Article by Jennifer Karpchuk on “This Year in SALT”
In an article published in Tax Notes on December 20, 2021, Philadelphia-based Shareholder Jennifer Karpchuk discusses some of the top cases of 2021 — including litigation on Public Law 86-272, sales tax apportionment, use taxes for advertising materials, sales tax class actions, and billboard taxes in Baltimore and Cincinnati.
“From old issues involving Public Law 86-272 to new issues involving billboard taxes, 2021 was certainly not dull — yielding a number of important state and local tax decisions from courts throughout the country,” explains Karpchuk. “Many of the year’s top cases offer something to watch for or consider in 2022.”
Karpchuk outlines Public Law 86-272 and its protection to companies that meet its protection to companies that meet its guidelines, or no income tax and taxpayers interpret it as broadly as possible. She also discusses the Massachusetts case, Oracle USA Inc., involving sales tax apportionment and is focused on statutory construction and the commissioner’s authority. Karpchuk also discusses when a tax authority asserts a use tax liability during routine sales tax audits.
She concludes that this year certainly had some significant SALT cases involving key issues that are applicable throughout the country. Although 2021 is ending, 2022 is sure to bring its share of riveting SALT cases.
To read the article in full, subscribers may click here.