Shaking things up in state and local tax
Shaking things up in state and local tax
By Charles Capouet and Andrew Appleby
The Virginia Supreme Court held that the Arlington County Commissioner must defer to the Virginia Tax Commissioner regarding the methodology for calculating a local Business, Professional, and Occupational Licenses tax (“BPOL”) deduction. Arlington County levies a BPOL tax based on the gross receipts attributed to activities conducted at an…
By Zachary Atkins & Prentiss Willson
The Massachusetts Supreme Judicial Court (SJC) refused to allow a taxpayer, a financial institution, to assign its loan portfolios based on the location of third-party loan servicing activities for purposes of calculating its financial institution excise tax property factor. The taxpayer earned flow-through interest income through its residual beneficial…
There has been significant controversy in New York regarding whether receipts from services—particularly those that may be delivered via the Internet—constitute “service” receipts or “other business receipts” for corporate franchise tax apportionment purposes. The distinction between “service” receipts and “other business receipts” is crucial because prior to 2015, New York Tax Law generally required sourcing…
By Robert P. Merten III and Open Weaver Banks
The Washington Court of Appeals held that a Honda automobile dealership was subject to state business and occupation (B&O) tax on more than $1 million in “dealer cash” payments the dealership received over a four-year span from manufacturer American Honda as part of an incentive program.
By Stephen Burroughs and Andrew Appleby
The Alabama Court of Civil Appeals ruled in favor of an out-of-state life insurance company regarding the calculation of its Alabama net worth tax – the Business Privilege Tax (BPT). The BPT requires an insurance company to calculate its Alabama net worth based on the ratio its Alabama premium…
By Zack Atkins
Reversing a district court decision, the Iowa Supreme Court held that a cable company selling Voice over Internet Protocol (VoIP) service can be assessed centrally as a telephone company for property tax purposes. Historically cable property has been assessed at the local level in Iowa. The property of telephone companies—owners or…
Undoubtedly, New Jersey Governor Chris Christie, the State Legislature, the Tax Court and the Division of Taxation have their own lists of resolutions for 2015.
However, in their article for State Tax Notes, Sutherland attorneys Leah Robinson and Open Weaver Banks suggest numerous New Year’s resolutions for New Jersey, including publishing an audit manual and…
The Georgia Tax Tribunal has held that an electric utility’s transmission and distribution equipment was not “necessary and integral to the manufacture of tangible personal property” and thus did not qualify for an exemption from Georgia sales and use tax. See Georgia Power Company v. MacGinnitie, Dkt. No. Tax-S&UT-1403540 (Ga. Tax Tribunal, Jan. 5…
Read our December 2014 posts on stateandlocaltax.com or read each article by clicking on the title. For the latest coverage and commentary on state and local tax developments delivered directly to your phone, download the latest version of the Sutherland SALT Shaker mobile app.
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By Ted Friedman and Andrew Appleby
The New Jersey Tax Court held that a corporation was not required to add back electric utilities taxes paid to North Carolina and South Carolina to determine the corporation’s entire net income subject to the New Jersey Corporation Business Tax (CBT). The Tax Court concluded that the electric utilities…
