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Multistate Tax  |  December 2, 2022
State Tax Matters
State Tax Matters
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Other/Miscellaneous:
Tennessee Supreme Court Says Local Franchise Fees Do Not Apply to Streaming Companies

Case No. M2021-01107-SC-R23-CV, Tenn. (certified question of law 11/22/22). Responding to a “Certified Question of Law” from the US District Court for the Eastern District of Tennessee in an underlying federal lawsuit filed by a Tennessee municipality against various streaming entertainment companies claiming that they owed local franchise fees imposed on certain video service providers under Tennessee’s Competitive Cable and Video Services Act, the Tennessee Supreme Court held that the companies do not provide a “video service” within the meaning of Tenn. Code Ann. section 7-59-303(19) and thus do not qualify as “video service providers” subject to the fees under Tenn. Code Ann. section 7-59-303(20).

 

The holding in this case is in line with similar recent court decisions in other states. Please contact us with any questions.

 

—

Rick Heller (Morristown)

Managing Director

Deloitte Tax LLP

Joe Garrett (Birmingham)

Managing Director

Deloitte Tax LLP



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In this issue

Administrative
Multistate Tax Commission: Nexus Committee Revises Voluntary Disclosure Program Procedures

Income/Franchise
Arkansas: Adopted Rule Implements Election to Pay Tax at the Pass-through Entity Level

California: Lawsuit Filed by Trade Association that Challenges FTB Memo on P.L. 86-272 Moves Forward

Colorado: Proposed Rules Address Treatment of Foreign Source Income and Net Operating Losses

Colorado Taxpayer Must Include Accounts Receivables Subsidiary on State Combined Return

Colorado Couple May File Amended Return to Claim Refunds on Retroactive CARES Act Provisions

Florida: Service Provider Permitted to Source Receipts Out-of-State Based on Costs of Performance

Massachusetts DOR Posts Draft Release on FY 2023 Budget Including IRC §199A Decoupling

North Carolina DOR Issues Updated Guidance on Pass-through Entity Tax Election

Ohio Supreme Court Holds for Taxpayer on Sourcing Service Revenue Streams Under CAT Statute

Pennsylvania: City of Philadelphia Ordinance Fixes Error to Lower Business Tax Rate a Year Earlier

Washington Supreme Court Grants State’s Motion to Stay Capital Gains Tax Ruling While Case is Pending

Sales/Use/Indirect
California: CDTFA Proposes Adoption of Marketplace Sales Rule through Regular Non-Emergency Process

DC Attorney General Announces Settlement with Online Product Delivery Company for Back Taxes

Illinois Appellate Court Says Chicago Lease Tax is Neither a Local Sales Tax Nor an Ad Valorem Tax

Indiana: Platform’s Sales of Virtual Items are Not Taxable Digital Codes or Specified Digital Products

Ohio: Amended Rule Repeals Sourcing Sales of Internet Access Services to Consumer’s Place of Primary Use

Unclaimed Property
New York: New Law Addresses Virtual Currency as Potentially Reportable Abandoned Property

Other/Miscellaneous
Maryland Comptroller Appeals Case Striking Down Novel Gross Receipts Tax on Digital Ad Services

Ohio Supreme Court Says Local Franchise Fees Do Not Apply to Streaming Companies

Tennessee Supreme Court Says Local Franchise Fees Do Not Apply to Streaming Companies

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