2021 will be remembered for many reasons: the continuation of the pandemic, the commercialization of space travel, and the rise of meme stocks among others. 2021 also will be remembered for the frenetic pace of state tax developments. The Eversheds Sutherland SALT team was kept busy tracking and summarizing state and local tax developments –
Louisiana Court of Appeal overrules uneven application of franchise fees
The Louisiana Court of Appeal, Second Circuit ruled that a city franchise fee imposed on a telecommunications company was discriminatory in violation of the federal Telecommunications Act of 1996 (the “Act”) where the fee was charged to a taxpayer pursuant to a bilateral contract but not charged to the taxpayer’s competitor.
The city brought a
SALT Scoreboard – Third Quarter 2021
This is the third edition of the Eversheds Sutherland SALT Scoreboard for 2021. Since 2016, we have tallied the results of significant taxpayer wins and losses and analyzed those results.
View our Eversheds Sutherland SALT Scoreboard results from the third quarter of 2021 now!
Free speech! Ohio Supreme Court strikes down Cincinnati’s billboard excise tax
The Ohio Supreme Court recently held that Cincinnati’s billboard excise tax is unconstitutional because the tax violated the First Amendment of the United States Constitution, finding that Cincinnati’s need to raise revenue by imposing the tax solely on a small number of billboard operators did not survive strict scrutiny.
In 2018, the Cincinnati City Council
SALT Scoreboard – Second Quarter 2021
This is the second edition of the Eversheds Sutherland SALT Scoreboard for 2021. Since 2016, we have tallied the results of significant taxpayer wins and losses and analyzed those results.
View our Eversheds Sutherland SALT Scoreboard results from the second quarter of 2021 now!
Return to sender: Virginia Tax Commissioner concludes return label charges are taxable
Following a taxpayer’s assessment appeal, the Virginia Tax Commissioner determined that “easy return label” and “merchandise logo charges” were subject to Virginia sales tax.
Easy return labels
The taxpayer was a retailer of products sold online and through catalogs. The taxpayer offered its customers the option of returning merchandise using an “easy return label,” which
Beyond use tax – Michigan court holds retailer not subject to use tax on advertising materials mailed to in-state residents
On July 8, 2021, the Michigan Court of Appeals issued a decision holding that a retailer was not subject to use tax on advertising materials mailed to Michigan residents. The retailer designed the materials in-house and had them printed by a third-party printer, outside of Michigan. After printing, the retailer sent the materials to a
Hire local? Washington Superior Court finds Seattle payroll expense tax constitutional
Addressing cross-motions for summary judgment from the Seattle Metropolitan Chamber of Commerce and the City of Seattle, the Superior Court of Washington for King County held that the City’s new payroll expense tax, which applies to businesses that spend $7 million or more on payroll in Seattle, is constitutionally permissible.
On July 6, 2020, the
Taxpayer kicks asparagus: New Jersey Tax Court rules produce distributor protected by P.L. 86-272
The New Jersey Tax Court ruled that the in-state activities of an out-of-state wholesale produce distributor were protected under Public Law 86-272 (P.L. 86-272), a federal law that prohibits states from imposing a net income tax on an out-of-state taxpayer. The Taxpayer had no offices, property, employees or inventory in New Jersey, but it did
Not so fast – Indiana Tax Court upholds pharmacy benefit management company’s sourcing of receipts from services
On May 14, 2021, the Indiana Tax Court upheld a pharmacy benefit management company’s sourcing of its receipts under Indiana’s costs of performance rules applicable to receipts from services. The court rejected the Indiana Department of Revenue’s position that the receipts should instead be sourced according to the rules for sales of tangible personal property.