Welcome to the April 2025 edition of The BR State + Local Tax Spotlight. We know the importance of remaining up-to-date on State + Local Tax developments, which appear often and across numerous jurisdictions. Staying informed on significant developments and decisions helps tax departments function more efficiently, along with improving strategy as well as planning. That is where The BR State + Local Tax Spotlight can help. In each edition, we will highlight important State + Local Tax developments that could impact your business. In this issue, we will be covering:
- Gains on Sales of Franchises Held Nonbusiness Income in Arkansas
- Deli’s Party Platters Found Subject to Sales Tax Despite Customer Assembly Required
- If You Don’t Ask, The Answer’s Always No
- Massachusetts Court Subjects Nonresident to Income Tax on Gain from Stock Sale
- Deference Denied to the South Carolina Department of Revenue
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Joshua M. Sivin and Melanie L. Lee
ARTICLES
Gains on Sales of Franchises Held Nonbusiness Income in Arkansas
By Craig B. Fields
Consistent with the decisions in several other states interpreting the Uniform Division of Income for Tax Purposes Act’s definition of nonbusiness income, an Arkansas Circuit Court concluded that gains from the sales of franchises constituted nonbusiness income since the company was not in the business of disposing of franchises. Read More >>
Deli’s Party Platters Found Subject to Sales Tax Despite Customer Assembly Required
By Joshua M. Sivin
In the world of sales tax, the devil is often in the details. Read More >>
If You Don’t Ask, The Answer’s Always No
By Nicole L. Johnson
One of the first rules of business is that you don’t leave money on the table. Read More >>
Massachusetts Court Subjects Nonresident to Income Tax on Gain from Stock Sale
By Irwin M. Slomka
In a decision with troubling implications, a Massachusetts appellate court held that a nonresident individual was subject to Commonwealth income tax on capital gain from the sale of his stock in the corporation that he formed and worked for because the court concluded that it related to his trade or business in the Commonwealth. Read More >>
Deference Denied to the South Carolina Department of Revenue
By Stephanie N. Terinoni
The South Carolina Court of Appeals determined that Duke Energy Corporation was entitled to claim nearly $25 million in investment tax credits on its 1996 to 2014 South Carolina income tax returns, as the investment tax credit’s five-million-dollar statutory limitation was an annual, not a lifetime, limitation. Read More >>
WHAT'S SHAKING: BLANK ROME STATE + LOCAL TAX ROUNDUP
Blank Rome’s nationally prominent State + Local Tax attorneys are thought leaders in the community as frequent guest speakers at various local and national conferences throughout the year. Our State + Local Tax attorneys believe it is necessary to educate and inform their clients and contacts about topics that will impact their businesses. We invite you to attend, listen, and learn as our State + Local Tax attorneys interpret and discuss key legal issues companies are facing and how you can put together a plan of action to mitigate risk and advance your business in accordance with state and local tax laws. Read More »
© 2025 Blank Rome LLP. All rights reserved. Please contact Blank Rome for permission to reprint. Notice: The purpose of this update is to identify select developments that may be of interest to readers. The information contained herein is abridged and summarized from various sources, the accuracy and completeness of which cannot be assured. This update should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel.
