Shaking things up in state and local tax
Shaking things up in state and local tax
By Madison Barnett and Andrew Appleby
The Florida Department of Revenue determined that a company providing television viewing data and analytics services must source its receipts from such services to the location of its customers, despite (1) the state’s majority costs of performance souring rule and (2) that the taxpayer appeared to incur the majority…
Today, the Maryland Court of Appeals held that Maryland may tax out-of-state Delaware holding companies that license patents to their parent company, which was doing business in Maryland. Gore Enterprise Holdings, Inc. v. Comptroller of the Treasury and Future Value, Inc. v. Comptroller of the Treasury. The ramifications of this decision are significant because…
By David Pope and Pilar Mata
The New York Attorney General’s office posted a press release on March 14, 2014 announcing that Lantheus Medical Imaging (Lantheus) and Bristol-Myers Squibb (BMS), Lantheus’s former parent, agreed to a $6.2 million settlement for a claim filed pursuant to New York’s False Claims Act (FCA). Under New York’s FCA…
By Zachary Atkins and Timothy Gustafson
The New Jersey Tax Court held that a mobile telecommunications service provider was not required to reimburse its customers before seeking a $32 million refund of erroneously collected sales tax. As part of a federal court-approved 2010 settlement agreement involving AT&T Mobility and its subsidiaries and affiliates, New…
By Maria Todorova and Andrew Appleby
In a Technical Memorandum, the New York State Department of Taxation and Finance explained the impact of the holding in Echostar, which addressed the New York sales and use tax resale exclusion for certain purchases made by satellite and cable television service providers. In Echostar, the…
By Zachary Atkins and Prentiss Willson
The South Carolina Department of Revenue issued a draft revenue ruling that purports to clarify the use of alternative apportionment and combined reporting for corporate income tax purposes. Citing Carmax Auto Superstores West Coast, Inc. v. South Carolina Dep’t of Revenue, 397 S.C. 604, 725 S.E.2d 711 (Ct.…
By Kathryn Pittman and Andrew Appleby
The Ohio Tax Commissioner determined that billing and collection services were nontaxable debt collection services rather than taxable automatic data processing services. The taxpayer provided a variety of billing and collection services to physicians, health care practitioners and other medical personnel. These services included billing patients and performing collection-related…
By Ted Friedman and Timothy Gustafson
The Missouri Department of Revenue determined that clients of a moving company were not subject to sales tax on boxes provided by the company and used to move the clients’ belongings. As part of the company’s moving services, it provided boxes for clients to pack their belongings. Any boxes…
By Suzanne Palms and Pilar Mata
The Florida Department of Revenue determined that sufficient reasonable cause had been established to allow a taxpayer to discontinue filing a consolidated Florida corporate income tax return because the taxpayer had experienced “substantial growth.” The Department noted that the taxpayer’s employees, assets and income had increased, and the taxpayer…
Today the Los Angeles Superior Court held that Comcast did not establish a unitary relationship with its 57% owned subsidiary, QVC. The court found for Comcast and held that the evidence presented at trial demonstrated that none of the unitary tests were satisfied. Finally, the court found for the state and held that Comcast’s receipt…
