SALT Shaker
Eversheds Sutherlands state and local tax blog on SALT planning, controversy, credits/incentives, and compliance.
Michigan Court of Appeals Upholds Indirect Sales Tax Audit Method
The Michigan Court of Appeals affirmed the Department of Treasury’s right to conduct an indirect sales‑tax audit of Sav‑Time, Inc., after the retailer failed to itemize non‑taxable labor on its invoices. The court held that the taxpayer’s invoices did not clearly separate parts and labor, violating MCL 205.51(1)(d)(iii)(B). Although Sav‑Time later submitted revised invoices, the court ruled the department was not required to consider post‑audit documents. The decision confirms that indirect audits are permissible when records appear inaccurate or incomplete.
Florida Circuit Court Reinforces COP Rule by Sourcing Online Bill Pay Services to the Location of the Taxpayer’s Own Activities
The Florida Second Judicial Circuit granted summary judgment to Checkfree Services Corporation, holding that the state’s corporate income tax cost‑of‑performance (COP) rule requires receipts from its online bill‑pay platform to be sourced based on Checkfree’s own transactions, not the locations...
Texas Court Holds Chemical Manufacturer’s Returnable Containers Qualify for Manufacturing Exemption
The Texas Court of Appeals ruled that a chemical manufacturer’s returnable porta‑feed containers qualify for the state’s manufacturing exemption from sales and use tax. The court reconciled the specific container exemption with the broader manufacturing exemption, allowing both to operate...
A “Third Way” Forward: Declaratory Judgments in State Tax Disputes
The SALT Shaker Podcast highlights a recent Tax Notes State article that positions declaratory judgments as a "third way" to contest state taxes. This tool lets taxpayers obtain a court ruling on a tax's constitutionality before paying, offering early certainty....
Utah Porn and Ad Taxes Would Boost Litigation More than Revenue
Utah lawmakers have introduced two controversial tax proposals: a targeted digital advertising levy and a tax on online providers of material deemed harmful to minors, primarily pornographic content. The authors of a Bloomberg Tax analysis argue that these measures are...
No Look-Through for You: What Is Delivered in Texas Is Sourced to Texas
The Texas Supreme Court rejected a taxpayer’s claim for a sales‑tax refund on bunker fuel sold to foreign‑registered ships at Texas ports. The court held that Texas Tax Code §171.103(a)(1) applies a place‑of‑delivery rule, meaning tax liability is triggered when...