The BR State + Local Tax Spotlight: April 2024
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Note from the Editors
Welcome to the April 2024 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 legislative developments and judicial 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.
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 March 2024 edition of The BR State + Local Tax Spotlight, Irwin M. Slomka authored an article titled “Microsoft Prevails in California Dispute on Inclusion of Gross Foreign Dividends in Apportionment Formula.” Since the publication of his article, the California Office of Tax Appeals (“OTA”) has designated its opinion in Appeal of Microsoft Corporation and Subsidiaries, Opinion on Petition for Rehearing, Case No.: 21037336 (Calif. Office of Tax Appeals, Feb. 14, 2024), as non-precedential. This designation means that the California Franchise Tax Board is not obligated to follow the OTA’s opinion when similar cases arise in the future.
Joshua M. Sivin and Melanie L. Lee
ARTICLES
South Carolina Legislature Severely Limits Department’s Ability to Force Companies to File Combined Returns
By Craig B. Fields
Since the South Carolina Supreme Court held in Media General Communications, Inc. v. South Carolina Department of Revenue that the Department of Revenue had the authority to allow companies to file a combined unitary return (in that case the companies wanted to file on a combined basis), the Department has been attempting to forcibly combine taxpayers with their affiliates and usually with all of the companies included in the federal consolidated return. Read More >>
Arkansas Supreme Court Finds Auto Dealerships Liable for Sales Tax When They Provide Vehicles for Their Employees’ Use
By Joshua M. Sivin
A recent decision from Arkansas’ highest court reversed a circuit court decision and found that when auto dealerships allowed employees and their families to use vehicles, it subjected the dealerships to sales tax, despite the fact that the vehicles remained available for sale to the public and, in fact, were subsequently sold to unrelated third parties. Read More >>
Ohio Supreme Court Finds Federal Due Process Limitations Do Not Apply to Intrastate Taxation
By Eugene J. Gibilaro
During the COVID-19 pandemic, many states enacted legislation trying to minimize the negative impact that the pandemic was having on state and local government budgets. Read More >>
Misapplication of Complete Auto
By Nicole L. Johnson
The South Dakota Supreme Court recently analyzed the four-part Complete Auto test to determine if the State’s use tax results in a burden on interstate taxation in Ellingson Drainage, Inc. v. South Dakota Department of Revenue. 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. We invite you to attend, listen, and learn as our experienced 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 >>