Tax Law

Recent Posts

Missouri issues rulings on electronic medical records, associated software
Posted on 7 Oct 2020 by Eversheds Sutherland LLP

In  Letter Ruling 8095 , the Missouri Department of Revenue determined that the electronic delivery of medical records is not subject to sales tax. The Department reasoned that electronically delivered information, regardless of the record’s original... Read More

Something to Keep an Eye On: Texas Comptroller Says Web-Based Services for Eye Doctors Is Taxable Data Processing
Posted on 6 Oct 2020 by Eversheds Sutherland LLP

The Texas Comptroller of Public Accounts issued a private letter ruling concluding that several services provided to optometrists and ophthalmologists were subject to sales tax as data processing.  Specifically, the Comptroller determined that the taxpayer... Read More

Don’t Throw Away Your Shot! Texas Court of Appeals Holds All Alternative Arguments Must Be Clearly Stated In Initial Refund Claim
Posted on 30 Sep 2020 by Eversheds Sutherland LLP

The Texas Court of Appeals held that the trial court did not have jurisdiction over a taxpayer’s sales and use tax refund claim because the taxpayer failed to properly state the grounds for the refund claim.  The Texas Tax Code requires that a refund... Read More

Colorado updates regulations concerning remote sellers and marketplace facilitators
Posted on 18 Sep 2020 by Eversheds Sutherland LLP

On September 10, the Colorado Department of Revenue promulgated four sets of regulations related to remote sellers and marketplace facilitators. One set, adopts a special rule that establishes the sales tax requirements and conditions for sales made through... Read More

Massachusetts Appeals Court issues opinion favorably interpreting Internet Tax Freedom Act’s screening software requirement
Posted on 9 Sep 2020 by Eversheds Sutherland LLP

On September 4, 2020, in New Cingular Wireless PCS LLC v. Commissioner of Revenue , No. 18-P-1317 , the Massachusetts Appeals Court held that the Internet Tax Freedom Act (ITFA) preempted Massachusetts’ sales tax on New Cingular Wireless’ (NCW) Internet... 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

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

Illinois Court Rejects Best Buy’s Sales Tax Exemption Claim
Posted on 17 Jul 2020 by Eversheds Sutherland LLP

The Illinois Appellate Court held that Best Buy’s sales of “built-in” appliances were not exempt from sales tax as construction contracts even though Best Buy installed the appliances in customers’ homes. Illinois imposes its sales tax on sales of tangible... Read More

Rhode Island Expands Sales Tax Base to Software, Digital Downloads
Posted on 10 Jul 2020 by Eversheds Sutherland LLP

On June 24, the Rhode Island Governor signed into law S2650 Substitute A , which expands the state’s sales tax base to computer software and specified digital products, including digital audio-visual works, digital audio works, and digital books. The... Read More

New York Considers Requiring Rental Platforms to Collect Tax
Posted on 10 Jul 2020 by Eversheds Sutherland LLP

The recently introduced SB 8627 would require short-term rental platforms to collect and remit sales taxes on behalf of the hosts on rental units leased outside of New York City. A similar measure was introduced last year but died in committee. Read More

California’s Ninth Circuit Says Deprivation of $3.76 is Enough for Standing
Posted on 8 Jul 2020 by Eversheds Sutherland LLP

The Ninth Circuit concluded that a plaintiff had standing to continue her lawsuit against a clothing company alleging that the company wrongly failed to pay interest on refunded Alaska sales taxes. After a related lawsuit was filed alleging that sales... Read More

Read This! South Carolina Court of Appeals Holds Book Club Membership Fees Are Subject to Sales Tax
Posted on 24 Jun 2020 by Eversheds Sutherland LLP

The South Carolina Court of Appeals affirmed the Administrative Law Court’s holding that proceeds from a book retailer’s sales of book club memberships should have been included in the retailer’s “gross proceeds of sales” and subject to sales tax. The... Read More

Mississippi Senate Approves Marketplace Facilitator Legislation
Posted on 18 Jun 2020 by Eversheds Sutherland LLP

The Mississippi Senate has passed HB 379 , a marketplace facilitator bill, by a vote of 43-0. The bill requires marketplace facilitators with annual in-state revenues above $250,000 to collect and remit sales tax. The Senate amended the House bill – adding... Read More

“Pay up or shut up”: California Court of Appeal holds that taxpayer must pay up before challenging a tax regulation’s validity
Posted on 22 May 2020 by Eversheds Sutherland LLP

The California Court of Appeal recently held that a taxpayer must pay a tax assessment before seeking a declaration that the regulation giving rise to the tax assessment is invalid. California taxpayers cannot challenge unpaid tax assessments under Article... Read More

Commonwealth Court of Pennsylvania Holds that Receipts Sufficiently Describe Coupon’s Application to Taxable Items
Posted on 21 May 2020 by Eversheds Sutherland LLP

The Commonwealth Court of Pennsylvania reversed the Board of Finance and Revenue’s (Board) order, in part, and determined that when a retailer’s receipt separately states the coupon presented and sufficiently identifies the item to which the coupon, a... Read More