Archive for December 2018
Restaurants Use Composting for Sustainable Food Waste Removal
Plastic straws have been all over the news lately. As the NYT recently wrote, “the ubiquitous plastic straw has suddenly become a pariah for the harm it can do to the environment.” In the realm of single-use plastics, straws don’t take up much space, but they have become a focal point for environmental activists. Some…
Read MoreAre Smart (Blockchain) Contracts Really Smart?
If you’ve ever been through an automatic car wash, you can appreciate the benefits of a smart contract. You drive to the payment station, select the kind of car wash you want, and make the payment. You are then prompted to pull up to the washing dock. At this point, you make sure all the…
Read MoreState & Local Tax (SALT) Newsletter Nov-Dec 2018
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Read MoreLouisiana Supreme Court Declares Unconstitutional the Credit Limitation for Out-of-State Taxes Paid
A potential refund opportunity exists for individuals who do not get a full credit against their resident state taxes for income taxes paid to other states, according to this Louisiana Supreme Court case. By Jeff Glickman, SALT Partner Generally, states provide their residents an income tax credit for taxes paid to another state on income earned…
Read MoreArkansas Determines that Sales Tax is Due on Crowdfunding Campaign Sales
Crowdfunding campaigns are a great way to raise money for a new product idea, but they can also give rise to unexpected sales tax exposure if not planned for properly. By Jess Johannesen, SALT Manager Eureka! You have a great idea for the next best thing, but you’re tight on cash and can’t (or don’t want…
Read MoreArizona Court Holds That Service Revenue is Included in Property Rental Business Tax Base
Arizona’s Transaction Privilege Tax is like a sales tax in some ways but not others, which can result in unexpected liabilities if the unique rules are not fully understood. While states typically impose many of the same taxes, there are some nuances that can give rise to unexpected exposure if not fully understood. Arizona’s Transaction…
Read MoreWashington Finds that ATM Processor’s Service Revenue Sourced to ATM Location for B&O Tax
For apportionment purposes, applying market-based souring rules to service revenues is complicated because it is based on the facts and circumstances of each transaction. Over the past several years, many states have moved from the cost-of-performance method of apportioning service revenues to the market-based approach. A number of those states have provided specific guidance on…
Read MoreUtah Rules That Contractor’s Purchase of Freeway Signage Subject to Sales Tax
For real property contractors, one of the most difficult issues to analyze is if tangible personal property used in the project becomes real property, which ultimately determines each party’s sales tax compliance obligations. By Tina M. Chunn, SALT Senior Manager In most states, real property contractors are considered the end-users of the tangible personal property (“TPP”)…
Read MoreOhio Supreme Court Rules That Resale Exemption Applies to Purchase of Promotional Items
Although promotional items purchased and given away for free are typically not eligible for a resale exemption, there may be limited situations where the resale exemption is applicable. By Jess Johannesen, SALT Manager In our June 2017 SALT Newsletter, we detailed an Ohio Board of Tax Appeals (“BTA”) decision in which the BTA upheld a use…
Read MoreUtah Supreme Court Upholds Taxpayer’s Transfer Pricing in Related-Party Transaction
States may have the authority to adjust related-party payments, but only after determining that the transactions are not at arm’s length under federal transfer pricing principles. Transfer pricing issues don’t just arise in international transactions; they arise across state lines as well. Transfer pricing rules give taxing jurisdictions the ability to claw back transactions with…
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