Latest Posts
Search for:
Tag

Income Producing Activity

Browsing

Washington DOR Responds to the LendingTree Decision: Benefit of the Service May Still Occur at the Customer’s Customer Location

By 4 Mins Read

On July 21, the Washington Department of Revenue (“DOR”) issued its analysis of the Court of Appeals’ decision from March 30, 2020, in LendingTree, LLC v. Dep’t of Revenue, no. 80637-8-I (Wash. App. Ct. Mar. 30, 2020).  As set forth in the analysis, from the DOR’s perspective, the LendingTree court followed the existing Washington Business and Occupation tax (“B&O”) attribution rules and guidance and did not create a new interpretive legal framework.[1]  Although the DOR lost the case, and the court held that LendingTree’s receipts could not be sourced based where its customers’ customers were located, the DOR’s response suggests that they are factually distinguishing the case and will continue to attribute receipts to the customer’s customer location if that is where it determines the benefit of the services occurs.

To Market We Go Again: Pennsylvania Commonwealth Court Defers to Department, Disregards Law Change, and Holds that Cost of Performance Sourcing was Always Market

By , and 11 Mins Read

On Friday, July 24, 2020, the Commonwealth Court of Pennsylvania issued its decision and order on the Pennsylvania Department of Revenue’s motion to intervene in the highly-anticipated case of Synthes USA HQ, Inc. v. Commonwealth of Pennsylvania, No. 108 F.R. 2016.  The Synthes case is noteworthy not only because the Commonwealth Court addresses, for the first time, the Department of Revenue’s hotly debated interpretation of the state’s former “costs of performance” statute, but also because…

Florida’s Sourcing of Receipts from Services – A Trap for the Unwary Or An Opportunity for the Advised?

By 5 Mins Read

The Florida Department of Revenue (the “Department”) recently published Technical Assistance Advisement No. 17C1-004 (decided Apr. 17, 2017, published Aug. 25, 2017) (the “TAA”), which addresses how receipts from “other sales” are sourced under Florida’s apportionment regulation (i.e., Florida Administrative Code Regulation (“Regulation”) 12C-1.0155(2)(l)).  Despite the cost-of-performance (“COP”) language explicitly stated in Florida’s Regulation 12C-1.0155(2)(l), the Department applied a market-based sourcing approach, concluding that the receipts from certain services should be sourced to Florida when the taxpayer’s customers are physically located in the state.  While Technical Assistance Advisements have no precedential value, the TAA showcases Florida’s propensity to use market-based sourcing for receipts from “other sales,” which appears to be in contrast to the COP directive under Florida Regulation 12C-1.0155(2)(l).

Oregon Proposes “Gross” New Tax

By and 4 Mins Read

On November 8, 2016, Oregon voters will vote to approve or reject Measure 97 (formerly, Initiative Proposal 28) that would implement a new 2.5 percent gross receipts tax on certain C corporations doing business in Oregon. If approved by voters, this new tax would be effective for tax years beginning on or after January 1, 2017.