Read our February 2015 posts on or read each article by clicking on the title. For the latest coverage and commentary on state and local tax developments delivered directly to your phone, download the latest version of the Sutherland SALT Shaker mobile app.

Rely at Your Own Risk: Taxpayer Properly Applies Georgia Regulation, Loses
The Georgia Tax Tribunal held that for sales and use tax purposes contractors are per se consumers of tangible personal property and thus are ineligible for: (1) the sale for resale exclusion, and (2) a regulatory exclusion for property temporarily stored in Georgia while in interstate commerce.
SALT Pet of the Month: Scout
Meet Scout, the handsome 13-year-old German Short Hair belonging to Denise Helmken, Sr. Manager, State Income and Franchise Tax at General Mills. Denise inherited Scout three and a half years ago.
  Indiana Sees Distortion, Attacks Intellectual Property Arrangement
The Indiana Department of State Revenue upheld an audit determination that an intellectual property arrangement between a parent company and its wholly owned subsidiary distorted the parent company’s income.
Financial Institution Cannot Assign Loans Based on Activities of Third Parties, Says Massachusetts Supreme Judicial Court
The Massachusetts Supreme Judicial Court refused to allow a taxpayer, a financial institution, to assign its loan portfolios based on the location of third-party loan servicing activities for purposes of calculating its financial institution excise tax property factor.
A Real Loss for New York: ALJ Rejects Hypothetical Application of Net Operating Loss
A New York State Division of Tax Appeals Administrative Law Judge held that for banking franchise tax purposes a taxpayer did not have to utilize a net operating loss carryover in a year in which the taxpayer did not pay tax on its entire net income base.
Oklahoma Tax Commission Sounds Off on Whether Background Music Is Subject to Sales Tax
The Oklahoma Tax Commission determined in a letter ruling that certain sales of background music are subject to Oklahoma state sales tax.
South Carolina Court Changes the Channel on Cost of Performance Sourcing
The South Carolina Administrative Law Court found that South Carolina does not source sales of services with a strict cost of performance method.
Virginia Supreme Court Holds That State Tax Commissioner’s Interpretation Prevails Over County Commissioner’s Interpretation in BPOL Case
The Virginia Supreme Court held that the Arlington County Commissioner must defer to the Virginia Tax Commissioner regarding the methodology for calculating a local Business, Professional, and Occupational Licenses tax deduction.
Washington State Maintains the Straight and Narrow Path: DOR Finalizes Interim Policy on Getty Images Case
The Washington State Department of Revenue issued an Excise Tax Advisory making clear that Getty Images, Inc. v. City of Seattle, 260 P.3d 926, 163 Wash. App. 590 (Wash. Ct. App. 2011), does not represent a major departure from established law in the context of affiliate transactions for purposes of the state’s business and occupation tax.