Read our May 2017 posts on stateandlocaltax.com or read each article by clicking on the title. For the latest coverage and commentary on state and local tax developments delivered directly to your phone, download the latest version of the Eversheds Sutherland SALT Shaker app.

• SALT Pet of the Month: Doodle
  Meet Doodle, the family member of Cooper Monroe, State and Local Tax Director at Duke Energy. Doodle is a rescue dog from a Dachshund rescue place in York, South Carolina.
• Arkansas Does Not Apply US-Canada Income Tax Treaty to State Income Tax
  Many foreign companies are surprised to learn that US states are not generally bound by income tax treaties entered into by the US with foreign countries.
• Georgia DOR Rules that Sales to Out-of-State Purchasers Are Subject to Sales Tax When Delivered to In-State Assembly Facility
  On April 10, 2017, a Tennessee Chancery Court ordered that the Tennessee Department of Revenue is temporarily prohibited from enforcing a regulation that requires out-of-state retailers making annual sales in excess of $500,000 to collect and remit sales tax.
• Chicago Left Out in the Cold—Illinois Appeals Court Reverses Chicago’s $29.1 Million CHAT Award
  The Appellate Court of Illinois reversed the Circuit Court’s $29.1 million Chicago Hotel Accommodations Tax (CHAT) award for Chicago holding that Defendant’s online facilitation and service fees were not subject to CHAT.
• Tennessee Federal Court Holds That State Sales Tax on Railroad Carriers Does Not Violate the 4-R Act
  The United States District Court for the Middle District of Tennessee held that Tennessee’s sales tax on railroad carriers for the purchase or use of diesel fuel was not discriminatory under the Railroad Revitalization and Regulatory Reform Act of 1976 (4-R Act) even though it did not similarly apply to motor carriers because motor carriers are subject to a comparable excise tax on motor carrier fuel.
• Texas Comptroller Finds Payment Risk and Fraud Prevention Solutions Should Be Apportioned as a Service
  The Texas Comptroller of Public Accounts has issued a private letter ruling finding that a Texas company’s revenue from sales of real-time payment risk and fraud prevention services should be sourced to the location of Taxpayer’s customers.
• FEATURED EVENT: TEI’s 2017 Region II Tax Forum
  Eversheds Sutherland is a proud co-sponsor of the 2017 TEI Region II Tax Forum taking place June 5-6, 2017, at the Borgata Hotel in Atlantic City, New Jersey. The Tax Forum will include five plenary and eight breakout sessions offering a wide selection of federal, international, and state and local topics. View the full program brochure. An estimated 11.5 hours of CPE credits or 11.5 hours of CLE credits will be available. Register today and join us!
• FEATURED PUBLICATIONS:
  • Caught in the Crosshairs: US Constitutional Challenges When a Jurisdiction Targets a Specific Taxpayer
    A state or locality in need of revenue, or possibly seeking a narrow policy goal, may enact a statute or ordinance imposing a tax that targets a specific company and applies to no other taxpayer. In their article for the Journal of Multistate Taxation and Incentives, Eversheds Sutherland (US) attorneys Charles Kearns and Chris Mehrmann evaluate the merits of challenging taxes that target a single company on US constitutional grounds.
  • The First Amendment Right to Pass-Through Fees—and Taxes
    The U.S. Supreme Court recently ruled in Expressions Hair Design v. Schneiderman that a New York statute that prohibits identifying a surcharge to customers for credit card payments regulates speech and is therefore subject to heightened scrutiny. In their article for Law360, Eversheds Sutherland (US) attorneys Eric Tresh and Alla Raykin break down the case and analyze its implications.