Tax Law

Recent Posts

Montana Supreme Court Holds Actual Dividends Fully Deductible in Water’s-Edge Case
Posted on 27 Aug 2019 by Eversheds Sutherland LLP

The Montana Supreme Court held that the Department erred in determining that Exxon Mobil was entitled to only an 80% exclusion for dividends received from domestic corporations excluded from the water’s-edge combined return, and concluded that 100% of... 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Court held that the state’s alternative minimum tax (known as the “Alternative Minimum Assessment,” or AMA) – which was repealed for tax years beginning on or after January 1, 2018 – is preempted by P.L. 86-272...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

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

New York Court of Appeals Dismisses Commerce Clause Challenge For Lack of a “Substantial Constitutional Question”
Posted on 26 Jun 2019 by Eversheds Sutherland LLP

New York’s highest court dismissed taxpayers’ appeal of an Appellate Division ruling that the payment of tax on intangible income to New York as statutory residents, without a credit for tax paid to Connecticut as domiciliaries, determining that the appeal... 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

Over-Hall: U.S. Supreme Court Holds States Retain Sovereign Immunity from Private Suits in Other States, Overturning Nevada v. Hall
Posted on 11 Jun 2019 by Eversheds Sutherland LLP

In a 5-to-4 decision, the US Supreme Court held that states retain sovereign immunity from private suits brought by individuals in courts of other states, and therefore, overruled its prior decision in Nevada v. Hall , 440 US 410 (1979). The decision... Read More

Apples to Oranges: Arkansas finds no independent business versus non-business test for expenses
Posted on 10 May 2019 by Eversheds Sutherland LLP

On April 1, 2019, the Arkansas Office of Hearings and Appeals held that a taxpayer could not deduct interest expense for long-term debt used to finance a cash dividend as a non-business expense allocable to Arkansas because there was no corresponding... Read More

More Than Smoke: Oregon Tax Court Holds Cigarette Manufacturer’s In-State Activities Exceeded P.L. 86-272
Posted on 28 Mar 2019 by Eversheds Sutherland LLP

On February 26, 2019, the Oregon Tax Court held that an out-of-state cigarette manufacturer’s in-state activities violated Public Law 86-272, resulting in the manufacturer being subject to Oregon’s corporation excise tax. P.L. 86-272 prohibits any state... Read More

Kentucky Court of Appeals Holds Parent Company Not Includible in Consolidated Return
Posted on 29 Mar 2019 by Eversheds Sutherland LLP

The Kentucky Court of Appeals held in an unpublished opinion that an out-of-state parent company was not an “includible corporation” as defined by Kentucky law and could not file a consolidated return with its in-state subsidiary. The Department argued... Read More

Tennessee rules the “true object” of a bundled transaction is nontaxable data analytics services, not remotely accessed software
Posted on 1 Apr 2019 by Eversheds Sutherland LLP

The Tennessee Department of Revenue issued a letter ruling finding that a taxpayer’s mobile and web data analytics services were not subject to sales and use tax. The taxpayer’s customers installed the taxpayer’s software code, which collected user data... Read More

Maryland Tax Court Strikes Again: Out-of-State LLCs Liable for Maryland Income Tax
Posted on 1 Apr 2019 by Eversheds Sutherland LLP

The Maryland Tax Court held that six nonresident Limited Liability Companies (LLCs) wholly-owned by another out-of-state limited liability company owed Maryland income tax despite the fact that the LLCs, as disregarded entities, had no federal income... Read More

Tennessee rules the “true object” of a bundled transaction is nontaxable data analytics services, not remotely accessed software
Posted on 1 Apr 2019 by Eversheds Sutherland LLP

The Tennessee Department of Revenue issued a letter ruling finding that a taxpayer’s mobile and web data analytics services were not subject to sales and use tax. The taxpayer’s customers installed the taxpayer’s software code, which collected user data... Read More

Maryland Tax Court Strikes Again: Out-of-State LLCs Liable for Maryland Income Tax
Posted on 1 Apr 2019 by Eversheds Sutherland LLP

The Maryland Tax Court held that six nonresident Limited Liability Companies (LLCs) wholly-owned by another out-of-state limited liability company owed Maryland income tax despite the fact that the LLCs, as disregarded entities, had no federal income... Read More

Kentucky Court of Appeals Holds Parent Company Not Includible in Consolidated Return
Posted on 29 Mar 2019 by Eversheds Sutherland LLP

The Kentucky Court of Appeals held in an unpublished opinion that an out-of-state parent company was not an “includible corporation” as defined by Kentucky law and could not file a consolidated return with its in-state subsidiary. The Department argued... Read More

More Than Smoke: Oregon Tax Court Hold Cigarette Manufacturer’s In-State Activities Exceeded P.L. 86-272
Posted on 28 Mar 2019 by Eversheds Sutherland LLP

On February 26, 2019, the Oregon Tax Court held that an out-of-state cigarette manufacturer’s in-state activities violated Public Law 86-272, resulting in the manufacturer being subject to Oregon’s corporation excise tax. P.L. 86-272 prohibits any state... Read More