Tax Law

Recent Posts

New Jersey Partnership Filing Fee Is Not an Unconstitutional Flat Tax
Posted on 18 Dec 2018 by Eversheds Sutherland LLP

The New Jersey Tax Court rejected the taxpayer’s argument that the partnership filing fee, which requires a partnership with New Jersey source income to pay a per-partner fee of $150 (capped at $250,000), violated the Commerce Clause. The Tax Court held... Read More

Tangled Up in Internal Consistency: Minnesota Legend Drug Tax Held Constitutional
Posted on 5 Nov 2018 by Eversheds Sutherland LLP

The Minnesota Supreme Court held that the state’s gross receipts tax on prescription drugs did not violate the Due Process or Commerce Clauses when applied to transactions between out-of-state pharmacies and in-state customers, reversing the Minnesota... Read More

House Judiciary Committee Considers Ramifications of Wayfair Decision
Posted on 25 Jul 2018 by Eversheds Sutherland LLP

On Tuesday, June 24, the Judiciary Committee of the US House of Representatives held a hearing on “Examining the Wayfair decision and its Ramifications for Consumers and Small Businesses.” The hearing was scheduled at the direction of Rep... Read More

US Supreme Court Overrules Physical Presence Standard, Leaves Plenty of Questions
Posted on 22 Jun 2018 by Eversheds Sutherland LLP

In a 5-4 decision, the US Supreme Court today overruled its landmark decisions in Quill Corp. v. North Dakota  and National Bellas Hess, Inc. v. Department of Revenue of Illinois , disposing of the “physical presence” rule that has served as the bright... Read More

Oregon Imposes 911 Tax on Out-of-State Retailer with No Physical Presence
Posted on 22 May 2018 by Eversheds Sutherland LLP

The Oregon Tax Court held that the state was not constitutionally prohibited from imposing its statewide 911 tax on an out-of-state VOIP service provider with no physical presence in the state. The court held that the 911 tax was not a sales or use tax... Read More

New Mexico Finds No Obstacle to Inclusion of Foreign Dividends and Subpart F Income in Consolidated Return Base
Posted on 26 Apr 2018 by Eversheds Sutherland LLP

The New Mexico Administrative Hearings Office affirmed the Taxation and Revenue Department’s assessment based on General Electric’s exclusion of foreign dividend and Subpart F income from its base income in its New Mexico consolidated return. In this... Read More

Maryland’s Limited Interest on Wynne Refunds Ruled Unconstitutional
Posted on 29 May 2018 by Eversheds Sutherland LLP

Maryland Tax Court holds that Maryland’s limitation of interest on refunds resulting from the US Supreme Court’s decision in Comptroller of the Treasury of Maryland v. Wynne violates the US Constitution. In 2014, the Maryland legislature passed a law... Read More

Chicago Streaming Video Tax Does Not Violate Federal and State Law
Posted on 30 May 2018 by Eversheds Sutherland LLP

On May 24, 2018, the Circuit Court of Cook County upheld the City of Chicago’s imposition of its amusement tax on streaming services. On June 9, 2015, the Chicago Department of Finance issued a ruling indicating that electronically delivered amusements... Read More

Constitutional Limitations on State Taxation of Securities Transactions
Posted on 5 Apr 2013 by LexisNexis Tax Law Community Staff

by Andrew W. Singer, Esq.* I. Introduction Income from securities transactions may be subject to both federal and state income taxes, at least in the substantial majority of States that impose income taxes. The US Constitution imposes limits on... Read More

California Taxpayers Whipsawed!
Posted on 26 Mar 2013 by Deanne Morton

QSBS Exclusion, Deferral Statutes Unconstitutional In August 2012, California's Second District Court of Appeal determined that the "qualified small business stock" (QSBS) exclusion and deferral statutes were unconstitutional. See Cal... Read More

No Economic Nexus for ConAgra Intangibles
Posted on 19 Jun 2012 by Asbury Law Firm

The West Virginia Supreme Court of Appeals held that the licensing of intangible trademarks and trade names by ConAgra into West Virginia did not subject ConAgra to corporate income tax. In sustaining the opinion of the state circuit court, which overturned... Read More

No Economic Nexus for ConAgra Intangibles
Posted on 19 Jun 2012 by Asbury Law Firm

The West Virginia Supreme Court of Appeals held that the licensing of intangible trademarks and trade names by ConAgra into West Virginia did not subject ConAgra to corporate income tax. In sustaining the opinion of the state circuit court, which overturned... Read More

California Court of Appeal Permits Retroactive Taxes to Remedy Unconstitutional Discrimination; Upholds Post-Amnesty Penalty
Posted on 29 Jul 2010 by Morrison and Foerster LLP

By Thomas H. Steele, Eric J. Coffill, Andres Vallejo, Carley A. Roberts, and Scott M. Reiber The California Court of Appeal, First Appellate District, recently issued an opinion against the taxpayer in River Garden Retirement Home v. Franchise Tax... Read More

Litigation Challenging New York's Controversial Nexus Statute Continues
Posted on 12 Nov 2010 by Sutherland Asbill & Brennan LLP

By Jeffrey A. Friedman , Michele Borens , and Mark W. Yopp On November 4, an appellate court held that the New York affiliate nexus law does not violate the Equal Protection Clause and is facially constitutional under the Due Process and Commerce Clauses... Read More