Tax Law

Recent Posts

Signals Crossed: Satellite TV Receipts Sourced to South Carolina Based on Subscriber Location
Posted on 31 May 2016 by Eversheds Sutherland LLP

By Mike Kerman and Andrew Appleby The South Carolina Administrative Law Court determined that a satellite television provider must source its subscription receipts to South Carolina based on the percentage of in-state subscribers. The administrative... Read More

Kentucky Must Ride on Noah's Ark: Denial of Tax Incentives to Religious-Based Theme Park Reversed
Posted on 15 Feb 2016 by Eversheds Sutherland LLP

By Stephanie Do and Todd Lard The U.S. District Court for the Eastern District of Kentucky preliminarily enjoined Kentucky from denying tax incentives to a religious-based theme park. The court held that excluding the company from the state’s... Read More

Not So Fast: Tennessee Chancery Court Prohibits Department of Revenue from Enforcing Sales Tax Collection By Out-of-State Retailers
Posted on 25 Apr 2017 by Eversheds Sutherland LLP

By Eric Tresh and Liz Cha On April 10, 2017, a Tennessee Chancery Court ordered that the Tennessee Department of Revenue is temporarily prohibited from enforcing a regulation that requires out-of-state retailers making annual sales in excess of $500... Read More

Technical Support: Tennessee Publishes Guidance on Sales Tax Treatment of Computer Software Maintenance Contracts
Posted on 2 Feb 2016 by Eversheds Sutherland LLP

By Chris Mehrmann and Charlie Kearns The Tennessee Department of Revenue has issued guidance explaining that the retail sale of, use of, or subscription to a computer software maintenance contract is subject to sales and use tax when: (1) the maintenance... Read More

Taxpayer Victories Are at a Premium: Alabama Court Holds that Business Privilege Tax "Premiums" Include Annuity Considerations
Posted on 28 Jan 2015 by Eversheds Sutherland LLP

By Stephen Burroughs and Andrew Appleby The Alabama Court of Civil Appeals ruled in favor of an out-of-state life insurance company regarding the calculation of its Alabama net worth tax – the Business Privilege Tax (BPT). The BPT requires an insurance... Read More

Arkansas Does Not Apply US-Canada Income Tax Treaty to State Income Tax
Posted on 9 May 2017 by Eversheds Sutherland LLP

By Madison Barnett and Stephanie Do Many foreign companies are surprised to learn that US states are not generally bound by income tax treaties entered into by the US with foreign countries. Under these treaties, for US federal income tax purposes,... Read More

Electronically-Delivered Software Upgrades Not Taxable in Florida
Posted on 7 Mar 2016 by Eversheds Sutherland LLP

By Jessica Eisenmenger and Amy Nogid The Florida Department of Revenue determined that software upgrades that are delivered electronically are not subject to sales tax because the upgrade was a stand-alone version of the software and did not rely on... Read More

Florida Renews Its Membership: Florida DOR Finds Certain Online Membership Benefits Not Subject to Tax
Posted on 14 Mar 2016 by Eversheds Sutherland LLP

By Hanish Patel and Marc Simonetti The Florida Department of Revenue (DOR) determined that the sale of certain online membership benefits—early, exclusive access to products and deals and unlimited cloud data storage—were not subject to... Read More

The Complete Package: Chemicals Used to Manufacture Paperboard Products Not Subject to Louisiana Sales Tax
Posted on 25 Feb 2016 by Eversheds Sutherland LLP

By Mike Kerman and Andrew Appleby The Louisiana Court of Appeals held that a paperboard products manufacturer was entitled to refunds of sales tax it paid on purchases of chemicals it used in the manufacturing process under the “further processing”... Read More

It's the End Product that Counts: Texas Comptroller Finds Payment Risk and Fraud Prevention Solutions Should Be Apportioned as a Service
Posted on 31 May 2017 by Eversheds Sutherland LLP

By Nick Kump and Todd Lard The Texas Comptroller of Public Accounts has issued a private letter ruling finding that a Texas company’s revenue from sales of real-time payment risk and fraud prevention services should be sourced to the location... Read More

Property Tax Exemption Precludes Imposition of Use Tax, Says Kentucky Appellate Court
Posted on 16 Mar 2016 by Eversheds Sutherland LLP

By Zachary Atkins and Madison Barnett The Kentucky Court of Appeals held that a constitutional exemption for property owned by institutions of purely public charity prevented the state from assessing use tax on natural gas a taxpayer purchased without... Read More

Kentucky Court of Appeals Holds that Kentucky DOR Must Publish Final Rulings
Posted on 7 Mar 2017 by Eversheds Sutherland LLP

By Chris Lutz and Carley Roberts The Kentucky Court of Appeals held that the Kentucky Department of Revenue must publish final administrative rulings, even when those rulings are not appealed to the Board of Tax Appeals. The Office of Attorney General... Read More

Georgia Still Showing No Interest: Georgia Department of Revenue Holds Hearing on Proposed Regulation Eliminating Refund Interest for Direct Pay Permit Holders
Posted on 3 Mar 2016 by Eversheds Sutherland LLP

By Hanish Patel and Jonathan Feldman The Georgia Department of Revenue held a public hearing on a proposed regulation amendment that would materially affect the use of direct pay permits in Georgia. The proposed regulation would cause all current permits... Read More

Louisiana's "Quest" for Market-Based Sourcing Denied: Appellate Court Holds Medical Tests Performed in Texas Are Not Sourced to Louisiana
Posted on 13 Sep 2016 by Eversheds Sutherland LLP

By Nick Kump and Scott Wright The Louisiana Court of Appeal held that income derived from diagnostic testing of Louisiana patients’ blood samples and other medical specimens performed in Texas should be sourced to Texas for corporate income tax... Read More

Georgia Senate Special Tax Exemption Study Committee Holds First Meeting
Posted on 19 Jul 2017 by Eversheds Sutherland LLP

The Georgia Senate Special Tax Exemption Study Committee held its initial meeting to plan evaluation of Georgia income and sales tax exemptions by December 1, 2017. The special study committee was created by a Georgia Senate Resolution during the... Read More