Tax Law

Recent Posts

Don’t Be Shocked: California Cities Allege that PG&E Willfully Miscalculated Electricity Tax
Posted on 2 Sep 2020 by Eversheds Sutherland LLP

Several California localities filed a complaint alleging that PG&E willfully miscalculated the electricity user’s tax (“Electricity Tax”) causing harm to the cities, their employees and public services. California cities and counties impose Electricity... Read More

Lost in customs: New York Tax Appeals Tribunal disallows deduction for royalties paid by foreign nontaxpayer affiliates
Posted on 31 Aug 2020 by Eversheds Sutherland LLP

On Aug. 6, the New York Tax Appeals Tribunal held that royalties received from a foreign affiliate are taxable and are not subject to New York’s royalty income exclusion provision under former Tax Law § 208(9)(o)(3). Prior to its amendment, Tax Law... Read More

Battling Statutory Interpretation Principles Leads to an “Unambiguous” Result: Washington Taxes Hospitals
Posted on 24 Aug 2020 by Eversheds Sutherland LLP

The Washington Supreme Court held that a business & occupation (“B&O”) tax deduction contained in RCW 82.04.4311 is limited to payments received from Washington and federal programs, but not payments received from other states’ medical programs... Read More

Washington Supreme Court Allows Bad Debt Deductions for Taxes Paid on Private Label Credit Card Purchases
Posted on 13 Feb 2020 by Eversheds Sutherland LLP

On January 16, 2020, the Supreme Court of Washington, in an en banc decision, held that a retailer was entitled to take bad debt deductions for sales and Business and Occupation (“B&O”) taxes when its customers defaulted on purchases made using private... Read More

Is Free Really Free? New York Tax Appeals Tribunal Holds “Free” Promotional Gift Cards Do Not Reduce Taxable Sales Price
Posted on 31 Jan 2020 by Eversheds Sutherland LLP

The New York State Tax Appeals Tribunal (TAT) held that Apple improperly collected sales tax on sales of Apple computers and iPads because it discounted the purchase price by the amount of gift cards it gave to customers as part of a back-to-school promotion... Read More

Profits or Salary? New Jersey Tax Court Determines Distributions Are Dividends, Not Compensation for Services
Posted on 8 Jan 2020 by Eversheds Sutherland LLP

The New Jersey Tax Court held that distributions made to a corporation’s two shareholders constituted dividends, and rejected the corporation’s argument that the distributions should be treated as compensation for managerial services that could be deducted... Read More

Pennsylvania Freight Broker May Deduct Passed-Through Delivery Fees from Local Gross Receipts
Posted on 17 Sep 2019 by Eversheds Sutherland LLP

The court held that the taxpayer, a freight broker, could deduct freight and delivery charges, which it received from its customers and remitted to third-party delivery providers, from gross receipts before calculating a city’s business privilege tax... Read More

Top New Jersey Tax Changes in the 2018 Budget Deal
Posted on 6 Jul 2018 by Eversheds Sutherland LLP

In a last-minute deal to avert a government shutdown, New Jersey Governor Phil Murphy and the New Jersey Legislature cobbled together a budget with numerous amendments to New Jersey’s tax law. View the full legal alert. Read More

New Jersey Legislature Passes Corporate Tax Increases, Still Negotiating with Governor
Posted on 28 Jun 2018 by Eversheds Sutherland LLP

In the midst of a budget showdown between New Jersey’s Legislature and Governor Murphy, on June 25, 2018, the Legislature passed a replacement bill that seeks to raise revenue with a temporary Corporation Business Tax “surtax” on corporations meeting... Read More

New York Bill Introduced to Exempt GILTI
Posted on 13 Jun 2018 by Eversheds Sutherland LLP

On June 11, 2018, Senate Bill 8991 was introduced by New York Senate Majority Leader John Flanagan. The Bill would decouple from the federal treatment of Global Intangible Low-Taxed Income (GILTI). View the full legal alert. Continue Reading… Read More

Oregon Legislature Passes IRC Conformity Legislation, But Decouples from Certain Federal Tax Reform Provisions
Posted on 17 Apr 2018 by Eversheds Sutherland LLP

On April 10, 2018, and April 13, 2018, Oregon Governor Kate Brown signed into law S.B. 1529 and S.B. 1528 (the Bills), respectively, which provide a series of changes to Oregon’s income tax laws in response to recent federal tax changes as part of the... Read More

Indiana Enacts IRC Conformity Bill, Decouples from Certain Federal Tax Reform Provisions
Posted on 17 May 2018 by Eversheds Sutherland LLP

On May 14, 2018, Indiana Governor Eric Holcomb signed into law H.B 1316 (the Bill). The Bill provides a number of changes to Indiana’s tax laws, including responding to provisions of the federal Tax Cuts and Jobs Act. Some notable provisions of the Bill... Read More

Georgia Legislature Enacts Significant Income, Sales, and Property Tax Legislation
Posted on 4 Apr 2018 by Eversheds Sutherland LLP

The Georgia legislative session concluded on March 29, 2018. In addition to two major bills relating to federal tax reform, Georgia enacted several other pieces of notable tax legislation. View the full Legal Alert. Continue Reading… Read More

IRS to Crackdown on SALT Deduction Cap Workarounds
Posted on 24 May 2018 by Eversheds Sutherland LLP

The IRS intends to issue regulations pertaining to states’ attempts to subvert the state and local tax deduction cap. The Tax Cuts and Jobs Act imposed a $10,000 ($5,000 for married individuals filing separately) limit on state and local tax deductions... Read More