April 2016 Salt Newsletter header

Welcome to the May 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 New Mexico addressing the strict procedural requirements for accepting sales tax exemption certificates, (ii) a Washington tax determination highlighting the specific rules for sourcing lease payments for sales tax purposes and (iii) Georgia tax legislation. In addition, the last item of the newsletter provides information regarding a new Tax Amnesty Program announced by Alabama that will be available this summer.

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.

New Mexico Decisions Highlight Importance of Following Procedures for Claiming Sales Tax Exemptions

By Denisse Beldin, SALT associate

Claiming a sales tax exemption may require accepting exemption certificates in a timely manner and with good faith, as two recent New Mexico cases demonstrate. Read More

Washington Sales & Use Tax Decision Reveals Different Rules for Lessors and Lessees

By Jeff Weinkle, SALT manager

A Washington Tax Determination showcases how the rules around sourcing sales and use tax for the lease of mobile property can vary based on whether the taxpayer is the lessor or the lessee. Read More

Summary of Notable Georgia Tax Legislation from the 2016 Legislative Session

By Jeff Glickman, SALT partner

Georgia Governor Nathan Deal signed four notable tax bills that establish a new income tax credit, extend a tax exemption and more. Read More

Texas and New York Issue Sales Tax Guidance Addressing Distinctions between Taxable Software vs. Nontaxable Service

By Jess Johannesen, SALT senior associate

In order to determine taxability, states must answer the critical question of whether a customer is truly paying for software or a nontaxable service where software is utilized by the vendor.   Read More


Alabama Rules that a Voluntary Sales Force Creates Nexus

By Tina Chunn, SALT senior manager

In a case involving Scholastic Book Clubs, Alabama determined that the actions of teachers, who distribute book catalogs and take orders, are crucial to Scholastic’s ability to maintain a market in Alabama and establish nexus. Read More

Alabama Enacts Tax Amnesty Program from June 30, 2016 through Aug. 30, 2016

The Amnesty Program will be available to eligible taxpayers for many sales, individual and corporate taxes, excluding motor fuel taxes. It will cover taxes due prior to Jan. 1, 2015 or taxes for taxable periods that began before Jan. 1, 2015. 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.