On July 22, 2026, the Massachusetts Appellate Tax Board held that the Massachusetts Commissioner of Revenue could not use a Finnigan-style sales reallocation rule to include Massachusetts receipts of a P.L. 86-272 protected affiliate in the sales factor numerators of taxable members of its combined group. P.L. 86-272 prohibits a state from imposing a
Texas franchise tax on airline revenue grounded by federal preemption
A Texas Court of Appeals held that the federal Anti-Head Tax Act (“AHTA”) preempts Texas from imposing its franchise tax on American Airlines’ revenues from baggage fees, passenger ticket sales, and freight transportation. The case presented an issue of first impression – whether the AHTA’s prohibition on state and local taxes imposed on the “gross
Federal preemption primer: The Supremacy Clause and state tax limits
In this episode of the SALT Shaker Podcast, Partners Jeremy Gove and Chelsea Marmor introduce federal preemption and how the Supremacy Clause limits state taxing authority. When federal and state laws conflict, federal law controls, requiring state law to give way.
Jeremy and Chelsea outline the two types of preemption: express and implied.
Drawing on
Prepare for takeoff: Minnesota’s minimum fee is partially preempted by federal law prohibiting taxation of airline gross receipts
The Minnesota Tax Court ruled that the federal Anti-Head Tax Act (AHTA) preempts using Alaska Airlines’ gross receipts when calculating the Minnesota Franchise Tax Minimum Fee. The AHTA prohibits states from taxing gross receipts from air commerce or transportation. Minnesota’s Minimum Fee, imposed on taxpayers exercising a corporate franchise in the state, is calculated based