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

Florida Senate introduces economic nexus and marketplace facilitator bill
Posted on 30 Dec 2020 by Eversheds Sutherland LLP

On December 18, SB 50 was filed in the Florida Senate which would require sales tax collection from a person whose remote sales to Florida exceed $100,000 per year. It states that a person whose “taxable remote sales in the previous calendar year” exceed... Read More

Ohio Board of Tax Appeals concludes banking software subject to sales tax
Posted on 29 Dec 2020 by Eversheds Sutherland LLP

The Ohio Board of Tax Appeals found that banking software was subject to sales tax in Cincinnati Federal Savings & Loan v. McClain, Case No. 2018-2247 (December 22, 2020) . The banks purchased software for their online banking system. After initially... Read More

New York Explains that Digital Marketing Service is Non-Taxable Advertising Service
Posted on 18 Dec 2020 by Eversheds Sutherland LLP

The New York State Department of Taxation and Finance issued an advisory opinion explaining that a taxpayer’s charges for digital marketing services are not subject to sales tax. The taxpayer provides digital marketing services to its customers which... Read More

New York Department of Taxation & Finance Rules On Taxation of On-Line Clothing Subscription Services
Posted on 17 Dec 2020 by Eversheds Sutherland LLP

On June 30, 2020, the New York State Department of Taxation and Finance issued an advisory opinion stating that a clothing rental company’s monthly subscription fees are exempt from state sales tax. The taxpayer operated a clothing rental business, offering... Read More

Marketplace Collection Laws Present Unique Challenges for the Restaurant Industry
Posted on 14 Dec 2020 by Eversheds Sutherland LLP

The pandemic has changed the physical and economic environment in which restaurants operate. Although food delivery has long been popular for certain types of food, pandemic restrictions and consumer preferences hastened the expansion of food delivery... Read More

Sensing a Trend? Maine Tax Assessor Argues Sales Tax “Sale Price” of iPhones More Than What They Sold For
Posted on 30 Nov 2020 by Eversheds Sutherland LLP

After losing at trial, the Maine State Tax Assessor is now arguing to the state’s Supreme Judicial Court that sales tax applies to carrier subsidies received by Apple on its sales of iPhones bundled with service contracts.  During the years in issue,... Read More

Iowa Department of Revenue Issues Guidance on Sales Tax Treatment of New Inflow-Outflow Billing Method for Investor-Owned Utilities
Posted on 30 Oct 2020 by Eversheds Sutherland LLP

Effective July 1, 2020, Iowa law permits utility companies to utilize an inflow-outflow billing method for eligible distributed generation facilities. Under the inflow-outflow method, a generation customer is responsible for paying for the inflow kWh... Read More

Missouri issues rulings on electronic medical records, associated software
Posted on 7 Oct 2020 by Eversheds Sutherland LLP

In  Letter Ruling 8095 , the Missouri Department of Revenue determined that the electronic delivery of medical records is not subject to sales tax. The Department reasoned that electronically delivered information, regardless of the record’s original... 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

Colorado updates regulations concerning remote sellers and marketplace facilitators
Posted on 18 Sep 2020 by Eversheds Sutherland LLP

On September 10, the Colorado Department of Revenue promulgated four sets of regulations related to remote sellers and marketplace facilitators. One set, adopts a special rule that establishes the sales tax requirements and conditions for sales made through... Read More

Massachusetts Appeals Court issues opinion favorably interpreting Internet Tax Freedom Act’s screening software requirement
Posted on 9 Sep 2020 by Eversheds Sutherland LLP

On September 4, 2020, in New Cingular Wireless PCS LLC v. Commissioner of Revenue , No. 18-P-1317 , the Massachusetts Appeals Court held that the Internet Tax Freedom Act (ITFA) preempted Massachusetts’ sales tax on New Cingular Wireless’ (NCW) Internet... 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

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