Read our April 2016 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 Sutherland SALT Shaker app.
- Alabama Tax Tribunal Determines Out-of-State Bookseller Has Nexus, Joins “Club”
The Alabama Tax Tribunal concluded that an out-of-state retailer was required to collect and remit use tax on the sales of books and educational materials to in-state teachers and students, and that neither the Due Process Clause nor the Commerce Clause impeded the Alabama Department of Revenue’s authority to assess the seller for uncollected tax.
- SALT Pet of the Month: Whiskey
Meet Whiskey, a two-and-a-half-year-old Cavalier King Charles Spaniel belonging to Teresa Chiftis, Group Manager-Tax Controversies at Microsoft Corporation, and her husband, Jeff.
- It’s Plain (and Ordinary) to See: Michigan Court of Appeals Holds Unitary Business Group Does Not Exist
The Michigan Court of Appeals reversed a trial court ruling and held that three companies did not constitute a statutorily defined “unitary business group” for Michigan Business Tax (MBT) purposes.
- Damages Award Limited in Nevada Case Involving Tortious Conduct by California Franchise Tax Board
In a 4-4 decision, the U.S. Supreme Court affirmed the Nevada courts’ exercise of jurisdiction over the California Franchise Tax Board (FTB), but held, by a majority of the justices, that the taxpayer could only receive the damages Nevada provides for suits by private citizens against Nevada agencies.
- New Jersey Tax Court Rules on Inclusion of Mortgage-Related Receipts in Receipts Factor Numerator
The New Jersey Tax Court ruled on the sourcing of mortgage-related receipts received by a bank and also held that the Division of Taxation could not throw out receipts from the bank’s denominator.
- Bills, Bills, Bills: Texas Court of Appeals Scrubs Bill Pay Service Provider Free of Sales Taxes
In Hegar v. CheckFree Serv. Corp., a Texas Court of Appeals affirmed the trial court’s decision and held that the taxpayer’s online bill pay service was not a taxable data processing service for Texas sales tax purposes.
- Texas Comptroller Issues “Strong” Decision, Companies’ Single Shared Administrator Not Sufficient to Require Unitary Combined Filing
The Texas Comptroller upheld a taxpayer’s separate Franchise Tax return filing position, rejecting an Administrative Law Judge’s finding that the taxpayer and its affiliate shared a strong centralized management structure that required a unitary combined report.
- Rage Against the Machine: Virginia Court Declares Cable Set-Top Boxes Not Subject to County Property Tax
The Circuit Court of Henrico County, Virginia, recently affirmed a ruling by the Commissioner of the Virginia Department of Taxation (Commissioner) that determined a cable provider’s set-top boxes are not “machines” for local property tax purposes and therefore not subject to Henrico County property tax.
- The Home Stretch: Virginia Tax Commissioner Rules that Single Employee Working From Home Creates Nexus
The Virginia Tax Commissioner ruled that an out-of-state corporation had nexus with Virginia because an employee performed accounting, human resources, payroll and customer support functions from a home office in Virginia.