Steve Jasper Provides Comments on Appellate Decision Addressing Cost-of-Performance Excise Tax Sourcing

May 16, 2019
State Tax Notes

Bass, Berry & Sims attorney Steve Jasper provided comments for an article that examined the April 2019 decision by the Tennessee Court of Appeals affirming a nearly $3.7 million judgment against Comcast for franchise and excise taxes owed to the state. The lawsuit claimed the company had improperly sourced earnings that should have been attributed to Tennessee when calculating its franchise and excise tax sales factor.

“Noting that Tennessee has now moved to market-based sourcing for sales other than sales of tangible personal property, the case is another example of how the cost-of-performance approach to sourcing receipts leaves room for dispute and possible manipulation,” Steve said in the article.

The full article, “Company‚Äôs Sales of Services Sourced to State, Appeals Court Holds,” was published by State Tax Notes on May 6, 2019, and is available online (subscription required).