LexisNexis® Legal Newsroom
Pennsylvania Appeals Court Upholds Philadelphia Beverage Tax

By Jessica Eisenmenger and Open Weaver Banks The Commonwealth Court of Pennsylvania upheld the Philadelphia Beverage Tax (PBT) against a challenge by the American Beverage Association and other challengers. The PBT imposes a 1.5¢ per fluid ounce tax on sugar-sweetened beverages and is generally...

Six of One, Half a Dozen of the Other: Maine Supreme Judicial Court Holds Additional Charges for Telecommunications Services Exempt Before/After Statutory Amendment

By Charles Capouet and Tim Gustafson On June 15, 2017, the Maine Supreme Judicial Court held that property tax recovery charges and carrier cost recovery charges imposed by a telecommunications service provider of long distance telephone service on its customers were not subject to service provider...

A Pinch of SALT: Taxes, Fees and "Something Else": California's Morning Star Decision

On April 6, the Third District California Court of Appeal decided Morning Star Packing Company v. California Air Resources Board , which challenged the state’s cap-and-trade auction process as an unconstitutional tax. View this latest edition of A Pinch of SALT , by Eversheds Sutherland (US) attorneys...

Imposing Documentary Transfer Taxes in California after Ardmore

Rarely does a subject as mundane as a documentary transfer tax become worthy of its own article. However, the June 29, 2017, decision of the California Supreme Court in 926 North Ardmore Avenue LLC v. County of Los Angeles is a worthy exception. Read this Law360 article by Eversheds Sutherland (US) attorneys...

Eversheds Sutherland SALT Scoreboard Publication - Second Quarter 2017

Eversheds Sutherland SALT releases the sixth edition of its SALT Scoreboard , a quarterly publication that tracks significant state tax litigation and controversy developments. This edition of the SALT Scoreboard also includes observations regarding beverage tax issues and California’s documentary...

Hold the Phone! Answering Your Phone in Washington Might Cost You

By Chelsea Marmor and Open Weaver Banks The Administrative Review and Hearings Division at the Washington Department of Revenue (the Division) determined that administrative activities qualify as business activities for purposes of applying Washington’s throw-out rule under the Washington business...

Marketplace Providers Are Statutorily Required to Collect Sales Tax in Minnesota and Washington

By Jeff Friedman and Stephanie Do A new landmark sales tax statute has been adopted in Minnesota, which expands sales tax collection requirements to those retailers that sell their goods on certain “marketplaces.” Generally, only a retailer that is physically present in a state is required...

Texas Supreme Court Upholds Local Ad Valorem Tax on Stored Gas

By Jessie Eisenmenger and Jonathan Feldman The Texas Supreme Court held that a non-discriminatory tax on stored gas held for future resale does not violate the Commerce Clause of the US Constitution. Harris County imposed an ad valorem tax on natural gas stored in the county on January 1 of the tax...

Indiana Has Quill in Its Sights

By Maria Todorova and Chris Beaudro Effective July 1, 2017, Indiana has added an economic nexus provision to its sales tax law. Indiana Code Section 6-2.5-2-1 has been amended to provide that a retail merchant with no physical presence in Indiana must collect sales tax on its sales made into the state...

New York State Tax Appeals Tribunal: Payments to Captive Insurance Company Did Not Qualify as Deductible Insurance Premiums

By Andrew Appleby and Dmitrii Gabrielov The New York State Tax Appeals Tribunal released its precedential decision in Stewart’s Shops , affirming an Administrative Law Judge’s determination that payments by a corporation to its captive insurance company did not qualify as deductible insurance...

Roam Where You Want To: City of Seattle Lacks Authority to Tax Foreign Roaming Charges

By Maria Todorova and Suzanne Palms The Washington Court of Appeals recently held that Seattle could not impose a utility tax on revenue derived from international roaming charges (charges for mobile telephone communications that originate in a foreign country). City of Seattle v. T-Mobile West Corp...

Videocast: SALT Scoreboard - 2017 Mid-Year Review

The quarterly Eversheds Sutherland SALT Scoreboard tallies significant state and local tax litigation wins and losses. In this videocast, Charles C. Capouet and Hanish S. Patel share the second quarter highlights from the SALT Scoreboard , including a breakdown of corporate income tax and sales and use...

Minnesota Supreme Court Respects Federal Check-the-Box Election for Minnesota Combined Reporting Purposes

By Samantha Trencs and Jeff Friedman The Minnesota Supreme Court respected a foreign entity’s federal check-the-box election for the purpose of determining which entities were included in the Minnesota combined franchise tax reports. The court held that including the income and apportionment...

