Welcome to the February 2016 issue of the HA&W 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) new North Carolina sales tax rules that take effect on March 1, 2016, (ii) the application of Alabama sales tax to shipping charges, (iii) a Utah ruling applying the “essence of the transaction” test to distinguish the sale of taxable software versus nontaxable services, (iv) sales tax issues for non-profit organizations in Arkansas and Colorado and (v) the application of Massachusetts use tax to the purchase of a fleet of trucks that travel in interstate commerce.

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 HA&W’s SALT Practice, please email us at jeff.glickman@hawcpa.com. Thank you.

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

North Carolina Sales Tax Law Changes for Contractors and Installation and Repair Services

By Jeff Weinkle, SALT manager

New North Carolina legislation expanding sales and use tax to certain services goes into effect on March 1, 2016.     Read More

Alabama Tax Tribunal Concludes that Shipping Charges are not Taxable when Separately Stated and Reimbursed by the Purchaser

By Jess Johannesen, SALT senior associate

A recent Alabama case involving a company selling advertising merchandise illustrates the different approaches to the taxability of transportation charges.   Read More

Utah Issues Ruling Addressing Taxability of Online Banking and Related Services

By Jeff Glickman, SALT partner

In a recent ruling, the Utah State Tax Commission determined that the sale of online banking services to financial institutions was a taxable sale of tangible personal property.   Read More

Arkansas and Colorado Issue Guidance Addressing Sales Tax Implications for Transactions Involving Non-Profit Organizations

By Denisse Beldin, SALT associate

Non-profit organizations are generally exempt from federal and state income tax, but that does not mean charitable organizations are wholly exempt from state sales/use tax. Read More

Massachusetts Supreme Judicial Court Rules that Use Tax Imposed on Fleet Vehicles is Fairly Applied

By Tina Chunn, SALT senior manager

A recent Massachusetts case reminds taxpayers that sales and use taxes are apportioned differently than income tax. Read More

About HA&W's State & Local Tax Practice

HA&W’s State & 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 in industry, state government, public accounting, and private law practice. We specialize in all areas of SALT, including matters related to corporate and personal income taxes, sales/use tax, nexus, franchise/net worth taxes, credits and incentives, and mergers & 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.

January 2016 Salt Newsletter header