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After nearly a decade of stalled litigation in Illinois state court, the US Court of Appeals for the Seventh Circuit permitted a group of taxpayers to proceed in federal court with their US constitutional challenge to property tax assessments, over Tax Injunction Act and comity objections by Cook County. While the district court held that…

The Florida Department of Revenue issued a Technical Assistance Advisement concluding that an internet-based streaming video subscription service is subject to Florida’s communication services tax. The Taxpayer maintains a website where viewers can watch live or on-demand video of individuals (or, “Broadcasters”) playing video games, music or e-sports events. Among other things, the website provides…

On February 6, 2020, the Ohio Board of Tax Appeals held that a captive automobile financing company was not subject to commercial activity tax (CAT) on receipts that it earned in connection with three types of revenue streams:

  1. receipts from sales of retired leased vehicles,
  2. receipts from securitization transactions, and
  3. interest subvention payments.

Background:…

On February 13, 2020, the Nebraska Legislature’s Revenue Committee heard testimony on Legislative Bill 989, which would expand Nebraska’s sales tax base to include sales of digital advertisements.

After an introduction by the bill’s sponsor, Senator Justin Wayne, the Revenue Committee heard testimony from four witnesses, each opposing the bill. The Committee also received…

On January 16, 2020, the Supreme Court of Washington, in an en banc decision, held that a retailer was entitled to take bad debt deductions for sales and Business and Occupation (“B&O”) taxes when its customers defaulted on purchases made using private label credit cards.

The retailer contracted with banks to offer private label credit…

The Colorado Court of Appeals held that the City of Aurora correctly levied use tax on American Multi-Cinema, Inc.’s (AMC’s) license agreements with film distributors. The court concluded that the true object of the arrangement was to obtain tangible personal property (i.e., the data files) rather than being a nontaxable, intangible right. In the past,…

Over 40 state legislatures have convened their 2020 legislative sessions. Last year, states moved quickly to impose collection and remittance obligations on remote sellers and marketplace facilitators in light of Wayfair. This year, states are charting a new course – proposing legislation to expand sales taxes to include advertising services or proposing entirely new taxes…

A 2018 Arizona ballot initiative banned the imposition or increase of transaction-based taxes on services. A December 2019 ordinance in Phoenix increases the fee charged on pickups by on-demand drivers at the Phoenix airport. The ordinance was supposed to take effect February 1, 2020, but the city agreed to suspend collection as the state of…