The BR State + Local Tax Spotlight: January 2022
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Note from the Editors
Welcome to the January 2022 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 South Carolina administrative law court decision allowing a challenge to a refund claim denial even though a previous protest from an assessment was filed;
- A recent New Jersey tax court decision barring as untimely the state’s bid to recover an erroneous income tax refund payment caused by the taxpayer’s mistake; and
- A pair of recent New York administrative law judge decisions illustrating the importance of the “primary function” test for determining taxability under the New York State 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.
Eugene J. Gibilaro and Anna Uger
ARTICLES
Words Matter: South Carolina Refund Claim Is Timely, “Even Though” a Previous Protest Was Filed
By Mitchell A. Newmark
The South Carolina Administrative Law Court (“ALC”) recently allowed a challenge to a refund claim denial to proceed, even though a protest had been filed from an assessment for the same set of years, which was paid and no contested case was filed. Read More »
State Barred by Statute of Limitations from Recovering an Erroneous Refund Payment
By Kara M. Kraman
The New Jersey Tax Court recently granted a pro se taxpayer’s motion for summary judgment and ruled that the Division of Taxation was barred by the statute of limitations from recovering an erroneous income tax refund payment caused by the taxpayer’s mistake. Read More »
Two New York Administrative Law Judges Reject Imposition of Sales Tax Where “Primary Function” is Not an Information Service
By Irwin M. Slomka
Two recent New York State decisions illustrate the importance of the “primary function” test for determining taxability under the New York State sales tax, in both cases involving the tax on information services. Applying that test, two separate Administrative Law Judges (“ALJ”) held that New York State could not impose sales tax on, in one case, an online loan marketplace and, in another, on reports evaluating potential environmental risks to real property. 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 »