Welcome to the April 2026 edition of The BR State + Local Tax Spotlight. We know the importance of remaining up-to-date on State + Local Tax developments, which appear often and across numerous jurisdictions. Staying informed on significant developments and decisions helps tax departments function more efficiently, along with improving strategy as well as planning. That is where The BR State + Local Tax Spotlight can help. In each edition, we will highlight important State + Local Tax developments that could impact your business. In this issue, we will be covering:
- Plain and Ordinary Meaning of Exemption Statute Results in Indiana Use Tax Victory
- Florida Circuit Court Rejects Department of Revenue’s Attempt to Avoid its Own Cost of Performance Rule
- Pour Decisions: Forced Nexus in Maine
- Alabama Tribunal Reluctantly Dismisses Taxpayer Appeal as Not Qualifying for State “Mailbox Rule”
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Updates from previous editions. In the January 2026 edition of The BR State + Local Tax Spotlight, Eugene J. Gibilaro authored an article titled “Ohio’s Permanent Escheatment Law May Proceed (For Now),” in which he discussed the U.S. District Court for the Southern District of Ohio’s refusal to (i) dismiss the plaintiffs’ Takings Clause case and (ii) issue a preliminary injunction preventing the transfer of unclaimed property funds in Ohio from the State’s unclaimed property fund to the Ohio Cultural and Sports Facility Performance Grant Fund. On March 10, 2026, the U.S. Court of Appeals for the Sixth Circuit rejected the plaintiffs’ appeal of the district court’s denial of its request for a preliminary injunction.
In the April 2025 edition of The BR State + Local Tax Spotlight, Craig B. Fields authored an article titled “Gains on Sale of Franchises Held Nonbusiness Income in Arkansas,” in which he discussed an Arkansas Circuit Court decision. On April 16, 2026, the Arkansas Supreme Court issued a 4-3 decision affirming the circuit court’s decision which held that the taxpayer’s one-time sale of its food franchises in liquidation of its business constituted nonbusiness income allocable to the taxpayer’s commercial domicile.
Finally, in the December 2024 edition of The BR State + Local Tax Spotlight, Josh authored an article titled “Asphalt Company Not Liable for $2.6 Million in Sales Tax Where Judge Found No Sale,” in which he discussed a North Carolina Office of Administrative Hearings decision in which an administrative law judge (“ALJ”) found that transfers of property from an asphalt company to its parent without consideration did not constitute sales and, thus, were not subject to sales tax. On January 21, 2026, the North Carolina General Court of Justice, Superior Court Division, issued an Order and Opinion on Petition for Judicial Review in which it affirmed the ALJ’s decision.
Joshua M. Sivin and Melanie L. Lee
ARTICLES
Plain and Ordinary Meaning of Exemption Statute Results in Indiana Use Tax Victory
The Indiana Tax Court agreed that a telecommunications company’s use of cell phones is exempt from use tax. Read More >>
Florida Circuit Court Rejects Department of Revenue’s Attempt to Avoid its Own Cost of Performance Rule
In a recent decision, a Florida circuit court granted summary judgment in favor of a financial technology company, holding that its income from providing online bill payment services to Florida clients was not sourced to Florida for corporate income tax purposes. Read More >>
Pour Decisions: Forced Nexus in Maine
Can a state’s rules force a company to have a taxable presence in that state? Read More >>
Alabama Tribunal Reluctantly Dismisses Taxpayer Appeal as Not Qualifying for State “Mailbox Rule”
The perils of filing state tax returns and protests of tax assessments on the last day for filing are highlighted by a recent Final Order Dismissing Appeal of the Alabama Tax Tribunal. Read More >>
WHAT'S SHAKING: BLANK ROME'S STATE + LOCAL TAX ROUNDUP
Blank Rome’s nationally prominent State + Local Tax attorneys are thought leaders in the community as frequent guest speakers at various local and national conferences throughout the year. Our State + Local Tax attorneys believe it is necessary to educate and inform their clients and contacts about topics that will impact their businesses. We invite you to attend, listen, and learn as our State + Local Tax attorneys interpret and discuss key legal issues companies are facing and how you can put together a plan of action to mitigate risk and advance your business in accordance with state and local tax laws. Read More >>
© 2026 Blank Rome LLP. All rights reserved. Please contact Blank Rome for permission to reprint. Notice: The purpose of this update is to identify select developments that may be of interest to readers. The information contained herein is abridged and summarized from various sources, the accuracy and completeness of which cannot be assured. This update should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel.