Shaking things up in state and local tax
Shaking things up in state and local tax
By Charles Capouet and Andrew Appleby
The Virginia Supreme Court held that the Arlington County Commissioner must defer to the Virginia Tax Commissioner regarding the methodology for calculating a local Business, Professional, and Occupational Licenses tax (“BPOL”) deduction. Arlington County levies a BPOL tax based on the gross receipts attributed to activities conducted at an…
By Stephen Burroughs and Andrew Appleby
The Alabama Court of Civil Appeals ruled in favor of an out-of-state life insurance company regarding the calculation of its Alabama net worth tax – the Business Privilege Tax (BPT). The BPT requires an insurance company to calculate its Alabama net worth based on the ratio its Alabama premium…
By Evan Hamme and Madison Barnett
The Tennessee Department of Revenue determined that computer-related services provided on an hourly basis by an IT staffing agency are subject to sales tax in certain instances. Under Tennessee law, the sale of computer software is subject to sales tax, including when the software is created on a customer’s…
By Zachary Atkins & Jonathan Feldman
The Georgia Tax Tribunal held that the Texas Franchise Tax (the “TFT”) is a tax “on or measured by income” and allowed a Georgia resident, who indirectly owned an interest in a pass-through entity, to adjust his federal adjusted gross income for the amount of the entity’s income…
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By Jessica Kerner and Pilar Mata
The Georgia Department of Revenue determined that a company’s cloud-based applications and related services are not subject to Georgia sales and use tax. The company maintains and operates hardware and software on servers located outside of Georgia that it uses to support its customers’ telecommunications equipment, including voice, video…
By Jessica Kerner and Timothy Gustafson
The Georgia Court of Appeals dismissed a customer class action lawsuit seeking a sales tax refund from a utility company, holding that the applicable statutory provisions for claiming a refund of sales taxes did not authorize the customers to bring a direct refund cause of action against the seller.
Florida Department of Revenue (DOR) ruled that tuition receipts from online courses are sourced to the location of the student, as opposed to the location where the costs of performance (COP) are incurred. Technical Assistance Advisement, 12C1-006 (May 17, 2012). While the ruling acknowledges that Florida applies COP for sourcing service revenue (by virtue of…
Georgia Governor Nathan Deal signed three bills that will enact a wide range of changes to Georgia’s tax structure and procedure (HB 386, HB 100, and HB 846). These changes include a new sales tax exemption for energy used in manufacturing, an affiliate nexus provision, creation of a new Georgia Tax Tribunal, publication of letter rulings, and changes to the taxation of motor vehicles, among others. The bills are the culmination of the comprehensive tax reform effort started in 2010 by the Tax Reform Council. While the bills fall short of the dramatic changes originally proposed by the Council (which included taxation of services and groceries, and communications tax reform), they nevertheless include a number of taxpayer-friendly changes.Continue Reading Georgia Tax Reform 2.0: Three Bills Signed by Governor
Alabama ALJ Bill Thompson voided a local sales tax assessment asserted against an electronics retailer because the retailer did not have a physical presence in the taxing jurisdictions. Although the retailer sent repairmen into the local taxing jurisdictions, the retailer did not have a physical store or sales representatives in the localities, and therefore lacked…
