Ryan Tax Developments

South Carolina Supreme Court Upholds Sales and Use Tax Exemptions.

Tue, 14 May 2013 00:00:00 GMT

On May 8, 2013, the South Carolina Supreme Court shot down a broad challenge to the state’s administration of sales and use tax. Attorney Matthew Bodman filed suit in 2011 alleging that the numerous exemptions to the tax were not rationally related to the tax itself. The fatal flaw in his argument, according to the court, was that Bodman did not single out individual exemptions or caps for criticism.

Texas Court Strikes Down Provisions of Comptroller’s Rule 3.325 on Refunds.

Mon, 13 May 2013 00:00:00 GMT

A Travis County District Judge has invalidated several provisions of the Texas Comptroller of Public Accounts’ rule relating to refunds of sales and use tax. In Ryan, LLC v. Combs, Cause No. D-1-GN-12-002388 (Dist. Ct. – Travis Cty., May 10, 2013), Judge Amy Clark Meachum declared that subsections (a)(4), (b)(10) and (e) of 34 TAC § 3.325 (effective January 7, 2013) and subsection (a)(4) of the previous version of the rule (effective July 19, 2011) are invalid and illegal.

Marketplace Fairness Act Facing Congressional Opposition.

Thu, 09 May 2013 00:00:00 GMT

The Marketplace Fairness Act, passed Monday, May 6, 2013 in the United States Senate (Senate Bill 743) by a 2 to 1 ratio with bipartisan support, seems likely to face a more difficult challenge from Congressional Republicans in the House of Representatives (H.R. 684).

Florida Legislature Passes Expanded Machinery and Equipment Exemption.

Tue, 07 May 2013 00:00:00 GMT

Florida has expanded its machinery and equipment exemption for manufacturing by the passage of House Bill 7007 (“H.B. 7007”). Governor Rick Scott is expected to sign the bill quickly. (Governor Scott sponsored the expansion of the credit as part of his economic development initiative for the state of Florida.)

Senate Passes Marketplace Fairness Act.

Tue, 07 May 2013 00:00:00 GMT

On Monday, May 6, 2013, the Marketplace Fairness Act passed in the United States Senate (Senate Bill 743). If enacted, it will allow states and the District of Columbia to require online retailers to collect sales and use tax without a physical presence nexus requirement.

Virginia’s Sales and Use Tax Exemption Program for Data Centers.

Tue, 16 Apr 2013 00:00:00 GMT

In a move designed to lure data centers to Virginia, effective July 1, 2010, the Virginia Legislature amended Virginia Code Section 58.1-609.3. This amendment provides retail sales and use tax exemption for data centers that meet various criteria of capital investment, new jobs, and wage rate.

New York Court of Appeals Upholds Online Retailer Nexus.

Tue, 02 Apr 2013 00:00:00 GMT

On March 28, 2013, in a consolidated opinion for the cases of Overstock.com, LLC v. New York State Department of Taxation and Finance and Amazon.com, LLC v. New York, the New York Court of Appeals (“Court”) upheld a provision of New York law, under which out-of-state retailers that advertise online may be required to collect the state’s sales tax.

European Union VAT Recovery Deadline is Approaching.

Mon, 25 Mar 2013 00:00:00 GMT

June 30, 2013 is an important date for taxpayers who may be eligible to recover value-added tax (VAT) paid to many European Union (EU) member countries. In many cases, VAT paid in 2012 may not be recoverable if the required documentation is not filed with the respective EU authority by this date.

Time is Running Out—IRS Notice Allows Employers Extended Time Period to Take Advantage of the Work Opportunity Tax Credit.

Tue, 19 Mar 2013 00:00:00 GMT

On Friday, March 8, 2013, the Internal Revenue Service (IRS) announced that employers participating in, or planning to participate in, the Work Opportunity Tax Credit (WOTC) program shall be granted a temporary extension of the time allowed to file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit. The full text of the IRS bulletin can be found at IRS Notice 2013-14.

Texas Supreme Court Affirms Resale Exemption for “Plush” Items.

Fri, 08 Mar 2013 00:00:00 GMT

In a new decision styled Combs v. Roark Amusement & Vending, L.P., No. 11-0261 (Tex. – March 8, 2013), the Texas Supreme Court (“Court”) has determined that the resale exemption applies to purchases of plush toys used in coin-operated amusement machines.