• California Court Finds in Favor of Microsoft, Upholds Costs of Performance
  • December 26, 2012
  • Law Firm: Sutherland Asbill Brennan LLP - Washington Office
  • On December 18, 2012, the California Court of Appeal ruled that receipts from the right to replicate software are sourced as sales “other than tangible personal property.” In reversing the trial court, the Court of Appeal upheld the taxpayer’s use of costs of performance sourcing. Microsoft Corporation v. Franchise Tax Board, Case No. A131964, Cal Ct. App. (1st App. Dist.). Sutherland State and Local Tax (SALT) attorneys represented Microsoft in the appeal.