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Los Angeles Settles Disputed Phone Tax for $92.5M

Recently, a class of plaintiffs settled with City of Los Angeles over its alleged unlawful collection of telephone utility user tax (UUT). The class alleged that the Los Angeles Municipal Code exempted from UUT all amounts not subject to federal excise tax. The disputed taxes were collected between Oct. 19, 2005 and Mar. 15, 2008. … Continue Reading

The Nortel Dilemma: Taxability of Canned Software in California

In an article published in this week’s BNA Weekly State Tax Report, Marty Dakessian, Mike Shaikh and I analyze last year’s decision of the California Court of Appeal (2nd District) in Nortel Networks Inc. v. State Board of Equalization, 191 Cal. App. 4th 1259 (Cal. Ct. App. 2011), holding that sales of prewritten software fall … Continue Reading

Just in Time for iPad3? California Updates Internet Sales and Digital Downloads Guidance

For iPad devotees, California’s timing couldn’t be better. As the world (including, admittedly, the editors of this blog) await with baited-breath the possible news from Apple this morning on the next generation of its iPad tablet, the California State Board of Equalization has issued revised guidance on the taxability of internet sales, including downloads of … Continue Reading

Nexus? You Betcha! Minnesota House Holds First Hearing on 2012 Affiliate Nexus Bill

A first hearing on H.F. 1849, a bill filed in the Minnesota House of Representatives last month which, if enacted, would enact affiliate nexus as the law in Minnesota, was held in the House Tax Committee last week. Two prominent retailers headquartered in Minnesota—Best Buy and Target—took the lead in testifying before the House Subcommittee. … Continue Reading

California Software Refunds – SBE Issues Guidance to Auditors on Nortel Claims

Earlier this year, the California Court of Appeal (2nd District) issued its decision in Nortel Networks, Inc. v. State Board of Equalization, holding that sales of prewritten software fall within California’s sales and use tax exemption for transfers of intangible property pursuant to a technology transfer agreement (TTA).  The Court held that as long as … Continue Reading

Pennsylvania… Amazon Stops Here!

While it’s certainly not the first state to consider affiliate nexus legislation (since 2009, several states including: Colorado, Illinois, Rhode Island, North Carolina, Arkansas, New York, Connecticut, and California, have passed affiliate nexus—or “click-through”—laws), a bill was recently introduced in the Pennsylvania legislature that, if passed, would greatly expand the definition of nexus for sales … Continue Reading
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