Archive for February 2017
State & Local Tax (SALT) Newsletter January 2017
https://www.aprio.com/media/newsletters/SALTnews-1-17.html
Read MoreMore States Expected to Enact Use Tax Disclosure Rules in 2017
In light of Colorado’s victory, many more states look set to implement rules requiring vendors to notify purchasers of their potential use tax obligations. By Jeff Glickman, SALT partner For decades, one of the states’ most difficult enforcement issues has been collecting use tax. Since the U.S. Supreme Court first held that physical presence was…
Read MoreTexas Denies COGS Deduction and Revenue Exclusion to Computer Software and Consulting Company
A Texas Comptroller’s Decision illustrates how companies must be careful not to underpay taxes when applying narrow definitions. By Jess Johannesen, SALT manager Aprio’s August 2016 SALT Newsletter included an article summarizing a Texas Tax Policy Division letter ruling that communicated two revised Franchise Tax policies. The first concerned an exclusion from total revenue of…
Read MoreIndiana: Charges to Dining Customers for Access to Games and Songs on Mobile Devices are Not Taxable
In contrast to a recent Wisconsin ruling, Indiana determined that charges from tablets in restaurants are not taxable because the customers do not exercise control over the software. Recently, a trend has begun amongst businesses – providing customers with tech toys, such as tablets, to enhance the customers’ overall experience. Restaurants have been quick to…
Read MoreAlabama Ruling Demonstrates Complications of Separate State Filings for Consolidated Groups
Certain transactions which have no immediate impact for federal tax purposes can have an immediate state income tax impact if a member of an affiliated group files separately for state income tax. Nearly all states that assess a corporate income tax use a company’s federal taxable income as the starting point for computing state income…
Read MoreTennessee Court Addresses Distinction between Retail and Wholesale Sales for Security Equipment Provider
The classification of sales as retail or wholesale can sometimes impact taxes paid, as illustrated by Tennessee’s Business Tax. By Tina Chunn, SALT senior manager Reviewing a transaction to determine if it should be classified for tax purposes as a retail or wholesale sale is not always simple. While this analysis most often arises in…
Read MoreHow the Title Industry Can Manage Cybersecurity Risk
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