Posts by Jess Johannesen
New York Rules that Employment Screening Services are Exempt from Sales Tax
By: Jess Johannesen, SALT Senior Manager At a glance Schedule a free consultation today to learn more! The full story: The New York’s Division of Tax Appeals issued a determination in which an administrative law judge (ALJ) determined that the taxpayer’s employment screening service was not taxable as an information service since it qualified under…
Read MoreLouisiana Allows Software Developer to Use Manufacturer’s Apportionment Formula
By: Jess Johannesen, SALT Senior Manager At a glance Schedule a free consultation today to learn more! The full story: Is a software developer considered a “manufacturer” of the software that it creates? A recent ruling in Louisiana addresses whether a software developer is entitled to use an apportionment formula for corporate franchise tax purposes…
Read MoreCalifornia Court Upholds Taxpayers’ $12 Million Assessment for San Francisco Transfer Taxes
By: Jess Johannesen, SALT Senior Manager At a glance Schedule a consultation today The full story: With 50 states and thousands of local jurisdictions, it is very difficult to monitor the potential local tax consequences of your transactions. However, local taxes can give rise to significant tax assessments, as illustrated by a recent California Appellate…
Read MoreOhio Court Rules that Charges for Accounting Software are Subject to Sales Tax
By: Jess Johannesen, SALT Senior Manager At a glance The main takeaway: A recent Ohio court opinion analyzed why a taxpayer’s use of an accounting software is classified as a taxable automatic data processing service rather than a nontaxable professional service. Assess the impact: These types of analyses can be subjective, making it complicated for…
Read MoreTaxpayer’s Gross Receipts from Colocation Services are Subject to Washington B&O Tax
By: Jess Johannesen, SALT Senior Manager At a glance The main takeaway: The distinction between a taxpayer licensing the use of real estate versus leasing or renting real estate can result in different state tax treatment. Assess the impact: The Washington Department of Revenue’s ruling on a taxpayer’s gross receipts could impact businesses providing colocation…
Read MoreVirginia Ruling Explains Documentation Requirement for Electronic Delivery of Software
By: Jess Johannesen, SALT Senior Manager At a glance: The main takeaway: A new sales tax ruling out of Virginia addresses in-depth documentation requirements for electronically delivered software purchases. Impact on your business: If your business does not have sufficient documentation to support a sales tax exemption, your tax bill could take a hit. Next…
Read MoreHave a Vacation Home in New York? Double-Check Your Tax Liability
By: Jess Johannesen, Senior Manager, State & Local Tax Services At a Glance: The Main Takeaway: The New York State Tax Appeals Tribunal recently ruled that a New Jersey couple were statutory residents of the state on the basis that their vacation home constituted a “permanent place of abode.” Impact on You: This could have major implications…
Read MoreBest Buy Owes Illinois Sales Tax on Installation Contracts
An Illinois Court of Appeals decision concluded that just because Best Buy enters into contracts with customers to install appliances purchased in the stores does not turn the entire transaction into a nontaxable service. By: Jess Johannesen, SALT Manager On August 14, 2020, the Illinois Appellate Court issued an opinion upholding a lower court’s ruling…
Read MoreNew York Concludes that Loss on Liquidation of Partnership is Not New York Source Income
New York has a unique rule for nonresident individuals regarding the sourcing of gain/loss on the sale of equity interest in certain entities that own real estate located in the state, and this advisory opinion highlights a potential opportunity to avoid New York tax on the sale of that equity interest. By: Jess Johannesen, SALT…
Read MoreMassachusetts Explains Application of Multiple Points of Use Exemption for Software Transactions
For businesses that purchase software that will be used concurrently by users in multiple states, sales tax rules may allow the purchaser to provide the seller documentation that certifies the percentage of usage in each state, which could minimize the purchaser’s sales and use tax liability. By Jess Johannesen, SALT Manager State tax laws have always…
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