Read our September 2015 posts on stateandlocaltax.com 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.

• It Takes One to Know One: Occasional California Ruling Determines Disposition of Entire Line of Business Is an “Occasional Sale”
  In a rare Chief Counsel Ruling, the California Franchise Tax Board held that the sale of an entire line of business qualified as an “occasional sale” for corporate franchise tax purposes, thus requiring the selling taxpayer to exclude the resulting gross receipts from its California sales factor.
• SALT Pet of the Month: Wrigley
  Meet Wrigley, this month’s Pet of the Month, who was submitted through our SALT Shaker App by Gary Peric, founder of the State Tax Foundation.
• Eleventh Circuit Invalidates Florida’s Rental Tax but Upholds Utility Tax on Electricity Delivered to Tribal Lands
  The U.S. Court of Appeals for the Eleventh Circuit invalidated Florida’s rental tax imposed on the Seminole Tribe of Florida’s leases of tribal land to non-Indian corporations, but upheld Florida’s utility tax collected from the Tribe.
• Royal Treatment: No Evidence that Rent-A-Center’s Intercompany Royalty Payments Distorted Indiana Income
  The Indiana Tax Court granted summary judgment to Rent-A-Center East, Inc., finding that the Department of Revenue’s determination that RAC and two affiliates should have filed a combined return was improper.
• Row Your Boats Gently: Streaming Video Not Subject to Kentucky Tax
  The Kentucky Board of Tax Appeals has held that Netflix’s digital streaming service is not subject to the state’s telecommunications taxes.
• “Show Me” Software Taxation: Missouri Department of Revenue Issues Letter Ruling on Various Software Transactions
  The Missouri Department of Revenue has issued a comprehensive letter ruling answering 12 software-related sales tax questions on issues concerning canned software, custom software, software licenses, software invoices, software installation and software maintenance agreements.
• Huckleberry Sound? Montana Supreme Court Orders OTCs to Collect Sales Tax on Reservation Fees
  The Montana Supreme Court held that online travel companies – including Priceline, Expedia, Orbitz and others – are subject to the state’s sales taxes on accommodations, campgrounds and rental vehicles, but are not subject to the state’s lodging facility use tax.
• Virginia Tax Commissioner Rules that Compensation Subject to Virginia Income Tax Withholding Cannot Be Used to Calculate Payroll Factor
  The Virginia Tax Commissioner upheld an upward adjustment to a taxpayer’s payroll factor attributing to Virginia all compensation that the taxpayer had reported to the Virginia Employment Commission for purposes of the state’s unemployment insurance tax.
• Driving a Hard Bargain: Washington State Supreme Court Rules that Dealer Cash Incentives Are Taxable
  The Washington State Supreme Court held that a car dealership’s earnings from a “dealer cash” incentive program, offered by the manufacturer, American Honda Motor Company, to dealers to stimulate sales of certain car models within a specific time period, are taxable under the catchall provision of the business and occupation tax.
• No Touching: Absent Physical Contacts with Customers, Commissions from Phone and Internet Broker Deals Sourced to Employees’ Location in Seattle Based on Costs of Performance
  The Washington Court of Appeals held that for local business and occupation tax purposes, a securities broker with employees in its Seattle office must source to Seattle the receipts from commissions for services performed by the employees via phone and Internet.