Last week, the Michigan Department of Treasury issued a Notice to Taxpayers explaining its approach in administering the now final Michigan Court of Appeals decision in LaBelle Management, Inc. v. Department of Treasury, 888 N.W.2d 260 (Mich. Ct. App. 2016), leave to appeal denied by 889 N.W.2d 250 (Mich. 2017) (mem.). The Court invalidated
Taxpayer’s Argument Does Not Hold Water: Wisconsin Court of Appeals Rules Pollution Remediation Services Taxable
By Jessica Eisenmenger and Open Weaver Banks
The Wisconsin Court of Appeals for District III upheld the Tax Appeals Commission’s decision that separating dredged material from contaminated river water into its constituent parts for the purpose of water pollution remediation constitutes “processing” of tangible personal property and is therefore a taxable service. Tetra Tech EC,
Expanding the Water’s Edge: Four Trends to Watch in International Issues in State Taxation
Traditionally, mandatory worldwide combined reporting was the state corporate tax issue of most concern to companies engaged in international business. States are now moving toward a water’s-edge unitary combination method for both US and foreign-based companies.
In his article for the Spring 2017 edition of Partnering Perspectives, Eversheds Sutherland (US) Senior Counsel Eric Coffill covers
Michigan Court of Appeals Determines Pre-Assessment Collection of Tax Not Barred By Statute of Limitations
By Doug Upton and Madison Barnett
The Michigan Court of Appeals held that a taxpayer was precluded from recovering sales tax it voluntary paid in response to a preliminary audit determination, even though assessment of the tax may have otherwise been barred under the four-year statute of limitations. The court reasoned that a preliminary audit
Florida Issues Nexus Guidance for Reinsurers
By Charles Capouet and Andrew Appleby
The Florida Department of Revenue determined that a reinsurer did not have nexus with Florida for corporate income tax purposes. The Department first asserted that an insurer or reinsurer would have nexus with Florida if it was authorized to transact business in the state. The Department also stated that
TEI’s Audits & Appeals Seminar: Managing State and Local Tax Controversies
For more than 25 years, The Tax Executives Institute has met the tax controversy needs of the in-house professional community through its Audits & Appeals Seminar. Leading practitioners, regulators, policymakers and jurists join TEI annually to discuss the nuts, bolts and nuances of tax controversy.
Eversheds Sutherland is delighted to participate in a full day (May
Georgia Tax Tribunal Issues Two New Decisions on Remote Seller Nexus and Georgia Tax Credit Elections
The Georgia Tax Tribunal, in its first published decisions in more than a year, held that:
- Scholastic Book Clubs has nexus in Georgia and must collect sales tax as a result of its relationship with teachers in the state; and
- In a case affording significant deference to the Department’s regulations, a taxpayer that elects to
No Laughing Matter: Eighth Circuit Finds that Comity and the Tax Injunction Act Bar It From Hearing an Ohio Commercial Activities Tax Dispute
By Chelsea Marmor and Amy Nogid
The US Court of Appeals for the Eighth Circuit affirmed the district court and held that it lacked jurisdiction under the Tax Injunction Act and the principles of comity to “enjoin, suspend or restrain the assessment, levy or collection” of any Ohio tax where a “plain, speedy and efficient
Videocast: Eversheds Sutherland SALT Scoreboard – 2016 Year in Review
The quarterly Eversheds Sutherland SALT Scoreboard tallies significant state and local tax litigation wins and losses. In this videocast, Charles C. Capouet and DeAndre R. Morrow share 2016 year-end observations, including results for income tax apportionment cases, sales tax manufacturing exemption cases, and a recap of Avnet, Inc. v. Washington Department of Revenue. Stay
California Legislative Committee Holds Informational Hearing on Lucent and Administering California’s Technology Transfer Agreement Law
On January 30, 2017, the California Legislature Assembly Committee on Revenue and Taxation held an informational hearing on “Life after Lucent: Administering California’s Technology Transfer Agreement Law.” The California State Board of Equalization and the Board’s staff are currently wrestling with the meaning of the Technology Transfer Act provisions in sections 6011 and 6012