Tax Law

Recent Posts

Washington ALJ Rules Video Game Developer’s Attendance at Trade Show Created Substantial Nexus
Posted on 1 Jan 2021 by Eversheds Sutherland LLP

On December 4, 2020, the Washington Department of Revenue Appeals Division determined that an out-of-state company’s participation in an annual three-day trade show in Washington state was sufficient to create substantial nexus with the state and subject... Read More

Massachusetts Appellate Tax Board Rules Non-Massachusetts S Corporation’s Subsidiary Sale Subject to Massachusetts Tax
Posted on 15 Dec 2020 by Eversheds Sutherland LLP

On October 23, 2020, the Massachusetts Appellate Tax Board ruled that capital gain from a Florida S corporation’s sale of a subsidiary Massachusetts LLC was subject to Massachusetts corporate excise tax and nonresident composite tax. The taxpayer contended... Read More

Wynne or Lose: Maryland Court of Appeals Upholds Constitutionality of Reduced Interest Rate on Wynne Refunds
Posted on 7 Jul 2020 by Eversheds Sutherland LLP

On June 5th, the Maryland Court of Appeals held that a reduced interest rate on refunds paid to taxpayers as a result of the U.S. Supreme Court’s decision in Comptroller of Maryland v. Wynne did not violate the U.S. Constitution’s dormant Commerce Clause... Read More

Representative Representation Required
Posted on 20 Mar 2020 by Eversheds Sutherland LLP

The Washington Court of Appeals held that Seattle’s method of apportioning the City’s business and occupation tax (B&O tax) was unconstitutionally applied and unfairly apportioned when the City excluded compensation paid to independent representatives... Read More

Oregon Tax Court Holds E911 Tax on VoIP Provider Does Not Violate U.S. Constitution
Posted on 20 Mar 2020 by Eversheds Sutherland LLP

On March 2, 2020, the Oregon Tax Court held that the application of the state’s E911 Tax to a provider of interconnected VoIP services (“Taxpayer”) did not violate the Due Process and Commerce Clauses of the U.S. Constitution. The E911 Tax is imposed... Read More

Utah Supreme Court Upholds the Constitutionality of Not Providing a Foreign Tax Credit
Posted on 18 Oct 2019 by Eversheds Sutherland LLP

The Utah Supreme Court upheld the constitutionality of Utah’s taxing scheme, which provides a credit against taxes paid to other states, but not against taxes paid to foreign governments. The taxpayers – Utah residents who owned interests in a Subchapter... 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

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

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

Rent a Car, Pay a Tax: Arizona Supreme Court Holds Surcharges on Car Rental Companies to be Constitutional
Posted on 22 Mar 2019 by Eversheds Sutherland LLP

The Supreme Court of Arizona held that local surcharges imposed on car rental companies did not violate the US Commerce Clause or the state constitution’s anti-diversion clause. The surcharges, enacted by local initiative to fund sports facilities, were... Read More

New York City Tax Tribunal finds that ownership of a flow-through interest can create nexus.
Posted on 13 Mar 2019 by Eversheds Sutherland LLP

The New York City Tax Tribunal held that an out-of-state corporate taxpayer, with an indirect interest in a limited liability company investment fund engaged in business in New York City, had nexus with the City and was subject to tax on capital gain... Read More