We’re excited to present our summary of last year’s SALT highlights, recently featured in Tax Notes State.
We hope you enjoy our take on 2024’s Most Interesting State Tax (MIST) developments.
Read the full article here.
New Jersey couple not required to include Section 965 amounts in New Jersey income
The New Jersey Tax Court determined that a New Jersey-based couple was not required to include Section 965 amounts in New Jersey income, as deemed repatriated dividends are not subject to the New Jersey Gross Income Tax (GIT), New Jersey’s personal income tax.
The taxpayers owned several interests in controlled foreign corporations (CFCs) and in
Third Circuit holds that principles of comity bar Federal Court challenge to New Jersey’s partnership filing fee
The Third Circuit Court of Appeals upheld a District Court’s dismissal of a taxpayer’s challenge to New Jersey’s partnership filing fee under the tax comity doctrine. The partnership filing fee was enacted by New Jersey in 2002 to offset the costs of reviewing and auditing partnership tax returns. The fee is a flat fee computed
Not so fast: Illinois fuel distributor partly liable for taxes on fuel transfers to affiliates
On March 22, 2024, the Appellate Court of Illinois issued a split decision in a case involving local fuel taxes transferred by a fuel distributor to affiliates that operated gas stations in Cook County, Illinois.
Under Cook County’s local fuel tax ordinance, distributors must pay a 6 cent per gallon tax on fuel sold to
New York Tax Appeals Tribunal hits the brakes on taxpayer’s sales tax refund argument
Taxpayer, a fleet management company, leases vehicles to businesses pursuant to a lease agreement that contains a terminal rental adjustment clause (“TRAC”) which is a clause that adjusts the amount of rent due under the lease at the end of the lease based on the value of the vehicle at that time. Depending on the
2023’s Most Interesting State Tax (MIST) developments
We are eager to share our summary of SALT highlights from the past year, which was recently published in Tax Notes State.
2023 was an eventful year, and our Most Interesting State Tax (MIST) developments contain a mix of cases covering income tax, sales tax, and procedural issues.
With numerous states grappling with similar
Manufacturer tax exemption: Missouri Supreme Court affirms applicability to telecommunications services
On April 18, 2023, the Supreme Court of Missouri affirmed the Administrative Hearing Commission’s (AHC) decision that replacement equipment used to provide telecommunications services was exempt from use tax under the State’s manufacturing exemption in effect in 2011 and 2012.
Like most States, Missouri exempts from sales and use tax equipment used in manufacturing or
Rushmore rejected: California Court of Appeal finds Los Angeles County assessor improperly taxed intangibles when valuing hotel
The California Court of Appeal held that the Los Angeles County Assessor erred by failing to remove the value of certain nontaxable intangible assets when valuing a hotel for property tax purposes. Intangible assets are generally exempt from property tax in California. In valuing the hotel, the Assessor used the income valuation approach, which looks
Illinois DOR issues guidance on taxability of computer software licenses and maintenance agreements
The Illinois Department of Revenue (IDOR) released a general information letter outlining the applicability of Illinois Retailers’ Occupation Tax (ROT) on computer software licenses and maintenance agreements.
The letter states that sales of “canned” computer software are taxable retail sales in Illinois and are considered to be tangible personal property regardless of the form in
Virginia’s top court strikes down county tax relief program as unconstitutional
The Supreme Court of Virginia recently upheld a circuit court decision invalidating a county’s plan to claw back tax refunds because it violated the state constitution’s uniform taxation requirement.
The Isle of Wight County changed the valuation methodology for its machinery and tools tax (“M&T tax”), resulting in approximately $5.6 million in refunds for tax