Shaking things up in state and local tax
Shaking things up in state and local tax
The Commonwealth Court of Pennsylvania held that a beef processor was not entitled to the manufacturing exclusion from a local business privilege tax because converting live cattle into packaged beef products was not a “substantial transformation in form, qualities and adaptability in use” within the meaning of the regulatory definition of manufacturing.
The court concluded…
On July 22, 2026, the Massachusetts Appellate Tax Board held that the Massachusetts Commissioner of Revenue could not use a Finnigan-style sales reallocation rule to include Massachusetts receipts of a P.L. 86-272 protected affiliate in the sales factor numerators of taxable members of its combined group. P.L. 86-272 prohibits a state from imposing a…
This is the second edition of the Eversheds Sutherland SALT Scoreboard for 2026. For more than a decade, we have tallied the results of what we deem to be the significant taxpayer wins and losses and analyzed those results.
This edition includes discussion of Public Law 86-272 and intercompany transfers, as well as a spotlight…
In Park ‘N Go of Nebraska v. Airport Authority of the City of Omaha, the Nebraska Supreme Court considered whether a charge imposed on off-airport parking operators was an unconstitutional tax or a permissible user fee. A 2021 Airport Authority resolution required such operators to pay a monthly charge equal to 10 percent of…
In a recent decision, the Tennessee Court of Appeals addressed the business tax treatment of software licensing, cloud hosting, and cloud-based services, delivering a split decision with significant implications for taxpayers.
Background
SAP America, Inc. is a Delaware corporation engaged in selling or licensing enterprise resource planning software. SAP offers two primary models for customers…
In a summary order issued May 20, 2026, the Supreme Court of Wisconsin declined to hear a petition for review filed by Skechers USA, Inc. (Skechers) concerning the Wisconsin Department of Revenue’s (Department) disallowance of corporate franchise tax deductions claimed for intercompany royalties. Justice Rebecca Bradley dissented but offered no written opinion explaining her reasoning.…
The DC Court of Appeals upheld the DC Office of Tax and Revenue’s (OTR) determination that the incorporated owner of substantially all of a high technology partnership was not entitled to claim qualified high technology company (QHTC) benefits generated by the partnership.
The partnership at issue qualified for DC QHTC tax incentives. One of the…
This is the first edition of the Eversheds Sutherland SALT Scoreboard for 2026. For more than a decade, we have tallied the results of what we deem to be the significant taxpayer wins and losses and analyzed those results.
This edition includes discussion of Public Law 86-272 and intercompany transfers, as well as a spotlight…
The taxpayer, a designer, marketer, and wholesaler of apparel and other fashion accessories, shipped products to its customer’s Ohio distribution center. The taxpayer argued that most of its products were subsequently shipped by its customer outside of Ohio after being received at the Ohio distribution center. And, because of this subsequent shipment, the taxpayer should…
This is the fourth edition of the Eversheds Sutherland SALT Scoreboard for 2025. For an entire decade, we have tallied the results of what we deem to be significant taxpayer wins and losses and analyzed those results.
This edition includes discussion of exemption certificates and domicile, as well as a spotlight on Washington cases.
Dive …
