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State & Local Tax news

May 2019

In This Issue:

 

Welcome to the May 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) an update on post-Wayfair activity, including new legislation in California establishing a $500,000 revenue threshold and in Hawaii that establishes economic nexus for state income tax purposes; (ii) a Louisiana Court of Appeals decision denying a sales tax refund to a taxpayer claiming that virtual rewards applied by customers to their theater purchases should have reduced the price upon which sales tax was computed ; (iii) a Washington Court of Appeals decision concluding that for Business and Occupation Tax purposes the taxpayer was not acting as an agent for its customer, and therefore its revenues were taxable as opposed to non-taxable pass-through charges; and (iv) recent legislation in Georgia that expands certain tax credits for taxpayers located in designated rural counties and in Oregon that enacts a new modified gross receipts tax that is imposed on all taxpayers with nexus in the state

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
 

Wayfair and Nexus: The Aftermath – Part 4

By Jess Johannesen, SALT Manager

As states continue to issue guidance on their Wayfair rules, we are beginning to see the slight differences among them that will add to the complexity and cost of compliance.  In addition, Hawaii is the first state to enact a Wayfair rule for income tax nexus.

 
Hubspot Sales Tax on LA

Louisiana Denies Claim of Overpaid Sales Tax from Rewards Program Transactions

By Tina Chunn, SALT Senior Manager

This Louisiana Court of Appeals decision highlights the sales tax impact of discounts, including rebates and coupons, which can vary depending on the type of discount and can be a trap for the unwary that results in exposure for collecting and remitting less sales tax than required.

 
hubspot pharmacy
 

Washington Rules That Pharmacy Benefit Service Provider’s Revenues are Subject to B&O Tax

By Jeff Glickman, SALT Partner

A Washington Court of Appeals opinion explains how the status of a third party as an agent or independent contractor can play a significant role in determining whether certain amounts received by such party are taxable revenues or non-taxable pass-through receipts.

New Georgia Law Expands Tax Credits in Rural Counties and Oregon Enacts New Business Tax

By Jeff Glickman, SALT Partner

Recent legislation in Georgia expands certain tax credits for taxpayers located in designated rural counties, and Oregon enacts a new modified gross receipts tax that is imposed on all taxpayers with nexus in the state.

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.