The Illinois Independent Tax Tribunal found that aviation fuel sold to airlines and subsequently stored at O’Hare International Airport was not exempt from Retailer’s Occupation Tax (ROT). The taxpayer collected the ROT on the sales, but later filed for refunds claiming these sales were exempt from the ROT under the expanded temporary storage exemption. Specifically
Washington court finds procedural defect in tax collection class action against grocers
The King County Superior Court in Washington dismissed a class action lawsuit which alleged that Kroger, Whole Foods, Safeway, and Town & Country Markets improperly collected sales tax on exempt items. In dismissing the claim, the court found that the sales tax at issue is an excise tax. Further, the court found that the exclusive
SALT Scoreboard – Fourth Quarter 2022
This is the fourth edition of the Eversheds Sutherland SALT Scoreboard for 2022. 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 2022 now!
Sixth Circuit finds Kentucky’s severance tax discount on coal discriminates against interstate commerce
The US Court of Appeals for the Sixth Circuit reversed a lower court decision that had denied an Illinois’ coal producer’s motion for a preliminary injunction. The coal producer sought to stop the enforcement of a Kentucky law that directed the agency that regulates Kentucky utilities – the Kentucky Public Utility Commission (PUC) – to
Virginia’s top court strikes down county tax relief program as unconstitutional
The Supreme Court of Virginia recently upheld a circuit court decision invalidating a county’s plan to claw back tax refunds because it violated the state constitution’s uniform taxation requirement.
The Isle of Wight County changed the valuation methodology for its machinery and tools tax (“M&T tax”), resulting in approximately $5.6 million in refunds for tax
Illinois Court of Appeals finds “book-out transactions” are subject to local fuel taxes
The Illinois Court of Appeals held that an energy company’s book-out transactions, which do not involve the physical transfer of fuel, are taxable sales under the Cook County fuel tax ordinance because they involve the transfer of an ownership interest as to the fuel. The company enters into book-out transactions to settle forward contracts (i.e.
2022 year in review: A year of transition
2022 was a year of transition – we emerged from the pandemic and its fully-remote environment, and welcomed the return of face-to-face meetings and in-person conferences. Likewise, there was significant transition in the state and local tax world – while certain issues maintained their prominence (marketplace and apportionment developments, to name a few), new issues
SALT Scoreboard – Third Quarter 2022
This is the third edition of the Eversheds Sutherland SALT Scoreboard for 2022. 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 third quarter of 2022 now!
D.C. Attorney General alleges gig-economy company misclassifies workers as independent contractors
D.C. Attorney General Karl Racine announced on October 27th that his office filed suit against a delivery service company, claiming that the company’s workers are employees, not independent contractors.[1] The AG argues that the Company’s delivery drivers “bear all the hallmarks of employee status.”[2] This lawsuit follows another tax-related complaint filed by
Virginia Circuit Court determines sales of software and equipment exempt from sales tax
In an opinion published on September 9, 2022, the Circuit Court of the City of Richmond held that a telecommunications equipment company was entitled to a sales tax refund on its sales of software, equipment, and related services sold to a telecommunications company.
Under Virginia law, software delivered electronically via the Internet is exempt from