Tax Law

Recent Posts

Alabama Leaves No One Behind: All Software is Taxable
Posted on 17 Jun 2019 by Eversheds Sutherland LLP

The Alabama Supreme Court ruled that all software, including custom software, is tangible personal property subject to Alabama sales tax. The taxpayer filed refund claims for sales tax paid on computer software and accompanying equipment, claiming that... Read More

Choppy Waters: Illinois Appellate Court Allows Taxpayer’s Late Protest Because of Misleading Department of Revenue Conduct
Posted on 14 Jun 2019 by Eversheds Sutherland LLP

On May 22, 2019, the Illinois Appellate Court held that the late filing of a boat tour business’ Amusement Tax protest was excusable. The Cook County Department of Revenue had violated the taxpayer’s procedural due process rights by “affirmatively misleading... Read More

Much Ado About Nothing! Colorado Supreme Court Holds that Holding Companies with No Property or Employees are Not Includable in a Combined Group
Posted on 11 Jun 2019 by Eversheds Sutherland LLP

The Colorado Supreme Court issued two decisions simultaneously holding that neither Oracle Corporation nor Agilent Technologies, Inc. were required to include in their combined income tax returns holding companies that did not meet the statutory definition... Read More

CalTax Quarterly Board of Directors Meeting
Posted on 11 Jun 2019 by Eversheds Sutherland LLP

Lawmakers in California have introduced bills set to generate $16.4 billion in new taxes and fees for the 2019-2020 legislative session. Last week, Eversheds Sutherland sponsored CalTax’s Board of Directors Meeting, which covered the Governor’s... Read More

“Process” This: Maryland Court of Special Appeal Reverses Tax Court and Holds Utility Entitled to Sales Tax Exemption
Posted on 29 May 2019 by Eversheds Sutherland LLP

The Maryland Court of Special Appeals held that the Maryland Tax Court erred as a matter of law in ruling that none of the equipment purchased by a public utility company and used in transmitting electricity from a third-party power plant to the utility... Read More

School During Summer: Florida District Court of Appeal holds Class of “Every Current and Future” Member cannot be Certified.
Posted on 22 May 2019 by Eversheds Sutherland LLP

The Florida District Court of Appeal reversed the trial court’s certification of a class in a sales tax refund claim because the class was not “ascertainable.” Plaintiff filed suit against BJ’s Wholesale Club, Inc. (“BJ’s”) alleging that BJ’s thirty-one... Read More

An Overview of the California Research and Development Credit
Posted on 9 May 2019 by Eversheds Sutherland LLP

The California research and development credit is frequently a high-ticket item for taxpayers. Indeed, according to the California Franchise Tax Board’s (FTB) 2017 Annual Report, $1,440,103,626 of corporation tax research credits were allowed in... Read More

Eversheds Sutherland SALT Scoreboard Publication—First Quarter 2019
Posted on 23 Apr 2019 by Eversheds Sutherland LLP

This is the first edition of the Eversheds Sutherland SALT Scoreboard for 2019. Since 2016, we have tallied the results of what we deem to be significant taxpayer wins and losses and analyzed those results. This edition of the SALT Scoreboard includes... Read More

INSIGHT: Multistate Tax Commission considers alternative combined reporting statute, Public Law 86-272 guidance and post-Wayfair issues
Posted on 7 May 2019 by Eversheds Sutherland LLP

In this article for Bloomberg Tax, Eversheds Sutherland attorneys Jeffrey Friedman, Stephanie Do and Michael Hilkin discuss the topics covered at the April 25 Multistate Tax Commission Uniformity Committee meeting in Denver, including revisions to the... Read More

GILTI As Charged: Maryland’s Latest Inhospitable Tax Stance
Posted on 7 May 2019 by Eversheds Sutherland LLP

On April 17, 2019, the Maryland Comptroller of the Treasury issued Tax Alert 04-19, “Maryland guidance on the reporting and taxation of IRC Section 951A global intangible low taxed income,” further cementing the state’s tax climate as one that is bad... Read More

Glass Half-Full: Tennessee Court of Appeals Applies “Dominant Business Activity” Test, Rules for Taxpayer in Business Tax Dispute
Posted on 2 Apr 2019 by Eversheds Sutherland LLP

The Tennessee Court of Appeals held that a business that sold and installed automotive glass and also made repairs to automotive glass was properly classified as a seller of tangible personal property (glass), and not as a seller of services, for purposes... Read More

Pass This On: Washington Court of Appeals Holds Prescription Drug Payments Subject to B&O Tax
Posted on 5 Apr 2019 by Eversheds Sutherland LLP

On March 26, 2019, the Washington Court of Appeals held that a pharmacy benefit management company’s payments from clients (e.g., health maintenance organizations, health insurers, etc.) for the value of prescription drugs, were subject to the Washington... Read More

Proposed Legislation in North Carolina May Mitigate Tax on State Incentives
Posted on 8 Apr 2019 by Eversheds Sutherland LLP

The North Carolina legislature has introduced S.B. 622 , which would make significant changes to a wide range of North Carolina taxes. Among those changes, the legislation would allow a deduction, to the extent included in federal taxable income, for... Read More

Ohio is Seeing Green: CAT Imposed on Out-of-State Seller’s Sales That Were Completed Out of State
Posted on 9 Apr 2019 by Eversheds Sutherland LLP

The Court of Appeals of Ohio held that a Georgia-based wholesaler of lawn and garden products established nexus and its sales were properly included in the Commercial Activity Tax (CAT) base. The taxpayer was a wholesaler of garden equipment that did... Read More

Ohio is Seeing Green: CAT Imposed on Out-of-State Seller’s Sales That Were Completed Out of State
Posted on 9 Apr 2019 by Eversheds Sutherland LLP

The Court of Appeals of Ohio held that a Georgia-based wholesaler of lawn and garden products established nexus and its sales were properly included in the Commercial Activity Tax (CAT) base. The taxpayer was a wholesaler of garden equipment that did... Read More