Shaking things up in state and local tax
Shaking things up in state and local tax
By Nick Kump and Scott Wright
The Missouri Supreme Court held that a dance school was subject to sales tax on its charges for dance lessons as fees paid to a place of amusement, entertainment or recreation. The court reasoned that even though the school had a primary purpose of teaching students how to dance…
The Michigan Department of Treasury issued a Notice announcing that it will no longer impose sales or use tax on certain prewritten computer software accessed electronically and associated online services. The Notice comes on the heels of the Michigan Court of Appeals decision in Auto-Owners Insurance Company v. Department of Treasury and the Michigan Supreme …
By Samantha Trencs and Amy Nogid
The California Board of Equalization (BOE) voted to adopt an amendment to Ca. Code Regs. tit. 18, § 1525.4, to resolve a statutory ambiguity by clarifying that a taxpayer will qualify for the partial sales and use tax exemption available for certain manufacturing and research and development equipment purchases…
By Evan Hamme and Timothy Gustafson
The California State Board of Equalization (Board) unanimously rejected Craigslist, Inc.’s (Craigslist) argument that California’s adoption of a factor-presence nexus regime in 2009 reflected pre-existing federal constitutional nexus standards pursuant to which Craigslist would be “subject to tax” in jurisdictions where it did not have a physical presence, and…
There’s never a dull moment in Delaware when it comes to unclaimed property. The latest salvo comes by way of a lawsuit filed by the Delaware Department of Finance against Blackhawk Engagement Solutions (DE), Inc. (formerly known as Parago, Inc.), a provider of rebate, reward and incentive programs to retailers and other client companies. As …
By Samantha Trencs and Andrew Appleby
A South Carolina administrative law judge (ALJ) determined that cell phone insurance is not subject to South Carolina sales tax even though the wireless provider sells it with taxable communication services.
Alltel provided its wireless customers with an option to purchase insurance for the loss, theft or damage to…
By Elizabeth Cha and Amy Nogid
Pennsylvania’s Commonwealth Court agreed with the Department of Revenue (Department) that the Department’s letter rulings addressing the taxability of actual transactions were not subject to review by the Board of Finance and Revenue (Board). Members of BJ’s Wholesale Club, Inc. (Taxpayers) alleged that they were due a refund of…
The Multistate Tax Commission advanced several items of interest during its annual fall meetings held in Charleston, South Carolina, this week, including the creation of a new committee to continue gathering support for its transfer pricing program.
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By Nick Kump and Charlie Kearns
The Iowa Department of Revenue issued a policy letter declaring that the delivery of a digital software key on a tangible card is exempt from sales tax, as long as the software itself is delivered digitally and there is not a separate charge for the key. Iowa Code section…
In a decision sure to give Pennsylvania legislators and the Department of Revenue indigestion before their big Thanksgiving meals, the Commonwealth Court held that Pennsylvania’s net loss carryover deduction cap violated Pennsylvania’s Uniformity Clause because it resulted in disparate treatment of similarly situated taxpayers based on the size of the business.
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