A California appellate court held that Proposition 39, which mandated single-sales factor apportionment, did not violate the single-subject rule. In 2012, California voters enacted Proposition 39, which established a program to promote the creation of clean energy jobs. It funded the program by eliminating the option for taxpayers to apportion its California tax based on
A checkup on the state tax impact of ‘check-the-box’ elections
The federal check-the-box entity classification rules allow certain entities to change their default classification. Unsurprisingly, not every state conforms to the federal check-the-box (CTB) election for state tax purposes. There are numerous implications resulting from state nonconformity to the CTB election rules. In this installment of A Pinch of SALT in Tax Notes State
Illinois Court of Appeals finds “book-out transactions” are subject to local fuel taxes
The Illinois Court of Appeals held that an energy company’s book-out transactions, which do not involve the physical transfer of fuel, are taxable sales under the Cook County fuel tax ordinance because they involve the transfer of an ownership interest as to the fuel. The company enters into book-out transactions to settle forward contracts (i.e.
SALT discrimination under the ‘affirmative’ Commerce Clause
The principle of nondiscrimination plays a pivotal role in the field of state and local taxation. Discriminatory taxes are said to deter cross-border activity, distort competitive neutrality, and hinder economic efficiency by placing a thumb on the scale of the competitive marketplace. Recognizing these issues, federal and state governments have prohibited discrimination since the founding
Account access services are taxable digital automated services in Washington
The Washington Department of Revenue’s Administrative Review and Hearings Division recently ruled that a company’s account access services provided to credit unions constituted digital automated services subject to sales tax.
The taxpayer provided an online banking platform and an automated phone system to member credit unions, which in turn provided those services to their individual
What’s FAIR? A conversation about the modernization of the Tax Injunction Act
On this episode of the SALT Shaker Podcast focused on policy issues, host and Eversheds Sutherland Partner Nikki Dobay entertains a full house. She is joined by Annabelle Canning, Partner at Capitol Tax Partners, and Eversheds Sutherland attorneys Maria Todorova and Justin Brown from the firm’s Atlanta office.
Justin gets the conversation started with
SALT partners to present panels for regional associations, conferences this week
Join members of the SALT Team during the 2021 Tax Outlook Webcast Series
On January 5, Eversheds Sutherland SALT Partners Todd Lard and Maria Todorova will present a webinar about top SALT audit issues and trends for the coming year with Associate Mike Kerman as part of Eversheds Sutherland’s 2021 tax outlook webcast series. (Presentation materials can be found here.)
Members of the Tax Practice will also
Check Your (Broadband) Credit Score: Mississippi Supreme Court Approves Telecom Companies’ Computation of Broadband Tax Credits
The Mississippi Supreme Court ruled that an affiliated group of telecommunications companies properly computed the Broadband Investment Credit in determining their franchise and income tax liabilities. The Broadband Credit may be used by a taxpayer to offset up to 50% of the taxpayer’s tax liabilities in a given year. The taxpayers filed separate Mississippi franchise
Iowa Department of Revenue Issues Guidance on Sales Tax Treatment of New Inflow-Outflow Billing Method for Investor-Owned Utilities
Effective July 1, 2020, Iowa law permits utility companies to utilize an inflow-outflow billing method for eligible distributed generation facilities. Under the inflow-outflow method, a generation customer is responsible for paying for the inflow kWh energy charge (sales to customer), while the amount of outflow kWh energy charge is credited to the customer (purchases from