Shaking things up in state and local tax
Shaking things up in state and local tax
By Zack Atkins and Eric Coffill
The Alabama Tax Tribunal concluded that an out-of-state retailer was required to collect and remit use tax on the sales of books and educational materials to in-state teachers and students, and that neither the Due Process Clause nor the Commerce Clause impeded the Alabama Department of Revenue’s authority to…
By Mike Kerman and Open Weaver Banks
The Virginia Tax Commissioner ruled that an out-of-state corporation had nexus with Virginia because an employee performed accounting, human resources, payroll and customer support functions from a home office in Virginia. The Commissioner explained that out-of-state corporations are subject to Virginia corporate income tax if they have sufficient…
By Chris Mehrmann and Madison Barnett
The New York State Department of Taxation and Finance issued an advisory opinion explaining that the petitioner’s Internet-based document transfer subscription plans are not subject to sales and use tax. Because the primary purpose of the transactions is to facilitate the transfer of files over the Internet, the Department…
On March 24, the Georgia General Assembly passed House Bill 960, which would adjust the statutory interest rate applicable to tax assessments and refunds and addresses other issues related to refund claims for Georgia sales and use taxes. H.B. 960 passed the legislature while the Georgia Department of Revenue continues to consider regulatory action that would …
By Charles Capouet and Eric Coffill
In Private Letter Ruling ST 15-0016-PLR, the Illinois Department of Revenue explained the application of the temporary storage exemption to the imposition of use tax on the in-state storage of equipment. Illinois’ temporary storage exemption applies where the property is acquired outside Illinois and, after a temporary stay in…
By Elizabeth Cha and Scott Wright
The Texas Court of Appeals held that a seismic data gathering company was entitled to a cost of goods sold (COGS) deduction for costs of labor and materials incurred to acquire and process seismic data for its clients. Pursuant to Tex. Tax Code § 171.1012(i), a taxpayer may include…
On March 22nd, South Dakota Governor Daugaard signed into law Senate Bill 106, the passage of which may be the ultimate vehicle to challenge Quill at the U.S. Supreme Court. With landslide support in the South Dakota Senate and House of Representatives, S.B. 106 adopts an economic nexus standard for sales tax remittance and allows…
By Nicole Boutros and Andrew Appleby
A federal court dismissed a class action lawsuit against Whole Foods, finding the consumers lacked standing because they could not demonstrate they purchased any of the mislabeled foods for which they claimed Whole Foods systemically overcharged. The consumers alleged that Whole Foods engaged in deceptive trade practices and had…
By Chris Mehrmann and Amy Nogid
The U.S. Court of Appeals for the Fourth Circuit affirmed the Maryland district court’s determination that it lacked specific personal jurisdiction over a Brazilian poultry exporter, BRF S.A. (BRF), under the Due Process Clause of the U.S. Constitution. Perdue Foods LLC (Perdue), which sold poultry using the “PERDUE” mark…
By Charles Capouet and Andrew Appleby
A New York State Division of Tax Appeals ALJ determined that payments by a corporation to its captive insurance company did not qualify as deductible insurance premiums because the arrangement lacked risk shifting and risk distribution. The taxpayer primarily owned and operated convenience stores and gas stations, and insured…
