Welcome to the February 2026 edition of The BR State + Local Tax Spotlight. We know the importance of remaining up-to-date on State + Local Tax developments, which appear often and across numerous jurisdictions. ...more
The New York Appellate Division, Third Department, held that a vehicle fleet management company properly took credits on its sales tax returns for sales taxes refunded to its lessees based on adjustments that it made at the...more
The California Office of Tax Appeals sustained the majority of a proposed assessment resulting from a federal change as the taxpayer did not provide sufficient evidence to overcome the assertion of additional tax. In re: G....more
The Pennsylvania Supreme Court has affirmed the Commonwealth Court and ruled that Pittsburgh’s Non-Resident Sports Facility Usage Fee (“Facility Fee”) unconstitutionally discriminates against nonresidents in violation of...more
The New York State Tax Appeals Tribunal, affirming an Administrative Law Judge, held that the Internet Tax Freedom Act prohibits the Division of Taxation from subjecting to tax the receipts that Verizon New York, Inc....more
Consistent with the decisions in several other states interpreting the Uniform Division of Income for Tax Purposes Act’s (“UDIPTA”) definition of nonbusiness income, an Arkansas Circuit Court concluded that gains from the...more
The Virginia Court of Appeals has held that the Department of Taxation (“Department”) cannot require a corporation to include the income and factors of a 17% owned limited liability company with its own income and factors,...more
A U.S. District Court ruled that a Kentucky statute that requires the State’s Public Service Commission (“PSC”) to compute the reasonableness of the rates that utilities charge consumers by reducing fuel costs by any...more
Although a person having an officer title, being listed on tax documents as a “responsible person,” and having check signing authority will usually be found to be a “responsible person” for New York sales and use tax...more
As a result of the COVID-19 pandemic, many states and localities tried to continue taxing nonresident employees who stopped working from their employer’s location and began working from home in another jurisdiction. The...more
Since the South Carolina Supreme Court held in Media General Communications, Inc. v. South Carolina Department of Revenue, 694 S.E.2d 525 (S.C. 2010), that the Department of Revenue (“Department”) had the authority to allow...more
Blank Rome’s nationally prominent State + Local Tax attorneys are thought leaders in the community as frequent guest speakers at various local and national conferences throughout the year. Our State + Local Tax attorneys...more
The Superior Court of New Jersey, Appellate Division, required the New Jersey Economic Development Authority (“EDA”) to “turn square corners” and certify $26 million in tax credits pursuant to its contract with a company...more
The Ohio Board of Tax Appeals held that a manufacturer that delivered its products to a distribution center/warehouse in Ohio successfully demonstrated that a large percentage of those products were subsequently shipped...more
The Ohio Supreme Court, reversing the Board of Tax Appeals, held that various items of equipment used in providing fracking services were directly used in the production of oil and gas and, consequently, were exempt from Ohio...more
The Texas Supreme Court held that, while permitted in certain limited circumstances, a school district cannot pay a contingent fee to an attorney to litigate its challenge to increase the appraised value of property. Pecos...more
Blank Rome’s nationally prominent State + Local Tax attorneys are thought leaders in the community as frequent guest speakers at various local and national conferences throughout the year. Our State + Local Tax attorneys...more
Highlighting the importance of the wording of a statute, the New York State Tax Appeals Tribunal, reversing an Administrative Law Judge, held that a manufacturer was allowed both a refund of 50 percent of its Empire Zone...more
Blank Rome’s nationally prominent State + Local Tax attorneys are thought leaders in the community as frequent guest speakers at various local and national conferences throughout the year. Our State + Local Tax attorneys...more
The Rhode Island Division of Taxation (“Division”) recently ruled that a vendor that had accepted a valid resale certificate was nonetheless subject to taxes, interest, and penalties from the transaction based on the timing...more
Blank Rome’s nationally prominent State + Local Tax attorneys are thought leaders in the community as frequent guest speakers at various local and national conferences throughout the year. Our State + Local Tax attorneys...more
Blank Rome’s nationally prominent State + Local Tax attorneys are thought leaders in the community as frequent guest speakers at various local and national conferences throughout the year. Our State + Local Tax attorneys...more
While not many states have a uniformity clause in their constitutions, for those that do it can be a powerful tool in a person’s arsenal in challenging a tax. This was recently demonstrated in National Hockey League Players’...more
New York State Governor Kathy Hochul has signed into law a bill that imposes “bright-line” economic nexus based on in-City receipts, applicable to tax years beginning on or after January 1, 2022, under the New York City...more
On July 28, 2022, the Alabama Tax Tribunal held that a corporation is not required to add back interest paid to a related entity as the recipient was subject to tax on that income in Ireland. This was so even though the...more