The City of Chicago’s widely reported first-of-its-kind Social Media Amusement Tax (the Chicago SMAT) went into effect on January 1, 2026, promising to deliver tens of millions of dollars of additional revenue to the City…
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/ Communications & Media Law, Constitutional Law, Taxation
Massachusetts is the latest state to attempt to narrow the scope of Federal law P.L. 86-272. On October 10, the Commonwealth issued final regulations targeted at cookies placed on computers or other electronic devices of…
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/ Administrative Law, Privacy, Science, Computers, & Technology, Taxation
In mid-August, Alabama cities and a school district (“localities”) sued the commissioner of the Alabama Department of Revenue seeking, in essence, to “de-simplify” the state’s sales and use tax system. The localities claim the…
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/ Administrative Law, Constitutional Law, Taxation
For over 65 years, Public Law 86-272 has dictated a state’s ability to assert income tax on an out-of-state business. While the 1959 federal law predated the emergence of e-commerce and digital services and could not have…
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/ Administrative Law, Taxation
Like many states, Florida’s corporate income tax regime has special rules applicable to telecommunications companies. The tricky part about taxing the telecommunications industry is how to source receipts earned from providing…
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/ Communications & Media Law, Constitutional Law, Taxation
In an ongoing battle against Netflix Inc., the Colorado Department of Revenue has argued that the historical definition of “tangible personal property” is sufficiently broad as to encompass digital goods — including streaming…
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/ Communications & Media Law, Science, Computers, & Technology, Taxation
Income received by a multistate business is either “business income” or “non-business income.” Although this labeling appears innocuous, the distinction between these two categories of income matters greatly to taxpayers and…
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/ Business Organizations, Commercial Law & Contracts, Conflict of Laws, Franchise Law, Taxation
Last fall, when a Maryland County Circuit Court held that the Maryland Digital Ad Tax violated the dormant commerce clause, the supremacy clause, the Internet Tax Freedom Act, and the First Amendment of the U.S. Constitution,…
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/ Communications & Media Law, Constitutional Law, Taxation
Maryland’s controversial Digital Advertising Gross Revenues Tax (the “Digital Ad Tax”) recently shot back to the top of the headlines when Maryland Circuit Court Judge, Alison Asti, ruled from the bench that the tax is…
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/ Communications & Media Law, Science, Computers, & Technology, Taxation
The Illinois Department of Revenue (“IDOR” or “Department”) recently issued a Notice of Proposed Amendment to amend its Regulation (86 Ill. Admin. Code § 100.3200) governing the “throwback” and “throwout” apportionment…
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/ Administrative Law, Taxation
In a recently issued taxpayer-favorable opinion, the Texas Supreme Court overturned the court of appeals’ decision holding that the state’s performance-based sourcing statute for service receipts essentially looks to customer…
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/ Taxation
On March 25, the Texas Supreme Court issued a highly-anticipated decision concerning the proper test to source receipts from services for purposes of Texas franchise tax. By statute, receipts from a “service performed in this…
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/ Franchise Law, Taxation
Joining Indiana and North Carolina, Louisiana last week became the third state to offer an alternative to the burdensome and expensive process of enduring a state transfer pricing audit…
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/ Taxation
Shortly after Maryland passed the country’s first “Digital Advertising Gross Revenues Tax”, H.B. 732, the Maryland Senate went to work attempting to fix a few known glitches in the law. Senate Bill 787, which passed the Maryland…
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/ Communications & Media Law, Constitutional Law, Taxation
On April 8, The Small Business Administration (SBA) finally opens its Shuttered Venue Operators Grant (SVOG) program, which was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, as part of…
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/ Taxation
