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State & Local Tax news

May 2018

In This Issue:


Welcome to the May 2018 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 concerning (i) a summary of tax changes in New York and Connecticut aimed at providing its residents relief from federal tax reform in a novel way, (ii) a Georgia Supreme Court opinion making it easier for sellers to obtain sales tax refund determinations, (iii) a South Carolina administrative decision demonstrating the consequence of mischaracterizing a transaction as contracting instead of retailing, (iv) a recently adopted Georgia regulation for a new income tax credit aimed at incentivizing certain businesses and real estate investors to revitalize designated rural areas, and (v) two Arkansas sales tax opinions illustrating the complexities of sales tax rules applied to technology-based transactions.

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 Thank you.

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

New York and Connecticut Enact SALT Deduction Cap Workarounds Not Involving Charitable Contributions

By Jeff Glickman, SALT partner

New York and Connecticut both passed workarounds to the SALT deduction limitation that do not involve charitable contributions, but will the IRS challenge them?  

GA Supreme Court Ruling

Georgia Rules that Sales Tax Refund Claim May Be Initiated Prior to Customer Reimbursement

By Jeff Weinkle, SALT manager

The Georgia Supreme Court overturned the state’s position and held that sellers do not need to refund sales tax prior to requesting a refund claim determination, making it easier for sellers to pursue such claims.

Home Depot

South Carolina Rules That Home Depot is a Retailer on its Install Contracts

By Alissa Graffius, SALT senior associate

For a taxpayer that acts as both a retailer and a contractor, distinguishing between the two can be difficult, and choosing the wrong characterization can create significant sales tax exposure, as this South Carolina case demonstrates.

Georgia Adopts New Rural Zone Tax Credit Regulation

By Jess Johannesen, SALT manager

Georgia finalized regulations for a new income tax credit aimed at incentivizing certain businesses and real estate investors to revitalize designated rural areas.


Arizona Rules on the Taxability of Electronic Services and Products

By Tina M. Chunn, SALT senior manager

Arkansas issued two opinions demonstrating the complexity of characterizing technology transactions for sales tax purposes and that certain historically nontaxable transactions may become taxable when provided through technology.


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.