State and Local Tax (SALT) attorney Bruce Ely was quoted in Tax Notes on an Alabama Court of Appeals ruling from December 2, 2016, that an out-of-state truck leasing company is not subject to the state’s lease tax and its purchases are not exempt from sales and use tax. The state tax tribunal’s Chief Judge Bill Thompson had earlier affirmed the sales and use tax assessment in June 2015, but was reversed by the Circuit Court of Montgomery in February 2016.
“The Court of Civil Appeals’ unanimous ruling certainly vindicates Judge Thompson’s initial ruling, although if I were a baseball umpire, I could’ve called this one either as a ball or a strike,” said Ely. “This was a close call, and a rare situation where the taxpayer is arguing for nexus with Alabama and the Department of Revenue in essence is arguing against it, rather than vice versa.”
The complete article, “Trucking Company’s Material Purchases Subject to Sales and Use Tax, Alabama Appellate Court Rules,” appeared in Tax Notes on December 6, 2016. (login required)