Minnesota Tax Court: Net Operating Loss Limitation is Applied Solely on a Pre-Apportioned Basis

By Debra Salvato and Scott Wright The Minnesota Tax Court recently held that the annual limitation on net operating losses of an acquired corporation is to be applied only once to a taxpayer’s pre-apportioned income. The taxpayer, Sinclair Broadcast Group, Inc., acquired a company with significant...

Virginia Supreme Court Limits Corporate Income Tax Addback Exception

On August 31, 2017, the Virginia Supreme Court issued its opinion in Kohl’s Department Stores, Inc. v. Virginia Department of Taxation , holding that only the portion of royalties that are actually taxed by another state falls within its “subject to tax” exception to Virginia’s...

South Carolina Court of Appeals Sends Taxpayers Clear Signal; Rules DIRECTV Must Source Receipts Based on Satellite Signal Delivery

By Dmitrii Gabrielov and Tim Gustafson The South Carolina Court of Appeals held that all of DIRECTV’s South Carolina customer subscription receipts were properly sourced to the state for purposes of determining DIRECTV’s corporate income tax apportionment factor due to the location of its...

North Carolina Supreme Court Determines that Bank's Market Discount Income Is Not Deductible as Interest

By Liz Cha and Open Weaver Banks The North Carolina Supreme Court affirmed the North Carolina Business Court’s decision that Fidelity Bank was precluded from deducting “market discount income” from US bonds for North Carolina corporate income tax purposes. Fidelity Bank acquired US...

Massachusetts Supreme Judicial Court Holds Taxation of Drop Shipments Is Constitutional

By Charles Capouet and Jonathan Feldman The Massachusetts Supreme Judicial Court held that an in-state wholesaler was required to collect and remit sales tax on drop shipment sales made to Massachusetts customers. A drop shipment is a transaction in which an in-state customer purchases a product from...

Delaware Sewer and Water Authority Successfully Challenges Permit "Fee" as Disguised Tax

By Mike Kerman and Jonathan Feldman The Delaware Chancery Court held that a town’s $27,000 building permit “fee” was in substance a tax that could not be levied against a tax-exempt water and sewer authority. The town assessed the fee upon the water and sewer authority before it would...

New York State Tax Appeals Tribunal: Assessment of Non-Admitted Alien Insurance Companies Violated Tax Treaty and Foreign Commerce Clause

By Huy "Mike" Le and Andrew Appleby The New York State Tax Appeals Tribunal (Tribunal) held that the Department’s assessment of two non-admitted German insurance companies violated the United States-Germany Tax Treaty’s anti-discrimination clause and the US Constitution’s...

Sixth Circuit Rejects a Narrow Reading of TIA to Deny Religious Nonprofit Federal Remedy

By Alla Raykin and Charlie Kearns The US Court of Appeals for the Sixth Circuit held that the Tax Injunction Act (TIA) barred a religious nonprofit from bringing a federal suit over Tennessee’s denial of a retroactive property tax exemption. In Islamic Ctr. of Nashville v. Tennessee , the Islamic...

Eversheds Sutherland SALT Scoreboard Publication - Third Quarter 2017

Eversheds Sutherland SALT releases the seventh edition of its SALT Scoreboard, a quarterly publication that tracks significant state tax litigation and controversy developments. This edition of the SALT Scoreboard highlights developments regarding the sales taxation of drop shipments and the inclusion...

Pennsylvania Supreme Court Finds Flat-Dollar NOL Cap Unconstitutional, But Upholds Percentage Cap

On October 18, 2017, the Pennsylvania Supreme Court issued its decision in Nextel Communications of the Mid-Atlantic, Inc. v. Pennsylvania Department of Revenue , in which the court held that the state’s flat $3 million cap on net operating loss carryforwards violates the state constitution’s...

New York State Appellate Division Affirms that HMOs Were Subject to New York City General Corporation Tax

By Dmitrii Gabrielov and Andrew Appleby The New York State Supreme Court, Appellate Division, affirmed the New York City Tax Appeals Tribunal’s (Tribunal) decision that Aetna’s subsidiary health maintenance organizations (HMOs) were subject to the New York City General Corporation Tax ...

Colorado Court of Appeals Held that Out-of-State Holding Company is Not Included in Combined Report

By Samantha Trencs and Eric Coffill The Colorado Court of Appeals held that a corporate parent doing business in Colorado was not required to include its subsidiary holding company that held no property or payroll in Colorado or elsewhere in its Colorado unitary combined corporate income tax report...