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

Business (Income) As Usual: Minnesota Supreme Court Rules Gain From Sale of LLC is Apportionable Business Income
Posted on 17 Sep 2020 by Eversheds Sutherland LLP

The Minnesota Supreme Court held that the gain from a corporation’s sale of its majority interest in a limited liability company (LLC) was apportionable business income subject to Minnesota corporate income tax. The Court explained that the corporation... Read More

Every Word Matters – Maryland Tax Court Holds Expansive Statutory Terms Exempt Unauthorized Insurance Company From Maryland Corporate Income Tax
Posted on 12 Aug 2020 by Eversheds Sutherland LLP

On remand from the Maryland Court of Special Appeals, the Maryland Tax Court held that an unauthorized insurance company owned by Macy’s, was exempt from Maryland corporate income tax. During the years at issue, Leadville, a Vermont captive, did not earn... Read More

Every Word Matters – Maryland Tax Court Holds Expansive Statutory Terms Exempts Unauthorized Insurance Company From Maryland Corporate Income Tax
Posted on 12 Aug 2020 by Eversheds Sutherland LLP

On remand from the Maryland Court of Special Appeals, the Maryland Tax Court held that an unauthorized insurance company owned by Macy’s, was exempt from Maryland corporate income tax. During the years at issue, Leadville, a Vermont captive, did not earn... Read More

Pump the Brakes: North Carolina Supreme Court Determines that Brake-Pad Manufacturer Does Not Qualify for Special Apportionment Rule for Public Utilities
Posted on 6 Jul 2020 by Eversheds Sutherland LLP

The North Carolina Supreme Court affirmed a lower court decision that held that a manufacturer of brake pads used by railroads did not qualify for an exception to the state’s standard three-factor apportionment formula that allows “public utilities” to... Read More

That’s None of Our Business – Idaho Supreme Court Rules Holding Company’s Gain from Sale of LLC Interest is Nonbusiness Income
Posted on 6 Jul 2020 by Eversheds Sutherland LLP

On May 22, 2020, the Idaho Supreme Court held that the gain realized by a corporate holding company on the sale of its 78.54 percent ownership interest in an LLC was nonbusiness income and therefore not subject to apportionment in Idaho. The LLC was formed... Read More

Alabama Tax Tribunal Held that Payments to An Affiliate for Employee Services Not Included in Payroll Factor
Posted on 25 Jun 2020 by Eversheds Sutherland LLP

The Alabama Tax Tribunal held that a taxpayer’s payments to an affiliated entity for employee services were not included in the payroll factor of the apportionment formula for business-income tax purposes because the payments were not made directly to... Read More

Michigan Supreme Court Rules Service Revenues Must be Sourced to the Location where the Services are Performed for City Income Tax Purposes
Posted on 11 Jun 2020 by Eversheds Sutherland LLP

The Michigan Supreme Court held that revenue from the performance of services must be sourced to the location where the service provider’s employees performed the work, not where the services were delivered, for purposes of the City of Detroit’s income... Read More

Principally Engaged: New York Looks to 50% of Gross Receipts for Determining Filing Status
Posted on 14 May 2020 by Eversheds Sutherland LLP

The New York Department of Taxation and Finance recently published an advisory opinion stating that a taxpayer’s New York corporate income tax filing status should be determined by “what activity [a taxpayer] is principally engaged in” and by whether... Read More

Taxpayer Dials the Wrong Number: New Jersey Court Holds Phone Company Sourcing Rule Inapplicable
Posted on 17 Mar 2020 by Eversheds Sutherland LLP

On January 9, 2020, the New Jersey Superior Court, Appellate Division, upheld a New Jersey Tax Court decision that income, or “receipts,” earned by a taxpayer from providing broadcast fax, email and voice messaging services were performed within New Jersey... Read More

Ohio NBA Owner Wants Only the Net Taxed
Posted on 29 Jan 2020 by Eversheds Sutherland LLP

The owner of an NBA arena is appealing an Ohio commercial activity tax (CAT) determination arguing that gross receipts from ticket sales of third-party events hosted at the arena are not attributable to the owner. When the arena was not being used by... Read More

Going to the Dogs: Pet Food Seller’s Intelligence Gathering in Maryland Exceeds P.L. 86-272 Protection
Posted on 3 Jan 2020 by Eversheds Sutherland LLP

The Maryland Court of Special Appeals upheld the Comptroller’s determination that an out-of-state pet food seller did not qualify for Public Law 86-272 protection because the seller’s collection of competitive information in Maryland by its employees... Read More

New Mexico Administrative Hearings Office Approves UPS’s Alternative Apportionment Method
Posted on 20 Dec 2019 by Eversheds Sutherland LLP

The New Mexico Administrative Hearings Office determined that UPS may depart from the statutory apportionment method for trucking companies, based on mileage driven in the state, because it produces a result that bears no rational relationship to UPS... Read More

Montana Supreme Court Holds Actual Dividends Fully Deductible in Water’s-Edge Case
Posted on 27 Aug 2019 by Eversheds Sutherland LLP

The Montana Supreme Court held that the Department erred in determining that Exxon Mobil was entitled to only an 80% exclusion for dividends received from domestic corporations excluded from the water’s-edge combined return, and concluded that 100% of... 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