Welcome to the October 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:
- Pennsylvania Supreme Court Confirms That Pittsburgh’s Tax on Only Nonresident Athletes and Entertainers Violates Commonwealth’s Uniformity Clause
- Are “Receipts” Receipts if They are Not Received?
- Minnesota’s Sourcing of Services Just Got Messy
- NYC Tax Tribunal Applies Step Transaction Doctrine to Limit “Mere Change” Exemption Under Real Property Transfer Tax
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Update from previous edition. In the September 2025 edition of The BR State + Local Spotlight, Mitchell A. Newmark authored an article titled “Maryland Cannot Muzzle Taxpayers on Passthrough of Tax” in which he discussed the U.S. Court of Appeals for the Fourth Circuit’s decision in Chamber of Commerce of the U.S. et al. v. Lierman. Mitchell noted that the Court remanded the case to the U.S. District Court to construct a remedy. On October 15, 2025, the District Court issued a Judgment and Order which, in part, permanently bars Maryland from enforcing the provision of its digital advertising tax that permitted digital advertising companies to pass through the tax to customers but prevented the companies from communicating the tax to the customers “by means of a separate fee, surcharge, or line-item.”
Joshua M. Sivin and Melanie L. Lee
ARTICLES
Pennsylvania Supreme Court Confirms That Pittsburgh’s Tax on Only Nonresident Athletes and Entertainers Violates Commonwealth’s Uniformity Clause
The Pennsylvania Supreme Court has affirmed the Commonwealth Court and ruled that Pittsburgh’s Non-Resident Sports Facility Usage Fee unconstitutionally discriminates against nonresidents in violation of Pennsylvania’s Uniformity Clause. Read More >>
Are “Receipts” Receipts if They are Not Received?
In a recent decision, the Ohio Board of Tax Appeals found in favor of the taxpayer, a pharmaceutical manufacturer, holding that Ohio’s Commercial Activity Tax base should include only amounts actually received by the manufacturer in connection with its sale of prescription drugs rather than the list price, emphasizing substance over form and economic realities. Read More >>
Minnesota’s Sourcing of Services Just Got Messy
Market-based sourcing was touted as the easy sourcing methodology when it was first enacted. However, it has proven to be anything but. Read More >>
NYC Tax Tribunal Applies Step Transaction Doctrine to Limit “Mere Change” Exemption Under Real Property Transfer Tax
The application of the federal “step transaction” doctrine to New York City real estate transactions can severely limit application of the long-standing “mere change in form” exemption under NYC’s real property transfer tax. 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.
