This is the fourth edition of the Eversheds Sutherland SALT Scoreboard for 2024. 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 2024 now!
Calling all trivia fans! Don’t miss out on a chance to show off your SALT knowledge!
We will award prizes for the smartest (and fastest) participants.
This week’s question: In which state was a bill introduced on February 3, 2025, to impose a surcharge on publicly traded companies that pay their executives significantly more than their regular workers?
E-mail your response to SALTonline@eversheds-sutherland.com.
The prize for the first response to today’s question is a $25 UBER Eats gift card. This week’s answer will be included in our SALT Shaker Weekly Digest, distributed on Saturday. Be sure to check back then!
The Supreme Court of Ohio held that gross receipts from a taxpayer’s services performed out-of-state had situs with Ohio for purposes of the state’s commercial activity tax (CAT) because the benefit of the services was received in Ohio. The taxpayer provided dialysis services to patients in Ohio. To support the dialysis business, the taxpayer and its parent provided administrative and laboratory services from outside the state. The taxpayer filed a refund claim for the CAT paid on the gross receipts from the administrative and laboratory services. Under R.C. 5751.033(I), services are sitused to Ohio if the purchaser receives the benefit in Ohio. The taxpayer argued that the administrative and laboratory services should be sitused to the location where the services were performed. Under Ohio Admin. Code 5703-29-17(C)(28), healthcare services provided within and without the state may be reasonably allocated.
In affirming the Board of Tax Appeals, the court held that while the taxpayer’s laboratory and administrative services were healthcare service, the services were ancillary to and supportive of the dialysis services provided entirely in Ohio and therefore must also be sitused to Ohio.
Total Renal Care, Inc. v. Harris, Slip Op. No. 2024-Ohio-5685 (Ohio Dec. 9, 2024).
Calling all trivia fans! Don’t miss out on a chance to show off your SALT knowledge!
We will award prizes for the smartest (and fastest) participants.
This week’s question: In which state was a bill recently introduced that would institute a $3 delivery fee for deliveries taking place in the state’s largest city?
E-mail your response to SALTonline@eversheds-sutherland.com.
The prize for the first response to today’s question is a $25 UBER Eats gift card. This week’s answer will be included in our SALT Shaker Weekly Digest, distributed on Saturday. Be sure to check back then!
This week, Eversheds Sutherland SALT Counsel Chealsea Marmor is pleased to cover post-merger integration during the 2025 National Multistate Tax Symposium, held February 5-7 in Lake Buena Vista, FL. During her panel on February 6, Chelsea will explore post-restructuring integration, focusing on administrative efficiencies, best practices in SALT compliance, and fostering a harmonious business culture within the corporate tax function.
The California Franchise Tax Board (FTB) has proposed amendments to its regulations that govern how sales of services and intangibles are sourced for income tax purposes. The changes to this income tax apportionment regulation will apply to nearly every corporation that pays California tax. Comments regarding these proposed changes are due no later than February 5, 2025.
Read the full Legal Alert here.
Calling all trivia fans! Don’t miss out on a chance to show off your SALT knowledge!
We will award prizes for the smartest (and fastest) participants.
This week’s question: On January 21, 2025, the United States Supreme Court denied reviewing a closely followed state tax decision from which state?
E-mail your response to SALTonline@eversheds-sutherland.com.
The prize for the first response to today’s question is a $25 UBER Eats gift card. This week’s answer will be included in our SALT Shaker Weekly Digest, distributed on Saturday. Be sure to check back then!
On January 21, 2025, New York Governor Hochul released her Fiscal Year 2026 Executive Budget and accompanying legislation (the Budget Bill). The Budget Bill includes a middle-class tax cut, a temporary personal income tax high income surcharge extension, and addresses a number of new and existing credits. It does not contain any new taxes or rate increases.
Read the full Legal Alert here.
Calling all trivia fans! Don’t miss out on a chance to show off your SALT knowledge!
We will award prizes for the smartest (and fastest) participants.
This week’s question: The legislature of which southern state recently introduced a bill that would impose a $0.30 delivery fee on each retail delivery within the state?
E-mail your response to SALTonline@eversheds-sutherland.com.
The prize for the first response to today’s question is a $25 UBER Eats gift card. This week’s answer will be included in our SALT Shaker Weekly Digest, distributed on Saturday. Be sure to check back then!
The Virginia Court of Appeals recently held that the Virginia Department of Taxation cannot make it a requirement for a corporation to include the income and factors of a 17% owned LLC with its own income and factors as a unitary business. The taxpayer obtained the interest in question in exchange for the sale of several travel centers to a buyer LLC during bankruptcy proceedings. The court based their decision on the facts that the taxpayer and the buyer were not centrally managed, the companies shared no business activities, derived no economies of scale, and obtained no cost efficiencies they would not have been able to get on their own from their relationship. This decision demonstrates that entities taxed as partnerships are not always unitary entities, despite the position of a taxing agency.
