Software AG of N. Am. v. Fairfax County Board of Supervisors

By Judge Thomas S. Kenny

The question before the Court on Petitioner’s Motion for Partial Summary Judgment is whether Fairfax County taxpayers must include the sales taxes paid on tangible personal property as a component of the total purchase cost reported in their business personal property tax return. After careful review of counsels’ arguments, the Court denies Petitioner’s Motion for Partial Summary Judgment and finds that the total purchase cost reported encompasses sales taxes.

From 1991 through 1996, Software AG reported only the cost of its tangible personal property, excluding sales…