Welcome to the August 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) new Wayfair sales tax economic nexus legislation in Massachusetts and Ohio, and a Kansas administrative announcement stating the sales tax economic nexus will be enforced against remote sellers but without setting a revenue or transaction threshold; (ii) several income tax bills that were enacted by the Hawaii legislature, including a Wayfair-type nexus rule, making Hawaii the first state to apply Wayfair to income tax; (iii) an Arkansas Revenue Legal Opinion explaining which items of machinery and equipment purchased for a solar farm qualify for a sales tax exemption; and (iv) a New York Tax Appeals Tribunal decision that a purchaser of business assets was properly assessed for the seller’s sales tax liability even where the seller may have committed fraud against the purchaser.

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

Sales Tax Compliance in a Post-Wayfair World

By Presented by: Jeff Glickman, SALT Partner

Join Aprio for a 1-hour webinar addressing the impact of the Wayfair decision on sales tax compliance on Tuesday, Oct. 22nd from 1:00 p.m. to 2:00 p.m.

Wayfair and Nexus: The Aftermath, Part 6 – No More Cookies and Thresholds

By Jess Johannesen, SALT Manager

Kansas’ Governor vetoed the state’s proposed Wayfair sales tax economic nexus legislation, but then the Kansas Department of Revenue issued an administrative announcement that the state would begin to enforce economic nexus against remote sellers without establishing any sales or transaction threshold.

Hawaii Enacts Economic Nexus Threshold for Income Tax and Other Significant Tax Legislation

By Betsy Tuck, SALT Manager

Hawaii became the first state to enact a Wayfair economic nexus provision for income tax purposes, and this may be the beginning of a trend for more states to do the same.

Arkansas: Contractor May Purchase Exempt Solar Farm Equipment Without Sales Tax

By Tina Chunn, SALT Senior Manager

Sales tax rules for manufacturing businesses differ among the states, particularly with regard to the exemption for manufacturing equipment, and as this Arkansas Revenue Legal Opinion highlights, the specific function of each piece of machinery and equipment can impact whether it qualifies for an exemption.

New York Imposes Sales Tax on Purchaser of Assets Even When Seller Committed Fraud

By Jeff Glickman, SALT Partner

Buyer Beware! States generally enforce successor liability for sales tax against purchasers of a business, even in cases where the seller may have committed fraud against the buyer, as was the case in this New York Tax Appeals Tribunal decision.

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.