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State & Local Tax news

January 2017

In This Issue:

 

Welcome to the January 2017 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 includes articles addressing (i) the enactment of state use tax disclosure laws by various states, (ii) the cost of goods sold deduction for Texas Franchise Tax purposes and (iii) Indiana sales tax treatment related to charges for accessing content on mobile devices by restaurant patrons.

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 jeff.glickman@aprio.com. Thank you.

Jeff Glickman
Jeff Glickman, J.D., LL.M.
Partner-in-Charge, State & Local Tax Practice
 
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More States Expected to Enact Use Tax Disclosure Rules in 2017

By Jeff Glickman, SALT partner

In light of Colorado's victory, many more states look set to implement rules requiring vendors to notify purchasers of their potential use tax obligations.

 

Texas Denies COGS Deduction and Revenue Exclusion to Computer Software and Consulting Company

By Jess Johannesen, SALT manager

 A Texas Comptroller's Decision illustrates how companies must be careful not to underpay taxes when applying narrow definitions.

Indiana: Charges to Dining Customers for Access to Games and Songs on Mobile Devices are Not Taxable

By Alissa Graffius, SALT senior associate

In contrast to a recent Wisconsin ruling, Indiana determined that charges from tablets in restaurants are not taxable because the customers do not exercise control over the software.

Tennessee Court Addresses Distinction between Retail and Wholesale Sales for Security Equipment Provider

By Tina Chunn, SALT senior manager

The classification of sales as retail or wholesale can sometimes impact taxes paid, as illustrated by Tennessee's Business Tax.

 

Alabama Ruling Demonstrates Complications of Separate State Filings for Consolidated Groups

By Jeff Weinkle, SALT manager

Certain transactions which have no immediate impact for federal tax purposes can have an immediate state income tax impact if a member of an affiliated group files separately for state 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.