Tax Law

Recent Posts

Digital art subject to sales tax in Texas
Posted on 17 Nov 2020 by Eversheds Sutherland LLP

The Texas Comptroller adopted an Administrative Law Judge’s  decision   affirming a sales and use tax assessment on a Texas-based marketing and advertising agency for “invoices for the time to create digital artwork.” According to the Comptroller, the... Read More

Texas Court of Appeals Upholds Insurance Premium Tax on Cotton Bale Insurance Policies
Posted on 13 Oct 2020 by Eversheds Sutherland LLP

On September 24, 2020, the Texas Court of Appeals upheld the Texas insurance premium tax on insurance policies for bales of cotton temporarily stored at Texas warehouses.  The court rejected the taxpayer’s arguments that: (1) the tax violated the Commerce... 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

Don’t Throw Away Your Shot! Texas Court of Appeals Holds All Alternative Arguments Must Be Clearly Stated In Initial Refund Claim
Posted on 30 Sep 2020 by Eversheds Sutherland LLP

The Texas Court of Appeals held that the trial court did not have jurisdiction over a taxpayer’s sales and use tax refund claim because the taxpayer failed to properly state the grounds for the refund claim.  The Texas Tax Code requires that a refund... Read More

Oregon Decision and Texas Letter Ruling
Posted on 8 Sep 2020 by Eversheds Sutherland LLP

In this episode we discuss two recent developments, including an Oregon decision concerning sales tax on vehicles ( EAN Holdings, LLC v Oregon  Department of Revenue ) and a Texas letter ruling dealing with software as a service and data processing... Read More

Tags: podcast , Oregon , Texas

Recent CA, TX and UT Tax Rulings on Income Tax, Unclaimed Property and Electricity Taxes
Posted on 13 Aug 2020 by Eversheds Sutherland LLP

In this episode we discuss three recent developments, including an electricity tax matter in California ( City of Arcata v. Pacific Gas & Electric Co. ) a Texas unclaimed property matter ( CKD Homes Direct, Ltd v. Comptroller ) and a Utah income tax... Read More

Texas Delays Effective Date of Tax Sourcing Rule
Posted on 25 Jun 2020 by Eversheds Sutherland LLP

The Texas Comptroller has delayed until October 2021 the effective date of a new regulation that affects where local sales tax is allocated. The rule, which amends 34 TAC § 3.334, is meant to reduce the portion of sales tax revenue received by localities... Read More

Cleared for Takeoff: Texas Supreme Court finds Jet Sales Properly Sourced out of State
Posted on 14 May 2020 by Eversheds Sutherland LLP

The Texas Supreme Court held that a defense contractor was entitled to a refund of franchise tax because it had incorrectly sourced certain sales of military aircraft made to foreign governments to Texas on its originally-filed returns for the 2005 through... Read More

Legal Alert: Texas Trifecta – Texas Supreme Court issues three decisions on cost of goods sold deductions
Posted on 8 Apr 2020 by Eversheds Sutherland LLP

On Friday, April 3 the Texas Supreme Court issued three decisions addressing the availability and scope of the cost of goods sold, or “COGS,” deduction. Hegar v. American Multi-Cinema Inc. The first, and most anticipated, decision is  Hegar v. American... Read More

Virtual Pets and the Reality of Taxes – Texas Comptroller Affirms Sales Tax Assessment on Online Gaming Company
Posted on 18 Sep 2019 by Eversheds Sutherland LLP

The Texas Comptroller adopted a proposed decision issued by an Administrative Law Judge (ALJ) finding that a company owed sales tax on its sales of online gaming services to Texas residents. The company, who had at least one employee in Texas, developed... Read More

No Mixed Signals – Texas Appellate Court Finds Telecomm Signal Sales Are Not Tangible Personal Property
Posted on 10 Sep 2019 by Eversheds Sutherland LLP

Consistent with a prior decision of a sister appellate court, Texas’ Texarkana Court of Appeals held that the sale of telecommunication products and signals constitutes the sale of a service for purposes of Texas’ franchise tax. The taxpayer sold electrical... Read More

Why a taxpayer’s carbon reactivation process is ineligible for Texas’ manufacturing sales tax exemption
Posted on 3 Jul 2019 by Eversheds Sutherland LLP

A taxpayer’s spent carbon reactivation process did not qualify as “manufacturing” for the purposes of Texas’ manufacturing sales tax exemption, according to recently released guidance from the Texas Comptroller of Public Accounts. In a private letter... Read More

Texas Court of Appeals holds Hotel Consumables not Purchased for Resale
Posted on 25 Mar 2019 by Eversheds Sutherland LLP

The Texas Court of Appeals held that a hotel owner was not entitled to a resale exemption for the hotel consumables it offered to its guests during their stay. Alamo National Building Management (“Alamo”) purchased items such as soap, lotion, cups and... Read More

Texas Comptroller: Sales of Fuel Oil to Foreign Ships in Texas Waters Are “Texas Sales” for Apportionment Purposes
Posted on 28 Feb 2019 by Eversheds Sutherland LLP

The Texas Comptroller determined that a taxpayer was required to include in its sales factor numerator its receipts from sales of bunker fuel oil to foreign ships in Texas ports. The taxpayer argued that the sales were not from “business done” in Texas... Read More

Wind Farm Battery System Not Eligible for Manufacturing Exemption in Texas
Posted on 14 Dec 2018 by Eversheds Sutherland LLP

The Texas Comptroller ruled that the purchase of a battery system did not qualify for the manufacturing exemption from Texas sales and use taxes because it was used to store electricity, not manufacture it. The taxpayer operated a wind farm and began... Read More