April 2016 Salt Newsletter header

Welcome to the April 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) two recent rulings in Texas that may provide taxpayers with franchise tax refund opportunities, (ii) guidance issued in New York and Washington on the taxability of services that highlight the fact that determining taxability for sales tax purposes can depend on subtle differences in how services are provided and (iii) a Michigan tax bulletin explaining the factors used to determine when tangible personal property may be converted to real property for sales and use tax purposes.

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.

Texas Rules that “Net Gains” Does Not Mean “Net Gains or Losses” for Franchise Tax Purposes

By Jeff Glickman, SALT partner

Texas taxpayers may have a refund claim available if they used net losses to reduce other gross receipts in the denominator of their apportionment factor.   Read More

Texas Rules that Service Provider May Use Cost of Goods Sold Deduction

By Jess Johannesen, SALT senior associate

A Texas company providing seismic data to oil and gas exploratory companies was able to claim a COGS deduction because their services were an essential component of a project for the construction of real property. Read More

New York Rulings on Taxability of Information Services Highlight Importance of Facts in Determining Sales Tax Applicability

By Jeff Weinkle, SALT manager

Two New York decisions showcase how particular details of a company’s products and services can influence their taxability under the same law. Read More

How Does Michigan Classify Real Property vs. Tangible Personal Property and Why Does it Matter for Sales and Use Tax Purposes?

By Tina Chunn, SALT senior manager

Michigan recently released a bulletin that lays out its three-factor test for determining whether property should be treated as tangible personal property or real property.   Read More


Physical Fitness is Taxing: Washington Issues Guidance Distinguishing Fitness from Instruction

By Denisse Beldin, SALT associate

Subtle distinctions in a service can cause its classification for sales and use tax purposes to change, as one fitness facility operator in Washington recently found out. 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.