On September 30, the U.S. House of Representative voted in favor of H.R. 719, which includes provisions extending the Internet Tax Freedom Act through December 11, 2015. The bill, passed earlier in the day by the Senate, will now head to the President for his signature. If signed into law, this temporary extension will give
That Was Fast: Michigan Court of Appeals Upholds Retroactive Repeal of Compact
By Jonathan Feldman and Stephen Burroughs
A mere 28 days after oral argument, a three-judge panel of the Michigan Court of Appeals unanimously upheld a Court of Claims decision that sanctioned the Michigan Legislature’s retroactive withdrawal from the Multistate Tax Compact in 2014 PA 282, by ruling for the Michigan Department of Treasury in the
Sutherland SALT Shaker: September 2015 Digest
Read our September 2015 posts on stateandlocaltax.com or read each article by clicking on the title. For the latest coverage and commentary on state and local tax developments delivered directly to your phone, download the latest version of the Sutherland SALT Shaker mobile app.
“Show Me” Software Taxation: Missouri Department of Revenue Issues Letter Ruling on Various Software Transactions
By Robert Merten and Charlie Kearns
The Missouri Department of Revenue has issued a comprehensive letter ruling answering 12 software-related sales tax questions on issues concerning canned software, custom software, software licenses, software invoices, software installation and software maintenance agreements. Missouri Department of Revenue LR 7615, Aug. 21, 2015. In the letter ruling, the
Huckleberry Sound? Montana Supreme Court Orders OTCs to Collect Sales Tax on Reservation Fees
By Chris Mehrmann and Charlie Kearns
The Montana Supreme Court held that online travel companies (OTCs) – including Priceline, Expedia, Orbitz and others – are subject to the state’s sales taxes on accommodations, campgrounds and rental vehicles, but are not subject to the state’s lodging facility use tax. The court held that the reservation fees
SALT Pet of the Month: Wrigley
Meet Wrigley, this month’s Pet of the Month, who was submitted through our SALT Shaker App by Gary Peric, founder of the State Tax Foundation.
A real sweetheart of a pup, Wrigley (aka PL 86-272) is a mini Golden Doodle. Born to a small Poodle father and Golden Retriever mother, Wrigley celebrates her sixth birthday
Back in Court: DMA Argues Before the Tenth Circuit to Follow Quill
Direct Marketing Association continued its fight against Colorado’s use tax reporting regime during oral arguments today before the United States Court of Appeals for the Tenth Circuit. After getting sidetracked with a jurisdictional question that proceeded to the U.S. Supreme Court, DMA returned to the Tenth Circuit and urged it to affirm the decision of
The Jersey Short: It’s Hip to Be Square in New Jersey
In a recent unpublished decision, Residuary Trust A v. Director, Division of Taxation (Kassner), the New Jersey Appellate Division relied on the “square corners doctrine” to hold that the New Jersey Division of Taxation was prohibited from imposing tax for the 2006 tax year based on a policy change not announced until 2011. In
Driving a Hard Bargain: Washington State Supreme Court Rules that Dealer Cash Incentives Are Taxable
By Chris Mehrmann and Amy Nogid
The Washington State Supreme Court held that a car dealership’s earnings from a “dealer cash” incentive program, offered by the manufacturer, American Honda Motor Company, to dealers to stimulate sales of certain car models within a specific time period, are taxable under the catchall provision of the business and
Row Your Boats Gently: Streaming Video Not Subject to Kentucky Tax
The Kentucky Board of Tax Appeals (Board) has held that Netflix’s digital streaming service is not subject to the state’s telecommunications taxes.
Kentucky’s telecommunications tax regime is comprised of three distinct taxes, each imposed on the provision of “multichannel video programming service” (MVPS). The taxes consist of a gross revenues tax, an