Tax Law

Recent Posts

Georgia Tax Tribunal Issues Two New Decisions on Remote Seller Nexus and Georgia Tax Credit Elections
Posted on 20 Feb 2017 by Eversheds Sutherland LLP

The Georgia Tax Tribunal, in its first published decisions in more than a year, held that: Scholastic Book Clubs has nexus in Georgia and must collect sales tax as a result of its relationship with teachers in the state; and In a case affording... Read More

Hubba, Hubba, Hubba! Money, Money, Money! Who Do You Trust? California and North Carolina Differ on the Constitutionality of Taxing Undistributed Foreign Trust Income
Posted on 27 May 2015 by Eversheds Sutherland LLP

By Michael Penza and Timothy Gustafson The California Franchise Tax Board (FTB) issued an information letter explaining that a trust is taxable in California if any of the following three conditions are met: (1) the trust has income from California sources;... Read More

I Don't Get No Respect: Kentucky Supreme Court Rejects Deference to Board of Tax Appeals Statutory Interpretation
Posted on 28 Jan 2016 by Eversheds Sutherland LLP

By Charles Capouet and Charlie Kearns The Kentucky Supreme Court held that the interpretation of inheritance tax statutes by the Kentucky Board of Tax Appeals was not entitled to Chevron deference. Deference is given only to an administrative agency’s... Read More

Tennessee Federal Court Holds That State Sales Tax on Railroad Carriers Does Not Violate the 4-R Act
Posted on 30 May 2017 by Eversheds Sutherland LLP

By Liz Cha and Eric Coffill The United States District Court for the Middle District of Tennessee held that Tennessee’s sales tax on railroad carriers for the purchase or use of diesel fuel was not discriminatory under the Railroad Revitalization... Read More

Alabama Tax Tribunal Determines Out-of-State Bookseller Has Nexus, Joins "Club"
Posted on 6 Apr 2016 by Eversheds Sutherland LLP

By Zack Atkins and Eric Coffill The Alabama Tax Tribunal concluded that an out-of-state retailer was required to collect and remit use tax on the sales of books and educational materials to in-state teachers and students, and that neither the Due Process... Read More

Georgia Keeps It Interesting: Legislature Passes Novel Law on Interest Rates and Refund Claims
Posted on 29 Mar 2016 by Eversheds Sutherland LLP

On March 24, the Georgia General Assembly passed House Bill 960, which would adjust the statutory interest rate applicable to tax assessments and refunds and addresses other issues related to refund claims for Georgia sales and use taxes. H.B. 960 passed... Read More

Georgia DOR Rules that Sales to Out-of-State Purchasers Are Subject to Sales Tax When Delivered to In-State Assembly Facility
Posted on 18 May 2017 by Eversheds Sutherland LLP

By Chris Lutz and Andrew Appleby In Georgia Letter Ruling SUT-2016-24, the Georgia Department of Revenue ruled that sales of software equipment delivered to a Georgia assembly facility on an out-of-state customer’s behalf were subject to Georgia... Read More

Not So Sweet Home Alabama: Tax Injunction Act Bars Federal Court Challenge of Alabama State Income Tax
Posted on 5 Feb 2016 by Eversheds Sutherland LLP

By Stephanie Do and Carley Roberts The U.S. Court of Appeals for the Eleventh Circuit affirmed dismissal of a taxpayer’s complaint, arising from the Alabama Department of Revenue’s assessment and collection of state income tax, for lack of... Read More

South By Southwest: Texas Supreme Court Rejects Processing Exemptions for Oil Company
Posted on 28 Jun 2016 by Eversheds Sutherland LLP

By Charles Capouet and Todd Lard The Supreme Court of Texas held that an oil and gas exploration and production company’s purchases of casing, tubing, other well equipment, and associated services were not exempt from sales tax under various processing... Read More

Oklahoma Supreme Court OKs Initiative to Amend State Constitution to Impose 1% Sales and Use Tax, Raise Public School Teachers' Salaries
Posted on 16 Mar 2016 by Eversheds Sutherland LLP

By Evan Hamme and Andrew Appleby The Oklahoma Supreme Court held that an initiative to amend the state’s constitution does not violate the state’s constitutional rule that a public vote to amend the constitution must address only one general... Read More

Purposeful By-Product: Louisiana Supreme Court Determines Purchases of Limestone Used in Electricity Generation Qualified for 'Further Processing Exclusion' Under Louisiana Sales & Use Tax
Posted on 24 May 2016 by Eversheds Sutherland LLP

By Marc Simonetti and Douglas Upton The Louisiana Supreme Court concluded that limestone purchased for the dual purpose of absorbing sulfur during the generation of electricity and producing ash for sale to third parties was excluded from the definition... Read More

A Direct Shot: Georgia Department of Revenue Proposes Regulation Eliminating Refund Interest for Direct Pay Permit Holders
Posted on 1 Feb 2016 by Eversheds Sutherland LLP

By Jonathan Feldman and Hanish Patel The Georgia Department of Revenue issued a proposed regulation amending the use of direct pay permits for state and local sales and use taxes. The proposed regulation would cause all current permits to expire on... Read More

Virginia Trial Court's Addback Decision Surely "Subject to" Future Appeal
Posted on 17 Feb 2016 by Eversheds Sutherland LLP

By Zack Atkins and Eric Coffill A Virginia trial court held that royalties paid to related members that are reported to, but not taxed by, other states do not qualify for the exception to the state’s corporate income tax addback statute. In granting... Read More

South Carolina Court Changes the Channel on Cost of Performance Sourcing
Posted on 26 Feb 2015 by Eversheds Sutherland LLP

By Charles Capouet and Timothy Gustafson The South Carolina Administrative Law Court found that South Carolina does not source sales of services with a strict cost of performance method. The taxpayer, a broadcasting corporation, provides access to digital... Read More

Cell Phone Insurance Not Subject to South Carolina Sales Tax
Posted on 16 Dec 2015 by Eversheds Sutherland LLP

By Samantha Trencs and Andrew Appleby A South Carolina administrative law judge (ALJ) determined that cell phone insurance is not subject to South Carolina sales tax even though the wireless provider sells it with taxable communication services. Alltel... Read More