and accompanying equipment, claiming that... Read More

Choppy Waters: Illinois Appellate Court Allows Taxpayer’s Late Protest Because of Misleading Department of Revenue Conduct
Posted on 14 Jun 2019 by Eversheds Sutherland LLP

On May 22, 2019, the Illinois Appellate Court held that the late filing of a boat tour business’ Amusement Tax protest was excusable. The Cook County Department of Revenue had violated the taxpayer’s procedural due process rights by “affirmatively misleading... Read More

Much Ado About Nothing! Colorado Supreme Court Holds that Holding Companies with No Property or Employees are Not Includable in a Combined Group
Posted on 11 Jun 2019 by Eversheds Sutherland LLP

The Colorado Supreme Court issued two decisions simultaneously holding that neither Oracle Corporation nor Agilent Technologies, Inc. were required to include in their combined income tax returns holding companies that did not meet the statutory definition... Read More

CalTax Quarterly Board of Directors Meeting
Posted on 11 Jun 2019 by Eversheds Sutherland LLP

Lawmakers in California have introduced bills set to generate $16.4 billion in new taxes and fees for the 2019-2020 legislative session. Last week, Eversheds Sutherland sponsored CalTax’s Board of Directors Meeting, which covered the Governor’s... Read More

“Process” This: Maryland Court of Special Appeal Reverses Tax Court and Holds Utility Entitled to Sales Tax Exemption
Posted on 29 May 2019 by Eversheds Sutherland LLP

The Maryland Court of Special Appeals held that the Maryland Tax Court erred as a matter of law in ruling that none of the equipment purchased by a public utility company and used in transmitting electricity from a third-party power plant to the utility... Read More

School During Summer: Florida District Court of Appeal holds Class of “Every Current and Future” Member cannot be Certified.
Posted on 22 May 2019 by Eversheds Sutherland LLP

The Florida District Court of Appeal reversed the trial court’s certification of a class in a sales tax refund claim because the class was not “ascertainable.” Plaintiff filed suit against BJ’s Wholesale Club, Inc. (“BJ’s”) alleging that BJ’s thirty-one... Read More