McDermott Will & Emery
Subscribe to McDermott Will & Emery's PostsU.S. Tax Court Finds Refundable State Credits Result in Taxable Income
By McDermott Will & Emery on Mar 17, 2015
Posted In Incentives, Income Tax, New York, Property Tax
The United States Tax Court recently determined that certain refundable tax credits issued by New York in connection with economic development activities (EZ Credits) constituted taxable income to the recipients for federal tax purposes. Maines v. Comm’r, 144 T.C. No. 8 (Mar. 11, 2015). In reaching this determination, the Court noted that the characterization of...
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Louisiana Supreme Court Upholds Bundling Portable Toilet Leases and Cleaning Services, but Not Sure About True Object of Resulting Transactions
By McDermott Will & Emery on Mar 16, 2015
Posted In Local Tax, Louisiana, Sales Tax, Tax Base, Transaction Taxes
If you are ever waiting in line for portable toilet facilities at the St. Patty’s Day Parade and in need of something to think about, consider the property and service you are about to use: Is it the lease of tangible personal property, the provision of a cleaning and waste removal service, or both? The...
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Inside the New York Budget Bill: 30-Day Amendments
By McDermott Will & Emery on Feb 23, 2015
Posted In New York, Sales Tax
On Friday, February 20, 2015, Governor Andrew Cuomo’s office released the 30-Day Amendments to the 2015–2016 New York State Executive Budget Legislation (Budget Bill). This year, instead of the usual set of corrections and minor changes to the Budget Bill, the 30-Day Amendments focused primarily on the governor’s five-point ethics reform plan, with only very few corrections and minor changes included with respect...
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NYS Tax Department Reverses Position on Statutory Residence Rule
By McDermott Will & Emery on Dec 19, 2014
Posted In Income Tax, New York
The New York State Department of Taxation and Finance (the Department) has backed off from an aggressive position that it has been taking in cases involving New York residence issues. Under New York law, a person who is not domiciled in the state can be treated as a resident for income tax purposes (and, hence,...
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State Revenue Departments Misapplying Federal Tax Law
By McDermott Will & Emery on Sep 9, 2014
Posted In Audits, Federal Tax, Idaho, Income Tax, Maryland, Nationwide Importance, Procedure
State income tax laws generally build on federal tax law. The typical pattern is to begin the calculation of state taxable income with federal taxable income and then to modify it by adding or subtracting items where state tax policies differ from federal tax policies. As a result, a corporation’s state taxable income can be...
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New York ALJ Rejects Retroactive Application of Statute
By McDermott Will & Emery on Sep 8, 2014
Posted In Constitutional Issues, Income Tax, New York, Procedure
State courts generally have allowed legislatures a fair amount of flexibility in adopting retroactive statutes, but a recent New York case held that, under the circumstances presented, the retroactive application of a statute was unconstitutional. In Matter of Jeffrey and Melissa Luizza (DTA No. 824932) (Aug. 21, 2014), Mr. Luizza agreed to sell all of...
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In Case We Didn’t Know the Difference Between “Big” and “Little” Cigars, the New York State Tax Department Tells Us What it is
By McDermott Will & Emery on Sep 5, 2014
Posted In New York, Sales Tax
The New York State Department of Taxation and Finance has addressed one of the major issues in tax administration: defining the difference between “big” and “little” cigars. Tax Bulletin TP-530 (August 28, 2014). First, the Department has defined “cigar.” A cigar is any roll of tobacco wrapped in leaf tobacco or in any substance containing...
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Bear Down: In a Preseason Loss to Cook County’s Poor Play, the Appellate Court Finds Chicago Bears Ticket Holder Amenities Taxable
By McDermott Will & Emery on Sep 4, 2014
Posted In Illinois, Local Tax, Sales Tax, Tax Base
The First District of the Illinois Appellate Court, in Chicago Bears Football Club v. Cook County Department of Revenue, 2014 IL App (1st) 122892 (Aug. 6, 2014), has affirmed an administrative determination finding the Chicago Bears owe Cook County over $4.1 million in amusement tax and related interest, on the basis that the amenities and...
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New York State Department of Taxation and Finance Releases Guidance on the Taxability of Computer Software
By McDermott Will & Emery on Aug 12, 2014
Posted In New York, Sales Tax, Transaction Taxes
The New York State Department of Taxation and Finance has just released a Tax Bulletin addressing how the state’s sales tax applies to sales of computer software and related services. The Tax Bulletin does not broach new ground, but it does offer a formal expression of the Department’s position—previously articulated in advisory opinions—that the provision...
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Favorable Ruling: HMOs Not Taxable Under New York City General Corporation Tax
By McDermott Will & Emery on Jul 28, 2014
Posted In Income Tax, Insurance Tax, Pennsylvania
A New York City Tax Appeals Tribunal Administrative Law Judge (ALJ) recently ruled in favor of Aetna, Inc. (Aetna) on the question of whether a health maintenance organization (HMO) was “doing an insurance business” in New York State, thereby exempting it from the New York City General Corporation Tax (GCT). In Matter of Aetna, Inc.,...
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