Welcome to the November 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 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:
- Hawaii Department of Taxation Attacks Its Own
- The Future of Public Law 86-272
- Florida Court Directs Department to Pay Up
- Wet Yard, Dry Record: Alabama Taxpayer’s Refund Claim Denied for Lack of Proof
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.
Updates from previous editions. In the February 2025 edition of The BR State + Local Spotlight, Josh authored an article titled “New York ALJ Upholds Convenience of Employer Rule Despite Employee Working Remotely Out-Of-State During COVID Lockdowns” in which he discussed a New York State Administrative Law Judge’s decision in In the Matter of the Petition of Myers and Langan. On January 8, 2025, the petitioners in that case (Myers and Langan) appealed the ALJ’s decision to the New York Tax Appeals Tribunal. On October 14, 2025, the Tribunal upheld the ALJ’s decision, finding that the petitioners “failed to establish that the income for the period in issue was properly excludable from taxable income by the State of New York….”
In the December 2024 edition of The BR State + Local Spotlight, Craig B. Fields authored an article titled “Virginia Court Rules That Corporation Is Not Unitary with 17% Owned Limited Liability Company” in which he discussed the decision of the Virginia Court of Appeals in Dep’t of Tax’n v. FJ Management, Inc. d/b/a FJI, Inc. On December 23, 2024, the Department of Taxation petitioned for further review to the Supreme Court of Virginia and on May 30, 2025, the Court issued a refusal order which had the effect of upholding the lower court decision. On October 28, 2025, the Department issued Tax Bulletin 25-5 which discusses the impact the FJ Management decision has on 2024 and 2025 Virginia corporate income tax returns.
Joshua M. Sivin and Melanie L. Lee
ARTICLES
Hawaii Department of Taxation Attacks Its Own
In a case of homecourt advantage may not be worth much, the Hawaii Intermediate Court of Appeals ruled that a vendor’s aircraft-part sales to local company Hawaiian Airlines, Inc. do not qualify for the exemption for sales of aircraft parts because the gross proceeds received by the vendor were not “received from the servicing and maintenance of aircraft.” Read More >>
The Future of Public Law 86-272
The Massachusetts Department Revenue recently joined its counterparts in New York and New Jersey in formally promulgating regulatory amendments adopting aspects of the 2021 revised guidance approved by the Multistate Tax Commission interpreting the protective limits of Public Law 86-272. Read More >>
Florida Court Directs Department to Pay Up
When a taxpayer succeeds on a refund claim they are often entitled to interest on such refund. Read More >>
Wet Yard, Dry Record: Alabama Taxpayer’s Refund Claim Denied for Lack of Proof
In a decision issued on October 23, 2025, the Alabama Tax Tribunal denied Alabama Chips, Inc.’s refund claim for sales tax paid on certain heavy equipment. 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 »
© 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.
