The Illinois Tax Tribunal issued an order denying PepsiCo Inc. and Affiliates’ (“PepsiCo”) motion for summary judgment and found that PepsiCo’s subsidiary, Frito-Lay North America, Inc. (“FLNA”), was not an excluded 80/20 company and must be include in the PepsiCo Illinois unitary group corporate income tax return.[1] As originally filed, PepsiCo excluded FNLA from
New Jersey Appellate Division Says No Double Taxation Without Remediation
New Jersey’s Appellate Division concluded that a Jersey City payroll tax violated the dormant Commerce Clause because there was no mechanism to resolve disputes if two taxing entities, in different states, impose a payroll tax on the same employee. The lower court had previously dismissed the case, ruling that the Jersey City payroll tax was
Arkansas Supreme Court Holds Rent-to-Own Leases Subject to Short-Term Rental Tax
The Arkansas Supreme Court held that a furniture and electronics retailer’s weekly and semi-monthly rent-to-own leases are subject to the excise tax on short-term – less than 30 days – rentals of tangible personal property. Under the retailer’s rental-purchase agreements, customers select an initial rental term of monthly, semi-monthly, or weekly. At the end of
SALT Scoreboard – Fourth Quarter 2020
This is the fourth edition of the Eversheds Sutherland SALT Scoreboard for 2020. 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 fourth quarter of 2020 now!
Chicago Weighs In on Wayfair Nexus, Permits Limited Safe Harbor
In response to numerous inquiries, the Chicago Departments of Finance and Law issued an Information Bulletin on their application of nexus to Chicago taxes in light of Wayfair v. South Dakota, 585 U.S. __, 138 S. Ct. 2080 (2018). Illinois has adopted an economic nexus standard by which out-of-state retailers making sales of tangible
A Per Curiam Affirmance by the New Jersey Supreme Court of the Appellate Division Insurance Premium Tax Decision
In a per curiam opinion, the New Jersey Supreme Court affirmed an insurance premium tax (IPT) decision of the Appellate Division “substantially for the reasons expressed” in the Appellate Division’s opinion. The New Jersey Appellate Division held that New Jersey’s IPT for self-procured insurance coverage is based only on the risks insured in the state,
Your losses may not be lost: Delaware NOL limitation violates state constitution
The Delaware Superior Court granted summary judgment in favor of the taxpayer finding that the Division of Revenue’s limitation on net operating losses violated the state constitution’s uniformity clause and that the Division improperly limited the amount of separate company NOL the taxpayer could claim on its Delaware income tax return to the amount of
SALT Scoreboard – Third Quarter 2020
This is the third edition of the Eversheds Sutherland SALT Scoreboard for 2020. 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 2020 now!
Tough cheese: Wisconsin Tax Appeals Commission clarifies the scope of property tax manufacturing exemption
The Wisconsin Tax Appeals Commission recently clarified the applicability of the state’s property tax exemption for machinery, tools, and patterns (“MTP”) under Wis. Stat. § 70.111(27), which took effect in 2018. At issue in this appeal was which of a taxpayer’s property items were eligible for the exemption, which applies to all MTP unless the
California Property Tax and LLC Tax Decisions
In this episode we discuss two recent California decisions, including a Court of Appeal decision concerning property tax escape assessments (Prang v. Los Angeles Cnty. Assessment Appeals Bd., Case No. B301194 (Cal. Ct. App. Aug. 27, 2020) and an Office of Tax Appeals decision concerning nexus for the state’s LLC tax. (In