In his draft budget plan for Fiscal Year 2025-2026 released on January 10, 2025, California Governor Gavin Newsom proposed to bring financial institutions in line with most other corporate taxpayers when it comes to apportioning multistate income. Banks and “financial corporations” currently use a three-factor apportionment formula consisting of property, payroll and sales to apportion
South Carolina Court holds receipts from mortgage activities and credit cards should be sourced to state
The South Carolina Administrative Law Court upheld a bank tax assessment that was based on adjustments made by the Department of Revenue to a taxpayer’s sales factor and tax base. The taxpayer, a national bank, offered a range of banking and trust services, and generated income by providing residential mortgages and other loans, and issuing
The advantages of litigating tax disputes
Most often, state and local tax litigation follows the escalation of an administrative controversy — resulting from the denial of a protest or refund claim, or other tax agency determination. While there are times when litigation is the only remaining option, the decision whether or not to proceed with litigating a tax case is often
Washington Court of Appeals holds county document recording surcharge not unconstitutional
The Washington Court of Appeals upheld the constitutionality of a county document recording surcharge that financed affordable housing, eviction prevention, and housing stability services. A trade association of homebuilders challenged the surcharge as a property tax that violates the uniformity requirement of the Washington Constitution. The court held that the surcharge was a tax because
Washington Court of Appeals gives no credit to bank’s physical presence and apportionment arguments
The Washington Court of Appeals affirmed a Board of Tax Appeals decision that found an out-of-state bank had a sufficient physical presence in the state to be subject to Washington’s Business & Occupation (B&O) tax. The bank did not have any employees or property in Washington, but issued credit cards, including private label credits cards
New York proposes adding a $3 delivery surcharge on online sales delivered within New York City
Assembly Bill 6008, introduced on March 30, 2023, would impose a $3 delivery surcharge on any item purchased online and delivered within New York City. The person selling the item to be delivered within New York City is liable for the surcharge and the surcharge “shall be passed along to the purchaser and separately
More COP sunshine: Florida gets it, Pennsylvania doesn’t
On March 1, 2023, a Florida Circuit Court rejected the Department of Revenue’s attempt to achieve a market-based sourcing result under Florida’s costs of performance sourcing rule that applies to receipts from services. In Billmatrix Corp. et al. v. Dep’t of Revenue, the court granted summary judgment in favor of a number of affiliated
Sixth Circuit finds Kentucky’s severance tax discount on coal discriminates against interstate commerce
The US Court of Appeals for the Sixth Circuit reversed a lower court decision that had denied an Illinois’ coal producer’s motion for a preliminary injunction. The coal producer sought to stop the enforcement of a Kentucky law that directed the agency that regulates Kentucky utilities – the Kentucky Public Utility Commission (PUC) – to
Back up the truck: Nebraska Supreme Court finds couple didn’t change their domicile to Florida
The Nebraska Supreme Court upheld a lower court decision that a couple, partial owners of large trucking company, failed to prove that they changed their domicile from Nebraska to Florida for income tax purposes from 2010 to 2014. The taxpayers argued that they had changed their domicile to Florida, asserting that they had acquired a
North Dakota updates guidance on Wayfair small seller exception
The North Dakota Tax Commissioner updated its website to explain North Dakota’s Wayfair small seller exception to collecting and remitting state and local sales tax on sales made into the state. Consistent with North Dakota statutes, the website states that, for remote sellers with no physical presence in the state, the exception for small sellers