This installment of “Behind the Board,” which highlights the milestones, challenges, and lessons of Tax Notes State’s advisory board, focuses on Senior Counsel Eric Coffill.
Read more about Eric’s career and reflections here.
Catching up with CalTax – part I
In this episode of the SALT Shaker Podcast policy series, host and Eversheds Sutherland Partner Nikki Dobay is joined by Rob Gutierrez, President and CEO of the California Taxpayers Association (CalTax).
Rob provides an overview of CalTax and its mission, and then expands the discussion to California’s latest legislative session and how it was impacted by COVID-19. He and Nikki also discuss legislation that didn’t pass, as well as legislation taxpayers should have on their radar. He then provides further detail on California’s upcoming governor recall. Finally, he takes part in the fun of a surprise non-tax question – what’s your favorite fair food? Stay tuned for part II of their conversation!
The Eversheds Sutherland State and Local Tax team has been engaged in state tax policy work for years, tracking tax legislation, helping clients gauge the impact of various proposals, drafting talking points and rewriting legislation. This series, which is focused on state and local tax policy issues, is hosted by Partner Nikki Dobay, who has an extensive background in tax policy.
Questions or comments? Email SALTonline@eversheds-sutherland.com.
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Colorado Department of Revenue concludes online learning courses are taxable
On September 2, 2021, the Colorado Department of Revenue issued private letter ruling PLR 21-005 concluding that subscription fees for an online learning platform are subject to sales tax. The taxpayer operates an online learning platform offering on-demand digital courses comprised of streaming video lessons covering academic subjects and vocational license preparation courses. Each subscription also provides a written transcript of the classes the user registered and access to an automated online tutor. The taxpayer offers various subscription plans that provide transferrable college credit and additional tutor access. The Department concluded that while Colorado only taxes tangible personal property and enumerated services, and the service in question is not an enumerated service, under the true object of the transaction test each learning plan is a mixed transaction “more analogous” to tangible personal property. Thus, the subscription fees are treated as the taxable sale of tangible personal property. The Department also determined that the taxpayer’s provision of internet advertising services, which include creating web content for an advertising company on a “pay-per-click” model, are not taxable because advertising services are not taxable in Colorado.
Webcast: How the events of 2021 have impacted the California tax landscape so far
In a world and state already riddled with uncertainty, California holds a recall election. Through it all, however, taxes remain a constant.
On September 15, join Eversheds Sutherland attorneys Tim Gustafson and Eric Coffill as they cover key tax events that occurred in California during the first three quarters of 2021 and how the recall election may affect the state’s outlook for the remainder of the year. In addition, they will identify recent, significant tax legislation, regulatory, and controversy activity and developments, as well as highlight current hot-button issues at the state’s various tax agencies.
SALT trivia – September 8, 2021
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 Washington Department of Revenue recently released informal guidance. Which topic did it cover?
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.
Answers will be posted on Saturdays in our SALT Shaker Weekly Digest. Be sure to check back then!
Teleworking issues – different takes for different states
While state and local governments have ended or relaxed mandatory work-from-home orders and are trying to bring back the in-person workforce, some employees remain hesitant to return to in-office work for numerous reasons. This trend may result in unanticipated tax obligations for employers and employees because many of the pandemic-related hold-harmless protections from withholding and other state tax obligations caused by remote workers have ended or will send soon. Understanding that the workforce likely has shifted in the long term, a number of states have attempted to address remote work issues by adopting legislation to provide clarity to employers and employees alike.
In this SALT@Work column for the Journal of Multistate Taxation and Incentives, Eversheds Sutherland attorneys Charlie Kearns, Chelsea Marmor and Fahad Mithavayani examine the shift towards remote work, the associated tax implications for companies and developments as employers, employees, and tax administrators react to this new work style.
Recapping states’ SALT cap workarounds
On a recent episode of Tax Notes Talk, a weekly podcast of cutting-edge developments in tax from Tax Notes, Eversheds Sutherland Partner Nikki Dobay discusses the SALT cap workarounds for passthrough entities that many states have adopted, and possible coming developments for those policies.
Electronic transfer of photographs not taxable in New York
The New York Department of Taxation and Finance recently published advisory opinion TSB-A-20(66)S regarding the taxability of photographs provided to purchasers either digitally or through a tangible medium for less than permanent use. The Department held that the electronic transfer of photographs is not taxable in New York because a digital photograph is not considered tangible personal property and thus, the transfer is not taxable regardless of whether the transfer is permanent or temporary. Transferring a photograph via a tangible medium (CD, paper, slide, negative, etc.), is generally taxable because the method of transfer is a taxable tangible medium. However, if the transfer of a photograph via tangible medium is only temporary as suggested by the requesting taxpayer, the Department determined that is not a taxable sale as long as (i) the customer only takes possession of the photograph for the purpose of making a reproduction, and (ii) the payment is in the nature of a royalty.
So you think you know the SALT Scoreboard: insight into our quarterly publication
In this episode of the SALT Shaker Podcast, host and Eversheds Sutherland Associate Jeremy Gove is joined by Associate Charles Capouet to discuss the SALT Scoreboard. Each quarter, the SALT team tallies the results of what we deem to be significant taxpayer wins and losses – i.e., those developments that have the greatest impact on our clients, the industries that we serve, and the overall SALT landscape – and analyze those results to identify trends by issue, state and forum.
Jeremy and Charles dive in to the origin of the SALT Scoreboard, the types of taxes the team follows, trends from years past and more.
Questions or comments? Email SALTonline@eversheds-sutherland.com.
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It’s alive: the Illinois franchise tax and its impact on M&A
In this installment of A Pinch of SALT for Tax Notes State, Eversheds Sutherland attorneys Breen Schiller, Eric Tresh and Jeremy Gove explore the Illinois franchise tax and recommend that taxpayers reacquaint themselves with the mechanics of the tax to understand the potential pitfalls of various corporate transactions.