McDermott Will & Emery
Subscribe to McDermott Will & Emery's PostsOhio Supreme Court Rules City of Cleveland’s Taxation of Nonresident NFL Players’ Compensation Out-Of-Proportion to Games Played at the Browns’ Stadium
By McDermott Will & Emery on May 27, 2015
Posted In Allocation/Apportionment, Income Tax, Local Tax, Ohio
On April 30, 2015, out-of-state professional football players earned victories against the City of Cleveland, Ohio. In a pair of cases decided by the Ohio Supreme Court, the court first struck the City’s method of allocating a nonresident professional athlete’s compensation as unconstitutional, and later that day ruled that the city tax cannot reach the...
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MTC Puts Designs on Increasing State Transfer Pricing Revenues
By Stephen P. Kranz and McDermott Will & Emery on Feb 6, 2015
Posted In Income Tax, Transfer Pricing
This past December, the Multistate Tax Commission’s (MTC) transfer pricing advisory committee and its project facilitator Dan Bucks recommended what it calls the “preliminary design” approach for a proposed Arm’s Length Adjustment Services (ALAS) program. While still subject to approval, states already anticipate that the program will increase their state transfer pricing revenues. The MTC...
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Indiana Department of Revenue Rules Forced Disposition is Nonbusiness Income
By McDermott Will & Emery on Jan 21, 2015
Posted In Allocation/Apportionment, Income Tax, Indiana, UDITPA
In Letter of Finding No. 02-20140306 (Dec. 31, 2014), the Indiana Department of Revenue (Department) determined that income from the sale of two operating divisions of a business pursuant to an order of the Federal Trade Commission (FTC) was non-business income under Indiana law. Following the reasoning of the Indiana Tax Court in May Department...
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Division of Tax Appeals Rules Patent License Fees Not Subject to Sales Tax in New York
By McDermott Will & Emery on Jun 26, 2014
Posted In New York, Sales Tax
New York State Division of Tax Appeals administrative law judge (ALJ) recently ruled in Matter of AMO USA, Inc. on the question of whether patent license fees are properly subject to sales tax as part of the sale of tangible personal property. The ALJ determined that the patent license fees were not taxable because they...
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Division of Tax Appeals Rules Patent License Fees not Taxable in New York
By McDermott Will & Emery on Jun 25, 2014
Posted In Sales Tax
A New York State Division of Tax Appeals administrative law judge (ALJ) recently ruled in favor of a medical device and technology company represented by McDermott Will & Emery on the question of whether patent license fees that the company charged to its customers were subject to New York sales tax. In Matter of AMO...
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Illinois Department of Revenue Intends to Extend Its Multifactor Post-Hartney Sourcing Regulations to Interstate Transactions
By McDermott Will & Emery on Jun 23, 2014
Posted In Illinois, Local Tax, Sales Tax
The saga over local sourcing of Illinois retailers’ occupation taxes is well known. The Illinois Department of Revenue has a dedicated webpage for the issue, and Inside SALT covered some of the litigation aspects last month (see Illinois Regional Transportation Authority Suffers A Setback In Its Sales Tax Sourcing Litigation). A new chapter is unfolding...
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Retailers Should Examine Gift Card Practices in Light of a Recent Unclaimed Property False Claims Action
By McDermott Will & Emery on May 14, 2014
Posted In Delaware, Nationwide Importance, Unclaimed Property
A complaint in the Superior Court of Delaware alleges that numerous retailers “schemed to deprive the State of Delaware of hundreds of millions of dollars due to the State under the Abandoned Property Law” (emphasis added). Delaware v. Card Compliant et al., Del. Sup. Ct (New Castle County), Case No. N13C-06-289 FS (6/2013). The complaint...
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Retroactive Revenue Raisers: A Taxpayer Win in New York; Problems Ahead in Virginia
By McDermott Will & Emery on May 12, 2014
Posted In Constitutional Issues, Income Tax, New York, Virginia
When state legislatures are in need of additional funds – as they often are – it is tempting to enact retroactive legislation to bring more dollars into state coffers. Two recent developments have Due Process Clause questions of retroactivity back in the news in the SALT world. In Caprio v. N.Y. State Dep’t of Taxation...
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Illinois Regional Transportation Authority Suffers A Setback In Its Sales Tax Sourcing Litigation
By McDermott Will & Emery on May 8, 2014
Posted In Illinois, Local Tax, Sales Tax
Illinois’ order acceptance rule for sourcing local sales taxes has spurred litigation and endless confusion. The wide differential between local tax rates has encouraged shoppers and retailers to transact business in lower rate jurisdictions – everything from drivers heading across the county line to fill their gas tanks to huge retailers establishing order acceptance facilities...
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Maryland Madness: An Incentives Plot for House of Cards
By McDermott Will & Emery on Apr 28, 2014
Posted In Incentives, Maryland
Somewhere in Hollywood: House of Cards Screenwriter 1: Let’s have an episode where a business getting tax breaks puts on the lobbying pressure to get even more, only to cross the wrong legislator and nearly lose everything. House of Cards Screenwriter 2: That’s too unrealistic – it could never happen. Apparently the Maryland legislature disagrees....
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