In the ongoing saga over Colorado’s use tax reporting laws in Direct Marketing Association v. Brohl, the U.S. Court of Appeals for the Tenth Circuit ordered a full briefing on the Comity Doctrine and the Commerce Clause on April 13. The outcome of this case could have broad implications for states and taxpayers seeking
sales tax
Shocker in the Sunshine State: Data Center Power Fees Not Subject to Florida Gross Receipts Tax
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Posted in Southeast
By Charles Capouet and Madison Barnett
The Florida Department of Revenue determined that a Florida data center’s power fees are not subject to gross receipts tax but may be subject to sales tax. The taxpayer operates a colocation data center and purchases electricity to power the data center from a utility. The taxpayer’s customers have…
Louisiana Court Gives Taxpayer the Edge: Trade-In Credits Reduce Sales Tax Base
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Posted in Noteworthy Cases
By Suzanne Palms and Open Weaver Banks
The Louisiana Court of Appeal held that GameStop, a video game retailer, correctly applied trade-in credits to reduce the sales price of new items in determining local sales tax due. GameStop accepted used games from its customers in exchange for a trade-in amount on a stored value card…
New York Budget Incorporates More Significant Tax Changes
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Posted in New York, Policy and Legislation
New York Governor Andrew Cuomo introduced his 2015-2016 budget and accompanying legislation on January 19, 2015. After much negotiation, the Legislature just enacted the Budget Bill. As a result, New York’s tax law has been significantly altered for the second time in two years.
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Will New Roads Lead to Georgia Tax Reform?
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Posted in Policy and Legislation
By Stephen Burroughs and Jonathan Feldman
Georgia’s Transportation Funding Bill may lead to significant tax reform for the state in 2016. In response to a nearly $1 billion transportation budget shortfall, on March 5 the Georgia House of Representatives passed H.B. 170, which would convert Georgia’s sales tax on motor fuel to a 29.2…
Missouri DOR Gets Trained: Gym Rental Fees Not Subject to Sales Tax
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Posted in Noteworthy Cases
By Jessie Eisenmenger and Timothy Gustafson
The Missouri Supreme Court held that charges paid by a personal training company to a gym for the rental of office space and limited use of the fitness equipment when conducting personal training sessions are not subject to sales tax. The personal training company paid the gym $6,000 per…
U.S. Supreme Court Sends 4-R Act Case Back to Lower Court for the Second Time
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Posted in Noteworthy Cases
A day after issuing its decision in Direct Marketing Ass’n v. Brohl, the U.S. Supreme Court decided Alabama Department of Revenue v. CSX Transportation, Inc. The Court held that a rail carrier can show discrimination under subsection (b)(4) of the Railroad Revitalization and Regulatory Reform Act of 1976 by demonstrating that it is…
All Nine Agree: U.S. Supreme Court Holds that the Tax Injunction Act Does Not Bar DMA’s Action in Federal Court
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Today the U.S. Supreme Court unanimously held in Direct Marketing Ass’n v. Brohl that the Tax Injunction Act does not bar Direct Marketing Association’s federal lawsuit against Colorado’s sales tax reporting regime. The substantive challenge to the constitutionality of the reporting regime will continue at the Tenth Circuit. Continue reading…
Oklahoma Tax Commission Sounds Off on Whether Background Music Is Subject to Sales Tax
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Posted in Digital Economy
By Robert P. Merten III and Open Weaver Banks
The Oklahoma Tax Commission determined in a letter ruling that certain sales of background music are subject to Oklahoma state sales tax. The Commission was asked to provide written guidance on whether state sales tax would apply to the provision of background music to customers paying…
Rely at Your Own Risk: Taxpayer Properly Applies Georgia Regulation, Loses
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Posted in Policy and Legislation
By: Stephen Burroughs & Timothy Gustafson
The Georgia Tax Tribunal held that for sales and use tax purposes contractors are per se consumers of tangible personal property and thus are ineligible for: (1) the sale for resale exclusion, and (2) a regulatory exclusion for property temporarily stored in Georgia while in interstate commerce. The taxpayer…