SALT Shaker
Eversheds Sutherlands state and local tax blog on SALT planning, controversy, credits/incentives, and compliance.
C Is for Cookie, That’s Good Enough for New York: P.L. 86-272 Regs on Internet-Based Activities Upheld
The New York Appellate Division affirmed that the state’s 20 NYCRR 1‑2.10 regulation, which interprets P.L. 86‑272 for Internet‑based activities, is not preempted by federal law. The rule confines P.L. 86‑272’s protection to activities conducted within New York, distinguishing between solicitation‑related and non‑solicitation online actions. It clarifies that cookies used solely to support a current shopping session preserve the tax exemption, while tracking cookies that go beyond solicitation expose out‑of‑state sellers to franchise tax. The decision upholds the regulation’s language and leaves factual assessments to future cases.
SALT Scoreboard – First Quarter 2026
Eversheds Sutherland released the inaugural 2026 SALT Scoreboard, a quarterly snapshot of significant state and local tax (SALT) litigation outcomes. The Q1 edition catalogs taxpayer wins and losses, highlighting trends around Public Law 86-272 and intercompany transfer disputes. A dedicated...
A Texas Two-Step on Franchise Tax: Lessons From NuStar and American Airlines
The SALT Shaker Podcast breaks down two pivotal Texas franchise‑tax rulings. In NuStar Energy LP v. Hancock, the Texas Supreme Court held that receipts from tangible personal property are sourced to Texas based on the delivery point, rejecting an ultimate‑use...
Sew What? Ohio Supreme Court Concludes Apparel Wholesaler’s Evidence Is Insufficient for a Refund
The Ohio Supreme Court rejected Jones Apparel Group/Nine W. Holdings’ claim for a Commercial Activity Tax (CAT) refund, finding the company’s evidence insufficient to prove that most of its products shipped to an Ohio distribution center were later sent out...
U.S. District Court Swipes Banking Industry Group’s Effort to Block Illinois’ Law Banning Interchange Fees on Tax and Tips
The U.S. District Court for the Northern District of Illinois ruled that the National Bank Act does not preempt Illinois' Interchange Fee Prohibition Act (IFPA), leaving the state’s ban on interchange fees for taxes and tips intact. The court granted...
Indiana Tax Court: Cell Phones Qualify for Telecom Equipment Exemption
The Indiana Tax Court held that cell phones are covered by the state’s telecommunications equipment exemption from sales and use tax. New Cingular Wireless PCS, which bought phones to give free to customers or replace under insurance, was entitled to...
On the Rocks: Maine Court Finds Income Tax Nexus for Liquor Supplier with In-State Bailment Inventory
The Maine Supreme Judicial Court ruled that a liquor supplier owed roughly $750,000 in state income tax, penalties, and interest for 2011‑2017. The court found nexus because the supplier retained title to liquor stored in a Maine bailment warehouse, creating...
North Carolina Superior Court Rejects DOR’s Attempt to Tax Intercompany Transfers Lacking Consideration
The North Carolina Superior Court ruled that intercompany transfers of asphalt emulsion between Asphalt Emulsion Industries (AEI) and its parent Slurry Pavers, Inc. (SPI) do not constitute taxable sales because they lack bargained‑for consideration. AEI recorded the transfers using hypothetical...
A Valid Business Purpose: Virginia Letter Ruling Concludes No Add Back Required
The Virginia Tax Commissioner issued a letter ruling that exempts a corporate taxpayer from the state’s intercompany interest add‑back requirement. The taxpayer demonstrated that its centralized cash‑management system, which routed cash through the parent and used intercompany loans, served legitimate...
Shedding Light on Tax Administration Through FOIA
Tax Notes' Investigations Editor Lauren Loricchio discussed the firm’s historic push for tax transparency on the SALT Shaker Podcast. The conversation highlighted the 1972 lawsuit that forced the IRS to release private letter rulings and introduced the new monthly FOIA...
Check Your Sources: Washington Appeals Court Sources Remote Title Insurance Services to the Location of the Property
The Washington Court of Appeals ruled that title‑insurance and escrow services delivered remotely are sourced to Washington because the purchaser’s first use occurs in the state. The court rejected the trial court’s reliance on RCW 82.32.730(1)(a), which ties sourcing to...
Maryland Comptroller Rejecting DAT Refund Claims without Offering Appeal Rights
The Maryland Comptroller is rejecting Digital Advertising Tax (DAT) refund claims with notices that the request "does not constitute a refund claim" because the filings lack detailed gross revenue and Maryland apportionment data. The notices provide no explicit appeal mechanism,...
NY Tax Talk: Calculating Tiered Partnership Income
The New York City Tax Appeals Tribunal issued a landmark ruling on how to calculate the Unincorporated Business Tax (UBT) for tiered partnerships. The tribunal requires that NYC‑source income be traced through each partnership layer to the ultimate partners, rather than...
Legal Alert: Georgia Legislature Concludes 2026 Session – Tax Highlights From Sine Die
The Georgia General Assembly wrapped up its 2026 session by passing a suite of tax measures that speed up the planned reduction of the state personal income tax rate and impose a cap on homestead property assessment growth. Local jurisdictions...
Deadline Approaches for Maryland Digital Advertising Tax Refund Claims
Maryland’s Comptroller clarified that the state’s Digital Advertising Tax (DAT) does not apply to audio‑only ads or ads sold outside programmatic channels. Taxpayers who previously reported revenue from these excluded services can file for a refund. The three‑year limitation for...