Welcome to the September 2016 issue of the HA&W State & Local Tax (SALT) Newsletter.

With dozens of different taxes imposed by the 50 states (and thousands of local jurisdictions), we recognize how challenging it is to keep up with current issues and developments. This newsletter is designed to provide insights on developments in state and local taxes including new legislation, regulations, rulings and cases addressing issues such as corporate and personal income taxes, sales and use taxes, nexus, franchise/net worth taxes, etc.

This issue of the newsletter includes articles addressing (i) Arkansas use tax obligations for items purchased with a resale exemption, (ii) Virginia income tax nexus issues arising from relationships with third parties, (iii) Washington sales tax liability on the sale of a business, (iv) New York sales tax consequences for a hotel providing free meals with rooms and (v) Wisconsin sales tax obligations for restaurants that charge diners for accessing content from a tablet placed at the table.

In case you missed prior issues of this newsletter, please click here.

If you have any comments, questions or suggestions regarding current or future topics, or if you would like to learn more about HA&W's SALT Practice, please email us at jeff.glickman@hawcpa.com. Thank you.

	Jeff Glickman, J.D., LL.M. Partner-in-Charge, State & Local Tax Practice

Arkansas Rules that Sale for Resale Exemption Lost on Goods Given to Customer at No Charge

By Jeff Glickman, SALT partner

A sale for resale exemption allows a business to purchase goods without paying sales tax because the sales tax will be collected on the sale to the end user. But what happens when a good purchased under the exemption is ultimately not sold?Read More

Virginia Ruling Discusses Income Tax Nexus Based on Contract with Software Hosting Company

By Jess Johannesen, SALT manager

For state income tax nexus, determining how to treat the activities of third parties who may be performing services on behalf of a taxpayer can be difficult, as a recent Virginia ruling shows.Read More

Washington Rules that Sales Taxes Can Apply to the Sale of a Business

By Jeff Weinkle, SALT manager

Sales tax can be assessed on the sale or acquisition of a business, and parties to a transaction should carefully examine states' casual sale provisions and exemptions.
Read More

New York Rules that Hotel is Not Entitled to Sales Tax Credit for Continental Breakfast

By Tina Chunn, SALT senior manager

As illustrated in a recent New York decision, the taxability of amenities provided by hotels, such as continental breakfasts, can be complicated.
Read More

Wisconsin: Charges to Dining Customers for Access to Games and Songs on Mobile Devices are Taxable

By Jeff Glickman, SALT partner

Many restaurant chains have begun putting tablets at each table which offer the ability to play games, listen to music and more for a fee. Wisconsin recently ruled that those charges are subject to sales tax. Read More

About HA&W's State & Local Tax Practice

HA&W's State & Local Tax (SALT) practice advises clients on the state and local tax implications of their business operations, allowing clients to strategically minimize their liabilities and risks. Our team has over 50 years of combined SALT experience working in industry, state departments of revenue, public accounting and private law practice. We specialize in all areas of SALT, including matters related to state tax nexus, corporate and personal income taxes, sales/use tax, franchise/net worth taxes, credits and incentives, and mergers & acquisitions. In addition, we represent clients in administrative matters before state revenue departments around the country, including audit defense and settlement negotiations, pursuing voluntary disclosure agreements and obtaining letter rulings.