State & Local Tax news

March 2019

In This Issue:


Welcome to the March 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) recent rulings from Georgia, Michigan and Texas that highlight several instances where a buyer misused a resale certificate, subjecting the purchaser to back sales tax liabilities; (ii) new legislation in Washington that, among other things, lowers the nexus threshold for its Business & Occupation Tax and imposes reporting requirements on marketplace facilitators; (iii) an Indiana Supreme Court opinion applying the state’s worker classification test to uphold that the taxpayer was not liable for state unemployment taxes since it properly treated workers as independent contractors; and (iv) a Maine Supreme Court decision denying a Maine resident a tax credit for the total amount of taxes paid to a political subdivision of Norway because that jurisdiction imposes tax based on gross income, and Maine requires that the tax credit be calculated based on how Maine rules determine the amount of income earned outside the state.

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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

Several States Address Rules on the Proper Use of Resale Certificates

By Tina Chunn, SALT Senior Manager

The rules regarding when it is appropriate to provide a resale certificate are not always clear, and businesses that issue resale certificates incorrectly can be subject to sales tax liabilities.


Washington Enacts New Economic Nexus Rules for B&O and Sales Taxes

By Jeff Glickman, SALT Partner

Recent legislation in Washington will expand Business & Occupation Tax nexus to capture more businesses and imposes certain reporting requirements on marketplace facilitators.


Indiana Rules on Employee/Contractor Status for UnemploymentUnemployment Insurance Tax

By Jeff Weinkle, SALT Senior Manager

Worker classification issues don’t just impact federal taxes, and businesses that misclassify workers can be held liable for state unemployment and other payroll-related taxes.

Maine Supreme Court Upholds Reduction of Taxpayer's Credit for Taxes Paid to Norwegian County

By Jess Johannesen, SALT Manager

When claiming resident tax credits for taxes paid to other jurisdictions (even ones outside the U.S.), the taxpayer must recalculate the amount of income subject to tax in the other jurisdiction as determined under the resident state’s rules.

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.