Read our January 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 Sutherland SALT Shaker app.
- California Appeal Court Upholds $2.8 Million Refund for Comcast on Unitary Business Issue
The California Court of Appeal upheld Comcast’s $2.8 million franchise tax refund.
- SALT Pet of the Month: Lola
Meet Lola, the sweet Boxer mix belonging to Sutherland SALT Associate Doug Upton and his family.
- It’s Always Better When We’re Together: Colorado DOR Determines Payment of Sales Tax by Marketplace Provider Relieves the Jointly Responsible Retailers of Sales Tax Obligations
The Colorado Department of Revenue (Department) released a non-binding general information letter, concluding that a marketplace provider’s payment of sales tax on transactions involving “jointly responsible” third-party retailers discharges the obligations of the third-party retailers to collect and remit sales tax.
- MA ATB Determines a Securities Corporation Subsidiary Must File Required Application to Receive Favorable Tax Status as a Securities Corporation
The Massachusetts Appellate Tax Board (ATB) upheld the Commissioner’s assessment, resulting from a denial of a subsidiary’s securities corporation classification for corporate excise tax purposes.
- Citigroup False Claims Act Lawsuit Remanded to New York State Court for Lack of Federal Question Jurisdiction
A federal district court denied a taxpayer’s motion to dismiss a lawsuit brought under the New York False Claims Act (FCA) for lack of subject matter jurisdiction and remanded the action to state court.
- More Taxes Coming in Oregon?
New Oregon Gross Receipts Tax Proposal. On December 14, 2016, the group behind Measure 97 (which was defeated at the November 2016 general election), released a booklet setting forth its 2017 legislative proposals.
- A Chiropractor’s Delight: Taxpayer’s “PoP” Makes Internet Backbone Service Not Taxable in Pennsylvania (Again)
The Commonwealth Court of Pennsylvania recently reaffirmed its decision that Level 3’s network infrastructure services (including local dial networks, telephone numbers and modems, i.e., Internet “backbone”) sold to retail Internet service providers (ISPs) constitute non-taxable Internet access services.
- Tennessee Joint Government Operations Committee Expresses Concerns with Proposed Economic Nexus Standard for Sales Tax
On December 15, 2016, the Tennessee Joint Government Operations Committee held a hearing regarding the governor’s proposal to establish an economic nexus standard for the state sales tax.
- Web-Based Communication Interface Subject to Tennessee Sales and Use Tax
The Tennessee Department of Revenue (Department) released a letter ruling stating that a taxpayer’s charges for use of its web-based interface are subject to sales and use tax as the sale of ancillary services.
- Washington Supreme Court Holds B&O Tax Applies to Drop Shipments
The Washington Supreme Court held that drop shipments and sales from out-of-state are subject to the Washington business and occupation (B&O) tax even when an in-state office was not involved in placing or completing the sales.
- Pardon My French, But You’re A Taxpayer: Out-of-State Baker’s Croissants Lead to B&O Nexus in Washington
The Washington State Department of Revenue ruled that an out-of-state baker whose only in-state “presence” was its use of in-state independent commissioned sales representatives to solicit orders had substantial nexus with Washington and therefore was subject to the state’s business and occupation (B&O) tax.
- West Virginia Court Rules that Credit for Taxes Paid to Other States Must Include Local Taxes
The West Virginia Supreme Court held that a credit for taxes paid to other states on purchases of motor fuel is constitutional only if interpreted to include taxes paid to subdivisions of other states.