Welcome to the May 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:
- Unfair Apportionment Wins Even When State Doesn’t Like It
- Plain Meaning Wins the Day in Pennsylvania
- Opera Ghost Victorious Before New York City Tax Appeals Tribunal
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 May 2025 edition of The BR State + Local Tax Spotlight, Mitchell A. Newmark authored an article titled “New York State Court Chops Retroactivity of Recent P.L. 86-272 Regulation,” in which he discussed the New York State Supreme Court’s decision in American Catalog Mailers Association v. Dep’t of Taxation & Finance. On May 7, 2026, the New York State Supreme Court, Appellate Division, Third Department affirmed the lower court’s decision that the State’s internet activities rule does not violate federal Public Law 86-272 protections. The portion of the lower court’s decision favorable to the taxpayer—which held that the internet activities rule could not be applied retroactively—was not appealed and therefore remains unchanged.
Joshua M. Sivin and Melanie L. Lee
ARTICLES
Unfair Apportionment Wins Even When State Doesn’t Like It
When a taxpayer arguing for its appropriate apportionment can present solid testimony regarding how and where its business is conducted and the economics attributable to the parts of the business, the taxpayer wins, even when the state asks a Court to rewrite its 33-page proposed decision that ruled in the taxpayer’s favor. Read More >>
Plain Meaning Wins the Day in Pennsylvania
There are times when a state taxing authority interprets a tax statute to not mean what it says, but instead to mean what the state taxing authority wishes it would say. Read More >>
Opera Ghost Victorious Before New York City Tax Appeals Tribunal
While much attention lately has been on New York City’s budget and the potential imposition of a pied-à-terre tax, a recent decision of the New York City Tax Appeals Tribunal shines a light on another troublesome, longstanding City tax, the Commercial Rent Tax. 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.