Last fall, when a Maryland County Circuit Court held that the Maryland Digital Ad Tax violated the dormant commerce clause, the supremacy clause, the Internet Tax Freedom Act, and the First Amendment of the U.S. Constitution, most of the
SALT Insights
Akerman Perspectives on the State of Taxation
SALT Insights, published by Akerman LLP, focuses on state and local tax (SALT) issues affecting businesses, particularly in areas such as nexus, sourcing, and tax compliance. The blog covers developments in state tax regulations, constitutional challenges to tax regimes, and the impact of federal laws like Public Law 86-272 on state taxation authority. It addresses topics including taxation of digital goods and services, sales and use tax complexities, home rule jurisdiction tax issues, and evolving interpretations of tax statutes in the context of e-commerce and telecommunications. The blog provides analysis of legal challenges and regulatory changes shaping state and local tax landscapes.
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What’s Next For Maryland’s Digital Advertising Tax?
Maryland’s controversial Digital Advertising Gross Revenues Tax (the “Digital Ad Tax”) recently shot back to the top of the headlines when Maryland Circuit Court Judge, Alison Asti, ruled from the bench that the tax is unconstitutional and violates the federal…
Illinois DOR Proposes to Change Income Tax Liability for Businesses that Make Sales to Foreign Countries
The Illinois Department of Revenue (“IDOR” or “Department”) recently issued a Notice of Proposed Amendment to amend its Regulation (86 Ill. Admin. Code § 100.3200) governing the “throwback” and “throwout” apportionment provisions (the “Amendments”). 46 Ill. Reg. ___ (Apr. 15…
Sirius XM Prevails in Texas Supreme Court on Sourcing of Receipts from Satellite Signal
In a recently issued taxpayer-favorable opinion, the Texas Supreme Court overturned the court of appeals’ decision holding that the state’s performance-based sourcing statute for service receipts essentially looks to customer location. The Court, relying on the statute’s plain language, then…
Texas Supreme Court Rejects Texas Comptroller’s “Receipt-Producing, End-Product” Act Test for Sourcing Receipts from Services
By Montaye Sigmon & David Blum
On March 25, the Texas Supreme Court issued a highly-anticipated decision concerning the proper test to source receipts from services for purposes of Texas franchise tax. By statute, receipts from a “service performed in this state” must be sourced to…
Louisiana Launches Unique State Transfer Pricing Initiative
By Stefi George
Joining Indiana and North Carolina, Louisiana last week became the third state to offer an alternative to the burdensome and expensive process of enduring a state transfer pricing audit.
The Louisiana Department of Revenue announced a short-term voluntary initiative (the “Louisiana…
Updated: Maryland’s Latest Attempt to Fix its Digital Ad Tax May Lead to More Litigation
By Stefi George
Shortly after the Maryland passed the country’s first “Digital Advertising Gross Revenues Tax”, H.B. 732, the Maryland Senate went to work attempting to fix a few known glitches in the law. Senate Bill 787, which passed the Maryland General Assembly…
Lights! Camera! Action! Shuttered Venue Operators Grants (SVOG) Takes Center Stage on April 8
On April 8, The Small Business Administration (SBA) finally opens its Shuttered Venue Operators Grant (SVOG) program, which was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, as part of the the Consolidated Appropriations Act,…
Word Play: The Curious Case of Economic Nexus Legislation in Florida
In June 2018, the United States Supreme Court in Wayfair held that the physical presence of the taxpayer was no longer a prerequisite for imposition of a sales tax. In so doing, the Court blessed the concept of “economic nexus”…
What Will Come of Maryland’s Unique and Controversial Digital Advertising Tax?
By Stefi George & David Blum
On February 12, 2021, overriding the Governor’s veto, Maryland enacted a first-of-its-kind tax “Digital Advertising Gross Revenues Tax” that has already sent shockwaves through the industry. As widely anticipated, within one week of the enactment four trade associations representing industry…