Note from the Editors
Welcome to the February 2025 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. In this issue, we will be covering:
- LLC’s Splitting into Six Companies Not Subject to Pennsylvania Realty Transfer Tax
- New York ALJ Upholds Convenience of Employer Rule Despite Employee Working Remotely Out-Of-State During COVID Lockdowns
- Procedural Foot Faults are a Trap for the Unwary
- Indiana Department of Revenue Determines that Video Game Enhancement Offerings are Not Subject to Sales Tax
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 editions:
In the January 2025 edition of The BR State+ Local Tax Spotlight, Melanie L. Lee authored an article titled “Longtime Iowa Taxpayers Lose Out on Capital Gains Deduction” in which she discussed the recent decision of the Court of Appeals of Iowa in Clark v. Dep’t of Revenue. After their loss at the Court of Appeals, the taxpayers (William Clark, Barry Bengston and their respective spouses) petitioned for further review to the Supreme Court of Iowa. On January 27, 2025, the Supreme Court denied the taxpayer’s petition for further review.
Joshua M. Sivin and Melanie L. Lee
ARTICLES
LLC’s Splitting into Six Companies Not Subject to Pennsylvania Realty Transfer Tax
By Craig B. Fields
The Pennsylvania Commonwealth Court held that the statutory division of a limited liability company which resulted in the original LLC and five new companies, with each of the new companies owning a portion of the real estate of the original LLC, was not subject to state and local realty transfer tax as there was no transfer of real estate as contemplated by the statute. Read More >>
New York ALJ Upholds Convenience of Employer Rule Despite Employee Working Remotely Out-Of-State During COVID Lockdowns
By Joshua M. Sivin
In yet another challenge to New York’s so-called “convenience of the employer” rule, a New York Administrative Law Judge upheld the application of the rule against a Pennsylvania resident who worked remotely for a New York-based employer during the COVID-19 pandemic. Read More >>
Procedural Foot Faults are a Trap for the Unwary
By Nicole L. Johnson
Whether filing a tax return, a protest, or an appeal, there are countless procedural requirements that must be met in order to avoid penalties or worse. Read More >>
Indiana Department of Revenue Determines that Video Game Enhancement Offerings are Not Subject to Sales Tax
By Stephanie N. Terinoni
The Indiana Department of Revenue determined last month that a video game publishing company’s sales from optional video game enhancement features were not subject to sales tax in Indiana. 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 »
© 2025 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.
