SeeSALT BlogPillsbury SALT attorney Aruna Chittiappa will be presenting at TEI’s 73rd Midyear Conference on March 21. 
TEI 73rd Midyear Conference
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Articles Posted in Issues
2023 ABA/IPT Advanced Tax Seminars
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Pillsbury SALT partners Carley Roberts and Breann Robowski will be presenting during the 2023 ABA/IPT Advanced Tax Seminars in March.
2023 COST Sales Tax Conference
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Pillsbury SALT partner Robert P. Merten III will be presenting at the 2023 COST Sales Tax Conference taking place February 21-24, 2023.
California Proposes Significant Revisions to Sales & Use Tax Statistical Sampling Audit Policies and Procedures
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The California Department of Tax and Fee Administration held its second interested parties meeting concerning the Department’s proposed revisions to its sales and use tax Audit Manual Chapter 13 (Statistical Sampling) and Chapter 4 (General Audit Procedures). The Department relies on statistical sampling during audits of large taxpayers to determine and project audit errors. The meeting and comments focused primarily on three proposed revisions by the Department: (1) elimination of the three-error rule; (2) treatment of progress payments; and (3) nonrecurring errors.
Texas Comptroller Takes a Serious Look at Sourcing Regulation After SiriusXM Loss
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The Texas Comptroller of Public Accounts has proposed significant amendments to its service receipts sourcing regulation in the wake of the Texas Supreme Court’s decision in Sirius XM Radio, Inc. v. Hegar, 643 S.W.3d 402 (Tex. 2022). The proposed amendments would dispense with the Comptroller’s long-standing “receipts-producing, end-product act” test and align the underlying regulation with the SiriusXM decision.
California Extends Deadlines to File and Pay Taxes for Businesses and Individuals Affected by Severe Winter Storms
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Following the IRS’s announcement of tax relief for 41 California counties* affected by severe winter storms, the California Franchise Tax Board (FTB) and California Department of Tax and Fee Administration (CDTFA) announced similar relief for state-level taxes and fees.
Maryland Digital Ad Tax Updates: Comptroller Seeks Stay of State Court Decision Striking Tax and Recently Dismissed Federal Challenge is Under Appeal
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The saga continues over Maryland’s Digital Advertising Gross Revenues Tax (Digital Ad Tax), much to the chagrin of Peter Franchot, Comptroller of Maryland, who is tasked with administering and enforcing the tax and has publicly issued concerns with the constitutionality of the tax.
Second Place Is Just the First Place Loser: Ohio Supreme Court Rejects State’s Sourcing of NASCAR Intangible Receipts to Ohio
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In a much-anticipated decision concerning the situsing of receipts from intangibles for Ohio commercial activity tax (CAT) purposes, the Ohio Supreme Court rejected the Ohio Department of Taxation’s
attempt to situs NASCAR Holdings, Inc.’s broadcast revenue, media revenue, licensing fees, and sponsorship fees to Ohio. The court’s opinion in NASCAR Holdings, Inc. v. McClain, Slip Op. No. 2022-Ohio-4131 (Nov. 22, 2022), confirms that under Ohio law receipts based on the right to use intellectual property may be sitused to Ohio only if the receipts, i.e., the underlying payments, are tied to a specific right to use the property in Ohio. Continue Reading ›
Three Strikes, You’re Out! New York Has Another Miss in Sales Tax Case Against a Service Provider Under the “Primary Function” Test
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An administrative law judge (ALJ) in the New York State Division of Tax Appeals cancelled the New York State Division of Taxation’s notice of determination asserting sales tax on petitioner’s verification services. The October 6, 2022 determination in Matter of Employment Screening Services, LLC, confirms that petitioner’s services are properly characterized as nontaxable information services because this verification report is tailored and customized based upon the specific applicant.
“Primary Function” Test Propels Yet Another Service Provider to Victory in New York Sales Tax Case
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An administrative law judge in the New York State Division of Tax Appeals rejected the state’s position that a taxpayer providing a web-based service which allowed clients to identify effective and ineffective messaging through information, analysis, and reports was selling taxable software. Following the rationale applied in a series of recent sales tax cases, including Matter of 1Life Healthcare, Inc., DTA No. 829434, and Matter of Breakdown Services, Ltd., DTA No. 829396, the judge concluded in her September 29, 2022 determination that the taxpayer’s service was nontaxable because its primary function was an information service that was personal or individual in nature.