Maria Eberle, Ted Bots, Lindsay LaCava, Stephen Long, Mark Yopp, Dmitrii Gabrielov, David Simon-Fajardo, Author at SALT Savvy

Maryland State Judge Strikes Down Digital Ad Tax

October 19, 2022 By Maria Eberle, Ted Bots, Lindsay LaCava, Stephen Long, Mark Yopp, Dmitrii Gabrielov and David Simon-Fajardo 2 Mins Read

On October 17, 2022, a Maryland state judge in the Circuit Court of Anne Arundel County struck down the state’s Digital Advertising Tax (“Digital Ad Tax”) as violating the Internet Tax Freedom Act (“ITFA”) 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…

Louisiana Board of Tax Appeals Addresses Modern Manufacturing

October 7, 2022 By Maria Eberle, Lindsay LaCava, Mark Yopp and Dmitrii Gabrielov 3 Mins Read

On September 8, 2022, the Louisiana Board of Tax Appeals (“Board”) granted a taxpayer’s motion for summary judgment in a case involving whether the taxpayer qualified as a manufacturer for purposes of Louisiana’s 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 taxpayer’s business consisted primarily of three types of software: (1) software for maintaining health records…

Federal Judge Rules That Challenge to Maryland Digital Advertising Tax Cannot Proceed In Federal Court, But Challenge to Pass-Through Prohibition Can Proceed

March 8, 2022 By Maria Eberle, Ted Bots, Mark Yopp, Dmitrii Gabrielov and Ronald Beach 4 Mins Read

On March 4, 2022, a federal judge ruled that the federal Tax Injunction Act (“TIA”) bars a challenge to Maryland’s Digital Advertising Gross Revenues Tax (“Digital Ad Tax”) from proceeding in federal district court, but does not bar the plaintiffs from challenging Maryland’s prohibition on passing the tax to a customer “by means of a separate fee, surcharge, or line-item” (the “Pass-Through Prohibition”). Chamber of Commerce of the United States of America v. Franchot, No.…

Partial Holder Win in Delaware’s Unclaimed Property Audit Procedure May Impact Exempt Property

December 2, 2021 By Mark Yopp and Trevor Mauck 5 Mins Read

In Siemens USA Holdings Inc. v. Geisenberger, No. 20-2991 (3d Cir. 2021), the Third Circuit found that the District Court erred (1) in holding that Siemens’ preemption claim was unripe, and (2) in denying Siemens’ motion for a preliminary injunction. Both the question of ripeness and the injunction request related to whether the escheat priority rules preempted certain audit procedures, as opposed to the validity of an assessment. Specifically, Siemens brought the lawsuit claiming, among…