Aprio-R

State & Local Tax news

May 2020

Welcome to the May 2020 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:

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 me at [email protected]. Thank you.

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

 

Arizona and Ohio Cases Remind Responsible Parties of Personal Liability for Sales and Withholding Taxes

By Jess Johannesen, SALT Manager

As businesses affected by COVID-19 assess whether to take advantage of state sales and payroll tax relief, recent cases serve as an important reminder that responsible individuals can be held personally liable for non-payment of these taxes.

 
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South Carolina: Online Peer-to-Peer Vehicle Rental Platform Business is a Marketplace Facilitator

By Tina M. Chunn, SALT Senior Manager

With approximately 40 states imposing sales tax obligations on marketplace facilitators, guidance such as this private letter ruling from South Carolina makes clear that these rules don't just apply to Amazon, Etsy, and Walmart.

 
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Arkansas Ruling Addresses Sales Taxation of Digital Products

By Kristen Mantilla, SALT Associate

Over half of the states impose sales tax on digital products, and this Arkansas revenue legal counsel opinion explains the application of the state's rules to certain digital products.

 

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Washington Court Holds that Lending Marketplace Sources Revenue to Lender's Location, Not Borrower's

By Jeff Glickman, SALT Partner

State apportionment rules that source service revenues to the state where the customer receives the benefit of the service are subject to different interpretations, as illustrated by this Washington Court of Appeals case applying its rule to revenues received by an online lending marketplace.  

 

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.