Welcome to the June 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:
- Applying All of the Words in the Statute, Tennessee Department Rules that Provider of Digital Auction Platform Is Not Subject to Sales and Use Tax Collection Responsibilities
- A Pallet Is Not a Chicken: Arkansas Rejects Tyson’s Resale Exemption Argument
- Show No Mercy: Washington State’s Penalty Abatement Policy
We are pleased to welcome Caroline Savini, summer associate, as a guest editor for this edition of Spotlight. Caroline is a second-year law student at Villanova University Charles Widger School of Law, where she is a Staff Writer for Villanova Law Review and serves as an Honor Board Representative and Civil Procedure Mentor.
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.
Update from previous edition. In the December 2025 edition of The BR State + Local Tax Spotlight, Nicole L. Johnson authored an article titled “Sibling Rivalry: Florida v. California,” in which she discusses a Motion for Leave to File a Bill of Complaint that Florida filed with the U.S. Supreme Court against California. On May 26, 2026, the U.S. Supreme Court denied Florida’s motion. Justices Thomas and Alito dissented, arguing that the Court could not refuse to hear suits between States.
Joshua M. Sivin, Melanie L. Lee, and Summer Associate Caroline Savini
ARTICLES
Applying All of the Words in the Statute, Tennessee Department Rules that Provider of Digital Auction Platform Is Not Subject to Sales and Use Tax Collection Responsibilities
The Tennessee Department of Revenue has ruled that a provider of a digital auction platform is not a marketplace facilitator under Tennessee law because it does not collect the payment from the purchaser and transmit it to the marketplace seller. Read More >>
A Pallet Is Not a Chicken: Arkansas Rejects Tyson’s Resale Exemption Argument
In a recent decision, the Arkansas Supreme Court denied Tyson Foods subsidiaries’ $3.45 million refund claim for sales tax paid in connection with their rental of wooden pallets used to deliver chicken, finding that the sale for resale exemption was inapplicable. Read More >>
Show No Mercy: Washington State’s Penalty Abatement Policy
The Karate Kid franchise taught us that “mercy is for the weak.” 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.