The Indiana Department of Revenue issued a protest ruling that an auto parts manufacturer was entitled to a refund on certain software service purchases for the 2017, 2018, and 2019 years. The taxpayer licensed software through a remote platform into which taxpayer loaded its own data for education services, cloud services, and manufacturing support services.
Not my domicile: Indiana DOR drops assessment against taxpayer who moved out of state
On July 27, the Indiana Department of Revenue found that a taxpayer had abandoned her Indiana domicile and was therefore no longer subject to Indiana state income despite the taxpayer erroneously listing her permanent address with her employer as her old Indiana-based address.
The taxpayer protested the imposition of Indiana income tax and provided the
Software production found not to satisfy Indiana research expense credit
The Indiana Department of State Revenue recently published Letter of Findings 01-20181612 (dated April 27, 2021), upholding the disallowance of a state research expense credit for the production of two enterprise level software applications. The Department found that the Indiana research expense credit claimed by the taxpayer was based on a similar federal credit, and
Not so fast – Indiana Tax Court upholds pharmacy benefit management company’s sourcing of receipts from services
On May 14, 2021, the Indiana Tax Court upheld a pharmacy benefit management company’s sourcing of its receipts under Indiana’s costs of performance rules applicable to receipts from services. The court rejected the Indiana Department of Revenue’s position that the receipts should instead be sourced according to the rules for sales of tangible personal property.
Successfully defending sales factor sourcing adjustments
In this episode of the SALT Shaker Podcast, host and Associate Chris Lee is joined by Associate Jeremy Gove to discuss a decision by the Indiana Tax Court involving Express Scripts.
Transactions are becoming increasingly more complex. They can involve multiple parties, and multiple types of property and services. There’s also increasing complexity around determining
Quick Update: Delaware, Indiana and Washington
In this episode of the SALT Shaker podcast, host Chris Lee discusses the Verisign decision from Delaware concerning NOL limitations, an Indiana letter ruling concerning the taxation of software (2019-09ST), and a Washington Department of Revenue decision concerning nexus 
(Det. No. 15-0036).
Questions or comments? Email SALTonline@eversheds-sutherland.com.
Indiana Department of Revenue rules that sales of digital coursework to universities are exempt from sales tax
On October 2, 2020, the Indiana Department of Revenue issued Revenue Ruling #2019-09ST concerning the sale of digital course materials to Indiana colleges and universities, which were made available to students on the schools’ online learning management systems. The Department determined that these sales were exempt from sales tax because: (i) the course materials were
Indiana Introduces Surcharge Tax Bill Targeting Social Media Platforms
Representative J.D. Prescott (R) introduced Indiana House Bill 1312, which would impose a surcharge tax on social media providers. This proposed bill shares similarities with proposed digital advertising taxes in Maryland and New York, except that Indiana’s proposed surcharge tax is targeted at social media providers deriving revenue from advertising services on their
The Comity Club: Federal Judge Remands Indiana Franchise Fee Case Back to State Court
Citing to principles of comity, a federal district court remanded back to state court a class action suit brought by Indiana municipalities seeking franchise fees from various streaming video companies.
The Indiana municipalities filed a class action lawsuit against the streaming video companies in state court, asserting that the companies were obligated to pay franchise
Indiana updates informal remote seller and marketplace facilitator guidance
The Indiana Department of Revenue has updated Information Bulletin No. 89, providing guidance for remote sellers and marketplace facilitators regarding the state’s sales tax physical presence standards. The updated guidance, which is effective July 1, 2020, explains the applicable factors for remote sellers and marketplace facilitators to consider when determining whether they have physical