News & Analysis as of

State and Local Government Department of Revenue State Taxes

Jenner & Block

Illinois Supreme Court Rules in Favor of City of Rolling Meadows in Tax Jurisdiction Case

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In a unanimous opinion delivered by Justice O'Brien, the Illinois Supreme Court affirmed that the Illinois Department of Revenue (IDOR) has exclusive jurisdiction over sales tax misallocation disputes between municipalities....more

Adams & Reese

Does a Drink Menu Have to Show Taxes in Tennessee?

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Lots of folks have been asking of late, “Do I have to show taxes in drink prices?” No. The law gives taxpayers two options....more

Smith Anderson

2025 DOR Request for Legislative Changes

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The Department of Revenue (the “Department”) recently released two documents containing its “substantive” and “clarifying” requests for legislative changes to North Carolina’s revenue laws. Most of the requests include...more

Husch Blackwell LLP

New Mexico Rules That Anesthesia Services Can Be Purchased Exempt for Resale

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New Mexico’s gross receipts tax (what the state calls its sales tax) is generally imposed on receipts derived by the seller from performing services in the state; however, a resale of the services is not generally taxable if...more

Husch Blackwell LLP

Indiana Ruling Confirms Software as a Service Is Not Taxable

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As digital products and services continue to proliferate, states have begun to address the sales tax implications of sales of Software as a Service (SaaS) in a variety of ways. While a few states have clearly addressed how...more

Bradley Arant Boult Cummings LLP

Pending U. S. Supreme Court Tax Case Could Affect Multistate Contractors

A case on appeal to the U.S. Supreme Court from the South Dakota Supreme Court should be on your watch list. It involves Ellingson Drainage, Inc., a general contractor headquartered in Minnesota that specializes in installing...more

Blank Rome LLP

South Carolina Legislature Severely Limits Department’s Ability to Force Companies to File Combined Returns

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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

Bradley Arant Boult Cummings LLP

Alabama DOR Grants Extension to Make PTE Tax Election for 2022 Tax Year

In 2021, the Alabama Legislature unanimously enacted an elective pass-through entity tax (PTE Tax) as a workaround to the so-called “SALT Cap,” which was part of the Tax Cuts and Jobs Act of 2017. The Alabama Electing...more

Blank Rome LLP

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

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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

Bradley Arant Boult Cummings LLP

Where Are We On The New Elective PTE Tax Regime?

Earlier this year, Alabama became one of 19 or so states to enact a pass-through entity tax as a workaround to the so-called "SALT Cap" enacted as part of the Tax Cuts and Jobs Act of 2017, which limits the deductibility of...more

Schwabe, Williamson & Wyatt PC

Enactment of SB 164 and Changes to Oregon's Corporate Activity Tax

Although Oregon’s 2021 legislative session turned out to be relatively quiet from a tax perspective, we did experience some changes to Oregon’s Corporate Activity Tax (“CAT”). Those changes were primarily in the form of SB...more

Burr & Forman

Cigarette “Buydown” Payments to Retailers Excluded from South Carolina Sales Taxes

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Tobacco manufacturers and distributors have long made refund/rebate payments to retailers for the retailer’s purchase of cigarettes and other tobacco products from the manufacturer, provided the retailer reduces the price of...more

Bradley Arant Boult Cummings LLP

ADOR Issues Guidance on New PTE Tax Election and Consequences of Decoupling from GILTI and IRC §118(b)(2)

At the urging of the Alabama Society of CPAs and other groups, the Alabama Department of Revenue (ADOR) recently issued preliminary guidance on (a) how the new pass-through entity (PTE) tax election interacts with the...more

Eversheds Sutherland (US) LLP

Georgia’s 2021 Sine Die - Thoughtful policy mixed with last minute surprises and everything in-between

During the 2021 legislative session, the Georgia General Assembly passed key legislation, including conformity to the federal tax law, the elimination of deference to subregulatory interpretations of the Department of...more

Franczek P.C.

Illinois Department of Revenue Releases Tentative 2020 Cook County Equalization Factor

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The Illinois Department of Revenue recently released the tentative 2020 Cook County equalization factor, also known as the multiplier. The preliminary factor is 3.0861....more

Sullivan & Worcester

Key Tax Provisions in the Massachusetts FY21 Budget

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On December 11, 2020, Massachusetts Governor Charlie Baker signed the Commonwealth’s FY21 budget into law. While the $45.9 billion budget does not raise taxes, it includes a number of significant tax provisions summarized...more

Buckingham, Doolittle & Burroughs, LLC

Ohio Commercial Activity Tax: Proposed Rule Allows Retroactive Consolidated Filing Election

In our previous post, we explained the Ohio Department of Taxation proposed a regulation change to limit a taxpayer’s ability to make a retroactive consolidated filing election for Ohio Commercial Activity Tax purposes (CAT)....more

Schwabe, Williamson & Wyatt PC

Oregon CAT: Administrative Rules Hearing Set for November 24, 2020

The Oregon Department of Revenue (“DOR”) will be holding an administrative rules hearing on November 24, 2020, from 9:00 a.m. to 11:00 a.m. This hearing will cover over two dozen administrative rules, including two Oregon...more

Schwabe, Williamson & Wyatt PC

Oregon CAT: Oregon Department of Revenue Releases Anticipated Draft Rules

On October 26, 2020, the Oregon Department of Revenue (“DOR”) released two anticipated Oregon Corporate Activity Tax (“CAT”) draft rules: OAR 150-317-1310 (Estimated Tax Payments: Delinquent or Underestimated Payment or Both,...more

Schwabe, Williamson & Wyatt PC

Oregon Department of Revenue to Allow Paper Returns and Documents to be Signed via Facsimile

On October 13, 2020, the Oregon Department of Revenue (“DOR”) issued a temporary administrative order amending OAR 150-305-0460 to allow paper returns, statements, or documents to be signed through a facsimile method.  A...more

Bradley Arant Boult Cummings LLP

Snapshot: Corporate Income and Franchise Taxes in the USA

How is taxable income determined in your state? To what extent is the state income tax base aligned with the federal income tax base? Alabama levies a corporate income tax on business entities classified as taxable or “C”...more

Schwabe, Williamson & Wyatt PC

Oregon CAT: DOR to Hold Public Hearings in October 2020 and November 2020 on Draft Rules

On September 25, 2020, we attended a virtual meeting with the Oregon Department of Revenue (“DOR”). During that meeting, the DOR stated that it plans to hold two public hearings on 10 CAT rules before the end of the year. ...more

Schwabe, Williamson & Wyatt PC

Oregon Department of Revenue Finalizes Second Set of Permanent Oregon Corporate Activity Tax Rules, and Other Tax Updates

Newly Issued Permanent Rules On July 23, 2020, the Oregon Department of Revenue (“DOR”) issued the second set of permanent rules related to the Oregon Corporative Activity Tax (“CAT”). The DOR issued four permanent rules, all...more

Schwabe, Williamson & Wyatt PC

Oregon CAT: Oregon Department of Revenue Addresses Good Faith Effort Standards for Penalty Waivers for Underpayments of Estimated...

On April 24, 2020, Governor Brown directed the Oregon Department of Revenue (“DOR”) to refrain from assessing underpayment charges against taxpayers who do not pay at least 80% of their quarterly payment based on their total...more

Maynard Nexsen

SC and NC Department of Revenue Responses to COVID-19

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Since it was first reported to the World Health Organization on December 31, 2019, the novel Coronavirus has and continues to wreak havoc on a global scale unseen in our lifetime. The COVID-19 pandemic has decimated global...more

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