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Massachusetts Issues Final Revised Market-Sourcing Regulation; Multistate Tax Commission Working Group Continues Project Based on Massachusetts Regulation

By Robert P. Merten III and Prentiss Willson Massachusetts has published its final revised market-sourcing regulation ( 830 CMR 63.38.1 ), effective for tax years beginning on or after January 1, 2014. The final revisions to these rules, among other things, conform the regulation with recent state law...

Bueller? Bueller? MTC Still Calling on States to Join ALAS Program

The Multistate Tax Commission advanced several items of interest during its annual fall meetings held in Charleston, South Carolina, this week, including the creation of a new committee to continue gathering support for its transfer pricing program. View the full Legal Alert .

The Jersey Short: An Interview with New Jersey Tax Director John Ficara

The New Jersey Division of Taxation recently named John Ficara as its new director, who will perform in an acting capacity until confirmed by the Senate. In their article for State Tax Notes , Sutherland attorneys Leah Robinson and Open Weaver Banks interview Mr. Ficara to discuss his new role, what...

Quill Part Deux: North Dakota Lost the Nexus Battle. Will South Dakota Win the War?

On March 22nd, South Dakota Governor Daugaard signed into law Senate Bill 106, the passage of which may be the ultimate vehicle to challenge Quill at the U.S. Supreme Court. With landslide support in the South Dakota Senate and House of Representatives, S.B. 106 adopts an economic nexus standard for...

Georgia Keeps It Interesting: Legislature Passes Novel Law on Interest Rates and Refund Claims

On March 24, the Georgia General Assembly passed House Bill 960, which would adjust the statutory interest rate applicable to tax assessments and refunds and addresses other issues related to refund claims for Georgia sales and use taxes. H.B. 960 passed the legislature while the Georgia Department of...

Sutherland Enhances Its Innovative State and Local Tax (SALT) App

Sutherland SALT is shaking things up again in state and local tax. We are pleased to announce several new enhancements to our SALT Shaker app. These improvements give users more options to customize and search content, making it even easier to be one step ahead with the latest coverage and commentary...

Sutherland SALT Launches "SALT Scoreboard" Publication

Sutherland SALT has launched the “SALT Scoreboard,” a quarterly publication that tracks significant state tax litigation and controversy developments and tallies the results of taxpayer wins and losses across the country. Our quarterly publication will feature Sutherland’s observations...

Sutherland Partner Carley Roberts Recognized as One of Tax Analysts' 2016 Outstanding Women in Tax

Sutherland is pleased to announce that Partner Carley A. Roberts has been recognized as one of the “Outstanding Women in Tax” by T ax Analysts , a leading publisher of tax news and analysis. A group of Tax Analysts editors, reporters and board members reviewed more than 300 submissions...

Speakers and Panels Announced! TEI's Audits & Appeals Seminar: Meeting the Tax Controversy Needs of In-House State Tax Professionals

For the second year, Sutherland Asbill & Brennan LLP is delighted to join TEI’s Audit & Appeals Seminar, sponsor, and lead a full day dedicated to state and local tax controversies covering: Understanding the State Tax Controversy Lifecycle Speakers: Marc A. Simonetti, Sutherland; Pilar...

Sutherland Expands SALT Practice to 40 Attorneys

We are pleased to announce that our SALT practice has expanded with the recent addition of five associates: Jessica N. Allen in Sacramento, Chelsea E. Marmor and Douglas J. Upton in New York, DeAndre R. Morrow in Washington DC and Alla Raykin in Atlanta. The group’s arrival to Sutherland’s...

Keep on Streamin': Kentucky Court Holds Taxes Inapplicable to Streaming Video Service

By Charles Capouet and Maria Todorova The Franklin County Circuit Court held that Netflix’s subscription-based streaming video service was not subject to Kentucky’s gross revenues tax, excise tax and school tax (“telecommunications taxes”) imposed on “multichannel video...

New Jersey Tax Court Rejects Application of 100% Apportionment Factor But Denies In-State Company's Bid to Use Three-Factor Formula

By Zachary Atkins and Open Weaver Banks The New Jersey Tax Court held that apportioning all of a company’s income to New Jersey for corporate business tax purposes, even with the allowance of a credit for taxes paid to separate-return states, failed to fairly reflect the company’s business...

New Jersey Tax Court Analyzes Credit Card Receipt Sourcing

By Douglas Upton and Andrew Appleby The New Jersey Tax Court determined that credit card issuers must source to New Jersey all of their interest and interchange fee receipts, and half of their credit card service fees, from New Jersey accountholders. The Tax Court concluded that the Division of Taxation’s...

