Welcome to the May 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:
- New York State Court Chops Retroactivity of Recent P.L. 86-272 Regulation
- New York’s Highest Court Defers to Tax Tribunal, Finds Sales Tax Exception for Information Service Providers Does Not Apply
- Remote Employee Solidifies Manufacturer’s Right to Apportion Income
- Cardiac Monitors Found Subject to Sales Tax in California
We invite you to share The BR State + Local Tax Spotlight with your colleagues and visit Blank Rome’s State + Local Tax webpage for more information about our team. Click here to add State + Local Tax to your subscription preferences.
Updates from previous editions.
In the October 2024 edition of The BR State + Local Spotlight, Nicole L. Johnson authored an article titled “Departments Don’t Always Know Best” in which she discussed the recent decision of the Oregon Tax Court in Microsoft Corp. v. Dep’t of Revenue. On April 29, 2025, the Oregon Tax Court declined Microsoft Corp.’s request that it reconsider its decision with regard to factor representation; however, the court did clarify its reasoning.
In the July 2024 edition of The BR State + Local Spotlight, Melanie authored an article titled “South Carolina Supreme Court Declares Facially Discriminatory Sales Tax Exemption Invalid” in which she discussed a South Carolina durable medical equipment (“DME”) sales tax exemption that was only available to sellers with principal places of business in the State. Effective May 12, 2025, the South Carolina legislature amended the State’s DME exemption by removing the requirement that the seller have a principal place of business in the State. Instead, the DME seller need only hold a South Carolina retail sales license.
In the December 2023 edition of The BR State + Local Spotlight, Josh authored an article titled “New York ALJ Holds That Convenience of Employer Rule Applies Despite Covid Lockdowns” in which he discussed the decision of an ALJ in In the Matter of Petition of Zelinsky. On May 15, 2025, the Tax Appeals Tribunal upheld the ALJ’s decision in its entirety. The Petitioners, Edward A. and Doris Zelinsky, now have four months to commence an Article 78 proceeding seeking review of the Tribunal’s decision in the New York Supreme Court, Appellate Division, Third Department.
Joshua M. Sivin and Melanie L. Lee
ARTICLES
New York State Court Chops Retroactivity of Recent P.L. 86-272 Regulation
The New York State Supreme Court, which is a trial court, ruled that New York’s regulation that attempts to limit Public Law 86-272 in New York cannot operate retroactively. Read More >>
New York’s Highest Court Defers to Tax Tribunal, Finds Sales Tax Exception for Information Service Providers Does Not Apply
A recent decision by the State of New York Court of Appeals, issued over a fiery and well-reasoned dissent, calls into question the continued viability of what has historically been an important exception to New York’s imposition of sales tax on otherwise broadly defined so-called “information services.” Read More >>
Remote Employee Solidifies Manufacturer’s Right to Apportion Income
A plethora of case law, state guidance, and practitioner musings are devoted to discussions of what income of a multistate taxpayer is subject to apportionment and the fairness of various apportionment methods. Read More >>
Cardiac Monitors Found Subject to Sales Tax in California
The First District of the California Court of Appeal upheld the denial of Medtronic USA, Inc.’s refund claim for California sales tax that it collected on sales of cardiac monitors. 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.
