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State & Local Tax news

September 2018

In This Issue:

 

Welcome to the September 2018 issues 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 (i) new substantive guidance in Illinois and South Carolina regarding the application of economic sales tax nexus rules in light of the Wayfair decision, (ii) New Jersey limitations on the calculation of a resident state tax credit on income earned from a pass-through entity operating a multi-state business, (iii) an Oregon court decision finding that banks without physical presence have income tax nexus and the implications for unitary return filings, (iv) Maine’s determination that a resident individual owner of a pass-through entity is not entitled to an income tax credit for out-of-state business taxes paid by the entity, and (v) Illinois’ new regulation regarding the creation of nexus arising from attending trade shows, and the establishment of a safe harbor.

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 us at [email protected]. Thank you.

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

Wayfair and Sales Tax Nexus: The Aftermath Part 2

By Jeff Glickman, SALT Partner

Ten more states will begin enforcement of their economic nexus sales tax rules beginning on Oct. 1, 2018.

 
NJ-Statet-Tax-Credit-SQUARE

New Jersey Denies Resident S-Corporation Shareholder Full Credit for Tax Paid to Pennsylvania

By Alissa Graffius, SALT Senior Associate

A New Jersey Tax Court opinion demonstrates that although resident individuals receive a credit for taxes paid to other states, the calculation of the credit can be subject to limitations.

 
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Oregon Court Rules That Banks with No Physical Presence Have Corporate Income Tax Nexus

By Jess Johannesen, SALT Manager

The Oregon Supreme Court ruled that two banks without physical presence still have income tax nexus in Oregon, impacting the computation of the group's unitary tax liability.

Maine Denies Owner a Tax Credit for New Hampshire Taxes Paid by Business

By Tina M. Chunn, SALT Senior Manager

When a non-resident individual owns and operates a pass-through entity in a state that imposes entity-level taxes, the owner's resident state may not provide a personal income tax credit according to a recent Maine Supreme Judicial Court opinion.

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Illinois Adopts Regulation on Trade Show Nexus

By Alissa Graffius, SALT Senior Associate

The Illinois Department of Revenue adopted a new regulation addressing a safe harbor rule with respect to nexus arising from trade show attendance.

 

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.