Read our January 2016 posts on 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 mobile app.

  • California BOE Adopts Beneficial Amendments to Sales Tax Exemption for Manufacturing and R&D Equipment
    The California Board of Equalization (BOE) voted to adopt an amendment to Ca. Code Regs. tit. 18, § 1525.4, to resolve a statutory ambiguity by clarifying that a taxpayer will qualify for the partial sales and use tax exemption available for certain manufacturing and research and development equipment purchases and leases if the purchase has a useful life of one or more years, even if the taxpayer expensed the purchase.
  • Heisman Would Be Proud: Taxpayer Stiff-Arms Indiana DOR with Transfer Pricing Studies
    The Indiana Tax Court granted summary judgment to Columbia Sportswear USA Corp., (“Columbia”), determining that: (1) Indiana’s alternative apportionment statute did not permit the Department to equitably adjust Columbia’s tax base; and (2) Indiana’s standard sourcing rules clearly reflected Columbia’s Indiana source income because transfer pricing studies supported Columbia’s intercompany transactions as being consistent with Indiana’s conformity to I.R.C. § 482.
  • Dance, Dance Fever: Missouri Supreme Court Holds Dance Lessons Are Fun…and Taxable
    The Missouri Supreme Court held that a dance school was subject to sales tax on its charges for dance lessons as fees paid to a place of amusement, entertainment or recreation. The court reasoned that even though the school had a primary purpose of teaching students how to dance, amusement or recreational activities comprised more than a de minimis portion of the business activities.