In just the first few months of the 2022 tax year, we have already seen several states introduce legislation that would decrease corporate and individual income tax rates. Idaho became the first state to pass such legislation this year, on February 4. The Eversheds Sutherland SALT team expects other states to follow and will provide
Indiana updates sales tax guidance for marketplace facilitators
The Indiana Department of Revenue modified Sales Tax Bulletin No. 89 to reflect the recent change (SB 382) clarifying that a marketplace facilitator is required to collect sales tax for each retail transaction it facilitates regardless as to whether the marketplace facilitator has a contractual relationship with the seller as long as the
Booted out of Indiana: Indiana DOR finds that parent holding company has no nexus for combined return
The Indiana Department of Revenue found that a holding company was properly excluded as a member of its affiliates’ financial institutions tax (FIT) combined group return because the company failed to establish nexus with the state. The Department also decided that for purposes of the FIT, there is no distinction between business and nonbusiness income.
Indiana manufacturer’s software service agreement not subject to sales tax
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