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State & Local Tax news

February 2019

In This Issue:

 

Welcome to the February 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) Georgia’s newly adopted regulations that provide guidance on the new audit procedures (similar to those established by the IRS) that will impact partnerships and other pass-through entities; (ii) an Alabama Tax Tribunal decision holding a taxpayer liable for additional sales tax because it could not document the separate prices charged for taxable goods and non-taxable services; (iii) major changes to New Jersey’s corporation business tax that go into effect in 2019 for most taxpayers; (iv) a New York City Tax Tribunal ruling that a corporation was liable for income tax on the gain from its sale of a partnership interest in a business operating in the City even though the corporation itself had no direct activities in the City; and (v) a Washington Tax Advisory explaining that alarm monitoring services that are provided electronically through one or more software applications are subject to sales tax as digital automated services unless such services are provided using primarily human effort.

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 [email protected]. Thank you.

Jeff Glickman
Jeff Glickman, J.D., LL.M.
Partner-in-Charge, State & Local Tax Practice
 
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Georgia Adopts Partnership Audit Procedure Regulations Similar to the New IRS Rules

By Jeff Weinkle, SALT Senior Manager

Georgia has adopted regulations to provide further guidance on last year's legislation establishing partnership audit rules similar to those enacted by the IRS.

 
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Taxpayer’s Invoicing Methodology Leads to Alabama Sales Tax Exposure

By Alissa Graffius, SALT Senior Associate

In cases where a business is selling both taxable goods and non-taxable services, sales tax may be due on the entire charge unless the business maintains appropriate documentation showing the separate prices for each.

 
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New Jersey Enacts Significant Corporation Business Tax Changes

By Jeff Glickman, SALT Partner

New Jersey enacted major changes to its corporate business tax that will take effect in 2019, such as post-allocation net operating loss calculations as well as the adoption of market-bases sourcing for services and mandatory combined reporting.

New York City Rules Tax Gain from Sale of Partnership Interest is Subject to Corporate Tax

By Jess Johannesen, SALT Manager

When a taxpayer sells an equity interest in a business, the gain from that sale may be taxable in the jurisdictions where the business is being conducted as opposed to the principal place of business of the taxpayer.

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Washington Advises Alarm Monitoring Treatment for Business and Occupational Tax

By Tina Chunn, SALT Senior Manager

As changes in technology intersect with changing sales tax rules, businesses may find themselves subject to new or different sales tax compliance obligations.

 

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.