The BR State + Local Tax Spotlight: May 2024
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Note from the Editors
Welcome to the May 2024 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 legislative developments and judicial 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.
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Updates from previous editions:
In the April 2024 edition of The BR State + Local Tax Spotlight, Nicole L. Johnson authored an article titled “Misapplication of Complete Auto” in which she discusses the South Dakota Supreme Court’s recent opinion in Ellingson Drainage, Inc. v. South Dakota Department of Revenue. The Appellant in that case (Ellingson Drainage, Inc.) has petitioned the Supreme Court of the United States for a writ of certiorari.
In the March 2024 edition of The BR State + Local Tax Spotlight, Irwin M. Slomka authored an article titled “Microsoft Prevails in California Dispute on Inclusion of Gross Foreign Dividends in Apportionment Formula.” We had previously updated in the April 2024 edition of The BR State + Local Tax Spotlight that the California Office of Tax Appeals (“OTA”) had designated its 2023 opinion in Appeal of Microsoft Corporation and Subsidiaries as non-precedential. As a further update, on May 1, 2024, the Counsel On State Taxation submitted a letter to the OTA recommending that the OTA 2023 Microsoft decision be designated precedential.
In the December 2023 edition of The BR State + Local Tax Spotlight, Eugene J. Gibilaro authored an article titled “State Tax v. Local Tax – Is There a Difference?” in which he discussed the Pennsylvania Supreme Court’s recent decision in Zilka v. Tax Review Board of Philadelphia. Since the publication of his article, the Appellant in that case (Diane Zilka) has petitioned the Supreme Court of the United States for a writ of certiorari. The Court has not yet granted or denied review.
Joshua M. Sivin and Melanie L. Lee
ARTICLES
New Jersey Tax Court Awards Company a Refund Based on Its Use of Market-Based Sourcing for Years Prior to New Jersey’s Adoption of the Same
By Kara M. Kraman
In an unpublished opinion, the New Jersey Tax Court held that a web-based business solutions company was entitled to use market-based sourcing to source its 2011 and 2012 receipts even though market-based sourcing was not officially adopted by New Jersey until 2019. Read More >>
New York City Announces Anticipated Deviations from Recently Promulgated New York State Corporate Tax Regulations
By Irwin M. Slomka
The New York City Department of Finance has recently announced on its website that its still-pending business corporation tax regulations under City corporate tax reform legislation enacted in 2015 are expected to contain several notable deviations from the New York State corporate tax reform regulations that were promulgated at the end of 2023. Read More >>
New Orleans Loses Bid to Tax Music Streaming Service
By Mitchell A. Newmark
The New Orleans Collector of Revenue failed in its attempts to subject music streaming services to the City’s sales tax. Read More >>
New York State Enacts Fiscal Year 2024–2025 Budget, New York City to Follow
By Melanie L. Lee
On April 20, 2024, 19 days after the April 1 deadline, New York Governor Kathy Hochul signed into law several bills, including A8809 / S8309 and A8806 / S8306, which enact into law New York State’s $237 billion budget for the fiscal years 2024–2025. 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. 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 >>