The New Jersey Tax Court held yesterday, February 27, 2019, in a precedential published opinion that a royalty payor was not required to add back any portion of the royalties that it paid to a related licensor under the...more
The Tax Court of New Jersey released its state tax addback decision in Daimler Investments US Corporation v. Director, Division of Taxation on January 31, 2019. The Tax Court agreed with our assertion that amounts Daimler...more
MOFO SALT 2018 YEAR IN REVIEW: CONTINUED SUCCESS IN A CHANGING STATE TAX WORLD -
Following the enactment of the Federal Tax Cuts and Jobs Act in late 2017, many interesting state tax issues emerged concerning states’...more
In Sales and Use Tax Bulletin 2019-01, the Pennsylvania Department of Revenue asserts that remote sellers with economic nexus must collect and remit Pennsylvania sales tax. The Bulletin is effective July 1, 2019....more
Until recently, retail sellers of goods and services were not required to collect sales tax unless they had a physical presence in a state. Sellers that operated primarily from one location and offered goods and services via...more
On October 25, 2018, in Downs Racing, LP v. Commonwealth, a unanimous Pennsylvania Supreme Court partially reversed the Commonwealth Court and held that royalty fees for intellectual property are not subject to sales and use...more
The Massachusetts Department of Revenue (“Department”) recently promulgated a proposed amended regulation governing the classification of corporations as “manufacturing corporations” for corporate excise tax purposes (the...more
Many states and localities are concerned that the proliferation of streaming services is shrinking tax revenues previously received from sales of traditional forms of entertainment. Those concerns are not unfounded. The...more
Stand Your Ground! Substantial Nexus Lives After Wayfair -
The U.S. Supreme Court decided in South Dakota v. Wayfair, Inc. that the U.S. Constitution does not require a physical presence in a taxing state in order for...more
7/23/2018
/ Appeals ,
Commerce Clause ,
Constitutional Challenges ,
Internet Retailers ,
Interstate Commerce ,
Out-of-State Companies ,
Physical Presence Test ,
Quill ,
Reversal ,
Sales & Use Tax ,
SCOTUS ,
South Dakota v. Wayfair ,
Substantial Nexus
On June 28, 2018, the Pennsylvania Legislature enacted legislation allowing companies to depreciate bonus depreciation property placed in service after September 27, 2017 pursuant to the normal federal depreciation rules...more
Chief Justice John Roberts quipped, “[w]hatever salience the adage ‘third time’s a charm’ has in daily life, it is a poor guide to Supreme Court decisionmaking.” However, the third time was indeed a charm for the states and...more
6/26/2018
/ Appeals ,
Commerce Clause ,
Constitutional Challenges ,
Internet Retailers ,
Interstate Commerce ,
Out-of-State Companies ,
Physical Presence Test ,
Quill ,
Reversal ,
Sales & Use Tax ,
SCOTUS ,
South Dakota v. Wayfair ,
Substantial Nexus
On March 30, 2018, the New York State Legislature approved a compromise 2018–2019 Budget Bill. Among the more significant tax provisions adopted (in bill S. 7509-C/A. 9509-C) were the following...more
The Virginia Supreme Court granted the Company’s petition for rehearing and confirmed that the Department of Revenue’s interpretations that are not contained in regulations are entitled to no weight. ...more
SUCCESS STORIES: WINS OF 2017 AND A POTENTIALLY BRIGHT NEW YEAR -
This past year has been remarkable in many ways, and not just for its Twitter wars. We are happy to report that our clients had many wins in 2017 (both...more
The Colorado Court of Appeals, affirming a decision of the Denver District Court, has held that the Colorado Department of Revenue cannot forcibly combine a corporation’s subsidiary, a holding company that derived its income...more
In a 4-3 decision, the Virginia Supreme Court held that the subject-to-tax safe harbor to the royalty addback was ambiguous and applies only to the extent that the royalties are actually taxed by another state. In addition,...more
When must state apportionment be fair? Always. If a state’s normal apportionment formula is operating unfairly with respect to your company, you need to consider the alternatives. The United States Supreme Court has...more
A Year in Review: Client Victories Abound -
The past year will be remembered as exciting for many tax, as well as non-tax, reasons. From the tax standpoint, we are happy to report that our clients had many victories. ...more
Effective May 11, 2016, the North Carolina General Assembly amended the royalty reporting option contained in Section 105-130.7A(a). As a result of the amendment, even if royalty payments are added back to the royalty...more
The New Jersey Supreme Court has denied certification in Lorillard Licensing Company LLC v. Director, Division of Taxation, making the Appellate Division's decision final. The Appellate Division affirmed the Tax Court in its...more
A Denver District Court judge has held that the Colorado Department of Revenue cannot forcibly combine a corporation’s subsidiary, a holding company that derived its income solely from investments in foreign entities, in...more
On January 6, 2016, the New Jersey Tax Court approved its January 14, 2014 decision in Lorillard Licensing Company LLC v. Director, Division of Taxation for publication, making the Tax Court decision precedential. The...more
New Jersey filed a notice of petition for certification (request for discretionary review) with the New Jersey Supreme Court seeking reversal of the Appellate Division’s December 4, 2015 decision that the Division may not...more
Mr. Scudder’s leadership is scheduled to commence on November 9, 2015.
Mr. Scudder returns to his native New Jersey from his dual roles as Chief Operating Officer of economic research and consulting firm Laffer...more
The Michigan Court of Appeals affirmed the Court of Claims’ decisions in cases that challenged the constitutionality of Michigan’s purported retroactive repeal of the Multistate Tax Compact effective January 1, 2008. The...more