Read our June 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 Regulation Requires Software Update: Tax Tribunal Holds Modified Software Is Nontaxable Custom Software
The Alabama Tax Tribunal held that a taxpayer was entitled to a refund of sales taxes paid on purchases of software that was modified for its exclusive use because it constituted nontaxable custom software.
- SALT Pet of the Month: Molli
Meet Molli, the 11-year-old English Bulldog of Jaimie Lee, Indirect Tax Senior Manager at Uber.
- New York Calling: Phone Card Kiosk Sales Subject to Sales Tax, but Not Telecommunications Excise Tax
The New York State Department of Taxation and Finance issued an Advisory Opinion concluding that a retail operator of kiosks selling various prepaid telecommunication plans and additional telecommunication rights for existing plans was subject to New York sales and use tax collection and remittance requirements, but was not subject to the additional excise tax on telecommunication service providers imposed by section 186-e.2(a) of the New York Tax Law.
- NYC Tax Appeals Tribunal Determines HMO Subject to General Corporation Tax
The New York City Tax Appeals Tribunal reversed an administrative law judge (ALJ) and determined that a health maintenance organization (HMO) was subject to the New York City general corporation tax.
- NYC Tax Appeals Tribunal Holds Subsidiary Not Required to Be Included in Banking Corporation Tax Return
The New York City Tax Appeals Tribunal held that a bank filing a combined New York City bank tax return properly excluded from its combined group a Connecticut investment subsidiary that primarily held mortgage loans secured by non-New York property.
- Ohio Supreme Court Rules that Taxing Out-of-State Investor’s Capital Gain Violates Due Process Clause
The Ohio Supreme Court held that the Due Process Clause of the U.S. Constitution precluded Ohio from taxing a nonresident individual on an apportioned share of his gain from the sale of a limited liability company that conducted business in the state.
- South By Southwest: Texas Supreme Court Rejects Processing Exemptions for Oil Company
The Supreme Court of Texas held that an oil and gas exploration and production company’s purchases of casing, tubing, other well equipment, and associated services were not exempt from sales tax under various processing exemptions.
- Treaty Is No Defense: German Corporation’s Royalty Income Subject to Washington B&O Tax
A Washington State administrative law judge (ALJ) denied a business and occupation (B&O) tax protest from a German pharmaceutical corporation with no physical presence in the state after finding that the royalty income from products sold in Washington far exceeded Washington’s economic nexus threshold.