Sales and Use Tax

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The North Carolina Superior Court held that intercompany transfers of product between affiliated entities do not constitute “sales” subject to sales tax when those transfers are not supported by bargained-for consideration, even if the taxpayer records the transfers using hypothetical “due to/due from” accounting entries.

The taxpayer, Asphalt Emulsion Industries, LLC (AEI), was a single-member…

The Washington Court of Appeals held that a company’s title insurance and escrow services provided remotely should be sourced to Washington because the company’s customers made “first use” of the services in Washington. The trial court held that the services were sourced out-of-state to the remote location where the title company performed its services under…

The Michigan Court of Appeals held that the Michigan Department of Treasury was permitted to engage in an indirect audit of a taxpayer because of its insufficient recordkeeping. The taxpayer operated oil change and automotive maintenance facilities in Michigan.  It claimed sales tax exemptions for labor charges associated with its services. On audit, the Department…

The New York Supreme Court, Appellate Division, affirmed a decision of the Tax Appeals Tribunal, which determined that a company’s charges for a proprietary technological platform, referred to as a “vendor management system” (VMS), constituted licenses to use prewritten computer software that were subject to sales tax. The company matched clients with suppliers of contingent…

The California Office of Tax Appeals held that storing inventory at a third-party warehouse constitutes “doing business” for income and franchise tax purposes.

The taxpayer was a Pennsylvania-based corporation making online sales of apparel through a third-party digital marketplace. The taxpayer also contracted with the marketplace to hold and ship inventory from warehouses (fulfillment centers)…

The taxpayer, a fleet management company that leases fleets of commercial vehicles to businesses, used leases containing a terminal rental adjustment clause (TRAC). Under these leases, the lessee paid estimated monthly rent based on the projected residual book value of the vehicle at lease termination. When the lease ended, the estimated rent was retrospectively adjusted…

On January 26, 2026, SB 277 was introduced on behalf of Alaska’s Governor. This bill would, among other things, enact a temporary statewide sales and use tax on personal property and services. Currently, Alaska is one of five states (along with Delaware, Montana, New Hampshire, and Oregon) that do not impose a broad-based state sales…

The Wisconsin Court of Appeals upheld a sales tax assessment against StubHub for the sale of tickets made through StubHub’s online marketplace. Between 2008 and 2013, more than $150 million tickets sales occurred between ticketholders and ticket buyers on StubHub’s platform for events that took place in Wisconsin. StubHub earned revenue from listing fees and commissions…

The New York Tax Appeals Tribunal affirmed its prior decision, upholding an Administrative Law Judge’s issuance of a subpoena requiring three Department employees to appear, and for the Department to produce documents for in-camera review, which included third-party tax information. The Tribunal rejected the Department’s request for re-argument because the Department presented no new issues…

The Alabama Tax Tribunal (Tribunal) determined that a wastewater treatment facility was entitled to a sales and use tax exemption for equipment purchased for use in its wastewater treatment business because the equipment was used primarily for exempt pollution control purposes.

The taxpayer, a privately owned entity that provided wastewater collection and treatment services, had…