Insights

Recently, California Administrative Law Judge Josh Aldrich of the California Office of Tax Appeals (OTA), confirmed a California Department of Tax and Fee Administration (CFTDA) decision against an employee of AutoCouture LLC (AutoCouture), a now nonexistent company, as a “responsible person” for the unpaid sales and use tax liabilities of the company.

Pennsylvania Eastern District Court Judge Karen Spencer Marston approved a class action settlement agreement that claimed Allstate did not reimburse sales tax on leased vehicles that were subsequently deemed a total loss, as required by Pennsylvania law.

To quote one of our Founding Fathers, Benjamin Franklin, “… nothing is certain except death and taxes.” If he only knew how well this statement would endure the test of time.

Recently, grocery and third party restaurant delivery services have become increasingly common for personal consumers. During the COVID-19 pandemic, the popularity of Instacart, DoorDash, Delivery Dudes and similar apps and online platforms skyrocketed as users experienced the convenience of having groceries and prepared foods delivered to their doorstep. However, many users found themselves hesitating over the checkout screen as they watched their bill increase with each additional fee.

Based on recently disclosed information during a discovery hearing August 24, 2022 in the New York State Supreme Court in Manhattan, Sotheby’s will need to vigorously defend the expanding sales tax resale exemption certificate fraud case brought by the New York State Attorney General.

With the Georgia Court of Appeals’ recent decision, T-Mobile’s $11.4 million sales tax refund claim continues to be viable. The court concluded that the lower, trial court used an incorrect standard in its review. As such, the Court of Appeals vacated the decision and remanded it back to the trial court for them to review the appeal using the proper standard of review.

Even as some companies are still working through understanding the varying economic nexus issues with sales tax compliance, Colorado has imposed a new fee. The retail delivery fee, which is closely tied to the state’s sales tax compliance requirements, went into effect July 1, 2022, and imposes a fee of $0.27 on all deliveries by motor vehicle made to a location in Colorado.

Prior to the 2018 U.S. Supreme Court decision in South Dakota v. Wayfair, businesses were required to collect and remit sales tax if they had physical presence in a state.

In furtherance of Libertas’ previous blogs regarding Maryland’s digital advertising tax, Lisa A Civitella, JD CMI and Olivia Archer authored a recently published article in the Journal of State Taxation addressing some of the relevant legislative and judicial issues surrounding the new tax.

Beginning July 1, 2022, Colorado imposes a retail delivery fee on all deliveries by motor vehicle to a location in Colorado with at least one item of tangible personal property subject to state sales or use tax.

Inevitably, every taxpayer discovers an amount of unpaid state tax liability at some point in time. Even if a state does not have a current amnesty program in place, taxpayers can avoid paying most if not all related penalties and receive other benefits by coming forward to the state through its Voluntary Disclosure Agreement (VDA) program.

Recently, the Massachusetts Supreme Judicial Court held that taxpayers have a statutory right to apportion sales and use tax on software used in more than one state. Additionally, the court stated that the general abatement process is available to taxpayers seeking refunds based on such apportionment.

Recently, the Virginia Tax Commissioner reviewed two separate appeals from employees of different companies, both of whom were deemed a “responsible officer” and thereby personally liable for corporate withholding and sales and use taxes, as well as the related penalties and interest.

In a recent decision, the New York State (NYS) Tribunal determined that Apple, Inc. had under calculated sales tax by $995,197 including penalties and interest, resulting from a back to school promotion that involved gift cards given when qualifying products were purchased from its retail or online stores or from authorized campus stores.