The Iowa Department of Revenue ruled that while a data center property owner and its tenant can both independently qualify for the sales tax exemption for data center businesses, the property owner and the tenant cannot aggregate their investments to meet the minimum investment requirement. Iowa law provides a sales tax exemption for data center
NY Tax Talk: Triggers for tax on software-as-a-service
New York continues to closely review the application of state sales tax to services performed using software platforms.
Recently, two May decisions by the New York Tax Appeals Tribunal and the New York Division of Tax Appeals affirmed the Division of Taxation’s decision to tax service providers for the sales of prewritten computer software in
Sour grapes: Washington Court of Appeals dismisses juice drink sales tax class action
The Washington Court of Appeals recently upheld the dismissal of a putative class action brought against four grocery store chains that collected sales tax on sales of 100 percent juice beverages. A taxpayer alleged that the grocers violated Washington’s Retail Sales Tax Act and Consumer Protection Act by wrongfully collecting sales tax on the exempt
New York Tax Appeals Tribunal holds sales of a company’s labor procurement system are taxable as pre-written software
The New York Tax Appeals Tribunal held that a company’s fees related to sales of its labor procurement system were taxable sales of pre-written software.
Taxpayer, Beeline.com Inc., provides services to assist customers in gathering, organizing, managing and assembling their contingent labor force. As part of its service contracts, taxpayer grants its customers license to
Taxing truths: A discussion on the use tax implications in Ellingson Drainage
In the latest episode of the SALT Shaker Podcast, Eversheds Sutherland attorneys Jeff Friedman and Jeremy Gove welcome UConn School of Law Professor Rick Pomp to discuss Jeff and Professor Pomp’s US Supreme Court cert petition in Ellingson Drainage, Inc. v. South Dakota Department of Revenue.
Jeff, Jeremy and Professor Pomp delve into the
Not so rewarding: Arizona Supreme Court holds rewards program reimbursements are subject to transaction privilege tax
On June 7, 2024, the Arizona Supreme Court held that reimbursements received by a hotel when participating in a hotel rewards program were subject to the Transaction Privilege Tax (TPT). The reimbursements were paid to the taxpayer when it provided a guest with a complementary hotel stay under the program. The rewards program required the
To be or not to be (a manufacturer)? North Carolina Supreme Court answers the question
The North Carolina Supreme Court affirmed a lower court ruling that a taxpayer was a manufacturer for purposes of the State’s Mill Machinery Exemption, and was therefore entitled to a sales and use tax exemption on its purchase of materials used to produce hot mixed asphalt (HMA).
North Carolina exempts manufacturing companies subject to a
Enjoy your stay: Louisiana Court finds online travel booking companies not liable for sales tax collections
The Louisiana Court of Appeal held that online travel booking companies were not “dealers” required to collect sales taxes. The Louisiana Department of Revenue and various localities sued the booking companies for only collecting tax on the wholesale rate charged by the hotels rather than the retail rate charged to customers, which included a service
All or nothing: Illinois Appellate Court denies tax exemption on aviation fuel
The Illinois Appellate Court affirmed the Illinois Tax Tribunal’s determination that aviation fuel sold to airlines and subsequently stored at O’Hare International Airport is not exempt from the Retailer’s Occupation Tax (ROT) because the fuel was not consumed solely outside of the state.
The taxpayer, an aviation fuel retailer, argued that its fuel was subject
New York court holds advertising services are taxable information services
The Appellate Division, Third Department, affirmed the Tax Appeals Tribunal’s decision that a taxpayer was providing taxable information services for sales tax purposes. The taxpayer provided services that measured the effectiveness of its customers’ advertising campaigns. The services included providing a report analyzing surveys of customers/internet users, including a comparison of the client’s campaign results