On October 17, 2022, a Maryland state judge in the Circuit Court of Anne Arundel County struck down the stateâs Digital Advertising Tax (âDigital Ad Taxâ) as violating the Internet Tax Freedom Act (âITFAâ) and the Commerce Clause and First Amendment of the U.S. Constitution. Comcast of California/Maryland/Pennsylvania/Virginia/West Virginia LLC, et al. v. Comptroller of the Treasury of Maryland, Case No. C-02-CV-21-000509 (Md. Cir. Ct. Anne Arundel Cnty.).  The judge issued her ruling from the…
On September 8, 2022, the Louisiana Board of Tax Appeals (âBoardâ) granted a taxpayerâs motion for summary judgment in a case involving whether the taxpayer qualified as a manufacturer for purposes of Louisianaâs apportionment provisions. Cervey LLC, f/k/a New – Tech Computer Systems LLC v. Secretary of Department of Revenue, Louisiana, La. BTA Docket No. 12272D (Sept. 8, 2022). The taxpayerâs business consisted primarily of three types of software: (1) software for maintaining health records…
New Jersey is the latest state to unveil a voluntary initiative to examine transfer pricing for taxpayers with intercompany transactions. The initiative is similar to recent programs in North Carolina, Indiana, and Louisiana (see our prior coverage here and here, as well as our prior coverage of the Multistate Tax Commissionâs ongoing transfer pricing collaboration and enforcement initiatives). The New Jersey Division of Taxation published guidance outlining the voluntary transfer pricing initiative last week (NJ…
On March 4, 2022, a federal judge ruled that the federal Tax Injunction Act (âTIAâ) bars a challenge to Marylandâs Digital Advertising Gross Revenues Tax (âDigital Ad Taxâ) from proceeding in federal district court, but does not bar the plaintiffs from challenging Marylandâs prohibition on passing the tax to a customer âby means of a separate fee, surcharge, or line-itemâ (the âPass-Through Prohibitionâ). Chamber of Commerce of the United States of America v. Franchot, No.…