Tax Law

Recent Posts

California Property Tax and LLC Tax Decisions
Posted on 24 Sep 2020 by Eversheds Sutherland LLP

In this episode we discuss two recent California decisions, including a Court of Appeal decision concerning property tax escape assessments ( Prang v. Los Angeles Cnty. Assessment Appeals Bd. , Case No. B301194 (Cal. Ct. App. Aug. 27, 2020) and an Office... Read More

The not so great escape: California limitation on retroactive property tax assessment did not apply where notice was not filed.
Posted on 18 Sep 2020 by Eversheds Sutherland LLP

A California Court of Appeal found that because the taxpayer did not file proper notice with the California Board of Equalization (BOE), the limitation on the number of years the county assessor can levy retroactive escape assessments did not apply. The... Read More

California Supreme Court Denies Review in Local Tax Simple vs. Super-Majority Vote Case
Posted on 10 Sep 2020 by Eversheds Sutherland LLP

On September 9, 2020, the California Supreme Court denied review of the opinion of the First District Court of Appeal in City and County of San Francisco v. All Persons Interested in the Matter of Proposition C , which held a voter-initiated local special... Read More

Merely deriving receipts from New Jersey sources does not create nexus for Corporation Business Tax purposes
Posted on 10 Sep 2020 by Eversheds Sutherland LLP

On September, 9, 2020, the New Jersey Appellate Division ruled against the taxpayer in Preserve II, Inc. v. Director, Div. of Taxation , No. A-1331-17T3. On its face, the decision looks like a disappointing taxpayer loss because the court upheld the determination... Read More

Eversheds Sutherland files amicus curiae brief on behalf of COST in Fresno Measure P case
Posted on 8 Sep 2020 by Eversheds Sutherland LLP

Eversheds Sutherland has filed an amicus curiae brief on behalf of the 550 members of the Council On State Taxation (COST) on the important issue of whether imposition of certain local special taxes in California requires a two-thirds vote by the California... Read More

For the Record – Corporate Record Storage Service Provided in New Jersey not Subject to New York Sales Tax
Posted on 3 Sep 2020 by Eversheds Sutherland LLP

On August 18, 2020, the New York Supreme Court, Albany County, held that there was no rational basis for New York’s imposition of sales tax on storage services performed in New Jersey that occurred subsequent to the initial sale and pickup of items in... Read More

Don’t Be Shocked: California Cities Allege that PG&E Willfully Miscalculated Electricity Tax
Posted on 2 Sep 2020 by Eversheds Sutherland LLP

Several California localities filed a complaint alleging that PG&E willfully miscalculated the electricity user’s tax (“Electricity Tax”) causing harm to the cities, their employees and public services. California cities and counties impose Electricity... Read More

No Double Dipping: Nebraska Supreme Court Upholds Sales Tax On Telecom. Construction Company’s Purchases of Materials and Sales of Construction Services Using Materials
Posted on 1 Sep 2020 by Eversheds Sutherland LLP

The Nebraska Supreme Court held that a telecommunications construction company was liable for sales taxes on both its purchases of construction materials to build telecommunications infrastructure and for its subsequent sales of services installing and... Read More

Oregon’s Taxation of Railroad’s Intangible Personal Property is Derailed by the 4-R Act
Posted on 1 Sep 2020 by Eversheds Sutherland LLP

The U.S. Court of Appeals for the Ninth Circuit upheld a rail carrier’s authority to challenge the Oregon Department of Revenue’s taxation of its “accounting goodwill” pursuant to the federal Railroad Revitalization and Regulatory Reform Act, commonly... Read More

Lost in customs: New York Tax Appeals Tribunal disallows deduction for royalties paid by foreign nontaxpayer affiliates
Posted on 31 Aug 2020 by Eversheds Sutherland LLP

On Aug. 6, the New York Tax Appeals Tribunal held that royalties received from a foreign affiliate are taxable and are not subject to New York’s royalty income exclusion provision under former Tax Law § 208(9)(o)(3). Prior to its amendment, Tax Law... Read More

Phoenix Travelers Aren’t Getting a Free Ride
Posted on 25 Aug 2020 by Eversheds Sutherland LLP

Arizona’s Supreme Court unanimously held that the city of Phoenix’s fee increase on ride-sharing trips at airports are not “transaction-based” fees and therefore constitutional. In 2016, Phoenix’s City Council had amended its City Code to require commercial... Read More

Battling Statutory Interpretation Principles Leads to an “Unambiguous” Result: Washington Taxes Hospitals
Posted on 24 Aug 2020 by Eversheds Sutherland LLP

The Washington Supreme Court held that a business & occupation (“B&O”) tax deduction contained in RCW 82.04.4311 is limited to payments received from Washington and federal programs, but not payments received from other states’ medical programs... Read More

Every Word Matters – Maryland Tax Court Holds Expansive Statutory Terms Exempt Unauthorized Insurance Company From Maryland Corporate Income Tax
Posted on 12 Aug 2020 by Eversheds Sutherland LLP

On remand from the Maryland Court of Special Appeals, the Maryland Tax Court held that an unauthorized insurance company owned by Macy’s, was exempt from Maryland corporate income tax. During the years at issue, Leadville, a Vermont captive, did not earn... Read More

Every Word Matters – Maryland Tax Court Holds Expansive Statutory Terms Exempts Unauthorized Insurance Company From Maryland Corporate Income Tax
Posted on 12 Aug 2020 by Eversheds Sutherland LLP

On remand from the Maryland Court of Special Appeals, the Maryland Tax Court held that an unauthorized insurance company owned by Macy’s, was exempt from Maryland corporate income tax. During the years at issue, Leadville, a Vermont captive, did not earn... Read More

SALT Scoreboard – Second Quarter 2020
Posted on 29 Jul 2020 by Eversheds Sutherland LLP

This is the second edition of the Eversheds Sutherland SALT Scoreboard for 2020. Since 2016, we have tallied the results of significant taxpayer wins and losses and analyzed those results. This edition of the SALT Scoreboard includes a discussion of the... Read More