Siding with the utility taxpayer, the Appellate Court of Maryland (Court) issued a decision granting Potomac Edison Company (Potomac), a Maryland electric utility company, a $2.4M sales tax refund. The Court held that Potomac’s process of transporting electricity from a power plant to the final customer constituted a “production activity” and was qualified for a sales tax exemption under Maryland law.
Read MoreThe Connecticut Supreme Court (Court) recently expressed criticism for the City of Danbury (City) during oral arguments regarding untimely filed property tax appraisals in a pending appeal. Several property owners, whose property assessments range from $1.5M to $2.8M, are defending the lower court’s decision to hear their appeals based on a Connecticut statute, which states: “If [the] appraisal is not timely filed, the court may dismiss the application” (emphasis added). While the property owners argue that the language of the statute gives the lower court discretion to hear untimely filed appeals, the City asserts that the statute demands a mandatory dismissal.
Read MoreAlbeit the most significant vote on this year’s election day ballot was the choice for President of the United States, numerous consequential statutory amendments and propositions having a direct impact on state tax constructs were also included on ballots. Taxpayers across the country voted on ballot initiatives that would amend state constitutions and alter tax impositions in their state, approving some while denying others.
Read MoreThe Cleveland Browns Football Company, LLC (the Browns) recently brought suit against the City of Cleveland (the City) over a state law that restricts the Browns from moving their NFL team out of the tax-supported Huntington Bank Field (HBF) in downtown Cleveland. The Browns currently play home games at HBF, but plan to move to a new stadium after the expiration of their lease agreement in 2029.
Read MoreSpoiler Alert: no upcharge. A Missouri Circuit Court judge recently granted motions for summary judgment submitted by Netflix, Hulu, DirecTV and Dish Network, agreeing that the companies’ streaming services are excluded from state franchise fees.
Read MoreAlleging the company is fraudulently advertising service fees as sales tax, a class action complaint was filed in U.S. District Court, Central District of California against Chipotle Mexican Grill, Inc. (Chipotle). Suit was brought against the fast casual Mexican restaurant for representing to its customers that they are paying higher than usual amounts of sales tax, when they are actually paying sales tax plus “Chipotle’s eye-popping service fees.”
Read MoreIn a Private Letter Ruling released by the Texas Comptroller’s Office, the Comptroller ruled that a Taxpayer’s pre-authorization services for insurance eligibility are not taxable as insurance services, data processing services, or information services. The decision comes despite a recent proposal by the Comptroller’s Office to effectuate a paradigm shift related to taxable data processing services from an “essence of the transaction” approach to a test that examines the seller’s actions over the product the buyer is purchasing.
Read MoreThe Supreme Court of the United States (SCOTUS) denied certiorari regarding South Dakota’s imposition of use tax on equipment used in-state by an out-of-state construction company. Minnesota construction company, Ellingson Drainage, Inc. (Ellingson), challenged South Dakota’s imposition of the tax on the unapportioned fair market value of the equipment, regardless of how long the equipment is physically located in the state.
Read MoreThis Halloween season, there is one thing escape room enthusiasts cannot escape – sales tax. The New York Department of Taxation and Finance (Department) recently released an Advisory Opinion regarding charges for admission to “mystery” or “escape” rooms, deeming the charges taxable.
Read MoreThe Massachusetts Department of Revenue (Department) announced its plan to implement an Amnesty Program from November 1st thru December 30, 2024. During this time, the Department will waive most penalties for eligible taxpayers who file all of their outstanding returns and pay the tax and interest due by December 31, 2024.
Read MoreStubHub, Inc. (StubHub), the world’s largest online marketplace for purchasing and selling tickets, filed its response brief to the Wisconsin Court of Appeals (Court) continuing its protest of a $16M audit assessment from the Wisconsin Department of Revenue (Department). The assessment includes a staggering $6M in interest and $2M in non-filing penalties. StubHub maintains that it is not liable for sales tax related to sales of tickets for admission to recreational events, e.g. football games and concerts, made through its platform as it is not a “person selling” as defined by Wisconsin statute.
Read MoreDisputing the constitutionality of its corporate income tax audit assessment of over $600,000, JetBlue Airways Corporation & Subsidiaries (JetBlue) filed a complaint against the Florida Department of Revenue (Department) claiming that a Florida statute unconstitutionally expands Florida’s territorial boundaries to include areas outside of the state for tax purposes.
Read MoreIn a role reversal, Uber Technologies, Inc. (Uber) was delivered a legal complaint by a Florida Plaintiff seeking to end its practice of charging and collecting sales tax on delivery fees from Florida customers using its platform.
Read MoreEnding a lengthy legal dispute regarding the state's taxation of streaming service subscriptions, a Colorado judge ruled in favor of Netflix Inc. (Netflix). The ruling is an interpretation of Colorado's sales tax law and its applicability to intangible digital services, such as the streaming services offered by Netflix and similar platforms.
Read MoreAfter a lengthy battle, the Arizona Supreme Court held that a Marriott-branded hotel in Arizona owned by Dove Mountain Hotelco LLC (Dove Mountain) is liable for tax paid on rooms booked through the Marriott customer loyalty program. The complimentary rooms at issue were booked using loyalty points accumulated by customers through Marriott’s reward program.
Read MoreAfter receiving a $3.4 million sales tax assessment, StockX, LLC (StockX), a Michigan-based sneaker resale platform, filed a complaint with the Michigan Court of Claims alleging that the Michigan Treasury Department (Department) incorrectly assessed it $3.4 million in sales tax, penalties and interest for the years 2017-2019. The company asserts that it was wrongfully classified as a “retailer” required to remit tax on sales instead of being recognized as a “marketplace facilitator.” Prior to the landmark Wayfair decision in 2019 and the following law changes, marketplace facilitators were not responsible for collecting and remitting sales tax.
Read MorePost-pandemic, a former Deloitte employee residing outside Cincinnati, Ohio found himself entangled in a legal dispute over the city's income tax during the pandemic. Despite his arguments to the contrary, the employee was deemed liable for local income tax assessed by Cincinnati on his remote work earnings during the pandemic period.
Read MoreRecently, the Arizona Court of Appeals (Court) determined the Wisconsin headquartered online auto parts retailer RockAuto, LLC (RockAuto) had established substantial nexus in Arizona through its network of distributors, vacating and remanding the tax court’s decision. With a twist of fate regarding the tax court’s decision favoring RockAuto, the online retailer now faces a liability in excess of $8 million of tax, penalties and interest assessed by the Arizona Department of Revenue (Department).
Read MoreIn a recent decision, the Nebraska Supreme Court (Court) held a company officer personally liable for over $56,000 in unpaid use tax, penalties and interest. The officer was the former president of Direct Media, Inc. (Media) a direct mail processing company which ceased operations in 2011. The Court’s ruling affirmed the lower court’s determination that the officer was the company’s responsible officer in charge of managing the business’ finances and thereby responsible for the unpaid tax.
Read MoreThe Illinois Appellate Court denied a $162.7M refund claim from American Aviation Supply, LLC (American) after determining that a sales tax exemption for property bought and stored temporarily in Illinois did not apply to the company’s sales of aviation fuel. In doing so, the Court affirmed the Illinois Independent Tax Tribunal’s (Tribunal) decision, which found that the exemption did not apply because the fuel was not consumed solely outside of the state. Because approximately 2% of the fuel was consumed in Illinois, the entire sale is subject to tax.
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