Oracle USA Inc. et. al. v. Massachusetts Commissioner of Revenue Among Top 5 State and Local Tax Cases of 2021
Boston, MA -Sullivan is pleased to announce that one of its recent tax matters has been named among the top state and local tax cases from the first half of 2021 by Law360.
In a win for Sullivan’s clients, the Massachusetts Supreme Judicial Court published its highly anticipated opinion in Oracle USA Inc. et. al. v. Massachusetts Commissioner of Revenue on May 21, 2021, holding that Massachusetts taxpayers have a statutory right to apportion sales tax on software purchased for use in multiple states. The decision eliminated the Commissioner of Revenue’s longstanding policy that barred taxpayers from using the abatement process to establish the correct apportioned tax – a major win for Massachusetts-based purchasers of software.
The case has implications which may extend beyond Massachusetts because, as Richard Jones explained to Law360, the Massachusetts Supreme Judicial 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.” The case also considers the extent of state tax commissioners’ authority, including whether a commissioner can curtail a statutory right via a regulation.
Caroline Kupiec was also counsel in the case.
Read Rich’s and Caroline’s full analysis of the decision in their May 26 Client Alert.
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