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,...more
5/15/2023
/ Advertising ,
Digital Advertising Tax ,
Dormant Commerce Clause ,
E-Commerce ,
First Amendment ,
Internet Tax Freedom Act ,
Internet Taxation ,
Jurisdiction ,
SALT ,
State Taxes ,
Supremacy Clause
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...more
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...more
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...more
4/21/2022
/ Economic Realities Test ,
Gross Receipts ,
Income Apportionment ,
Income Taxes ,
Principal Place of Business ,
Radio Broadcasting ,
SALT ,
Satellites ,
SiriusXM ,
Subscription Services ,
Tax Audits ,
Tax Liability ,
Texas ,
TX Supreme Court
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...more
4/8/2022
/ Broadcasting ,
Economic Realities Test ,
Franchise Taxes ,
Goods or Services ,
SALT ,
SiriusXM ,
State Taxes ,
Subscription Services ,
Tax Code ,
Tax Court ,
Tax Liability ,
Texas ,
TX Supreme Court
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...more
4/8/2021
/ American Rescue Plan Act of 2021 ,
Business Closures ,
Business Losses ,
Consolidated Appropriations Act (CAA) ,
Coronavirus/COVID-19 ,
Eligibility Determination ,
Entertainment Venues ,
Federal Grants ,
Infectious Diseases ,
Movie Theaters ,
SBA ,
Tax Planning
On February 12, 2021, overriding the Governor’s veto, Maryland enacted a first-of-its-kind tax “Digital Advertising Gross Revenues Tax” that has already sent shockwaves through the industry....more
2/25/2021
/ Advertising ,
Digital Advertising Tax ,
E-Commerce ,
Governor Vetoes ,
Internet ,
Internet Tax Freedom Act ,
New Legislation ,
SALT ,
Search Engines ,
State and Local Government ,
Tax Liability ,
Tax Planning ,
Websites
A year and a half following the New York Court of Appeals’ significant 2019 decision in Matter of Wegmans Food Markets, Inc. v. Tax Appeals Tribunal of State of New York, 33 NY3d 587 (2019), New York continues to grapple with...more
The Illinois Audit Fast Track Resolution (“FTR”) program is now available for all Illinois sales and miscellaneous tax audits except for Motor Fuel Use Tax. The Department published Informational Bulletin FY 2021-01 this...more
On June 30, 2020, the Tennessee legislature passed SB 2932 which reduces the economic nexus sales threshold for remote sellers from $500,000 to $100,000 in the past 12-month period. It also makes the same reduction in the...more
7/20/2020
/ Goods or Services ,
Legislative Agendas ,
Local Taxes ,
Nexus ,
Online Platforms ,
SALT ,
South Dakota v. Wayfair ,
State and Local Government ,
State Taxes ,
Tax Liability ,
Threshold Requirements
As we practice social distancing during the COVID-19 (coronavirus) outbreak, our state and local governments, like the federal government, are working through their response to the outbreak. ...more
On March 26, the Senate passed the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), which advances legislation intended to help Americans and businesses survive a public health and economic crisis due to...more
As we practice social distancing during the COVID-19 (coronavirus) outbreak, our state and local governments, like the federal government, are working through their response to the outbreak. The most common response by state...more
The federal government has enacted two tax measures to combat the financial downturn resulting from the coronavirus pandemic. The President signed into law a bill that includes a 100 percent payroll tax credit for certain...more
As we practice social distancing during the COVID-19 (“coronavirus”) outbreak, our state and local governments, like the federal government, are working through their response to the outbreak. The most common response by...more
Indiana recently passed a new sales tax exemption for Software as a Service (“SaaS”), effective July 1, 2018. Under the new law, sales, leases, and licenses of prewritten software remains taxable, regardless of delivery...more
The U.S. Supreme Court issued its decision in South Dakota v. Wayfair, overturning Quill Corp. v. North Dakota, 504 U. S. 298 (1992) and National Bellas Hess, Inc. v. Department of Revenue of Ill., 386 U. S. 753 (1967), that...more
6/22/2018
/ Appeals ,
Commerce Clause ,
Constitutional Challenges ,
Internet Retailers ,
Interstate Commerce ,
Out-of-State Companies ,
Physical Presence Test ,
Quill ,
Reversal ,
Sales & Use Tax ,
SCOTUS ,
South Dakota v. Wayfair ,
Substantial Nexus
The Tax Cuts and Jobs Act (Act) made significant changes to the Internal Revenue Code. One such change significantly restricts business interest deductions, which were fairly broad under the old law. However, significant...more
Sales and use tax compliance is complicated. Both sellers and purchasers are required to determine where they have nexus, where the purchased products or services should be sourced, and whether the product or service itself...more
Limited tax amnesty programs gain popularity every few years and this is one of those years. The Alabama legislature has joined the growing list of states providing amnesty programs for taxpayers with unreported tax...more
The Colorado Department of Revenue, to the surprise of many, announced that effective as of February 28, 2018, it was rescinding all prior Revenue Bulletins and Policy Positions previously published by the Department.
In...more
In a little noticed and controversial provision, the Tax Act created a new Internal Revenue Code provision (Code Sec. 162(q)), that eliminates a business expense deduction for: (1) “any settlement or payment related to sexual...more