Welcome to the April 2020 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) the potential impact of COVID-19 on state and local taxes. In particular, I'll address recent state guidance pertaining to state tax nexus and employee withholding as well as issues surrounding state income tax conformity to the CARES Act; (ii) a Georgia Court of Appeals decision upholding Walmart's personal property tax freeport exemption for certain parts that it purchased and used in its business; (iii) a Michigan Court of Appeals opinion mandating alternative apportionment relief for a taxpayer where the state's apportionment formula resulted in an apportionment percentage that was at least five times higher than the percentage of income that the taxpayer earned in the state based on previous years' apportionment; and (iv) a Texas Court of Appeals decision applying the state's resale exemption to certain purchases of tangible personal property by a provider of taxable services.

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, J.D., LL.M.

Partner-in-Charge, State & Local Tax Practice

COVID-19: State and Local Tax Implications - Parts 2 and 3: Nexus/Withholding and CARES Act Guidance

By Jeff Glickman, SALT Partner

The COVID-19 pandemic is affecting businesses and taxpayers in all facets of their operations and lives, and state and local taxes are no exception.  These articles examine recent state guidance pertaining to state tax nexus and employee withholding as well as issues surrounding state income tax conformity to the CARES Act.

Georgia Court Upholds Walmart's Freeport Exemption for Self-Checkout Parts

By Tina M. Chunn, SALT Senior Manager

Georgia's personal property tax freeport exemption can provide significant savings to taxpayers, and the exemption can cover more than just items that a taxpayer sells in its business.

Michigan Court Grants Alternative Apportionment Relief

By Kristen Davis, SALT Associate

There are situations where application of a state's apportionment formula may result in an apportionment percentage that is out of all appropriate proportion to the business transacted in the state, and taxpayers in those cases are constitutionally entitled to relief.

Texas Court Addresses Application of the Sale for Resale Exemption to Taxable Services

By Betsy Tuck, SALT Manager

Providers of taxable services may be able to avoid sales tax by claiming the “sale for resale” exemption for certain purchases of tangible personal property used in the business, but it is important to understand the scope of that exemption.

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.