Welcome to the August 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) Texas policy changes to its franchise tax that could give rise to refund claims, (ii) the definition of "manufacturing" for Arkansas sales/use tax purposes, (iii) a Colorado ruling examining local nexus for "home rule" jurisdictions, (iv) Ohio sales tax as applied to staffing companies and (v) the taxation of trusts in Massachusetts.

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

Texas Refund Opportunity: Comptroller Announces Franchise Tax Policy Changes

By Jess Johannesen, SALT manager

As a result of two franchise tax decisions, the Comptroller announced two policy changes regarding the revenue exclusion for certain flow-through funds and eligibility for claiming the cost of goods sold deduction.Read More

Arkansas Issues Guidance on the Scope of Manufacturing

By Jeff Glickman, SALT partner

Manufacturers are often exempt from sales and use tax on machinery they purchase, but the definition of "manufacturing" isn't always clearly defined in state regulations. Read More

Colorado Ruling Addresses Whether State Tax Nexus Extends to Local Jurisdictions

By Tina Chunn, SALT senior manager

In a "home rule" state like Colorado, a taxpayer with nexus in a specific locality is required to collect the appropriate state and local taxes in that locality, but not necessarily the local taxes in other localities in the state.
Read More

Ohio Rules that Staffing Services Company Did Not Provide Taxable Employment Services

By Jess Johannesen, SALT manager

While the taxability of employment services varies among the states, each state's factors and criteria for whether a service qualifies as an employment service may also vary.
Read More

Massachusetts Court Rules that Trust is Subject to Fiduciary Income Tax as a Resident

By Jeff Glickman, SALT partner

A recent case in Massachusetts illustrates the complexity surrounding the state taxation of trusts, which involve multiple parties and typically do not conduct any activity.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 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 & 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.