Click here to read our August 2014 posts or read each article by clicking on the title. A printable PDF is also available here. To read our commentary on the latest state and local tax developments as they are published, be sure to download the Sutherland SALT Shaker mobile app.
- Be Careful What You Plan For in California: Bankruptcy Reorg Is Normal Course of Business
A California Franchise Tax Board Chief Counsel Ruling concluded that a taxpayer’s sales of assets pursuant to a plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code were not “occasional sales” within the meaning of 18 Cal. Code Regs. § 25137(c)(1)(A)2.
- Sutherland Adds State and Local Tax Partner in New York
We are pleased to announce that Leah Robinson joined Sutherland’s State and Local Tax (SALT) practice as a partner in New York. Prior to joining Sutherland, Leah was a partner at McDermott Will & Emery LLP.
- SALT Pet(s) of the Month: Isabella and Zelda
Meet Isabella and Zelda, the latest additions to the family of Carley Roberts, partner in Sutherland’s Sacramento office, and her husband, Jeremy (you may recall some of Carley’s other pets, featured here and here).
- California’s “Doing Business” Standard Requires Neither Any “Doing” Nor Any “Business” in California
The California Franchise Tax Board issued a legal ruling determining that it will attribute the business activities of a multiple-member limited liability company classified as a partnership for tax purposes to its members when determining whether such members are “doing business” in California.
- The Cost of Renting: Indiana DOR Determines Use Tax Due on Equipment Rented from Related Entity
The Indiana Department of Revenue determined that an Indiana taxpayer owed use tax on its rental of equipment from a related entity.
- Indiana Loosens Its Utility Belt: Prepaid Phones and Phone Service Subject to Utility Receipts Tax
Indiana’s Department Revenue determined that the sale of prepaid phone cards and prepaid cell phones are “telecommunication services” subject to Indiana’s Utility Receipts Tax.
- Toyota Motor Credit Corp. “Moving Forward” in New Jersey Tax Court
The New Jersey Tax Court ruled for Toyota Motor Credit Corp. on three issues for New Jersey Corporate Business Tax purposes.
- Software Update: New York Issues Sales Tax Guidance Regarding Computer Software and Related Services
The New York State Department of Taxation and Finance issued a Tax Bulletin addressing the application of sales tax to sales of computer software and related services.
- Will Petition Flow Through, Too? Texas Comptroller Seeks Review on Subcontractor Payments for Franchise Tax Purposes
The Texas Comptroller has filed a reply supporting its petition for review to the Texas Supreme Court in Titan Transp., LP v. Combs, 433 S.W.3d 625 (Tex. App. 3rd 2014).
- Fresh Powder in Vermont: Taxpayer and Ski Resort Not Unitary
A Vermont Superior Court held that the Commissioner of Taxes unconstitutionally applied the unitary business principle to AIG and its subsidiary, Stowe Mountain Resort.
- Cleaning House: Virginia Denies Manufacturing Exemption for Cleaning Products
The Virginia Tax Commissioner determined that an ink manufacturer’s purchase of cleaning chemicals did not qualify for the industrial manufacturing exemption from sales and use tax.