Two Bites, Zero Success: South Carolina Court of Appeals Determines Department Did Not Satisfy Its Burden to Justify Alternative Apportionment

By Elizabeth Cha and Timothy Gustafson On October 26, 2016, the South Carolina Court of Appeals reversed a lower court ruling and determined the Department of Revenue (Department) failed to satisfy its burden of showing that the statutory apportionment formula did not fairly represent Rent-A-Center...

NYC Tax Appeals Tribunal Allocates Consulting Service Provider's Receipts Based on Location of Consultants

By Jessica Allen and Jonathan Feldman The New York City Tax Appeals Tribunal administrative law judge (ALJ) determined that a taxpayer’s receipts for consulting services should be allocated based on where the services were rendered, not where the solicitation and payment for the services occurred...

A Chiropractor's Delight: Taxpayer's "PoP" Makes Internet Backbone Service Not Taxable in Pennsylvania (Again)

By Stephen Burroughs and Maria Todorova The Commonwealth Court of Pennsylvania recently reaffirmed its decision that Level 3’s network infrastructure services (including local dial networks, telephone numbers and modems, i.e., Internet “backbone”) sold to retail Internet service providers...

Washington Supreme Court Holds B&O Tax Applies to Drop Shipments

By Charles Capouet and Andrew Appleby The Washington Supreme Court held that drop shipments and sales from out-of-state are subject to the Washington business and occupation (B&O) tax even when an in-state office was not involved in placing or completing the sales. A wholesaler of electronic components...

It's Always Better When We're Together: Colorado DOR Determines Payment of Sales Tax by Marketplace Provider Relieves the Jointly Responsible Retailers of Sales Tax Obligations

By Nick Kump and Amy Nogid The Colorado Department of Revenue (Department) released a non-binding general information letter, concluding that a marketplace provider’s payment of sales tax on transactions involving “jointly responsible” third-party retailers discharges the obligations...

Citigroup False Claims Act Lawsuit Remanded to New York State Court for Lack of Federal Question Jurisdiction

By Zack Atkins and Marc Simonetti A federal district court denied a taxpayer’s motion to dismiss a lawsuit brought under the New York False Claims Act (FCA) for lack of subject matter jurisdiction and remanded the action to state court. The relator, an Indiana University professor, alleges that...

Pardon My French, But You're A Taxpayer: Out-of-State Baker's Croissants Lead to B&O Nexus in Washington

By Zack Atkins and Tim Gustafson The Washington State Department of Revenue ruled that an out-of-state baker whose only in-state “presence” was its use of in-state independent commissioned sales representatives to solicit orders had substantial nexus with Washington and therefore was subject...

Sutherland Named Tax Practice Group of the Year for Third Consecutive Year by Law360

We are pleased to announce that Sutherland has been named Tax Practice Group of the Year for the third consecutive year by Law360, a nationwide legal news service. The award is given annually to firms that had the biggest wins and worked on the most important deals over a one-year period. Sutherland’s...

Illinois Supreme Court Pulls E-Brake on Chicago's Tax on Suburban Rental Car Companies

By Zack Atkins and Eric Coffill The Illinois Supreme Court invalidated a Chicago ruling obligating suburban car rental companies to collect Chicago’s personal property lease transaction tax on rental transactions occurring outside the city on the grounds that it violated the Illinois Constitution...

Florida Issues Nexus Guidance for Reinsurers

By Charles Capouet and Andrew Appleby The Florida Department of Revenue determined that a reinsurer did not have nexus with Florida for corporate income tax purposes. The Department first asserted that an insurer or reinsurer would have nexus with Florida if it was authorized to transact business in...

Two Eversheds Sutherland Attorneys Named 2017 Northern California Super Lawyers

SACRAMENTO—Eversheds Sutherland (US) LLP is pleased to announce that state and local tax (SALT) attorneys Carley A. Roberts and Eric J. Coffill were selected as top Northern California attorneys by Super Lawyers. The designations are the result of an annual survey conducted by the publication,...

Eversheds Sutherland Associate DeAndre Morrow Selected as one of The National Black Lawyers Top 40 Under 40

WASHINGTON — Eversheds Sutherland is pleased to announce that Associate DeAndre R. Morrow has been selected as one of The National Black Lawyers Top 40 Under 40. He joins an elite group of attorneys from Washington DC and across the country as members of the organization composed of outstanding...