SALT Law Insights

  • Kentucky Passes Legislation Impacting Administrative Guidance on Taxes and Tax Appeals

    Long awaited tax guidance legislation is making its way through the Kentucky legislature. House Bill 245 amends KRS 131.130 to expand the Department of Revenue’s (“Revenue”) ability to provide guidance on tax issues. Specifically, the legislation permits Revenue to respond to and publish responses to taxpayer questions. Additionally, the ...more »

  • Kentucky Property Tax Applies to Individual Residents’ Units of Retirement Community Owned by Public Charity

    In Grand Lodge of Kentucky Free and Accepted Masons, et al. v. City of Taylor Mill et al., No. 2015-CA-001617-MR (Ky. App. Feb. 10, 2017) the Kentucky Court of Appeals held that the real property owned by a non-profit organization but occupied by senior citizens as their residence is subject to ad valorem taxation and not subject to the charitable exemption ...more »

  • Indiana Combined Reporting and Transfer Pricing Studies

    On October 1, 2016, the Indiana Office of Fiscal and Management Analysis of the Indiana Legislative Services Agency released a Combined-Reporting Study and a Transfer Pricing Study. These studies, which address corporate income tax issues, were required by legislation passed in 2016. The Combined-Reporting Study discusses the reduction of state corporate ...more »

  • Online Travel Company Not a Retail Merchant for Indiana Sales and Innkeeper’s Tax

    The Indiana Tax Court has clarified the tax liability of online travel companies as it pertains to the Indiana Sales and Innkeeper’s Tax. Orbitz v. Indiana Dep’t of State Rev., 2016 Ind. Tax LEXIS 51 (December 20, 2016). Orbitz, an online travel company, challenged the assessment of the Indiana Department of Revenue. Orbitz argued that it was ...more »

  • Indiana Tax Court Holds That Freezing Food Is Not Manufacturing

    In Merchandise Warehouse Co. v. Ind. Dep't of State Revenue, No. 49T10-1302-TA-00009, 2017 Ind. Tax LEXIS 2, at *1 (Ind. Tax Ct. Jan. 11, 2017), the Indiana Tax Court held that Merchandise Warehouse Co., Inc.’s purchases of certain freezer equipment, and of electricity to power it, were not exempt from Indiana sales tax. Merchandise Warehouse ...more »

  • Kentucky: Department of Revenue Must Publish Redacted Final Rulings

    In Finance & Administration Cabinet v. Sommer, No. 2015-CA-001128 (Ky. App. Jan. 13, 2017), the Kentucky Court of Appeals held that the Kentucky Department of Revenue (“Department”) must publish its final rulings after redacting them for confidential taxpayer information. The decision, which will greatly increase the transparency of ...more »

  • 2016 Big Tax Trends and Issues in Kentucky

    From potential new laws, to administrative developments, to tax litigation, there is a lot going on with regard to Kentucky taxes. Some of these big developments and issues are described below. Intensifying State Attacks on Quill Physical Presence Standard Kentucky has been at the forefront of the state’s efforts to overturn the Quill physical ...more »

  • Warning to Hoosiers on the Move: It May Be Difficult to Establish a Change in Domicile

    The Indiana Department of Revenue (“Department”) recently issued several Letters of Findings pertaining to taxpayer residence and domicile. The facts and circumstances of each case were crucial to the Department’s determination as to whether the taxpayer was an Indiana resident and should be taxed as such. In Letter of Findings No. ...more »

  • Kentucky: Property Leased to Non-Residents Qualified for Warehouse/Distribution Center Exemption to Tangible Personal Property Tax

    The Kentucky Supreme Court recently denied the Kentucky Department of Revenue’s (“Department”) motion for discretionary review in a dispute over whether textbooks stored in a Kentucky warehouse when not leased to students in and out of Kentucky qualified for the warehouse/distribution center property tax exemption. Chegg, Inc. v. Finance ...more »

  • Kentucky: Liability Waiver Contracts Not Subject to Kentucky Sales Tax

    The Kentucky Board of Tax Appeals (“Board”) has found that rent-to-own companies were not required to collect sales tax on separate liability waiver contracts they offered to their customers to protect against property damage. Rent-A-Center East, Inc. et al. v. Finance & Admin. Cabinet, Dep’t of Revenue, Order No. K-25136, K14-R-17 ...more »


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