Tax Law

Recent Posts

Maine Takes a Jumbo Slice of Taxpayer’s $3.6 billion Frozen Pizza Business Sale
Posted on 23 Jun 2020 by Eversheds Sutherland LLP

The Maine Supreme Judicial Court recently held that a taxpayer was not entitled to alternative apportionment for approximately $3 billion in gains earned from the sale of a business unit. The taxpayer was a food and beverage manufacturer that sold its... Read More

Michigan Court of Appeals Finds an Almost Five-Fold Sales Factor Increase to be Unconstitutionally Distortive
Posted on 19 Mar 2020 by Eversheds Sutherland LLP

The Michigan Court of Appeals recently held that the state’s statutory apportionment formula was unconstitutionally distortive as applied to a taxpayer’s Michigan Business Tax (MBT) liability. Therefore, the taxpayer was entitled to use an... Read More

New Mexico Administrative Hearings Office Approves UPS’s Alternative Apportionment Method
Posted on 20 Dec 2019 by Eversheds Sutherland LLP

The New Mexico Administrative Hearings Office determined that UPS may depart from the statutory apportionment method for trucking companies, based on mileage driven in the state, because it produces a result that bears no rational relationship to UPS... Read More

Too Bad, So Sad – Virginia Supreme Court Upholds COP Apportionment Despite Subjecting the Taxpayer to Double Taxation
Posted on 22 Mar 2019 by Eversheds Sutherland LLP

The Virginia Supreme Court held that the use of the cost-of-performance method to apportion nearly 100% of the taxpayer’s sales of services to Virginia did not violate the U.S. Constitution, even though over 95% of the taxpayer’s customers were located... Read More

New Jersey Tax Court Rejects Alternative Apportionment Formula
Posted on 1 Feb 2019 by Eversheds Sutherland LLP

The New Jersey Tax Court rejected the Division of Taxation’s application of a five-factor alternative apportionment formula as invalid rulemaking under New Jersey’s Administrative Procedures Act (APA). The Tax Court previously determined that an application... Read More