Bruce P. Ely Quoted in State Tax Notes Regarding Alabama DOR Tech Rulings

State and Local Tax (SALT) partner Bruce Ely was quoted in State Tax Notes regarding the Alabama Department of Revenue’s (DOR) decision to revoke its earlier revenue rulings on technology. Revocations were in response to a proposed rule amendment last year (Regulation 810-6-5-.09) that would have expanded the state’s leasing and rental tax on tangible personal property, including digital transmissions.

Ely explained he was not surprised that the DOR had revoked some of its earlier rulings on technology because of recent administrative law division rulings and the department’s move toward classifying many technologies as tangible personal property.

“[The Department’s] Sales and Use Tax Division seems to be taking more aggressive positions on audit than in prior years, and we only hope they will give taxpayers and their advisers fair notice of these hot spots, well before the audit commences,” Ely said, so “we could advise the taxpayer of the risks and consider voluntary disclosure.”