The Wisconsin Court of Appeals held that guidance issued by the Department of Revenue required the Department to allow a dividends-received deduction for cash distributions received by a taxpayer from a foreign partnership that was classified as a corporation for federal purposes. The taxpayer based its claim to the deduction on published guidance in effect

In this episode of the SALT Shaker Podcast, host Chris Lee discusses a California income tax matter concerning the sourcing of an individual’s income, a Wisconsin corporate income tax matter involving the dividends received deduction, and two Idaho individual income tax decisions addressing domicile.

Questions or comments? Email SALTonline@eversheds-sutherland.com.

 

The Wisconsin Department of Revenue has published a guidance document on the taxation of traditional and remote learning materials. Live in-person and digital online educational services are generally a non-taxable educational service. The guidance provides that the sale of a pre-recorded webinar is generally taxable as the sale of personal property, although it may be

The Wisconsin Tax Appeals Commission recently clarified the applicability of the state’s property tax exemption for machinery, tools, and patterns (“MTP”) under Wis. Stat. § 70.111(27), which took effect in 2018. At issue in this appeal was which of a taxpayer’s property items were eligible for the exemption, which applies to all MTP unless the

Wisconsin’s Department of Revenue (DOR) released two proposed guidance documents answering common questions and clarifying rules applicable to marketplace sellers and providers. The proposed Marketplace Provider Common Questions generally explains the DOR registration process and offers other clarifications; for example, it notes that facilitators can prepare a single sales tax return that includes all facilitated

On July 17, 2018, the Wisconsin Court of Appeals held that a taxpayer’s services qualified as taxable “laundry services” and were subject to Wisconsin sales tax.  The taxpayer entered into service agreements with clients and provided them contract cleaning services.  The taxpayer would hire its clients’ existing laundry department workforces as employees, who would then

By Jessica Eisenmenger and Open Weaver Banks

The Wisconsin Court of Appeals for District III upheld the Tax Appeals Commission’s decision that separating dredged material from contaminated river water into its constituent parts for the purpose of water pollution remediation constitutes “processing” of tangible personal property and is therefore a taxable service. Tetra Tech EC,

By Charles Capouet and Jonathan Feldman

The Wisconsin Court of Appeals held that Wisconsin courts lacked personal jurisdiction over the Mississippi Department of Revenue so as to subject it to a lawsuit in the state. An individual taxpayer asserted that the Mississippi DOR had filed a fraudulent tax lien against him. The taxpayer moved from

By Todd Betor and Jonathan Feldman

On February 11, the Wisconsin Court of Appeals held that the receipts earned by Orbitz, an online travel company, from its services and markups for reserved rooms are not subject to sales tax. Specifically, the court determined that Orbitz is not “furnishing” rooms or lodging for purposes of Wisconsin

By Nick Kump and Timothy Gustafson

The Wisconsin Tax Appeals Commission overturned a $2.4 million assessment against an intellectual property (IP) holding company, ruling that the company’s income-producing activities for Wisconsin sales factor purposes – IP licensing and related activities – occurred entirely outside of the state. The taxpayer, a wholly owned subsidiary of the