April 2016 Salt Newsletter header

Welcome to the June 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) a New Jersey case regarding sales tax remittance, (ii) two Georgia rulings explaining certain circumstances under which the state’s Quality Jobs Tax Credit may not be claimed, (iii) new legislation in Washington that permits certain trade show participation without creating nexus, (iv) several state rulings highlighting the different sales/use tax treatments among the states in drop shipment transactions and (v) an Ohio Supreme Court decision ruling that the state could not tax a nonresident on the sale of his equity interest in an Ohio business.

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 Jersey Tax Court: Don’t “Discount” the Importance of Sales Tax Remittance Obligations

By Jess Johannesen, SALT senior associate

In a New Jersey decision, the Tax Court reaffirmed the universal concept that registered sellers must remit any and all sales tax collected as shown on an invoice, even if in error. Read More

Georgia Issues Guidance on Claiming the Quality Jobs Tax Credit

By Jeff Glickman, SALT partner

Two recent letter rulings illustrate the circumstances under which Georgia’s Quality Jobs Tax Credit cannot be claimed. Read More

Washington Issues Guidance on Sales Tax Nexus from Trade Show Participation

By Denisse Beldin, SALT associate

Washington has joined the ranks of states which grant an exception to sales tax nexus for trade shows and conventions.   Read More

The Importance of Proper Documentation in Drop Shipment Transactions

By Tina Chunn, SALT senior manager

Drop shipment transactions are one of the most confusing areas of sales tax, and having the proper documentation to verify the transaction can mean the difference between the state assessing or not assessing sales tax.   Read More


Ohio Supreme Court Rules that Nonresident Individual is Not Taxable on Sale of LLC Interest

By Jeff Weinkle, SALT manager

In a recent decision, Ohio determined that an investor could not be constitutionally taxed on the sale of his intangible investment since the investor was not himself engaged in the business and did not participate in the active day-to-day management of it. 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.