The New Jersey Tax Court ruled that the in-state activities of an out-of-state wholesale produce distributor were protected under Public Law 86-272 (P.L. 86-272), a federal law that prohibits states from imposing a net income tax on an out-of-state taxpayer. The Taxpayer had no offices, property, employees or inventory in New Jersey, but it did
Not so fast – Indiana Tax Court upholds pharmacy benefit management company’s sourcing of receipts from services
On May 14, 2021, the Indiana Tax Court upheld a pharmacy benefit management company’s sourcing of its receipts under Indiana’s costs of performance rules applicable to receipts from services. The court rejected the Indiana Department of Revenue’s position that the receipts should instead be sourced according to the rules for sales of tangible personal property.
U.S. Solicitor General Opposes SCOTUS Review in New Hampshire v. Massachusetts
The U.S. Solicitor General has filed its amicus brief in New Hampshire v. Massachusetts (here). The Solicitor General argues that the United States Supreme Court should not exercise its original jurisdiction and it should deny New Hampshire’s facial constitutional challenge of Massachusetts’ taxation of New Hampshire residents.
For background, on October 19, 2020
SALT Scoreboard – First Quarter 2021
This is the first edition of the Eversheds Sutherland SALT Scoreboard for 2021. Since 2016, we have tallied the results of significant taxpayer wins and losses and analyzed those results.
View our Eversheds Sutherland SALT Scoreboard results from the first quarter of 2021 now!
Illinois Tax Tribunal denies 80/20 exclusion
The Illinois Tax Tribunal issued an order denying PepsiCo Inc. and Affiliates’ (“PepsiCo”) motion for summary judgment and found that PepsiCo’s subsidiary, Frito-Lay North America, Inc. (“FLNA”), was not an excluded 80/20 company and must be include in the PepsiCo Illinois unitary group corporate income tax return.[1] As originally filed, PepsiCo excluded FNLA from
New Jersey Appellate Division Says No Double Taxation Without Remediation
New Jersey’s Appellate Division concluded that a Jersey City payroll tax violated the dormant Commerce Clause because there was no mechanism to resolve disputes if two taxing entities, in different states, impose a payroll tax on the same employee. The lower court had previously dismissed the case, ruling that the Jersey City payroll tax was
Arkansas Supreme Court Holds Rent-to-Own Leases Subject to Short-Term Rental Tax
The Arkansas Supreme Court held that a furniture and electronics retailer’s weekly and semi-monthly rent-to-own leases are subject to the excise tax on short-term – less than 30 days – rentals of tangible personal property. Under the retailer’s rental-purchase agreements, customers select an initial rental term of monthly, semi-monthly, or weekly. At the end of
SALT Scoreboard – Fourth Quarter 2020
This is the fourth edition of the Eversheds Sutherland SALT Scoreboard for 2020. Since 2016, we have tallied the results of significant taxpayer wins and losses and analyzed those results.
View our Eversheds Sutherland SALT Scoreboard results from the fourth quarter of 2020 now!
Chicago Weighs In on Wayfair Nexus, Permits Limited Safe Harbor
In response to numerous inquiries, the Chicago Departments of Finance and Law issued an Information Bulletin on their application of nexus to Chicago taxes in light of Wayfair v. South Dakota, 585 U.S. __, 138 S. Ct. 2080 (2018). Illinois has adopted an economic nexus standard by which out-of-state retailers making sales of tangible
A Per Curiam Affirmance by the New Jersey Supreme Court of the Appellate Division Insurance Premium Tax Decision
In a per curiam opinion, the New Jersey Supreme Court affirmed an insurance premium tax (IPT) decision of the Appellate Division “substantially for the reasons expressed” in the Appellate Division’s opinion. The New Jersey Appellate Division held that New Jersey’s IPT for self-procured insurance coverage is based only on the risks insured in the state,