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“Primary Function” Test Propels Yet Another Service Provider to Victory in New York Sales Tax Case

An administrative law judge in the New York State Division of Tax Appeals rejected the state’s position that a taxpayer providing a web-based service which allowed clients to identify effective and ineffective messaging...more

Massachusetts High Court Approves of Apportionment of Sales Tax on Software Through General Abatement Process

The Massachusetts Supreme Judicial Court recently held that software vendors have a statutory right to apportion tax on the sale of prewritten computer software purchased for use in multiple states and that they may do so...more

Tennessee Creates New Tax Benefits for the Film and Television Industry

On March 29, 2021, Tennessee Governor Bill Lee signed legislation creating a new sales and use tax exemption and a new franchise and excise tax (F&E) credit for “qualified productions.”  H.B. 141, 112th Gen. Assemb., ch. 70...more

New York Trial Court Finds State’s Attempt to Tax Storage Services Performed Entirely in New Jersey Arbitrary and Capricious

A New York trial court held that charges for storage services rendered in New Jersey were not subject to New York sales tax despite the fact that the property was originally picked up in New York. ...more

8/25/2020  /  Sales & Use Tax , Sales Tax

Appellate Court Says DREs Are Regarded for Tennessee Excise Tax Purposes When Owned by Noncorporate Parent; in Related News, S...

The Tennessee Court of Appeals held that a single member limited liability company (SMLLC) that is disregarded for federal income tax purposes is regarded for Tennessee excise tax purposes unless its single member is...more

6/10/2020  /  Sales & Use Tax

Missouri Supreme Court Ends Longstanding Practice of Applying Use Tax Definitions in Sales Tax Cases

On March 17, 2020, the Missouri Supreme Court held that the use tax definition of “sale” cannot be applied to sales tax cases, turning more than two decades of precedent on its head. In DI Supply I, LLC v. Director of...more

No Sales or Use Tax Due on Materials and Equipment Used to Construct and Install Steam Facility at Tennessee Manufacturing Plant

In a letter ruling published March 16, 2020, the Tennessee Department of Revenue concluded that a contractor’s purchase of materials and equipment for use in the construction and installation of a new steam production...more

Massachusetts Supreme Judicial Court Upholds Massachusetts Sales Tax on Screen-Sharing Software Products

The Massachusetts Supreme Judicial Court held that sales tax applied to subscription fees for three online Citrix products, “GoToMyPC,” “GoToAssist” and “GoToMeeting,” which allow users to remotely access other users’...more

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