In this episode of the SALT Shaker Podcast focused on policy issues, host and Eversheds Sutherland Partner Nikki Dobay welcomes Scott Peterson, Vice President of U.S. Tax Policy and Government Relations at Avalara, for a discussion on the impact of the Wayfair decision. Scott and Nikki discuss how the tax world has changed since that decision, the unprecedented speed at which the states reacted to Wayfair legislatively, and, finally, what taxpayers need to help ease burdens related to complying in a post-Wayfair world.

Nikki’s surprise non-tax question this week involves a discussion of European vacations – are you taking one this year?

The Eversheds Sutherland SALT 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. Partner Nikki Dobay, who has an extensive background in tax policy, hosts this series, which is focused on state and local tax policy issues.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Listen now: 

Subscribe for more:

   

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 three Eversheds Sutherland SALT team members recently presented at the Tax Executives Institute 72nd Midyear Conference?

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 Virginia Tax Commissioner ruled that purchases of software and software maintenance were subject to use tax, where the taxpayer was unable to prove that the software was delivered electronically and exempt. Although the taxpayer presented correspondence with two vendors that referenced the software and maintenance being only delivered electronically, the taxpayer could not provide the necessary contracts, sales invoices, or sales agreements with the required certification that delivery took place electronically and that “no tangible medium for that software has been furnished to the customer.”

On February 7, 2022, the Ohio Court of Appeals upheld the constitutionality of a statute providing that, during the duration of a stay-at-home order issued by the Governor related to the COVID-19 pandemic, and for thirty days after its end, any day on which an employee works from home because of the order shall be deemed to be a day working at the employee’s principal place of work. A resident of Blue Ash, Ohio, who had an office located in Cincinnati, but who worked primarily from home during the duration of the stay-at-home order, challenged the statute on the grounds that the Due Process Clause prohibited Cincinnati from imposing its municipal income tax on the resident’s wages for the days worked from home.  The Court disagreed, and held that cities may act extraterritorially where permitted by state law. The Court dismissed the taxpayer’s due process concerns, noting that because the statute was passed by Ohio’s legislature, and the taxpayer is a citizen of Ohio, the taxpayer received all the due process necessary under the law. The Court further determined that there was a rational relationship between the statute and its purpose, which was an emergency measure designed to preserve the status quo of the tax code during a public-health crisis.

Schaad v. Alder, 2022-Ohio-340 (Ohio Ct. App. 2022)

Eversheds Sutherland is a proud sponsor of the Tax Executives Institute (TEI) 72nd Midyear Conference on March 20-23, 2022. The conference is held as a fully hybrid event this year, with the in person option at the Grand Hyatt Hotel in Washington, DC.

Eversheds Sutherland SALT team members Michele Borens, Jeffrey Friedman and Liz Cha will present, and the details of their presentations are below.

Monday, March 21
2:15 p.m. – 3:15 p.m.
The Locals are Here to Stay: An Update on Local Taxes and Fees Expansion and Litigation
Speaker: Liz Cha

Tuesday, March 22
9:45 a.m. – 10:45 a.m.
All Things Digital – The Global Taxation of Digital Goods and Services
Speaker: Jeff Friedman

Wednesday, March 23
8:30 a.m. – 9:30 a.m.
Implementing the New Rules: Compliance Issues with On-Demand Services and Marketplaces
Speakers: Michele Borens 

The Colorado Court of Appeals held that sales tax bad debt credits may not be claimed by a financial company that issued private label credit cards. As a private label retail credit card issuer, Capital One financed purchases made by its cardholders. Under the terms of its agreements with retailers, Capital One financed purchases made with the retailers, including any sales tax. Colorado provides a bad debt credit to taxpayers for sales tax previously paid on defaulted financing transactions.  Capital One argued that it was a taxpayer for Colorado sales tax purposes because the definition of “taxpayer” includes “any group or combination” of persons “acting as a unit.” The Court held that Capital One and the retailers did not constitute a group or unit and therefore they are two distinct legal entities. Because the retailers were obligated to pay the sales tax to the Department, only the retailers were entitled to the credit (or refund).

Capital One, N.A., v. Colo. Dep’t Rev., 2022COA16 (Colo. Ct. App. Feb, 10, 2022).

“Crossover Day” in the Georgia legislature was Tuesday, March 15th—the 28th legislative day of 40 total legislative days – the day by which all bills must have passed one legislative chamber in order to cross over and be considered by the other chamber. Bills that have not passed one chamber prior to crossover are generally dead for the year, although there are still opportunities for tax provisions to be added to other tax bills that have crossed over. Georgia’s Constitution requires that all revenue related bills originate in the House, so the vast majority of bills still alive for the year now go over to the Senate. Sine Die, or the 40th and final legislative day, this year will be April 4, 2022.

Read the full Legal Alert here.

In this episode of the SALT Shaker Podcast, host and Eversheds Sutherland Associate Jeremy Gove discusses the ins and outs of California residency with Partner Tim Gustafson. They outline the various tests used in determining residency for California income tax purposes and identify common pitfalls for individuals who are considering a move out of the state. They also discuss recent legislative and initiative personal income tax proposals that have prompted many current residents to contemplate their California residency status.

They conclude with Jeremy’s classic question – overrated/underrated? March means one thing – morning to night college basketball, so naturally they rate March Madness.

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

If you have questions about income tax and residency from a California perspective, please feel free to reach out to Eversheds Sutherland attorneys Tim Gustafson or Eric Coffill.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Listen now: 

Subscribe for more:

   

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 ruled that a law firm’s purchases of loan packages for lending institution clients was the taxable purchase of data processing service?

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 North Carolina Department of Revenue issued a private letter ruling finding that a business-to-business online platform where businesses list inventory for sale for other businesses to order and pay was a marketplace facilitator responsible for collecting and remitting tax on sales that took place over its platform. The platform was not open to the general public and customers needed log-in credentials to be able to buy and sell inventory. The customer had two payment options: (i) utilizing a pre-existing credit line established with the seller; or (ii) accepting credit card payments where the customer interacts directly with the platform’s designated credit card processor through a “pop-up window.” Although the ruling contains little analysis, the Department concluded that the taxpayer met the definition of a marketplace facilitator: it lists and makes sales of a marketplace seller’s items and makes payment processing available.