State & Local Tax news

September 2019

In This Issue:


Welcome to the September 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) changes to Connecticut’s new Pass-Through Entity Tax and a Massachusetts directive allowing residents who are members of a pass-through entity to take an income tax credit for their share of the pass-through entity tax paid; (ii) a Texas Comptroller’s decision regarding the sales tax treatment of online gaming; (iii) Georgia Department of Revenue guidance on GILTI/FDII and trust nexus, as well as recently published amendments to the Rural Hospital Tax Credit regulations; and (iv) a Tennessee private letter ruling applying the true object test to determine the taxability of a web-based database access 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


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.



Massachusetts Will Allow Residents to Claim Tax Credit for the Connecticut Pass-Through Entity Tax

By Jess Johannesen, SALT Manager

Massachusetts issued a draft directive that will permit resident members of pass-through entities that pay the new Connecticut Pass-Through Entity Tax to claim a tax credit for their share of the tax paid.



Texas Rules That Online Game is Subject to Sales Tax

By Kristen Davis, SALT Associate

A recent Texas decision imposing sales tax on charges for online games highlights the difficulty of applying old sales tax provisions to new services as well as the importance of responding to requests for information issued by a state taxing authority.



Georgia Department of Revenue Issues a Potpourri of Income Tax Guidance

By Jeff Glickman, SALT Partner

The Georgia Department of Revenue issued guidance on GILTI and FDII as well as the impact of the United States Supreme Court’s decision in Kaestner regarding trust nexus, and it has published amendments to the Rural Hospital Tax Credit regulations.


Tennessee Provides Sales and Use Tax Guidance on Internet Database Services

By Betsy Tuck, SALT Manager

Tennessee issued a private letter ruling concluding that the taxpayer’s web-based database access service was not taxable as either a telecommunications services or remote access software, and that certain add-on services were not taxable as they were incidental to the main service.

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.