Microsoft Can Apportion Sales Tax, Mass. Top Court Says

Richard Jones was quoted in the article, "Microsoft Can Apportion Sales Tax, Mass. Top Court Says," which was published by Law360 [sub. req.].

The article discusses the Supreme Judicial Court's opinion to uphold a decision by the Massachusetts Appellate Tax Board, in which Microsoft and Oracle can apportion sales tax on software purchased by a Massachusetts company to other states where the software was accessed and seek a tax refund. Rich, counsel for Oracle and Microsoft, told Law360 the court upheld that state taxpayers have a right via tax abatement statutes to apportion sales and use tax on software bought for use in multiple states, which could have nationwide implications. The case also raises issues over the breadth of the state tax commissioner's authority, including when regulations can curtail abatement rights created through statute.

"This represents a major win for software vendors and particularly their Massachusetts-based customers," Rich said. Carolyn Kupiec is also counsel in the case.