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The Texas Court of Appeals held that the trial court did not have jurisdiction over a taxpayer’s sales and use tax refund claim because the taxpayer failed to properly state the grounds for the refund claim.  The Texas Tax Code requires that a refund claim: (1) be written, (2) “state fully and in detail each…

On September 29, 2020, Democratic Governor Gavin Newsom vetoed S.B. 972, the controversial taxpayer disclosure bill that would have required the California Franchise Tax Board (FTB) to provide the Legislature annually with the names, tax liabilities, and tax credits claimed by corporate taxpayers that meet a $5 billion gross receipts threshold.

S.B. 972 proposed…

In Opinion No. 20190925, the Arkansas Department of Finance and Administration explained how the state would tax a proposed online peer-to-peer vehicle sharing platform. The opinion noted that the peer-to-peer platform in question would be considered a marketplace facilitator and discussed how local taxes will be sourced. But the Department declined to opine on…

Mississippi Notice 72-20-09 provides additional guidance on Mississippi’s marketplace facilitator law, which took effect on July 1, 2020. The Notice explains that a sale facilitated and delivered by a third-party food delivery service is not a “retail sale” by the facilitator. Rather, the restaurant will charge sales tax on the selling price it charged for…

The Minnesota Supreme Court held that the gain from a corporation’s sale of its majority interest in a limited liability company (LLC) was apportionable business income subject to Minnesota corporate income tax. The Court explained that the corporation conducted its business through operating subsidiaries that were owned by the LLC, and that the corporation and…

On September 9, US Congressmen Dan Kildee (D-MI) and Ron Estes (R-KS) introduced a House Resolution condemning foreign digital services taxes. H.Res. 1097 expresses “strong opposition to the imposition of digital services taxes by other countries that discriminate against United States companies” and called “on all other countries to cease and desist from implementing any…

On July 7, 2020, the California Office of Tax Appeals (OTA) held that a foreign LLC was subject to the state’s $800 LLC tax because it held a 0.7830849% ownership interest in an LLC that owned property in San Diego. In addition to a more traditional nexus test based on an entity’s business activities in…

The Illinois Department of Revenue (IDOR) recently announced an expansion of its audit resolution program as it braces for a wave of litigation over amendments to the state’s marketplace facilitator law. The department expands its Audit Fast Track Resolution (FTR) Program to all sales and miscellaneous tax audits except for Motor Fuel Use Tax. The…

Virginia’s peer-to-peer vehicle sharing tax, passed in April, takes effect on October 1. Generally, vehicle owners with up to ten shared vehicles will be subject to a 6.5% gross tax. The law obligates vehicle sharing platforms to collect the tax on behalf of the owners if the platform has established sufficient contact with the state.…

On September 9, 2020, the California Supreme Court denied review of the opinion of the First District Court of Appeal in City and County of San Francisco v. All Persons Interested in the Matter of Proposition C, which held a voter-initiated local special tax may pass with only a simple majority.  With appeals currently…