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.

• Dozen It Make Sense? Florida Delivers Sourcing Guidance for Online Service Provider’s Twelve Types of Sales
  In a Technical Assistance Advisement, the Florida Department of Revenue determined the proper sourcing methodology for income from twelve different types of sales by an online service provider (OSP) for Florida sales factor purposes.
• SALT Pet of the Month: Reesie
  Meet Reesie, the nine-year-old Persian cat belonging to Sutherland SALT associate Stephen Burroughs and his wife Jennifer.
• Georgia Tax Tribunal Says What Texas Comptroller Won’t
  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 taxed in Texas for purposes of computing his individual Georgia taxable income.
• Indiana Allows Limited Liability Company to Utilize Former Members’ NOLs
  The Indiana Department of Revenue ruled that a limited liability corporation (LLC) that elected to be taxed as a corporation was entitled to use net operating loss (NOL) deductions generated by its former members.
• Seller of Online Courses Gets a Lesson in Indiana’s Interpretation of the Cost of Performance Methodology
  The Indiana Department of Revenue determined that an out-of-state taxpayer improperly sourced tuition received from its Indiana students taking online learning courses on a cost of performance basis.
• #TBHoosier – Indiana Throws Sales Back Into Its Court
  The Indiana Department of Revenue applied the State’s throwback rule to an Indiana company’s sales to California customers based on a determination that the taxpayer was not subject to tax in California due to P.L. 86-272.
• New Jersey Supreme Court Delivers Good News to Taxpayers in UPS Case
  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.
• Not Another Add Back: New Jersey Tax Court Again Rules Add Back of Certain Taxes Not Required
  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).
• New York State on Bitcoins: Transactions Are Barters for Sales Tax Purposes; Follow Federal Guidance for State Income Taxes
  The New York State Department of Taxation and Finance has issued guidance on the sales tax, corporation franchise tax, and personal income tax implications of transactions involving convertible virtual currency, such as bitcoins.