The Supreme Court granted certiorari on June 26 with respect to the Ninth Circuit’s decision in Moore v. United States. The question presented is whether the section 965 transition tax is a “direct tax” that violates the Apportionment Clause of the US Constitution.

The Supreme Court has not invalidated a federal tax on constitutional grounds since Eisner v. Macomber, over a century ago. The last time the Supreme Court addressed the direct tax clause, in the Affordable Care Act case NFIB v. Sebelius, it required only a few paragraphs to hold that a tax on the condition of not having health insurance was not a direct tax. The opinion in NFIB was written by Chief Justice Roberts and joined by four other members of the court, two of whom (Justices Sotomayor and Kagan) are still on the bench.

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: Which state legislature recently introduced a bill that would provide an income tax credit equal to 95% of donations made by a taxpayer to a lower-performing public school?

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 posted on Saturday in our SALT Shaker Weekly Digest. Be sure to check back then!


The NYU School of Professional Studies is hosting its Introduction to State and Local Taxation Conference. This two day conference in the heart of Manhattan will provide attendees with the key concepts of state corporate income tax AND state sales and use tax. This conference is perfect for those who are new to SALT or those looking to brush up on the foundational concepts. 

From July 24-25 in New York City, hear from state and local tax leaders as they describe fundamental concepts and practical applications of state corporate income tax and sales taxation. Topics include:

  • Sales and Use Taxation Fundamentals
    • Differences between Sales and Use Taxes
    • Sales tax exemptions and administration
    • Sales taxation of services and digital products
    • Marketplace facilitator tax requirements
  • Corporate Income Taxation Fundamentals
    • Determining the corporate income tax base
    • Allocation and apportionment
    • Separate, Consolidated, and Combined Reporting
    • The Unitary Business Principle
  • Gross Receipts Taxes
  • State Tax Research Tools, Tips and Tricks
  • And more…

We hope to see you there! For more information or to register, click 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: New York’s State Legislature recently approved a bill that would extend a partial property tax abatement for what type of property owners in New York 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 posted on Saturday in our SALT Shaker Weekly Digest. Be sure to check back then!

This week, Eversheds Sutherland Partners Liz Cha and Eric Tresh will present during the 2023 TEI Region 8 Annual Conference in Hilton Head Island, SC. Liz and Eric will tackle a state tax controversy update.

For more information and to register, click here.

View and learn more about past and upcoming events and presentations for the SALT team.

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 Internet Tax Freedom Act was recently held to prohibit which city’s tax on online storage services?

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 posted on Saturday in our SALT Shaker Weekly Digest. Be sure to check back then!

Meet two very special ladies and our June SALT Pets of the Month, Haley and Hildee! Both dogs were rescued and now live in Northern California with Ben Wylie, Senior Tax Director at Instacart, and his family.

Haley was originally homeless in the streets of Taipei, Taiwan until she was hit by a car. She was lucky to receive sponsorship and medical attention, but lost her left eye and had her hip joint removed. The Wylie’s had her transported to the San Francisco Bay Area to join their family and continue her recovery. Haley is now very active and loves hiking, going to the beach and playing with her many toys. Understandably, she still dislikes cars!

Haley’s sister Hildee hails from Compton, CA. She was left outside a local shelter with a broken back, starving, and with other serious medical and dental issues. Despite her many challenges, Hildee has an amazing spirit and loves all people, dogs and even cats. She has since worked hard on her physical therapy and was determined to walk again. Hildee is now wheelchair free and enjoys her (several) short walks per day. Hildee is also an avid soccer fan and has become the unofficial team mascot for Ben’s daughter’s soccer team.

We’re so happy to have these two ladies as our SALT Pets of the Month!

On Thursday, June 8, New York-based SALT Partner Todd Betor will participate in the TEI New York Chapter’s M&A Tax Conference, held in person. The full day of programming will cover all aspects of M&A tax from both the buy side and sell side. Todd’s panel will discuss operational issues – state and local income, sales, and real estate transfer taxes including NOLs and sell side and buy side issues. 

For more information and to register, click here.

The Court of Appeals of Virginia, upholding the trial court’s decision, held that the successor to The C. F. Sauer Company could elect the manufacturer’s apportionment method for the first time on its amended tax return. By doing so, the court (preliminarily*) paved the way for qualifying taxpayers to take a wait and see approach to deciding on whether to elect Virginia’s alternative apportionment method for manufacturers is right for them. Virginia’s standard apportionment method prescribes a three-factor formula comprised of a taxpayer’s property factor, payroll factor, and double-weighted sales factor, whereas the manufacturer’s apportionment method for tax years beginning on or after July 1, 2014 is comprised of a single-sales factor. Considering that the manufacturer’s apportionment method is irrevocable for three taxable years, the flexibility in making such an election could be crucial for taxpayers that are uncertain of the impact that the alternative method could have when filing their original tax returns. To reach its conclusion, the court rejected the Department’s argument that certain provisions (e.g., the recapture provision) and phrases (e.g. any interest accrued would be “from the original due date for filing”) in the statute directly conflicted with the trial court’s ruling (and the taxpayer’s position) and showed the legislature’s intent to limit the election to the original tax return. Rather, the court found that there is no conflict and that, unlike other Virginia tax elections, the plain language of the statute “simply does not prevent a taxpayer company from electing to use the manufacturer’s apportionment method in a timely amended return.” Further support for the court’s reading was found in the “legislature’s liberal acceptance of amended returns generally elsewhere in the tax code.” *Virginia does not permit an appeal to the Supreme Court of Virginia as a matter of right in tax cases that do not involve the State Corporation Commission.

Commonwealth of Virginia, Department of Taxation v. 1887 Holdings, Inc., Record No. 0598-22-2 (Va. Ct. App. May 23, 2023).