Aprio-R

State & Local Tax news

July 2020

Welcome to the July 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
 
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Missouri Court Applies Integrated Plant Doctrine to Manufacturing Exemption

By Tina M. Chunn, SALT Senior Manager

States typically provide exemptions for manufacturing machinery and equipment, include repair and replacement parts, but the breadth of those exemptions varies by state based on a variety of factors. As this Missouri case illustrates, each item purchased must be analyzed independently.    

 
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New York Concludes that Loss on Liquidation of Partnership is Not New York Source Income

By Jess Johannesen, SALT Manager

New York has a unique rule for nonresident individuals regarding the sourcing of gain/loss on the sale of equity interest in certain entities that own real estate located in the state, and this advisory opinion highlights a potential opportunity to avoid New York tax on the sale of that equity interest.

 
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Tennessee Ruling Concludes that Certain Audio and Visual Services Constitute Taxable Digital Products

By Betsy Tuck, SALT Manager

A recent Tennessee Revenue Ruling explains the application of the state’s sales tax on digital products to the taxpayer’s audio/visual services.  Businesses should consider whether their products/services might be taxable as digital products.

 

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Georgia and Arkansas Issue Opposite Sales Tax Rulings for Owner of Electric Car Charging Stations

By Jeff Glickman, SALT Partner

A taxpayer received opposite rulings from Georgia and Arkansas regarding the applicability of sales tax on charges to customers that use the taxpayer’s electric car charging stations even though both states tax the sale of electricity.  

 

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.