Tax Law

Recent Posts

Colorado Backs Up Backup: DOR Concludes Backup Service Non-Taxable Sale of Computer Software
Posted on 6 Oct 2020 by Eversheds Sutherland LLP

The Colorado Department of Revenue has determined that an information technology provider’s sale of its backup service, which allowed its customers to back up business applications, files, and systems, and also included the delivery of computer servers... Read More

Something to Keep an Eye On: Texas Comptroller Says Web-Based Services for Eye Doctors Is Taxable Data Processing
Posted on 6 Oct 2020 by Eversheds Sutherland LLP

The Texas Comptroller of Public Accounts issued a private letter ruling concluding that several services provided to optometrists and ophthalmologists were subject to sales tax as data processing.  Specifically, the Comptroller determined that the taxpayer... Read More

For the Record – Corporate Record Storage Service Provided in New Jersey not Subject to New York Sales Tax
Posted on 3 Sep 2020 by Eversheds Sutherland LLP

On August 18, 2020, the New York Supreme Court, Albany County, held that there was no rational basis for New York’s imposition of sales tax on storage services performed in New Jersey that occurred subsequent to the initial sale and pickup of items in... Read More

No Double Dipping: Nebraska Supreme Court Upholds Sales Tax On Telecom. Construction Company’s Purchases of Materials and Sales of Construction Services Using Materials
Posted on 1 Sep 2020 by Eversheds Sutherland LLP

The Nebraska Supreme Court held that a telecommunications construction company was liable for sales taxes on both its purchases of construction materials to build telecommunications infrastructure and for its subsequent sales of services installing and... Read More

Phoenix Travelers Aren’t Getting a Free Ride
Posted on 25 Aug 2020 by Eversheds Sutherland LLP

Arizona’s Supreme Court unanimously held that the city of Phoenix’s fee increase on ride-sharing trips at airports are not “transaction-based” fees and therefore constitutional. In 2016, Phoenix’s City Council had amended its City Code to require commercial... Read More

If a Tree Falls in a Forest: Washington Court of Appeals Explains How Referral Services Are Sourced for B&O Tax Purposes
Posted on 13 Apr 2020 by Eversheds Sutherland LLP

The Washington Court of Appeals held that taxpayer’s receipts for referral services are sourced to Washington for B&O tax purposes to the extent that such receipts are received from a lender located in Washington. The taxpayer operates an online platform... Read More

Washington Court of Appeals Rules Online Research Taxable as Retailing
Posted on 23 Jan 2020 by Eversheds Sutherland LLP

On January 13, 2020, the Washington Court of Appeals upheld the Washington Department of Revenue’s retailing characterization of taxpayer’s provision of online access to information in a digital research library. Therefore the taxpayer’s service was subject... Read More

Sticker Shock! New York Court of Appeals Holds Price Comparison Services Are Subject To Sale Tax
Posted on 11 Jul 2019 by Eversheds Sutherland LLP

On June 26, 2019, the New York Court of Appeals held that a price comparison service was taxable as an information service because the information was not personal or individual in nature, which would exclude the service from sales tax. The taxpayer... Read More

You’re No Don Draper: Online Advertising Company Fails to Qualify for Advertising Services Tax Exemption
Posted on 11 Feb 2019 by Eversheds Sutherland LLP

On January 9, 2019, the South Dakota Supreme Court upheld the denial of South Dakota’s advertising services use tax exemption to a Sioux Falls-based company (Company) that designs and maintains websites that allow individuals and car dealerships to advertise... Read More

Shades of Gray: Comptroller Rules Online Training Courses Are Non-Taxable Services, Not Taxable Information Services
Posted on 5 Nov 2018 by Eversheds Sutherland LLP

The Texas Comptroller ruled that a taxpayer, which provided education and networking services for the property management industry, was not providing “information services,” but rather a non-taxable service. Taxable information services involve “furnishing... Read More