Click here to read our September 2014 posts on stateandlocaltax.com 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.
- SALT Pet of the Month: Sam
Meet Samwise Fleming (Sam for short), the lovable eight-year-old Golden Retriever belonging to Clay Fleming of Revel Consulting.
- California Taxpayer Entitled to Attorney Fees after Successful Commerce Clause Challenge
A California Court of Appeal held that a taxpayer who brought a successful facial challenge against a state taxing scheme met all of the requirements for an award of attorney fees and that the trial court abused its discretion by failing to award the fees.
- Cloud-Based Services Not Subject to Georgia Sales and Use Tax
The Georgia Department of Revenue determined that a company’s cloud-based applications and related services are not subject to Georgia sales and use tax.
- On Standby: Internet Service Providers May Rely on Prior Guidance Until Congress or the Massachusetts Legislature Addresses the Taxation of Internet Access
The Massachusetts Department of Revenue addressed the possible expiration and subsequent retroactive enactment of the federal Internet Tax Freedom Act (ITFA).
- Cha-Ching! Minnesota Supreme Court Holds Semi-Custom Software Subject to Sales Tax
The Minnesota Supreme Court upheld the Minnesota Department of Revenue’s imposition of sales tax on a software company’s sale of partially customized software because the taxpayer failed to separately state customization charges on customer invoices.
- New Yorkers, Order Away – Restaurant Website Operator Not Subject to Sales Tax on Fees
The New York Department of Taxation and Finance advised a website operator, through which restaurants offer meals for sale, that it was not subject to sales tax on the fees it charged to the restaurants for services provided.
- Developmental Costs: Texas Comptroller Rules Essential Preparatory Costs Cannot Be Accounted for in Apportionment Factor
The Texas Comptroller determined that for Texas franchise tax purposes the apportionment factor of an out-of-state taxpayer engaged in the provision of technical training could not be adjusted to account for certain costs incurred in preparing and marketing the training sessions.
- Washington State Issues Sharp Reminder Regarding Reliance on Advice from Department of Revenue: Don’t Forget to Get It in Writing!
The Washington Department of Revenue determined that taxpayers have a right to rely on written but not oral instructions from the Department of Revenue.