The Washington Department of Revenue released a notice providing that effective June 9, 2022, qualifying businesses and tenants may apply for a sales and use tax exemption for purchases of server equipment and infrastructure for computer data centers located in urban areas pursuant to 2022 House Bill 1846. Eligible urban areas are those counties with population greater than 800,000, which includes King, Pierce, and Snohomish counties. Eligible computer data centers must have at least 20,000 square feet dedicated to working servers. In the first calendar year, the Department will review applications on a first-come first-served basis, and approve only six applications.

In this episode of the SALT Shaker Podcast, Eversheds Sutherland Associates Jeremy Gove and Cyavash Ahmadi tackle real property transfer taxes, in particular how they come into play in corporate transactions.

Jeremy and Cyavash highlight how the tax functions in certain jurisdictions and different nuances of their imposition, how state tax professionals can assist on the topic during tax planning, and takeaways when considering the state tax consequences of a transaction.

The episode wraps up with Jeremy’s usual overrated/underrated feature – how do you feel about leftovers?

Questions or comments? Email SALTonline@eversheds-sutherland.com. You can also subscribe to receive our regular updates hosted on the SALT Shaker blog.

 

 

 

 

 

 

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The Indiana Department of Revenue modified Sales Tax Bulletin No. 89 to reflect the recent change (SB 382) clarifying that a marketplace facilitator is required to collect sales tax for each retail transaction it facilitates regardless as to whether the marketplace facilitator has a contractual relationship with the seller as long as the marketplace satisfies one of the following: (i) collects the price of the seller’s products, (ii) provides access to payment processing services, or (iii) charges, collects, or receives fees or other consideration from the purchaser for transactions made on the marketplace.

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: What state recently released a private letter ruling concluding that a taxpayer’s payment card management services are nontaxable?

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!

The Washington Department of Revenue upheld a retail sales tax assessment on a taxpayer who failed to collect retail sales tax on sales to a renewable energy company. The taxpayer stated that it did not collect tax on certain sales because it believed that the energy company qualified for the exemption provided by Wash. Rev. Code § 82.08.962 for sales of machinery and equipment used in generating electricity from renewable resources. However, the statute provides that the purchaser must claim the exemption by requesting a refund for retail sales tax collected and remitted to the Department.  On appeal, the Department held that the exemption did not relieve the taxpayer of its duty to collect and remit sales tax to the Department. Further, the Department determined that the taxpayer was not entitled to a reduction of its assessment by the amount of the tax that would have been refunded to the purchaser.

Washington Tax Determination No. 20-0253, 41 WTD 213 (Sept. 15, 2020, released May 16, 2022).

As the summer season kicks off, the Eversheds Sutherland SALT team couldn’t be prouder of our graduates!

Read on to learn more about our attorneys and their family members’ (even those who are furry!) accomplishments.

If you’d like to be added to our feature, email us information about your grad and a photo to SALTonline@eversheds-sutherland.com.

Partner Michele Borens’ daughter, Sydney, graduated from the University of Michigan.

Partner Jeff Friedman’s daughter, Sarah, graduated with a master’s degree in political science from The University of Chicago. Following in Jeff’s footsteps, her next journey is law school!

Partner Dan Schlueter’s daughter Rachel graduated from high school, and will attend Northwestern University in the fall. In addition, his son Nathan graduated from elementary school and is on to middle school!

Partner Maria Todorova’s daughter, Addison, graduated from elementary school and is ready for middle school!

Associate Annie Rothschild’s sister, Karen, graduated from Loyola Law School in Los Angeles.

Partner Nikki Dobay’s furchild, Rosie, recently graduated from tiny tykes to little tykes socialization class! She’s very excited for the opportunity to play with bigger pups.

The Wisconsin Tax Appeals Commission ruled that an out-of-state travel agent that used independent travel consultants in Wisconsin was doing business in Wisconsin and is responsible for the Wisconsin franchise tax. The company argued, among other things, that it was in the business of selling SaaS that did not produce income taxable in Wisconsin; however, the commission concluded that none of the evidence supported the company’s position that it was in the business of selling SaaS or software of any sort. Instead, the commission concluded that the company was engaged in the sale of travel services to Wisconsin residents through its independent travel consultants located in Wisconsin, which constituted doing business in the state, and thus the company was subject to the Wisconsin franchise tax.

In this episode of the SALT Shaker Podcast, Eversheds Sutherland Associates Jeremy Gove and Annie Rothschild delve into a recent decision out of the California Court of Appeal – Metropoulos Family Trust v. Franchise Tax Board. The court ruled for the Franchise Tax Board, affirming the trial court’s decision that non-resident S corporation shareholders are subject to California income tax on their pro rata shares of the income from the S corporation’s sale of shares in a subsidiary.

Jeremy and Annie discuss the case’s background and substance, as well as what this case’s holdings may mean for other California taxpayers.

Jeremy’s overrated/underrated question this week appeals to our fellow coffee drinkers. Is iced coffee overrated or underrated?

Questions or comments? Email SALTonline@eversheds-sutherland.com. You can also subscribe to receive our regular updates hosted on the SALT Shaker blog.

 

 

 

 

 

 

 

 

 

 

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The Texas Comptroller recently released a private letter ruling (provided to the taxpayer on April 29, 2022) concluding that the taxpayer’s payment card management services are nontaxable in Texas. In the ruling, the taxpayer provides a payment card management program that allows services, such as food delivery services, the ability to apply customized spending limits and other controls on debit and prepaid cards used in their businesses. The taxpayer does not issue cards, but works with issuing banks and payment networks to authorize, process, and settle its customers’ transactions. The Comptroller concluded that the taxpayer’s service is a nontaxable electronic payment processing service rather than a taxable data processing service.

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 recently withdrew its proposed regulation seeking to expand the state’s sales tax to apply to cloud computing?

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!