A recent decision out of the Los Angeles County Superior Court marks a significant win for taxpayers involving the use of alternative apportionment and successful challenges to the Franchise Tax Board’s (“FTB”) regulations, which the court found to be inconsistent with the statute as applied. On February 26, 2026, the court in Smithfield Packaged Meats Corp. v. California Franchise Tax Board ordered the FTB (in a Proposed Statement of Decision, which becomes final after an…
Vermont will impose its sales and use tax on sales of remotely accessed software effective July 1, 2024 (Bill H.887). Vermont’s governor originally vetoed the bill, but the legislature overrode the veto on June 17, 2024. Vermont’s definition of “tangible personal property” includes “prewritten computer software,” but the legislature had enacted an exemption for remotely accessed software in 2015. The new legislation expands the “tangible personal property” definition to cover prewritten computer software “regardless of…
As part of the New York Budget Legislation (“S.B. 4009 / A.B. 3009”), the Commissioner of the New York State Department of Taxation and Finance (“Commissioner”) will be given the right to appeal certain types of decisions from the New York State Tax Appeals Tribunal (“Tribunal”). Currently, only taxpayers have the right to appeal Tribunal decisions. This provision is on the cusp of becoming law after clearing both legislative chambers on May 1, 2023. As…
The Florida Department of Revenue issued a Technical Assistance Advisement concluding that a taxpayer’s online learning services were subject to the state’s Communications Services Tax (“CST”) as a “video service” (statutorily defined as “the transmission of video, audio, or other programming service to a purchaser …” and includes “digital video”), while the taxpayer’s sales of an internal email service were nontaxable “information services.” Florida Dep’t of Revenue, Technical Assistance Advisement 22A19-002R (Oct. 7, 2022). The…