The South Carolina Supreme Court issued its decision in CarMax Auto Superstores West Coast, Inc. v. S.C. Dep’t of Revenue, Opinion No. 27474 (S.C. Dec. 23, 2014), holding that the South Carolina Department of Revenue bore the burden of proof to invoke the use of an alternative apportionment method and failed to meet its
Noteworthy Cases
Louisiana Court Holds Video-on-Demand and Pay-Per-View Are Not Tangible Personal Property
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Today the Louisiana Fifth Circuit Court of Appeal held that a cable television provider’s video-on-demand (VOD) and pay-per-view (PPV) programming services are not tangible personal property and therefore not subject to sales tax. Newell Normand, Sheriff and Ex-Officio Tax Collector for the Parish of Jefferson v. Cox Communications Louisiana, LLC, Case No. 14-CA-563 (La. |
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U.S. Supreme Court Hears Arguments in 4-R Act Case (For the Second Time)
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On December 9, the U.S. Supreme Court heard oral arguments in the last of three state and local tax cases that it accepted this term – Alabama Department of Revenue v. CSX Transportation, Inc. (CSX II), a case that had previously been before the Supreme Court. CSX Transportation…
U.S. Supreme Court Hears Arguments in Sales Tax Reporting Case
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On December 8, 2014, the United States Supreme Court heard oral arguments in the second of three state and local tax cases that it has accepted this term – Direct Marketing Association v. Brohl – to determine the reach of the federal Tax Injunction Act (“TIA”). The TIA provides that federal courts are barred from…
Georgia Tax Tribunal Says What Texas Comptroller Won’t
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By Zachary Atkins & Jonathan Feldman
The Georgia Tax Tribunal held that the Texas Franchise Tax (the “TFT”) is a tax “on or measured by income” and allowed a Georgia resident, who indirectly owned an interest in a pass-through entity, to adjust his federal adjusted gross income for the amount of the entity’s income…
New Jersey Supreme Court Delivers Good News to Taxpayers in UPS Case
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By Nicole Boutros and Andrew Appleby
The New Jersey Supreme Court held that the New Jersey Division of Taxation improperly exercised its discretion when it refused to waive its imposition of $1.8 million in late payment penalties and tax amnesty penalties. The taxpayers, five subsidiaries of United Parcel Service of America (collectively, UPS), used a…
Sutherland SALT Shaker: November 2014 Digest
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Read our November 2014 posts on stateandlocaltax.com or read each article by clicking on the title. To read our commentary on the latest state and local tax developments as they are published, be sure to download the Sutherland SALT Shaker mobile app.
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Sometimes, Breaking Up Isn’t Hard To Do: Florida Grants Taxpayer’s Request for Deconsolidation
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By Sahang-Hee Hahn and Prentiss Willson
The Florida Department of Revenue permitted a taxpayer to discontinue filing Florida consolidated corporate income tax returns because the taxpayer established that its affiliated group’s business focus had changed significantly since making its election. In Florida, a parent corporation may elect to file a consolidated corporate income tax return.
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Prove It!: Illinois Cook County Circuit Court Finds That Relator Failed to Meet Burden Under the Illinois False Claims Act
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By Nicole Boutros and Pilar Mata
The Illinois Cook County Circuit Court held that an Illinois law firm (the Relator) that filed a qui tam lawsuit against a taxpayer failed to meet its burden to prove the taxpayer knowingly failed to collect and remit Illinois use tax, as required under the Illinois False Claims Act.
Has New York City Added a Fourth Element for Determining a Combined Group?
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A New York Tax Appeals Tribunal Administrative Law Judge (ALJ) recently determined that a federal savings and loan association was not required to include a subsidiary, which was formed as a Connecticut passive investment company, in its combined New York City bank tax return. In the Matter of the Petition of Astoria Financial Corporation &…