Tax Law

Recent Posts

Where’s the Substance? Maryland Court of Special Appeals Upholds Assessment of Tax Against Out-of-State Holding Company Based on Parent Company Nexus
Posted on 11 Jul 2019 by Eversheds Sutherland LLP

The Maryland Court of Special Appeals upheld the Maryland Tax Court’s decision holding that the State Comptroller can subject an out-of-state holding company to tax because the holding company did not have economic substance apart from its parent, which... 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

Maryland Tax Court Strikes Again: Out-of-State LLCs Liable for Maryland Income Tax
Posted on 1 Apr 2019 by Eversheds Sutherland LLP

The Maryland Tax Court held that six nonresident Limited Liability Companies (LLCs) wholly-owned by another out-of-state limited liability company owed Maryland income tax despite the fact that the LLCs, as disregarded entities, had no federal income... Read More

Maryland Tax Court Strikes Again: Out-of-State LLCs Liable for Maryland Income Tax
Posted on 1 Apr 2019 by Eversheds Sutherland LLP

The Maryland Tax Court held that six nonresident Limited Liability Companies (LLCs) wholly-owned by another out-of-state limited liability company owed Maryland income tax despite the fact that the LLCs, as disregarded entities, had no federal income... Read More

Legal Alert: Maryland bill proposes digital goods tax
Posted on 5 Feb 2019 by Eversheds Sutherland LLP

The Maryland House of Delegates is considering legislation (House Bill 426) that would impose sales and use tax on digital products and sales tax on digital codes. If signed into law, Maryland would begin taxing digital products and digital codes on July... Read More

Maryland Enacts Legislation Adopting Single Sales Factor Apportionment
Posted on 25 Apr 2018 by Eversheds Sutherland LLP

On April 24, Maryland Governor Larry Hogan signed Senate Bill 1090 and House Bill 1794, which adds Maryland to the growing list of states that are moving towards a single sales factor formula to apportion corporate net income. Under prior Maryland law... 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