Click here to read our June 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.
- California Court of Appeal Broadens Exemption for Intangible Assets
The California Court of Appeal held that the San Mateo County Assessor illegally assessed the intangible assets of the Ritz-Carlton Half Moon Bay Hotel.
- Florida’s Bob Ross Cloud: Happy, Puffy and Tax-Free
The Florida Department of Revenue determined that the sale of remote storage and cloud computing services, along with related data transfer fees, are information services not subject to Florida sales tax or Communication Service Tax.
- SALT Pet of the Month: Nell
Meet Nell, the adorable new Aussie/Great Pyrenees puppy belonging to Doug Mo, Of Counsel on the SALT team in Sutherland’s Sacramento office.
- Signed, Sealed, Delivered, They’re Ours: Illinois Sources Cloud Computing Receipts Using Market-Based Approach
The Illinois Department of Revenue determined that a taxpayer’s cloud computing receipts should be sourced for sales factor purposes using a market-based approach because the receipts were derived from services.
- Michigan Court of Appeals Holds that Checkpoint Is an Information Service. If Only the Department of Treasury Had a Subscription…
The Michigan Court of Appeals held that Thomson Reuters’ sale of Checkpoint, an online tax and accounting research program, was the sale of a nontaxable information service and not tangible personal property for purposes of Michigan’s use tax.
- Eat, Drink and Fire Away: South Dakota Holds Lodge Operator Not Subject to Use Tax on Purchases of Food, Beverages and Ammo
The South Dakota Supreme Court held that a corporation operating a hunting lodge did not owe use tax on its purchases of food, beverages and ammunition because the lodge purchased the goods for resale to the lodge’s customers in the regular course of business.
- Tennessee “Volunteers” Taxpayer for Alternative Apportionment
The Tennessee Court of Appeals held that the Commissioner had the authority to require Vodafone, a wireless communications provider, to use an alternative apportionment method for Tennessee franchise and excise tax purposes.
- A Smorgasbord of State Tax Issues: Virginia Addresses Entity Classification, Nexus and Subject-to-Tax Add-Back Exception
In a post-audit challenge by a taxpayer, the Virginia Tax Commissioner addressed entity classification, nexus and royalty add-back issues.