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. 

View the full Legal

By Mike Kerman and Andrew Appleby

The Tennessee Supreme Court held that the Tennessee Department of Commerce and Insurance (Department) improperly imposed retaliatory taxes on Pennsylvania-domiciled insurance companies doing business in Tennessee, because Pennsylvania workers’ compensation assessments were not imposed on Tennessee insurance companies, but rather on the insurance companies’ policyholders. Tennessee Code § 56-4-218

Yesterday, the Multistate Tax Commission kicked off its annual conference and committee meetings with meetings of the Audit and Nexus Committees. The MTC’s Audit program continues to grow by adding Iowa, Pennsylvania, Rhode Island and Delaware to the program during the last fiscal year. The MTC Nexus Committee is responsible for administering the National Nexus

By Ted Friedman and Pilar Mata

The Pennsylvania Office of Open Records (OOR) determined that the City of Philadelphia Department of Revenue (City) was not required to provide use and occupancy tax forms and documentation in the City’s possession relating to alleged unpaid use and occupancy taxes in response to a company’s request under Pennsylvania’s

By Jonathan Maddison and Andrew Appleby

The Commonwealth Court of Pennsylvania held that tax records detailing yearly totals of room rental tax and other occupancy data submitted by hotel taxpayers to a locality were not subject to disclosure under Pennsylvania’s Right-to-Know Law (RTKL). A newspaper, under the RTKL, requested that Lancaster County provide detailed tax

By Zachary Atkins and Andrew Appleby

The Pennsylvania Supreme Court held that treating a merger between two in-state banks differently than a merger between an in-state bank and an out-of-state bank did not violate the Uniformity Clause of the Pennsylvania Constitution. If two in-state banks merged, Pennsylvania law formerly required the combination of the banks&rsquo

By Shane Lord

The Commonwealth Court of Pennsylvania held that gross receipts received by Verizon in connection with nonrecurring service charges—including telephone line installation, moves of or changes to telephone lines and service, and repairs of telephone lines—were not taxable under the Commonwealth’s gross receipts tax on telephone companies. The court distinguished these nonrecurring services

City Year Greater Philidelphia Photo 1

Sutherland SALT was proud to be a sponsor of the City Year Greater Philadelphia’s 2013 Idealist of the Year Tribute Dinner. As tutors and mentors, City Year Greater Philadelphia corps members provide critically needed services to some of Philadelphia’s most underserved children and youth.

City Year Greater Philidelphia Photo 3

Sutherland client Comcast is a National Partner to City Year.

While most states that have “click-through nexus” sales tax laws have issued little to no guidance addressing the scope of their provisions, the Pennsylvania Department of Revenue (Department) issued guidance explaining the types of payment mechanisms that will trigger nexus.

The Department’s ruling supplements a December 1, 2011 Tax Bulletin (Tax Bull. 2011-01)

The U.S. District Court (E.D. Pa.) remanded a case to Pennsylvania’s state courts in a suit challenging a local improvement district’s assessment scheme on the grounds that the federal courts lacked jurisdiction over the action based upon the Tax Injunction Act (TIA). Nigro v. City of Philadelphia, No. 10-987 (E.D. Pa. Aug. 25, 2010). The TIA generally prohibits federal courts from entertaining cases regarding state and local “taxes” if the parties have a “plain, speedy and efficient remedy” available in state court. Taxing jurisdictions frequently raise the TIA as a basis for dismissing cases filed by taxpayers in federal court. However, in this case, after the taxpayer filed suit in state court, the City removed it to federal court and the taxpayer was seeking to have the case remanded back to state court pursuant to the TIA.


Continue Reading