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City’s Electric Slide Stumbles as Invalid Tax

We often focus on whether a levy is a tax masquerading as a fee because a state tax must be fairly apportioned under United States Constitutional precedent, while a fee is not so limited. Some “fees” can be quite material in...more

Illinois Loses First Shot at Interchange Fees on State and Local Taxes

Illinois enacted a law that prohibits a credit card holder’s bank from charging or receiving interchange fees on the portions of transactions that include Illinois state or local taxes and gratuities, in effect starting July...more

New Mexico Again Loses Unity of Foreign Income

The New Mexico Taxation & Revenue Department (“Department”) wrongly ignored the statutory exclusion for foreign corporations incorporated in foreign countries that do not engage in a trade or business in the United States...more

New Orleans Loses Bid to Tax Music Streaming Service

The New Orleans Collector of Revenue (“Collector”) failed in its attempts to subject music streaming services to the City’s sales tax. In Apple, Inc. v. Collector of Revenue of the City of New Orleans et. al., Docket No....more

What’s Shaking: Blank Rome State + Local Tax Roundup - April 2024

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

4/19/2024  /  Sales & Use Tax , Sales Tax , SALT , State Taxes

Alabama Loses Interest Addback Attack, Yet Again

Alabama’s Department of Revenue (“DOR”) struck out again when it attacked related party interest transactions. In Huhtamaki, Inc. v. Alabama DOR, Docket Nos. BIT 19-890-JP, BIT 19-1091-JP (Ala. Tax Tribunal 2024), the Alabama...more

Sales Tax & Bad Debts: Win at Indiana Tax Court Follows Federal

Financed transactions can result in states asserting "heads I win, tails you lose" by taking the tax at the time of sale but not accepting pain when the installment sale is busted. When a sale of tangible personal property...more

Use Tax Resale Exemption: Win at Missouri Supreme Court

States often dig in on issues where they shouldn’t, and we see that often in the sales and use tax context (as often as with other state taxes). The Missouri Director of Revenue incorrectly assessed use tax against a...more

New Jersey Still Wrestles with Unity, but Don’t Forget the Rules

As the New Jersey Division of Taxation changes leadership and issues guidance regarding legislative changes, including for unity, it is time to recall some fundamentals of unity and put the unity statute change in context....more

Multistate Businesses Subject to the New Jersey Gross Income Tax Beware of Apportionment Change

It has long been a trap for the unwary, or a helpful tip for those in the know, that multistate income from business that is reported on a New Jersey Gross Income Tax (“GIT”) return is apportioned differently from the way...more

Findings of Responsible Persons: Employer Withholding Penalty Findings Require Timely Notice

Trust fund taxes are typically subject to responsible person laws that provide that people who have the power to remit tax, but fail to remit, are held personally responsible for the failure. Such “trust fund” taxes have that...more

What’s Shaking: Blank Rome State + Local Tax Roundup - March 2023

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

Delaware Loses its Latest Grab for Purported Unclaimed Property

Delaware has maintained a nearly 60-year death-grip on its lucrative funding source of abandoned and unclaimed property. Another finger on that grip was loosened by Delaware’s recent loss at the U.S. Supreme Court when...more

Slightest Presence Nexus Attack Fails in Massachusetts for Pre-Wayfair Years

A Massachusetts tax auditor once said to me with pride, “They don’t call us ‘Taxachusetts’ for nothing!” when I explained that the Department’s position was unsupported. Recently, Massachusetts was reminded that its...more

Louisiana Parishes Don’t Have Home Court Advantage on Appeal

We have so often heard adversaries incorrectly assert that their agencies can be judge and prosecutor in their own cause. The saying is as old as the hills that “no man shall be a judge in his own cause.” Exec. Comm’n on...more

What’s Shaking: Blank Rome State + Local Tax Roundup - November 2022

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

What’s Shaking: Blank Rome State + Local Tax Roundup - October 2022

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

10/21/2022  /  Local Taxes , SALT , State Taxes , Tax Planning

New Jersey’s Unconstitutional Penalties for Transfer Prices Should Fail!

New Jersey, in advance of examining the facts and the issues, has said it refuses to do its job of auditing and resolving tax disputes involving transfer pricing without imposing penalties unless you do the job for them, do...more

Tax Justice Prevails as Connecticut Sinks FCA Expansion

The Connecticut General Assembly was heading toward including taxation in the expansion of the state’s False Claims Act, Conn. Gen. Stat. § 4-274, et seq. (the “FCA”) via Senate Bill 426. Expansion of the FCA is laudable to...more

Look at What the Tax Does and Raise Everything to Win!

The Washington State Superior Court, Douglas County, (“Superior Court”) recently relied on the Washington State Constitution to invalidate the new Washington Capital Gains Tax (“WACGT”). Quinn/Clayton v. Washington, Douglas...more

Words Matter: South Carolina Refund Claim Is Timely, “Even Though” a Previous Protest Was Filed

The South Carolina Administrative Law Court (“ALC”) recently allowed a challenge to a refund claim denial to proceed, even though a protest had been filed from an assessment for the same set of years, which was paid and no...more

What’s Shaking: Blank Rome State + Local Tax Roundup - November 2021

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

In Texas, Square Corners Should Protect Pay-To-Play Foot Fault!

The Texas Court of Appeals recently ruled that pay-to-play appeals from assessments means that the Comptroller has to first assert amounts due, then you pay them under protest, and then you appeal. If the first step does not...more

What’s Shaking: Blank Rome State + Local Tax Roundup

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

New Jersey to Require Inclusion of Federal Schedule UTP with CBT Returns—A Bad Idea

The New Jersey Division of Taxation recently added federal Schedule UTP (Uncertain Tax Position) to the list of federal income tax forms and schedules that must be included as part of a full and complete New Jersey...more

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