An Illinois Appellate Court affirmed a circuit court’s dismissal of a qui tam action filed against a United Kingdom-based tailoring shop. The court held that although the tailor’s failure to investigate its use tax collection obligations was “an ostrich-type situation,” the tailor nevertheless did not violate the Illinois False Claims Act.

 The Illinois False Claims

This week on the SALT Shaker Podcast, Eversheds Sutherland Associate Jeremy Gove is pleased to welcome Professor Richard Pomp, a state and local tax professor at both the University of Connecticut School of Law and NYU School of Law, to discuss the pending U.S. Supreme Court cert petition in Quad Graphics, Inc. v. North Carolina

The California Office of Tax Appeals (OTA) held that a taxpayer was liable for use tax on parts used to repair equipment in California before shipping it back to out-of-state customers. The taxpayer is a distributor, retailer, and repairer of endoscopes and other medical devices, and as part of its optional lump-sum maintenance contracts, the

On July 1, 2022, a statewide 27 cent per sale delivery fee took effect in Colorado. The fee applies to retailers or marketplace facilitators that collect sales or use tax on the sale of tangible personal property that is sold and delivered (including delivery performed by a third party) to a purchaser in Colorado. The

The Supreme Court of Montana affirmed a lower court’s determination that a taxpayer was liable for accommodations sales tax on its resort service fees, but did not owe accommodations sales tax for forfeited guest deposits or lodging facilities use tax on its resort service fees. The taxpayer, Boyne USA, Inc. owns and operates Big Sky

The Virginia Tax Commissioner ruled that purchases of software and software maintenance were subject to use tax, where the taxpayer was unable to prove that the software was delivered electronically and exempt. Although the taxpayer presented correspondence with two vendors that referenced the software and maintenance being only delivered electronically, the taxpayer could not provide

The Virginia Tax Commissioner issued a determination addressing use tax on the purchase of a software. Virginia statute provides an exemption for services not involving the exchange of tangible personal property, which provide access to or use of the internet and any other related electronic communication services including software, data, content and other information services

The Ohio Board of Tax Appeals upheld the Tax Commissioner’s disallowance of the “bulk credit” upon a second audit of the same transactions. During an initial audit, the taxpayer had provided purchases throughout the country, and the auditor estimated those purchases with an Ohio ship-to address and then applied a “last resort” bulk credit against

In a recent private letter ruling, the South Carolina Department of Revenue held that software subscription services are tangible personal property subject to sales and use taxes. A software company that provides a cloud-based business management and billing platform for medical equipment suppliers requested the letter ruling to determine whether its subscription charges were subject