Tax Law

Recent Posts

New Jersey Tax Court Allows Unreasonable Exception to Royalty Addback
Posted on 9 May 2019 by Eversheds Sutherland LLP

The New Jersey Tax Court held that a parent corporation was not required to add back to its corporation business tax base any amount of royalty payments it made to a subsidiary. The parent company and subsidiary company each filed a New Jersey CBT return... Read More

Videocast: SALT Scoreboard – 2018 Year in Review
Posted on 20 Mar 2019 by Eversheds Sutherland LLP

The quarterly Eversheds Sutherland SALT Scoreboard tallies significant state and local tax litigation wins and losses. In this Bottom Line videocast , Charles Capouet and Chelsea Marmor share 2018 year-end observations, including: the overall results... Read More

Eversheds Sutherland SALT Scoreboard Publication–Fourth Quarter 2018
Posted on 21 Feb 2019 by Eversheds Sutherland LLP

This is the twelfth edition of the Eversheds Sutherland SALT Scoreboard, and the last edition from 2018. Since 2016, Eversheds Sutherland has tallied the results of what we deem to be significant taxpayer wins and losses and analyzed those results. This... Read More

Legal Alert: Maryland bill proposes digital goods tax
Posted on 5 Feb 2019 by Eversheds Sutherland LLP

The Maryland House of Delegates is considering legislation (House Bill 426) that would impose sales and use tax on digital products and sales tax on digital codes. If signed into law, Maryland would begin taxing digital products and digital codes on July... Read More

New Mexico Administrative Hearings Office Rejects Department’s Attempt to Eliminate Payroll Factor from Apportionment Factor Calculation
Posted on 26 Jan 2019 by Eversheds Sutherland LLP

The State of New Mexico Administrative Hearings Office held that the New Mexico Taxation and Revenue Department could not remove the payroll factor from the apportionment factor calculation of a taxpayer in the credit card and personal lending business... Read More

New Jersey Partnership Filing Fee Is Not an Unconstitutional Flat Tax
Posted on 18 Dec 2018 by Eversheds Sutherland LLP

The New Jersey Tax Court rejected the taxpayer’s argument that the partnership filing fee, which requires a partnership with New Jersey source income to pay a per-partner fee of $150 (capped at $250,000), violated the Commerce Clause. The Tax Court held... Read More

I Saw the Sign: Illinois Permits Use of Electronic Signatures for Software License Tax Exemption
Posted on 13 Dec 2018 by Eversheds Sutherland LLP

On September 26, 2018, the Illinois Department of Revenue issued a Private Letter Ruling confirming that certain electronic signatures satisfied the first prong of the software license sales tax exemption test. In Illinois, a license of software is not... Read More

Tangled Up in Internal Consistency: Minnesota Legend Drug Tax Held Constitutional
Posted on 5 Nov 2018 by Eversheds Sutherland LLP

The Minnesota Supreme Court held that the state’s gross receipts tax on prescription drugs did not violate the Due Process or Commerce Clauses when applied to transactions between out-of-state pharmacies and in-state customers, reversing the Minnesota... Read More

Shades of Gray: Comptroller Rules Online Training Courses Are Non-Taxable Services, Not Taxable Information Services
Posted on 5 Nov 2018 by Eversheds Sutherland LLP

The Texas Comptroller ruled that a taxpayer, which provided education and networking services for the property management industry, was not providing “information services,” but rather a non-taxable service. Taxable information services involve “furnishing... Read More

Eversheds Sutherland SALT Scoreboard Publication–Third Quarter 2018
Posted on 1 Nov 2018 by Eversheds Sutherland LLP

This is the eleventh edition of the Eversheds Sutherland SALT Scoreboard, and the third edition of 2018. Each quarter, we tally the results of what we deem to be significant taxpayer wins and losses and analyze those results. This edition of the SALT... Read More

Minnesota Tax Court Clarifies R&D Credit Calculation in Identical Cases
Posted on 18 Oct 2018 by Eversheds Sutherland LLP

In two cases, the Minnesota Tax Court clarified the extent to which the Minnesota research and development (R&D) credit is calculated based on the Internal Revenue Code’s defined terms. Minnesota law incorporates the Internal Revenue Code’s definition... Read More

Washington Court of Appeals Finds Lowe’s Ineligible for Bad Debt Deduction
Posted on 12 Oct 2018 by Eversheds Sutherland LLP

The Washington Court of Appeals upheld the denial of sales tax and B&O tax refund claims filed by Lowe’s Home Centers, LLC based on the bad debt deduction.  Lowe’s, a home improvement retail store with locations in Washington, entered into private... Read More

Pennsylvania Rules Satellite Television Provider Must Source Receipts, Property Based on Subscriber Location
Posted on 12 Oct 2018 by Eversheds Sutherland LLP

The Pennsylvania Board of Finance and Revenue recently published a decision regarding the sourcing of receipts and property of a satellite television provider.  The Board held that the taxpayer’s receipts from sales of satellite television services were... Read More

Taking Taxpayers for a Ride: California Upholds Mandatory Combined Reporting for Interstate Motorcycle Retailer
Posted on 12 Oct 2018 by Eversheds Sutherland LLP

The California Court of Appeals affirmed a trial court’s holding that the California Franchise Tax Board can require interstate unitary businesses to use combined reporting, even though combined reporting is optional for intrastate unitary businesses... Read More

Indiana Affirms Taxpayer’s Section 382 NOL Limitation Calculations
Posted on 12 Oct 2018 by Eversheds Sutherland LLP

An Indiana taxpayer claimed net operation loss deductions (“NOLs”) on its adjusted gross income.  The NOLs were acquired by the taxpayer as part of a corporate acquisition.  The Indiana Department of Revenue did not dispute that the taxpayer was entitled... Read More