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Welcome to the March 2026 edition of&nbsp;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&nbsp;The BR State + Local Tax Spotlight&nbsp;can help. In each edition, we will highlight important State + Local Tax developments that could impact your business.&nbsp;

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In this issue, we are also pleased to welcome guest authors&nbsp;<a href="/people/kyle-g-durante/" type="poa_person" id="18893">Kyle G. Durante</a>&nbsp;and&nbsp;<a href="/people/john-s-kiely/" type="poa_person" id="38285">John S. Kiely</a>&nbsp;from Blank Rome’s Trusts &amp; Estates team. In their article titled “Decision Turns on a Trust Being a Grantor Trust, But Did It Identify the Wrong Person as the Grantor?,” they analyze a recent Alabama Tax Tribunal decision and share critical insights on what could have swayed the tribunal in the taxpayer’s favor. Please visit Blank Rome’s&nbsp;<a href="https://futurewealthnavigator.com/">Future Wealth Navigator</a>&nbsp;blog for additional discussion of emerging issues in the areas of trusts and estates and transfer taxation.

This edition will also feature the following:

Apportionment: Attack the Normal Formula &amp; An Alternative for the Win&nbsp;

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Texas Appeals Court Rejects Comptroller’s Interpretation of Sales and Use Tax Exemption and Rules for Manufacturer in Tax Refund Case

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We invite you to share The BR State + Local Tax Spotlight with your colleagues and visit Blank Rome’s State + Local Tax <a href="/services-and-industries/tax/state-local-tax/" type="poa_practice" id="18460">web</a><a href="/services-and-industries/tax/state-local-tax/" id="18460">p</a><a href="https://www.blankrome.com/services/tax/state-local-tax">age</a> for more information about our <a href="/services-and-industries/tax/state-local-tax/#team" type="poa_practice" id="18460">team</a>.

Update from previous edition.&nbsp;In the&nbsp;<a href="/news-and-events/the-br-state-local-tax-spotlight-july-2025/" type="post" id="25887">July 2025</a>&nbsp;edition of&nbsp;The BR State + Local Spotlight, Melanie authored an article titled “No Taxation Without… Double Taxation?” in which she provided an overview of the impact of tariffs on certain state and local taxes. On February 20, 2026, the U.S. Supreme Court invalidated tariffs imposed by President Trump under the International Emergency Economic Powers Act.&nbsp;Learning Resources, Inc. et al. v. Trump, President of the United States, et al., Slip Op. No. 24-1287 (2026). The implications of the Court’s ruling, including whether, in what amounts, and to whom refunds of tariffs are owed, are evolving. Despite this uncertainty, taxpayers must begin to consider the state and local tax impacts of the Court’s ruling, including whether refunds of sales and use tax collected on tariffs may be owed.

<a href="/people/joshua-m-sivin/" type="poa_person" id="18870">Joshua M. Sivin</a>&nbsp;and&nbsp;<a href="/people/melanie-l-lee/" type="poa_person" id="18827">Melanie L. Lee</a>

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Apportionment: Attack the Normal Formula &amp; Argue an Alternative for the Win

By&nbsp;<a href="/people/mitchell-a-newmark/" type="poa_person" id="18987">Mitchell A. Newmark</a>

Why only seek an alternative formula when you can win under the normal formula?&nbsp;<a href="/news-and-events/apportionment-attack-normal-formula-argue-alternative-win/" id="40760">Read More &gt;&gt;</a>

Texas Appeals Court Rejects Comptroller’s Interpretation of Sales and Use Tax Exemption and Rules for Manufacturer in Tax Refund Case

By&nbsp;<a href="/people/eugene-j-gibilaro/" id="18981">Eugene J</a><a href="/people/eugene-j-gibilaro/" type="poa_person" id="18981">.</a><a href="/people/eugene-j-gibilaro/" id="18981"> Gibilaro</a>

In a recently issued decision, a Texas intermediate appellate court affirmed the decision of the trial court granting summary judgment to a manufacturer in its sales tax refund appeal, finding that the property and services at issue in the case were exempt from Texas sales and use tax.&nbsp;<a href="/news-and-events/texas-appeals-court-rejects-comptrollers-interpretation-sales-and-use-tax-exemption/" type="post" id="40769">Read More &gt;&gt;</a>

Decision Turns on a Trust Being a Grantor Trust, But Did It Identify the Wrong Person as the Grantor?

By&nbsp;<a href="https://www.blankrome.com/people/kyle-g-durante">Kyle</a><a href="/people/kyle-g-durante/" type="poa_person" id="18893"> G. Du</a><a href="https://www.blankrome.com/people/kyle-g-durante">rante</a>&nbsp;&amp;&nbsp;<a href="/people/john-s-kiely/" type="poa_person" id="38285">John S. Kiely</a>

Many of us are familiar with how a limited liability company can be a disregarded entity for income tax purposes.&nbsp;<a href="/news-and-events/decision-turns-trust-being-grantor-trust-did-it-identify-wrong-person-grantor/" type="post" id="40775">Read More &gt;&gt;</a>

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.&nbsp;<a href="/news-and-events/whats-shaking-blank-rome-state-local-tax-roundup-27-2/" type="post" id="26497">Read More &gt;&gt;</a>

© 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.

The BR State + Local Tax Spotlight: March 2026

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The BR State + Local Tax Spotlight: March 2026

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