The BR State + Local Tax Spotlight: August 2021
Note from the Editor
Welcome to the August 2021 edition of The BR State + Local Tax Spotlight. We understand the unique demands of staying on top of important State + Local Tax developments, which happen frequently and across numerous jurisdictions. Staying updated on significant legislative developments and judicial decisions helps tax departments function more efficiently and improves strategy and planning. That is where The BR State + Local Tax Spotlight can help. In each edition, we will highlight for you important State + Local Tax developments that could impact your business. In this issue, we will be covering:
- A recent Michigan appeals court decision that solidifies the standard for when property is used in state for purposes of its use tax;
- A recent Ohio Supreme Court decision that allows taxpayers to file timely appeals to tax assessments by utilizing tolling provisions enacted due to COVID-19; and
- A recent Tennessee appeals court decision that highlights why taxpayers should exercise caution when entering into statute of limitations extension agreements.
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.
ARTICLES
Control Issues: A Use Tax Prerequisite
By Nicole L. Johnson
Use tax is often an afterthought for many companies—playing second fiddle to sales taxes. Yet, use tax audits are common—and often costly. Use tax is generally applicable when property is purchased out-of-state and used in state. The Michigan Court of Appeals recently confirmed that the determination of when property is used in state for purposes of the use tax depends on whether the taxpayer has control of the property while in the state. Bed Bath & Beyond, Inc. v. Mich. Dep’t of Treasury, unpublished per curiam opinion of the Court of Appeals, issued July 8, 2021 (Docket Nos. 352088 and 352667). Read More »
Ohio Supreme Court Agrees That Taxpayers’ Appeals Were Timely Due to COVID‑19 Tolling Provisions
By Craig B. Fields
On July 15, 2021, the Ohio Supreme Court reversed the Board of Tax Appeals (“BTA”) and held that two taxpayers had timely filed appeals from final determinations of the Tax Commissioner (“Commissioner”) as a result of tolling provisions enacted due to the COVID-19 global health emergency thus highlighting the importance of these provisions around the country. Chapman Enters., Inc. v. McClain, 2021-Ohio-2386 and Chapman v. McClain, BTA No. 2020-1162, 2020 Ohio Tax LEXIS 2017, *1 (October 13, 2020), rev’d and remanded by Chapman Enters., Inc., v. McClain, 2021-Ohio-2386. Read More »
Statute of Limitations Extension Agreements: Taxpayers Beware!
By Eugene J. Gibilaro
On July 19, 2021, the Court of Appeals of Tennessee held that a company was barred by the statute of limitations from bringing a lawsuit to challenge a deemed denial of its tax refund claim finding that the one year statutory period for challenging a deemed denial had run notwithstanding that the taxpayer and the Tennessee Department of Revenue (“Department”) executed extension agreements extending the statutory period for the Department to assess additional tax or refund overpayments. Zimmer US, Inc. v. David Gerregano, 2021 Tenn. App. LEXIS 285, *1(Tenn. Ct. App. July 19, 2021). 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 and are 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 »