SALT Shaker

Shaking things up in state and local tax

This is the first edition of the Eversheds Sutherland SALT Scoreboard for 2019. Since 2016, we have tallied the results of what we deem to be significant taxpayer wins and losses and analyzed those results. This edition of the SALT Scoreboard includes insights regarding Virginia’s costs of performance sourcing, New Jersey’s addbacks of intercompany expenses, and a spotlight on sales and use tax cases. View our Eversheds Sutherland SALT Scoreboard results from the first quarter…
Have you ever wondered what goes on behind the bench? At this year’s State and Local Tax Controversy Program, our panel of distinguished judges, moderated by Professor Rick Pomp, will discuss state tax controversies from their perspective. Session: All Rise for a Peek Behind the Bench – State Tax Tribunal This session will feature the following state tax judges: Bradford Delapena, Minnesota Tax Court Robert T. Manicke, Oregon Tax Court Roberta Moseley Nero, New York…
  Congratulations to Alisa Margolis, Director of AWS Tax at Amazon for serving on the dinner host committee for a successful gala benefiting the Friendship Circle of Washington. The Seattle-based non-profit promotes disability inclusion and friendship through programs that offer much-needed respite and fun for children with special needs and their families. The organization’s 14th Annual Heroes Gala, held March 28, raised over $500,000 to support these activities in the community.  We applaud Alisa, pictured…
The Court of Appeals of Ohio held that a Georgia-based wholesaler of lawn and garden products established nexus and its sales were properly included in the Commercial Activity Tax (CAT) base. The taxpayer was a wholesaler of garden equipment that did not have property, employees or other presence in Ohio. The Taxpayer’s primary customers were “big-box” retailers that were headquartered outside of Ohio but maintained distribution centers in Ohio and other states. The Taxpayer was…
The North Carolina legislature has introduced S.B. 622, which would make significant changes to a wide range of North Carolina taxes. Among those changes, the legislation would allow a deduction, to the extent included in federal taxable income, for amounts received from specified economic incentive programs in North Carolina—the Job Maintenance and Capital Development Fund, the Job Development Investment Grant, and the One North Carolina Fund. S.B. 622, § 5.1.(a)-(b). These state programs are…
On March 26, 2019, the Washington Court of Appeals held that a pharmacy benefit management company’s payments from clients (e.g., health maintenance organizations, health insurers, etc.) for the value of prescription drugs, were subject to the Washington B&O tax. The taxpayer manages the clients’ prescription drug benefit programs and performs activities, including contracting with third-party retail pharmacies to provide prescription drugs to its clients’ members. The taxpayer asserted that the payments were not subject to…
The Tennessee Court of Appeals held that a business that sold and installed automotive glass and also made repairs to automotive glass was properly classified as a seller of tangible personal property (glass), and not as a seller of services, for purposes of the Tennessee business tax. The Tennessee Department of Revenue audited the taxpayer’s business tax returns and issued an assessment based on the higher tax rate applicable to sellers of services. The taxpayer…
The New York Division of Tax Appeals denied a refund claim to a taxpayer that sought to apply the income sourcing rules for registered broker-dealers to accept receipts from its separate investment advisory business. The taxpayer structured its broker-dealer operations and investment advisory operations into two different single-member Limited Liability Companies (LLCs). The taxpayer claimed that it was entitled to apply the customer-based sourcing rules for registered broker-dealers under former N.Y. Tax Law § 210(3)(a)(9)…