State & Local Tax news

Nov./Dec. 2019

In This Issue:


Welcome to the November/December 2019 Issue of the Aprio 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 contains articles addressing (i) state definitions of a “marketplace facilitator” for sales tax purposes, and the potentially broad application of these rules, (ii) an Illinois letter ruling explaining the application of state income tax and apportionment rules to the sale of a business involving a federal 338(h)(10) election, (iii) the California income tax sourcing of compensation paid to an independent member of a corporation’s board of directors when the meetings take place in the state, and (iv) a Georgia ruling analyzing the sales tax treatment of a transaction where tangible personal property is provided in connection with the delivery of a service.

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 Aprio's SALT Practice, please email us at jeff.glickman@aprio.com. Thank you.

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

Uber - Hubspot


Uber Eats is a Marketplace Facilitator....Are You?

By Jeff Glickman, SALT Partner

Almost as many states impose sales tax obligations on marketplace facilitators as they do on businesses with economic nexus, and the reach of these marketplace rules goes beyond Amazon, Etsy and eBay.  Just ask Uber Eats.

Illinois Hubspot


Illinois Concludes that Receipts from Deemed Sale of Assets is Excluded from the Sales Factor

By Kristen Davis, SALT Associate

When selling a business, the receipts from the sale of assets can have a significant impact on the sales factor for apportionment purposes, which is why many states have special rules to address these transactions.

On-Demand Webinar: Sales Tax Compliance in a Post-Wayfair World

By Jeff Glickman, SALT Partner

In case you missed our recent webinar on new sales tax economic nexus rules following the Wayfair decision, listen now.

CAli Hubspot


California Issues Ruling on Sourcing of Income Paid to Independent Directors

By Betsy Tuck, SALT Manager

Individuals who serve as independent members of a corporation’s board of directors may find that their board compensation is not necessarily reported to the state where the board meetings are held.

Georgia Hubspot


Georgia Addresses Sales of Services Versus Tangible Personal Property

By Tina M. Chunn, SALT Senior Manager

When businesses provide tangible personal property in connection with the delivery of a service, states often engage in a fact-specific and subjective analysis to determine whether the transaction should be treated for sales tax purposes as a taxable sale/lease of property or an exempt sale of a service.



Wyoming Rules That Sale of Business Assets Was Subject to Sales Tax

By Jess Johannesen, SALT Manager

While most states provide a sales tax exemption for sales of business assets, the specific language of these exemptions differs among jurisdictions, and taxpayers that do not structure their transactions properly may find themselves on the wrong end of a sales tax dispute.

Car hubspot


Tennessee Issues Sales Tax Guidance on Car Subscription Services

By Jeff Glickman, SALT Partner

In today’s economy there are subscription services for just about anything, including cars, and a Tennessee letter ruling highlights some of the unique state tax issues presented by this growing business model.


About Aprio's State and Local Tax Practice

Aprio's State and 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 and 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.