The Commonwealth Court of Pennsylvania affirmed a decision by the Board of Finance and Revenue that found American Electric Power Service Corporation (“Taxpayer”) was subject to Pennsylvania’s gross receipts tax as a wholesale seller of electricity. The Taxpayer presented two substantive arguments, both of which the Court found unconvincing. Taxpayer asserted that it was not

By Nicole Boutros and Scott Wright

A New York State Division of Tax Appeals administrative law judge (ALJ) determined that a telecommunications provider’s electricity purchases were not exempt from sales tax as sales for resale. In so doing, the ALJ rejected the taxpayer’s assertion that it resold electricity by incorporating it into its telecommunications services,

On December 29, 2016, a New York City administrative law judge (ALJ) determined that Sprint’s long distance telecommunications service fees were exempt from the City’s Utility Tax. In the Matter of the Petitions of U.S. Sprint Communications Co., LP, TAT (H) 14-12 (UT) et al. Sutherland represented Sprint in the matter.

  • The ALJ concluded

By Hanish Patel and Eric Coffill

The Supreme Court of Virginia held that a city could not impose its consumer utility tax on the natural gas consumed by an electric power company solely for the purpose of generating electricity. Virginia localities are authorized to impose the tax on consumers of natural gas provided by a

By Marc Simonetti and Douglas Upton

The Louisiana Supreme Court concluded that limestone purchased for the dual purpose of absorbing sulfur during the generation of electricity and producing ash for sale to third parties was excluded from the definition of a “sale at retail” by application of the “further processing exclusion” under the Louisiana sales

By Nick Kump and Carley Roberts

The Indiana Tax Court held that the plain language of Indiana’s utility receipts tax (URT) does not require taxpayers to separately state taxable and nontaxable receipts on their returns. The URT provides that nontaxable receipts are taxable if such “receipts are not separated from the taxable receipts on the

By Hanish Patel and Open Weaver Banks

A New York Division of Tax Appeals Administrative Law Judge (ALJ) held that an electricity producer’s purchases, installations and repairs of “step-up transformers” were not subject to sales and use tax because the transformers were “used directly” in the production of electricity. Step-up transformers are used to “step

By Samantha Trencs and Madison Barnett

The Rhode Island Supreme Court held that a wind turbine owned by a non-utility private party was exempt from personal property tax under a manufacturing exemption because the turbine converted wind into electricity. The court rejected the taxing authority’s argument that the turbine was ineligible for the exemption because