State & Local Tax news

June 2020

Welcome to the June 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 jeff.glickman@aprio.com. Thank you.

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


South Carolina Rules that Optional Training Services are Taxable When Sold with Taxable Software

By Tina M. Chunn, SALT Senior Manager  

As this South Carolina ruling illustrates, whether software is subject to sales tax often depends on the manner by which the software is provided, and that determination can also impact the taxability of any services sold with the software.    



Texas Court Concludes That Sirius XM’s Subscriber Revenue is Sourced to Subscriber Location

By Jeff Glickman, SALT Partner

In states that apply the “income-producing activity” or “services performed” rule for sourcing service revenue, the most important question is around how to precisely define these activities. As this Texas case shows, the answer is not always clear.



Idaho Supreme Court Rules That Gain from Sale of LLC Interest is Not Idaho Income

By Kristen Mantilla, SALT Associate

Whether or not two companies are engaged in a unitary business is based on particular facts and circumstances, and the Idaho Supreme Court disagreed with a prior Tax Commission decision that a taxpayer and the company it sold were unitary. The court instead held that the taxpayer’s gain from its sale of the company generated nonbusiness income not taxable in Idaho.




Michigan Supreme Court Rules That Services Are Sourced to Location of Performance for Local Income Taxes

By Betsy Tuck, SALT Manager

Sometimes, the application of a state tax rule can hinge on the interpretation of one word, which was the case when the Michigan Supreme Court was asked whether “services rendered” meant “services performed” or “services delivered” for apportionment purposes under Detroit’s income tax.  


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.