Constitutional Law › Tax Law

Court Prohibits Bond Expenditure on Stadium Lighting Because Lighting Was Not Specifically Listed as Contemplated Project

The California Court of Appeal, Fourth Appellate District, recently held that school district bond revenues could not be spent on stadium lighting where the bond proposition did not specifically list field lighting as part of...more

Court of Appeal Narrowly Reads School Bond Measure Language In Siding with Taxpayer Group’s Challenge To High School Stadium...

The California Court of Appeal, Fourth Appellate District, recently held that school district bond revenues could not be spent on stadium lighting where the bond proposition did not specifically list field lighting as part of...more

State + Local Tax Insights -- Spring 2013

In This Issue: Factor Representation: Is It Unconstitutional for a State to Have It Both Ways?; Upcoming Speaking Engagements; Expanded California Sales and Use Tax Exclusions for Advanced Manufacturing Projects; and...more

South Carolina Supreme Court (Reluctantly) Upholds Sales Tax Exemptions

Yesterday, the South Carolina Supreme Court issued its long-awaited decision in Bodman v. South Carolina, holding that the state’s sales and use tax exemption and cap scheme, as a whole, does not violate the state...more

Marketplace Fairness Act of 2013 Passes United States Senate

On May 6, 2013, the United States Senate passed the Marketplace Fairness Act of 2013 (the "Act") by a vote of 69 to 27. The legislation (S. 743) now moves to the House of Representatives for consideration....more

South Carolina Supreme Court Rules on Tax Exemptions in Bodman v. South Carolina

Close to a year and a half after hearing oral arguments in Bodman v. South Carolina, the South Carolina Supreme Court has upheld the “seven caps” and “eighty seven exemptions” found under the State’s sales tax. (Op. No. 27248...more

Bill Aims To Make Foreign Nonqualified LLC Contracts Voidable

As discussed in prior posts, “transacting intrastate business” is not the same as “doing business”. See You may Be Doing Business in California Even When Not Transacting Intrastate Business. The former is what determines...more

Halbig, et al. v. Sebelius, et al.

Lawsuit Challenging IRS “Subsidy Expansion Rule” (Full Text Copy)

Lawsuit filed by a group of small business owners and individuals against the Internal Revenue Service over the agency’s “Subsidy Expansion Rule.” From the Blog of Legal Times: “Objecting to what they term an ‘Obamacare...more

Are "Click-Through" Internet Marketing Tax Laws Constitutional?

Our preview of the oral arguments at the Illinois Supreme Court during the May term concludes with Performance Marketing Association, Inc. v. Hamer. PMA will be heard by the Court during the 9:00 a.m. session on Thursday, May...more

Online Sales Taxes Emerging as New York Court of Appeals Shoots Down Overstock and Amazon’s Constitutional Objections

In a March 28, 2013 decision, New York’s highest state court, the New York State Court of Appeals, held that New York’s “click-through” nexus statute, Tax Law § 1101 (b)(8)(vi), does not violate the United States Constitution...more

Sutherland SALT Shaker: April 2013 Digest

In this issue: - California Court of Appeal: No Man May Profit From His Own Wrongdoing in a Court of Justice - The (True) Object of My Affection: A Nontaxable Stock Screening Service - Alternate Universe...more

Proposed E-Commerce Taxation Bill Might be Unconstitutional

Much attention has been paid to the Marketplace Fairness Act currently under consideration in Congress. Understandably, that coverage has focused on whether the bill, which would permit states to require out-of-state...more

E-Commerce Providers Take Note: New York’s Highest Court Upholds “Amazon” Sales Tax Statute

On March 28, 2013, the Court of Appeals, New York’s highest court, issued a decision in Overstock.com, Inc. & Amazon.com, LLC, et al., holding that New York’s “click-through nexus” statute does not violate the Commerce Clause...more

Challengers Double Down on Opposition to California’s Carbon Allowance Auctions

A second lawsuit has been filed challenging one of the centerpieces of California’s innovative cap-and-trade climate change regulatory program: the auction process implemented by the California Air Resources Board (CARB) to...more

California's Cap and Trade Program Goes to Court Again

The other shoe finally dropped. The much-speculated and much-anticipated “tax vs. fee” AB 32 Cap and Trade lawsuit has finally been filed. A diverse coalition of businesses and trade groups filed a lawsuit in a state superior...more

Is The IRS Reading Emails With A Search Warrant?

Last week, the ACLU created a stir when it suggested that the IRS may be reading taxpayers’ emails without obtaining a search warrant. At least at some point in time in the past, according to the IRS’ 2009 “Search Warrant...more

"No State Income Tax" Constitutional Amendment to be Submitted to Tennessee Voters in November 2014

On April 8, 2013, the Tennessee House of Representatives passed Senate Joint Resolution 1 by a vote of 80-8, giving final approval to a proposed constitutional amendment to ban a state income tax in Tennessee on payroll and...more

Employer Tax Considerations for Supreme Court’s Pending DOMA Decision

High Court considers the constitutionality of DOMA, which may create tax-refund opportunities for employers and employees before April 15....more

Spotlight on SALT: New York Court of Appeals Upholds the State's "Click-Through Nexus" Statute

On March 28, 2013, in Overstock.com, LLC v. New York State Dept. of Taxation and Finance, the New York Court of Appeals, New York's highest court, upheld the New York State "click-through nexus" statute against a challenge...more

Amazon, the New York Internet Tax, and the Phalanx of Drummers

The New York Court of Appeals (“Court of Appeals”) ruled on March 28, 2013 that internet based retailers, such as Amazon and Overstock.com, are “physically” present in New York State by virtue of the way in which they conduct...more

April 2013 - Sutherland SALT Shaker

In this issue: - Click This!: New York Enacts Über Nexus Statute - Compact Litigation Fallout - Two States Expected to Join MTC Compact - Lesser-Known Tax Council Convenes in South Georgia -...more

Collection Due Process Hearings: Is It A Second Chance For Taxpayers To Litigate A Matter Previously Missed?

It happens all the time. Taxpayers are assessed tax liabilities by the Internal Revenue Service (IRS). To make matters worse for many taxpayers, they fail to timely petition the United States Court to contest the assessment....more

Was this week the beginning of the end for DOMA?

Hi there, This week had two days of arguments on gay marriage at the Supreme Court. The first case dealt with a challenge to the California law known as Prop. 8, which overturned the California Supreme Court’s...more

Legal Alert: A Royal Opportunity: Amendments to New York’s Royalty Expense Add-back Statute Leave the Income Exclusion Intact for...

On March 28, 2013, the New York State Legislature passed budget legislation (S.2609D/A.3009D) that replaces the existing New York State and City related - party royalty add - back requirements with provisions based on the...more

Cook County’s April Fool's Day Joke -- Use Tax on Non-Titled Personal Property Scheduled To Go Into Effect April 1, 2013

Cook County, Illinois, has enacted a 1.25 percent use tax on the "value" of non-titled personal property (i.e., personal property other than motor vehicles) purchased outside Cook County, not subject to Cook County sales tax,...more