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State & Local Tax news

September 2017

In This Issue:


Welcome to the September 2017 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 includes articles addressing (i) South Carolina's narrow interpretation of its service revenue sourcing rule, (ii) Arkansas' treatment of the sale of tax credits as apportionable income, (iii) a Washington tax determination reclassifying a consignor as a wholesaler and not a retailer for Washington's business & occupation tax, (iv) a New York sales tax advisory explaining the sales tax treatment of separately itemized services that are related to the sale or rental of tangible personal property and (v) an Alabama Tax Tribunal decision holding that a consignee is liable for collecting and remitting sales tax on consignment sales.

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 Thank you.

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

South Carolina Court Upholds Narrow Approach to Revenue Sourcing

By Jeff Weinkle, SALT manager

South Carolina's application of its income-producing activity sourcing rules gave a market sourcing result, where services were sourced to the customer location.


Arkansas Determines that Sale of Tax Credits Generated Apportionable Income

By Jess Johannesen, SALT manager

The sale met Arkansas' definition of business income under the functional test and was thus apportioned to and taxed in Arkansas.

Washington Rules Sales under a Licensing Agreement are Subject to Wholesaling B&O Tax

By Tina Chunn, SALT senior manager

Under the terms of a consignor/consignee agreement, the consignee was deemed to constructively possess the property it sold, making the consignor a wholesaler instead of a retailer.


New York Explains Sales Tax Rules Regarding the Sale/Rental of Trade Show Booths and Related Services

By Alissa Graffius, SALT senior associate

Addressing the sales and use tax issues around trade show displays and related services can be complex. A recent New York advisory opinion provides an example of how states tax these services.


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.