In 1993, the California Legislature amended Revenue and Taxation Code (RTC) sections 6011 and 6012 to exclude from California sales and use tax amounts charged for intangible personal property transferred with a technology transfer agreement (TTA) if the TTA separately stated a reasonable price for the tangible personal property (TPP). Nine years later, the State Board of Equalization (SBE) adopted Regulation 1507, Technology Transfer Agreements, to implement and interpret the TTA statutes and to incorporate the California Supreme Court’s holding in Preston v. State Board of Equalization, 25 Cal.4th 197 (2001). Subsequent litigation over the next 13 years in Nortel Networks, Inc. v. State Board of Equalization, 191 Cal.App.4th 1259 (2011) and Lucent Technologies, Inc. v. State Board of Equalization, 241 Cal.App.4th 19 (2015), invalidated portions of Regulation 1507, as well as Regulation 1502 (Computers, Programs and Data Processing). In the nine years since the Lucent decision, the SBE and its successor, the California Department of Tax and Fee Administration (CDTFA), have been engaged in a seemingly endless regulation project.
Pillsbury SALT recognized in Legal 500 2024
Congratulations to our Pillsbury Winthrop Shaw Pittman LLP SALT team for earning recognition in the Legal 500 US ranking guide. The California SALT team earned a Band 5 ranking for US Taxes – Contentious. Congratulations!
COST’s 2024 Annual Meeting
Pillsbury SALT attorneys Evan Hamme and Aruna Chittiappa will present during COST’s Annual Meeting on September 25 and 26.
CalTax Foundation Webinar
Pillsbury SALT partner Carley Roberts will participate as a panelist on an upcoming CalTax Foundation webinar on Tuesday, September 10.
Pillsbury SALT recognized in Chambers USA 2024
Congratulations to our Pillsbury SALT team, again earning recognition in the Chambers USA ranking guide. Our California SALT team earned a Band 1 ranking for the 4th year, with partners Jeffrey Vesely (Band 1) earning his 18th ranking, Carley Roberts (Band 1) with her 16th ranking, and Robert Merten (Band 2) with his 2nd ranking this year. Congratulations!
Carveouts Count! Taxpayer Wins New Mexico Statutory Carveout Issue Regarding Unity
The New Mexico Court of Appeals has held that a multinational oil and gas production company did not constitute a “unitary corporation” with its foreign subsidiaries, pursuant to statutory carve-out language regarding the term “unitary corporation.”
New Jersey Tax Court Approves Use of Market-Based Sourcing for Years Prior to Legislature’s Adoption of Market-Based Sourcing
The New Jersey Tax Court held that a taxpayer was entitled to a refund of corporation business tax (CBT) for tax years 2011 and 2012 after determining the taxpayer correctly used a market-based sourcing methodology to source service receipts to New Jersey. In its unpublished April 11, 2024, opinion, the court rejected the argument that the law and regulations in effect during the tax years at issue, which preceded 2018 legislation adopting market-based sourcing, required the use of a cost of performance (COP) methodology.
Tennessee Taxpayers Could Reap Billions in Past and Future Tax Savings
Zack Atkins’ comments in Law360 Tax Authority regarding newly passed legislation in Tennessee that could provide taxpayers with up to $1.6 billion in rebates for portions of three years of past payments and up to $400 million in new savings each year.
Read more here.
COST’s 2024 SALT Workshop for Technology Companies
Pillsbury SALT attorneys Carley Roberts, Jeffrey Vesely, Craig Becker, Robert P. Merten III, Zachary Atkins, Evan Hamme and Aruna Chittiappa will present at this year’s SALT Workshop for Technology Companies on August 14 and 15.
2024 Wichita Property Tax Conference
Pillsbury SALT partner Breann Robowski will present at this year’s Wichita Property Tax Conference.
