The Texas Court of Appeals held that a taxpayer’s refund claim sufficiently put the Comptroller on notice that the taxpayer claimed a manufacturing exemption. An electricity manufacturer filed a refund claim for sales taxes paid on various types of meters used in its business. The Comptroller denied the claim, and the taxpayer sought an administrative
Deal of a Lifetime: New York Department of Taxation and Finance Rules Coupon Clearing and Processing Products Not Subject to Sales Tax
On June 9, 2020, the New York State Department of Taxation and Finance issued an advisory opinion concluding that coupon clearing and processing products sold to advertisers that issue discount coupons and the retailers that accept them are not subject to New York sales and use tax. The taxpayers’ customers included both advertisers and retailers. …
No Double Dipping: Nebraska Supreme Court Upholds Sales Tax On Telecom. Construction Company’s Purchases of Materials and Sales of Construction Services Using Materials
The Nebraska Supreme Court held that a telecommunications construction company was liable for sales taxes on both its purchases of construction materials to build telecommunications infrastructure and for its subsequent sales of services installing and constructing the same telecommunications property.
Nebraska law requires a construction contractor to make an election as to whether it will…
California’s Ninth Circuit Says Deprivation of $3.76 is Enough for Standing
The Ninth Circuit concluded that a plaintiff had standing to continue her lawsuit against a clothing company alleging that the company wrongly failed to pay interest on refunded Alaska sales taxes. After a related lawsuit was filed alleging that sales taxes were incorrectly collected, LuLaRoe, Inc. refunded the plaintiff $531.25 in sales tax charges. The…
California Court Approves of Simple Majority Vote for Special Taxes Proposed by Voter Initiative
On May 11, a San Francisco trial court held that the California Constitution allows special local taxes proposed by voter initiative to be enacted with a simple majority vote, in contrast to the two-thirds vote required for special taxes proposed by local government. The ballot initiative in question imposed a $298 per parcel tax and…
Federal Treatment Not “Controlling” but “Persuasive”: Ohio Board of Tax Appeals Holds CAT Inapplicable to Three Types of Finance Company Receipts
On February 6, 2020, the Ohio Board of Tax Appeals held that a captive automobile financing company was not subject to commercial activity tax (CAT) on receipts that it earned in connection with three types of revenue streams:
- receipts from sales of retired leased vehicles,
- receipts from securitization transactions, and
- interest subvention payments.