Welcome to the October 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.

In addition to the Alabama Alert below, this issue of the newsletter contains articles addressing:

In case you missed prior issues of this newsletter, please click here. Due to the upcoming holidays, our next issue will be a double issue for November and December 2020 and will be delivered mid-December.

ALERT: Alabama Now Requires Certain Tax Licenses to be Renewed Annually
On October 1, 2020, the Alabama Department of Revenue issued a notice that beginning November 1, 2020, it will require taxpayers to renew certain tax licenses annually. These tax licenses are: Sales Tax, Rental Tax, Sellers Use Tax, Lodgings Tax, Utility Gross Receipts Tax, and Simplified Sellers Use Tax. Taxpayers holding those licenses need to renew between now and the end of the year to avoid their licenses being cancelled, which will result in the taxpayer no longer being able to make tax-exempt purchases for resale or rental purposes. In addition, taxpayers that change their business entity type are also required to apply for a new license. For more details, please refer to the notice linked above or reach out to our SALT team for assistance.

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 me at jeff.glickman@aprio.com. Thank you.

Jeff Glickman, J.D., LL.M.

Partner-in-Charge, State & Local Tax Practice

California Enacts Small Business Jobs Tax Credit

By Kristen Mantilla, SALT Associate

The state of California enacted a jobs tax credit for small businesses that increase employment in the second half of this year. Taxpayers that qualify will need to act quickly to claim their share of the credit before the statewide credit cap is reached.

North Carolina: Summary of Significant Income and Franchise Tax Legislation During the 2020 Session

By Jeff Glickman, SALT Partner

The North Carolina legislature enacted a tax reform bill that made several changes to the state’s income tax code to address conformity with recent federal tax legislation.

Arkansas Ruling Treats Short-Term Car Rental Platform as a Marketplace Facilitator

By Betsy Tuck, SALT Manager

As the sharing economy continues to expand, businesses that create online platforms to facilitate those transactions may be required to collect sales and use tax under economic nexus and marketplace facilitator rules.

Missouri Issues Ruling on the Taxability of Purchased and Stored Gift Cards

By Tina M. Chunn, SALT Senior Manager

Even though the sale of gift cards to consumers is not subject to sales tax since those transactions are treated as the sale of intangible property, retailers are generally taxable on their purchase of those cards.

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.

State & Local Tax news