Shaking things up in state and local tax
Shaking things up in state and local tax
The Tennessee Department of Revenue issued a letter ruling finding that a taxpayer’s annual subscription charge for its cloud-based employee scheduling services is subject to Tennessee sales and use tax.
In Tennessee, the use of computer software is subject to tax, even if it remains in the possession of…
By Liz Cha and Carley Roberts
The California Court of Appeal held that the entire value of an air taxi company’s jets were subject to the County of Los Angeles 1% personal property tax, despite the fact that the jets spent 40% of their time outside of California. The court reasoned that the brief touchdowns…
By Dmitrii Gabrielov and Andrew Appleby
The New York State Department of Taxation and Finance issued an advisory opinion determining that non-US unauthorized life insurance companies’ premiums were not includable in the New York State insurance franchise tax apportionment factor. The Department reasoned that the apportionment statute requires a life insurance company to report its…
By Dmitrii Gabrielov and Tim Gustafson
The New York State Supreme Court, Appellate Division, affirmed the New York City Tax Appeals Tribunal’s (Tribunal) determination that certain real estate transactions were subject to the New York City Real Property Transfer Tax (RPTT) under the step transaction doctrine.
The taxpayer and a nonparty owned, respectively, 45% and…
By Samantha Trencs and Eric Coffill
The Colorado Court of Appeals held that a corporate parent doing business in Colorado was not required to include its subsidiary holding company that held no property or payroll in Colorado or elsewhere in its Colorado unitary combined corporate income tax report. The holding company was not an “includable”…
By Dmitrii Gabrielov and Andrew Appleby
The New York State Supreme Court, Appellate Division, affirmed the New York City Tax Appeals Tribunal’s (Tribunal) decision that Aetna’s subsidiary health maintenance organizations (HMOs) were subject to the New York City General Corporation Tax (GCT) for 2005 and 2006. The Appellate Division determined that the Tribunal’s reasoning…
On October 18, 2017, the Pennsylvania Supreme Court issued its decision in Nextel Communications of the Mid-Atlantic, Inc. v. Pennsylvania Department of Revenue, in which the court held that the state’s flat $3 million cap on net operating loss carryforwards violates the state constitution’s Uniformity Clause. Key considerations from the case include:
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Eversheds Sutherland SALT releases the seventh edition of its SALT Scoreboard, a quarterly publication that tracks significant state tax litigation and controversy developments. This edition of the SALT Scoreboard highlights developments regarding the sales taxation of drop shipments and the inclusion of entities in a combined report. Also included is a Spotlight on cases involving the United States…
By Alla Raykin and Charlie Kearns
The US Court of Appeals for the Sixth Circuit held that the Tax Injunction Act (TIA) barred a religious nonprofit from bringing a federal suit over Tennessee’s denial of a retroactive property tax exemption. In Islamic Ctr. of Nashville v. Tennessee, the Islamic Center of Nashville sought…
By Huy “Mike” Le and Andrew Appleby
The New York State Tax Appeals Tribunal (Tribunal) held that the Department’s assessment of two non-admitted German insurance companies violated the United States-Germany Tax Treaty’s anti-discrimination clause and the US Constitution’s Foreign Commerce Clause.
The alien non-admitted non-life insurance companies had no premiums from sources in the United…
