http://www.reedsmith.com/ en-us © Copyright 2013 Reed Smith LLP. All rights reserved. Thu, 23 May 2013 07:30:34 GMT Thu, 23 May 2013 07:30:34 GMT Forty-six lawyers at Reed Smith LLP, a leading international law firm, are Pennsylvania Super Lawyers for 2013. Twenty-four others were named Pennsylvania Rising Stars. http://www.reedsmith.com/knowledge/detail.aspx?news=1931 News http://www.reedsmith.com/knowledge/detail.aspx?news=1931 Fri, 17 May 2013 00:00:00 GMT Pennsylvania’s broad mining exemption from sales and use tax also includes an exemption for pollution-control devices that is less well known than the general exemption for mining equipment. The pollution-control exemption covers all purchases or use of equipment, machinery, and supplies used to control, abate or prevent air, water, or noise pollution generated in mining operations. In fact, in an often-cited decision, the Pennsylvania Commonwealth Court held that the sales and use tax exemption for pollution-control devices is very broad. In Kelly Run, for example, the court held that bulldozers, cranes, containers, and a "Trashmaster," were exempt from tax under the pollution-control exemption. The court stated that the "items are used only to dispose of industrial wastes, two-thirds of which are hazardous. Since these pieces of equipment are used as pollution control devices more than half of the time, [they are] exempt from the sales tax." Thus, under the case law in Pennsylvania, many purchases that you would not normally consider exempt under the manufacturing exemption are still exempt under the pollution-control exemption. http://www.reedsmith.com/publications/detail.aspx?publication=12398 Publication http://www.reedsmith.com/publications/detail.aspx?publication=12398 Fri, 17 May 2013 00:00:00 GMT A California Superior Court has issued a decision with significant impact on financial services. In the case, Harley-Davidson, Inc. v. Franchise Tax Board, San Diego Superior Court Judge Joel Pressman held that bankruptcy-remote entities formed to hold financial assets in connection with securitization transactions had nexus with California and can be taxed as financial corporations, notwithstanding the fact that the entities had no physical presence in California. Harley-Davidson, through financing subsidiaries, originated loans in all 50 states, including in California. The Harley-Davidson group included two special purpose entities (SPEs), which were bankruptcy-remote subsidiaries. The SPEs bundled and securitized the loans originated by the financing subsidiaries and sold the related securities. The SPEs did not have a physical presence in California and, therefore, Harley-Davidson sought to exclude the SPEs’ California-sourced sales from the combined reporting group’s sales factor. http://www.reedsmith.com/publications/detail.aspx?publication=12342 Publication http://www.reedsmith.com/publications/detail.aspx?publication=12342 Mon, 13 May 2013 00:00:00 GMT Yesterday, the South Carolina Supreme Court issued its long-awaited decision in Bodman v. South Carolina, holding that the state’s sales and use tax exemption and cap scheme, as a whole, does not violate the state constitution’s equal protection guarantee and prohibition against special legislation.1 A copy of the court’s decision can be viewed here. However, the Bodman decision may be a beginning, rather than an end, to challenges to the state’s sales tax exemption and cap scheme. Although the court ruled in favor of the state, it does so reluctantly, finding that the plaintiff’s presentation of the case as a challenge to all exemptions and caps precluded the court from determining whether any specific exemptions and caps are unconstitutional under state law. The court invited future challenges to specific exemptions and caps. Will a taxpayer take the court up on its offer? http://www.reedsmith.com/publications/detail.aspx?publication=12331 Publication http://www.reedsmith.com/publications/detail.aspx?publication=12331 Thu, 09 May 2013 00:00:00 GMT Welcome to the first of a new series of quarterly updates from Reed Smith on state tax developments in Illinois. Every three months we will be giving you updates on the key cases and administrative releases, as well as providing you with some insight on new issues that taxpayers are facing in audits and cases pending before the Illinois Department of Revenue (the "Department"). For more information on any of the issues discussed below or any other questions on Illinois tax developments, contact Michael J. Wynne, Adam P. Beckerink, Denise M. Obrochta or Jennifer C. Waryjas, our Reed Smith State Tax Group members in Chicago. For more information on Reed Smith's Illinois tax practice, visit www.reedsmith.com/iltax. http://www.reedsmith.com/publications/detail.aspx?publication=12313 Publication http://www.reedsmith.com/publications/detail.aspx?publication=12313 Wed, 08 May 2013 00:00:00 GMT Please join us for a roundtable discussion in which we will consider how states are approaching the challenge of taxing cloud computing technologies, and what they should think about in doing so. SPEAKERS: Cara Griffith, Editor in Chief of State Publications, Tax Analysts Kelley Miller, Associate, Reed Smith LLP Mark Nebergall, President, Software Finance and Tax Executives Council Dylan Waits, Managing Senior Policy Counsel, Washington Department of Revenue MODERATOR: Christopher E. Bergin, President and Publisher, Tax Analysts DETAILS: Friday, April 26, 2013 9 - 11 a.m. Continental breakfast at 8:30 http://www.reedsmith.com/events/detail.aspx?firmEvent=3497 Event http://www.reedsmith.com/events/detail.aspx?firmEvent=3497 Fri, 26 Apr 2013 14:00:00 GMT 4/26/2013 9:00:00 AM This week, the Appellate Court of Illinois, Second District, issued its decision in Grede v. Hamer, holding that an individual was not an Illinois resident, notwithstanding the fact that the individual had not abandoned his Illinois domicile for the tax years at issue. Reed Smith’s state tax attorneys represented the taxpayers in Grede. Under the Illinois Income Tax Act ("IITA"), an individual is an Illinois resident if the individual is present in Illinois for other than a "temporary or transitory purpose" during the tax year, or if the individual is "domiciled" in Illinois but is absent from the state for a temporary or transitory purpose. If an individual leaves Illinois for other than a temporary or transitory purpose, or if an individual establishes domicile elsewhere, then he or she ceases to be an Illinois resident. Reed Smith successfully litigated the question of abandonment of domicile in Cain, another Appellate Court case, which was decided last year.3 Grede addresses the other basis for residency under the IITA, the "other than a temporary or transitory purpose" test. http://www.reedsmith.com/publications/detail.aspx?publication=12268 Publication http://www.reedsmith.com/publications/detail.aspx?publication=12268 Fri, 26 Apr 2013 00:00:00 GMT The first quarter of 2013 saw Massachusetts developments for some the biggest tax issues facing the state, including taxation and sourcing of cloud computing, SaaS and other web-based software products and services; application of interest and royalty add-back; apportionment of income; and recapture of incentives. In this quarterly update, we’ll take a look at some hot topics in pending litigation, and anticipated changes in the new budget. http://www.reedsmith.com/publications/detail.aspx?publication=12234 Publication http://www.reedsmith.com/publications/detail.aspx?publication=12234 Thu, 25 Apr 2013 00:00:00 GMT