Click here to read our May 2014 posts or read each article by clicking on the title. A printable PDF is also available here. To read our commentary on the latest state and local tax developments as they are published, be sure to download the Sutherland SALT Shaker mobile app.
By Ted Friedman and Andrew Appleby
The Indiana Department of Revenue determined that an audit correctly required a distribution and manufacturing subsidiary of a tobacco company to file a combined return with its corporate affiliates. The Audit Division concluded that the subsidiary’s income, as reported, did not fairly reflect its Indiana source income because of
By Zachary Atkins and Timonthy Gustafson
The Indiana Department of State Revenue determined that a corporation that entered into a factoring arrangement with its parent did not have nexus for Indiana Financial Institutions Tax (FIT) purposes. The out-of-state corporation purchased accounts receivable from its parent and, thereafter, was responsible for servicing those accounts. The parent
Meet Sherman, Flash and Olsen, a loving trio of pups belonging to Kristina Newton from Hewlett-Packard. Sherman is a four-year-old Lab mix who aspires to become a therapy dog—he recently finished his first training course (way to go, Sherman!). Sherman also may be mom’s favorite, but don’t tell the others! Flash is a six-year-old Basset Hound who
By Mary Alexander and Andrew Appleby
The Maine Board of Tax Appeals determined that a non-itemized installation charge was subject to the service provider tax (SPT) when a portion of the charge included the installation of telecommunications equipment. The taxpayer, an Internet service provider, invoiced customers a single “installation charge” for various services, which included
By Jonathan Maddison and Prentiss Willson
The California Supreme Court held that the state’s tax code provides the exclusive remedy for a dispute over the applicability of the state sales tax to retail transactions, and thus a class of plaintiffs was precluded from seeking a refund from Target, Inc. for erroneously collected sales taxes on
Sutherland’s state and local tax team will host the Sutherland SALT Roundtable Silicon Valley on Tuesday, June 17 at the Sofitel San Francisco Bay in Redwood City, California. The roundtable will take an in-depth look at significant state and local tax issues and developments impacting the technology sector, including:
By Derek Takehara and Pilar Mata
The Magistrate Division of the Oregon Tax Court held that for the tax year 2003, (1) Rent-A-Center, a rent-to-own operator, and its wholly-owned franchising subsidiary, ColorTyme, were not unitary; (2) ColorTyme did not have nexus with Oregon; and (3) Rent-A-Center and its captive insurance subsidiary, Legacy Insurance Co. (Legacy)
By Zachary Atkins and Pilar Mata
The Louisiana Supreme Court rejected the Louisiana Department of Revenue’s attempt to look through a foreign single member limited liability company (SMLLC) and assess its owner for unpaid sales tax. The owner, a resident of Louisiana, formed the SMLLC under the laws of Montana and caused it to purchase
By Stephanie Do and Andrew Appleby
The Texas Comptroller determined that an integrated circuit manufacturer’s purchases of software tools used to design and test the software code embedded in its semiconductor chips did not qualify for the manufacturing exemption for sales and use tax purposes. For Texas’s manufacturing exemption, software manufacturing begins with software design
