Sutherland and the Tax Executives Institute (TEI) are pleased to present this first ever full-day program dedicated to the “Theory, Strategy and Practice of State Tax Controversy” in San Francisco, California on May 21. Topics covered will include:
Continue Reading Join Sutherland and TEI for a full day SALT controversy workshop at the 2015 Audits and Appeals Seminar in San Francisco (May 19-21, 2015)
Noteworthy Cases
California Real Property Deal Did Not Cause Change in Ownership
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By Zachary Atkins and Douglas Mo
A California Court of Appeal held that the sale of real property to a lessee having an original lease term of more than 35 years did not result in a change in ownership triggering reassessment for property tax purposes. Proposition 13 established a 2% per-year ceiling on increases in…
Lack of Economic Substance Leaves a Bad Taste: Maryland Tax Court Upholds Assessment against Out-of-State Holding Company Based on Parent’s Nexus
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By Evan Hamme and Timothy Gustafson
The Maryland Tax Court held that the Comptroller can subject an out-of-state subsidiary holding company to tax because the subsidiary did not have real economic substance separate from its parent, which conducted business in the state. The Comptroller assessed ConAgra Brands, Inc. (Brands) for the 1996-2003 tax years, arguing…
Louisiana Court Rejects Imposition Of Franchise Tax Based On Ownership Of Partnership Interest
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The Louisiana Court of Appeal reversed and remanded Bridges v. Polychim USA, Inc., No. 581,759, a case in which the trial court held that an out-of-state corporation was subject to the franchise tax by virtue of its indirect ownership interest in a general partnership doing business in Louisiana. Bridges v. Polychim USA, Inc.…
This is Not a Joke: Federal Court to Consider Quill and Comity
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In the ongoing saga over Colorado’s use tax reporting laws in Direct Marketing Association v. Brohl, the U.S. Court of Appeals for the Tenth Circuit ordered a full briefing on the Comity Doctrine and the Commerce Clause on April 13. The outcome of this case could have broad implications for states and taxpayers seeking…
Louisiana Court Gives Taxpayer the Edge: Trade-In Credits Reduce Sales Tax Base
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By Suzanne Palms and Open Weaver Banks
The Louisiana Court of Appeal held that GameStop, a video game retailer, correctly applied trade-in credits to reduce the sales price of new items in determining local sales tax due. GameStop accepted used games from its customers in exchange for a trade-in amount on a stored value card…
Georgia Supreme Court Rejects Challenge to Property Tax Incentives
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On March 27, 2015, the Georgia Supreme Court rejected a challenge to the legal validity of property tax incentives in Georgia, largely on procedural grounds. SJN Properties, LLC v. Fulton County Bd. of Tax Assessors, No. S14A1493, 2015 WL 1393398 (Ga. Mar. 27, 2015).
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Missouri DOR Gets Trained: Gym Rental Fees Not Subject to Sales Tax
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By Jessie Eisenmenger and Timothy Gustafson
The Missouri Supreme Court held that charges paid by a personal training company to a gym for the rental of office space and limited use of the fitness equipment when conducting personal training sessions are not subject to sales tax. The personal training company paid the gym $6,000 per…
Alabama DOR Proposes to Expand Rental Tax to Digital Transmissions and Multi-Purpose Cable Boxes
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By Charles Capouet and Open Weaver Banks
The Alabama Department of Revenue has proposed an amendment to the state’s rental tax regulation. If finalized, the regulation would tax the rental of “digital transmissions,” such as “on-demand” movies, television programs, streaming video, streaming audio and other similar programs, regardless of the method of transmission or the…
U.S. Supreme Court Sends 4-R Act Case Back to Lower Court for the Second Time
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A day after issuing its decision in Direct Marketing Ass’n v. Brohl, the U.S. Supreme Court decided Alabama Department of Revenue v. CSX Transportation, Inc. The Court held that a rail carrier can show discrimination under subsection (b)(4) of the Railroad Revitalization and Regulatory Reform Act of 1976 by demonstrating that it is…