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Tax Law

Eversheds Sutherland SALT Shaker: September 2018 Digest

Read our September 2018 posts on stateandlocaltax.com or read each article by clicking on the title. For the latest coverage and commentary on state and local tax developments delivered directly to your phone, download the latest version of the Eversheds Sutherland SALT Shaker app.

  • SALT Pets of the Month: Bear and Bacco
    Meet Bear and Bacco, the dynamic lab duo belonging to Eversheds Sutherland tax partner Brad Seltzer and his wife, Jenny.
  • New Jersey Tax Court Upholds Division’s Use of 25/50/25 Sourcing Rule
    The New Jersey Tax Court upheld the New Jersey Division of Taxation’s use of the 25/50/25 sourcing rule for “certain services” against a provider of mass messaging services by fax, email and voice. Specifically, the court upheld the Division’s determination of a 76% receipts factor, which consisted of 25% for all transactions originating in New Jersey, 50% for all transactions performed in New Jersey, and 1% for the percentage of transactions that terminated in New Jersey. Because the court determined that the taxpayer performed its service entirely in New Jersey, it stated that a 100% receipts factor could also have been appropriate under a cost-of-performance sourcing method.

FEATURED VIDEOS

  • Videocast: Reactions to Wayfair
    The US Supreme Court recently overruled the long-standing “physical presence rule” that barred states from imposing sales tax collection requirements on certain out-of-state sellers. However, in South Dakota v. Wayfair, Inc., the Court did not clearly state a new standard to replace the physical presence rule. States are responding to the decision in different ways. In this Bottom Line videocast, Eversheds Sutherland attorneys Todd Lard and Jessica Eisenmenger discuss:
    • the US Supreme Court’s decision in Wayfair;
    • the ambiguity of the new nexus standard; and
    • three approaches to nexus that states are taking in the wake of the Wayfair decision
  • Videocast: SALT Scoreboard – 2018 Mid-Year Review
    The quarterly Eversheds Sutherland SALT Scoreboard tallies significant state and local tax litigation wins and losses. In this Bottom Line videocast, Eversheds Sutherland attorneys Charles Capouet and Justin Stone discuss the results from the first two quarters of 2018, including:
      • how taxpayers have fared in litigation in the first two quarters of 2018 compared to 2016 and 2017;
      • three of the main cases from the second quarter of 2018: South Dakota v. Wayfair, Inc., Health Net, Inc. v. Oregon Department of Revenue, and Matter of XO Communications Services, LLC; and
      • the recent Cook County Circuit Court decision, Labell v. City of Chicago, which upheld Chicago’s amusement tax on streaming services.

    SALT SOCIETY

    SALT Society features events in the lives of tax practitioners. Check out our recent posts: Women in Tax Rock! and The Tale of Two Todds.

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