Welcome to the August 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 of 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:
- Indiana Department Rules Cloud-Based Services Not Subject to Sales Tax
- Nebraska District Court Holds That the State Must Devise an Equitable Apportionment Formula for Apple’s One-Time TCJA Transition Tax Income
- Stopping the P.L. 86-272 Evasion
- Processing Power: Maryland’s Highest Court Rules Utility Equipment Qualifies for Sales Tax Exemption
We invite you to share The BR State + Local Tax Spotlight with your colleagues and visit Blank Rome’s State + Local Tax webpage for more information about our team. Click here to add State + Local Tax to your subscription preferences.
Updates from previous editions. The July 2025 edition of The BR State + Local Tax Spotlight includes an article titled “Streaming into Taxable Territory: Colorado Court Rules Netflix Subscriptions Are Tangible Personal Property” that discusses the Colorado Court of Appeals decision in Netflix, Inc. v. Colo. Dep’t of Revenue. Netflix appealed the Court’s decision to the Colorado Supreme Court. On July 22, 2026, the State Supreme Court dismissed the case with prejudice after the parties entered a joint stipulation that affirmed the department of revenue’s position that streaming services are subject to sales tax.
In the July 2026 edition of The BR State + Local Tax Spotlight, Irwin M. Slomka authored an article titled “New York Appellate Court Upholds Application of “Convenience of Employer” Rule Against Connecticut Law Professor,” in which he discussed the New York Appellate Division’s decision in Matter of Zelinsky v. Tax Appeals Tribunal. On July 20, 2026, Professor Zelinsky appealed the Appellate Division’s decision to the New York Court of Appeals.
Joshua M. Sivin and Melanie L. Lee
ARTICLES
Indiana Department Rules Cloud-Based Services Not Subject to Sales Tax
The Indiana Department of Revenue determined that a company’s charges for accessing its cloud-based educational services through a web-based platform with optional downloaded software are not subject to sales tax. Read More >>
Nebraska District Court Holds That the State Must Devise an Equitable Apportionment Formula for Apple’s One-Time TCJA Transition Tax Income
In Apple Inc. and U.S. Subsidiaries v. Nebraska Department of Revenue, a Nebraska district court reversed the Tax Commissioner’s order, finding that the Department’s apportionment formula did not fairly represent the Nebraska taxable income of the taxpayer, Apple, and remanded the case with instructions for the Commissioner to develop an equitable alternative. Read More >>
Stopping the P.L. 86-272 Evasion
It is no secret that States abhor the protections afforded companies by P.L. 86 272—the federal provision that prevents States from imposing an income tax in certain circumstances. Read More >>
Processing Power: Maryland’s Highest Court Rules Utility Equipment Qualifies for Sales Tax Exemption
Electricity may be invisible, but the sales tax bill for the equipment that moves it is not. Read More >>
WHAT'S SHAKING: BLANK ROME 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.