In PENN Entertainment, Inc. v. Indiana Department of State Revenue, a unanimous Indiana Supreme Court reversed the tax court’s grant of summary judgment for the Indiana Department of Revenue requiring PENN Entertainment to add back approximately $2 billion in wagering excise taxes it paid to other states when calculating its Indiana adjusted gross income
Income Tax
Nexus, apportionment, market-based sourcing, voluntary disclosures... no single business can stay on top of all the state-by-state legislation and regulatory guidance changing SALT income tax strategies today.
That’s why Eversheds Sutherland has a multistate team of attorneys dedicated to knowing the latest — and using it to your advantage...Read More
South Carolina Court of Appeals upholds affiliated entities’ forced combination
By Charles Capouet on
Posted in Income Tax
The South Carolina Court of Appeals held that the South Carolina Department of Revenue properly required a retailer and its subsidiaries to file on a combined basis. In 2001, the retailer was restructured to create two affiliated subsidiaries. One of the subsidiaries engaged in inventory procurement for the other entities. Only the parent retailer entity…
California Court of Appeal holds Texas radiologist not a unitary business
By Charles Capouet on
Posted in California, Income Tax
The California Court of Appeal held that a Texas radiologist did not owe California personal income tax because it did not operate a unitary business in the state. During the years at issue, a medical corporation sent the Texas radiologist imaging studies collected at medical facilities in other states, including California. He then read the…
Arby’s franchise owner carves out gain: Arkansas Supreme Court holds asset disposition is nonbusiness income
By Chelsea Marmor & Emma Shokeir on
Posted in Income Tax
In a 4-3 decision, the Arkansas Supreme Court affirmed a trial court’s ruling that US Beef earned nonbusiness income from the complete liquidation of its franchise operations. US Beef owned and operated Arby’s and Taco Bueno franchises across nine states, including Arkansas. In 2017, US Beef sold substantially all of its Arkansas real estate and…
Who doesn’t want to be a Washington millionaire?
By Charlie Kearns on
Posted in In the News, Income Tax
In this installment of “A Pinch of SALT,” published by Tax Notes State, Partner Charlie Kearns examines Washington’s newly enacted “millionaire’s tax,” which takes effect in 2028 with returns due in 2029. The law imposes a 9.9% tax on Washington taxable income above $1 million, and introduces rules around residency, sourcing of income, and…
On the rocks: Maine court finds income tax nexus for liquor supplier with in-state bailment inventory
By Daniel Schlueter & Olivia Dibb on
Posted in Income Tax
On April 2, 2026, the Supreme Judicial Court of Maine ruled that a liquor supplier was subject to Maine income tax and owed nearly $750,000 in state income tax, penalties, and interest for the 2011-2017 tax years.
The liquor supplier argued that it was not subject to income tax because it did not have nexus…
A valid business purpose: Virginia letter ruling concludes no add back required
By John Ormonde & Mark Saporsky on
Posted in Income Tax
In a recent letter ruling, the Virginia Tax Commissioner granted a corporate taxpayer relief from Virginia’s intercompany interest add‑back requirement, concluding that the taxpayer satisfied the statutory business purpose exception.
The case arose from a centralized cash management structure in which subsidiaries deposited cash with the parent entity and relied on intercompany loans when they…
Florida Circuit Court reinforces COP rule by sourcing online bill pay services to the location of the taxpayer’s own activities
By Diane Beleckas on
Posted in Income Tax
The Florida Second Judicial Circuit granted summary judgment in favor of Checkfree Services Corporation, finding that Florida’s corporate income tax cost of performance apportionment rule required the sourcing of receipts from Checkfree’s online bill pay services based on Checkfree’s own transactions and activities.
Checkfree acted as an agent for financial institution clients and facilitated online…
Wisconsin Tax Appeals Commission rejects taxpayer’s look-through sourcing position
By Scott Wright & Madison Ball on
Posted in Income Tax
The Wisconsin Tax Appeals Commission held that a taxpayer could not look through an intermediary and source receipts to the location of software use by end-users.
The taxpayer created database management system software to be used by the software developers. Epic Systems Corporation (Epic), a Wisconsin-based software developer, created and licensed software used in the…
Snowbirds beware: New York couple fails to establish new domicile in Florida
By Charlie Kearns & Sebastian Iagrossi on
Posted in Income Tax, New York
The taxpayers, originally residing in New York, were issued a tax assessment for unpaid income tax but they claimed they moved out of the state and settled in Florida in late 2018 (as part of their retirement plan) while still maintaining living quarters in New York. The taxpayer argued that they had changed their domicile…