SALT Shaker

Shaking things up in state and local tax

Alabama Leaves No One Behind: All Software is Taxable

By Alla Raykin & Maria Todorova on June 17, 2019

The Alabama Supreme Court ruled that all software, including custom software, is tangible personal property subject to Alabama sales tax. The taxpayer filed refund claims for sales tax paid on computer software and accompanying equipment, claiming that an Alabama Department of Revenue regulation exempted these purchases from the sales tax as “custom software programming.” The Alabama Supreme Court affirmed the denial of the refund claim, reasoning that the purchases at issues were software and that…

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Choppy Waters: Illinois Appellate Court Allows Taxpayer’s Late Protest Because of Misleading Department of Revenue Conduct

By Charles Capouet & Scott Wright on June 14, 2019

On May 22, 2019, the Illinois Appellate Court held that the late filing of a boat tour business’ Amusement Tax protest was excusable. The Cook County Department of Revenue had violated the taxpayer’s procedural due process rights by “affirmatively misleading” it on the proper filing deadline. Cook County law requires that taxpayers protest assessments within 20 days from the mailing of the assessment. The auditor erroneously informed the taxpayer, by e-mail, that the protest was…

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CalTax Quarterly Board of Directors Meeting

By Eversheds Sutherland SALT on June 11, 2019

Lawmakers in California have introduced bills set to generate $16.4 billion in new taxes and fees for the 2019-2020 legislative session. Last week, Eversheds Sutherland sponsored CalTax’s Board of Directors Meeting, which covered the Governor’s agenda, federal conformity, local tax initiatives, the pending litigation in San Francisco and some new statewide tax bills. To learn more about the pending tax legislation in California click here. Pictured from left to right is Partner Tim…

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Much Ado About Nothing! Colorado Supreme Court Holds that Holding Companies with No Property or Employees are Not Includable in a Combined Group

By Chelsea Marmor & Open Weaver Banks on June 11, 2019

The Colorado Supreme Court issued two decisions simultaneously holding that neither Oracle Corporation nor Agilent Technologies, Inc. were required to include in their combined income tax returns holding companies that did not meet the statutory definition of an “includable C corporation.” To be included in a combined return in Colorado, an affiliate must have more than twenty percent property and payroll in the United States. Because neither holding company owned property nor had employees, the…

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Over-Hall: U.S. Supreme Court Holds States Retain Sovereign Immunity from Private Suits in Other States, Overturning Nevada v. Hall

By Todd Lard & Hanish Patel on June 11, 2019

In a 5-to-4 decision, the US Supreme Court held that states retain sovereign immunity from private suits brought by individuals in courts of other states, and therefore, overruled its prior decision in Nevada v. Hall, 440 US 410 (1979). The decision arose from a longstanding dispute brought by an individual taxpayer against the California Franchise Tax Board (FTB) alleging abusive audit and investigative practices. By overruling Hall, the court ultimately held that the FTB is…

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INSIGHT: Single Member of Broker-Dealer Not Entitled to Use Broker-Dealer Sourcing in N.Y.

By Open Weaver Banks & Michael Hilkin on May 31, 2019

In a case of first impression, a New York administrative law judge (ALJ) ruled that a corporate member of a disregarded limited liability company was not permitted to use a special apportionment rule for broker-dealers even though the disregarded entity was a registered broker-dealer. Read the full article here.…

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May SALT Pet of the Month – Romeo Trencs

By Eversheds Sutherland SALT on May 31, 2019

Romeo Trencs was named after one of the greatest love stories of all time. So it is only fitting that he now finds himself wrapped up in another love story of epic proportions. Romeo’s owners, Eversheds Sutherland Associate Samantha Trencs and her fiancé Davis Jenkins, are planning for their wedding this August. Romeo, an apricot Toy Poodle, has been tasked with the all-important role of pup-of-honor and has taken his responsibilities quite seriously. He has…

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“Process” This: Maryland Court of Special Appeals Reverses Tax Court and Holds Utility Entitled to Sales Tax Exemption

By Samantha Trencs & Ted Friedman on May 29, 2019

The Maryland Court of Special Appeals held that the Maryland Tax Court erred as a matter of law in ruling that none of the equipment purchased by a public utility company and used in transmitting electricity from a third-party power plant to the utility’s customers in Maryland qualified for a sales tax exemption applicable to property used in a “production activity.” A “production activity” is defined by statute to mean, among other things, “processing” Tangible…

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California, meet New York

By Eversheds Sutherland SALT on May 29, 2019

Eversheds Sutherland welcomed local guests into our New York office to meet Sacramento lawyers Tim Gustafson and Eric Coffill and learn about developments in California state tax. The group then went to see the Padres meet the Yankees (where the visiting team eked out a win). …

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School During Summer: Florida District Court of Appeal holds Class of “Every Current and Future” Member cannot be Certified.

By Chelsea Marmor & Charlie Kearns on May 22, 2019

The Florida District Court of Appeal reversed the trial court’s certification of a class in a sales tax refund claim because the class was not “ascertainable.” Plaintiff filed suit against BJ’s Wholesale Club, Inc. (“BJ’s”) alleging that BJ’s thirty-one Florida stores improperly imposed sales tax on the full, undiscounted price of products purchased with a discount. The court held that the class was not ascertainable because: (i) the tax issue only affected Florida stores, (ii)…

SALT Shaker

Shaking things up in state and local tax

Blog Authors

Alabama Leaves No One Behind: All Software is Taxable

Choppy Waters: Illinois Appellate Court Allows Taxpayer’s Late Protest Because of Misleading Department of Revenue Conduct

CalTax Quarterly Board of Directors Meeting

Much Ado About Nothing! Colorado Supreme Court Holds that Holding Companies with No Property or Employees are Not Includable in a Combined Group

Over-Hall: U.S. Supreme Court Holds States Retain Sovereign Immunity from Private Suits in Other States, Overturning Nevada v. Hall

INSIGHT: Single Member of Broker-Dealer Not Entitled to Use Broker-Dealer Sourcing in N.Y.

May SALT Pet of the Month – Romeo Trencs

“Process” This: Maryland Court of Special Appeals Reverses Tax Court and Holds Utility Entitled to Sales Tax Exemption

California, meet New York

School During Summer: Florida District Court of Appeal holds Class of “Every Current and Future” Member cannot be Certified.

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