Welcome to the August 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) a Georgia ruling that purchasing income tax credits after the filing due date does not eliminate penalties, (ii) California guidance for applying market-based sourcing rules for service revenues, (iii) a Missouri letter ruling that a non-profit's corporate bake sales are subject to sales tax, (iv) an Indiana determination that online tuition from an Indiana resident is Indiana source revenue under a cost-of-performance approach where the online courses are prepared and developed in Illinois and (v) a South Carolina Administrative Law Court decision that a book retailer's membership program fee is subject to sales tax.
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, J.D., LL.M.
Partner-in-Charge, State & Local Tax Practice
Georgia Rules Penalties Apply When Credits are Purchased after the Extended Filing Deadline
By Tina Chunn, SALT senior manager
Taxpayers in Georgia will not be able to escape late payment and late filing penalties based on credits purchased after the due date for filing the return.
California Provides Guidance on Application of Market-Based Sourcing Rules to Service Revenues
By Jeff Glickman, SALT partner
New rules around sourcing revenue based on where a taxpayer's customer receives the benefit of the service can raise questions of application, as a recent California ruling demonstrates.
Missouri Rules that Non-Profit's Bake Sales are Taxable
By Alissa Graffius, SALT senior associate
Not all states offer non-profits a blanket exemption from sales and use tax, and even states with broad exemptions may still require the transactions to further the non-profit's charitable purposes to be tax-exempt.
Indiana Takes Dubious Position on Revenue Sourcing for Online Tuition
By Jeff Weinkle, SALT manager
Indiana ruled that the true income-producing activity was the actual delivery of the course, rather than the development of the class materials, and thus sourced online tuition revenue from Indiana students to Indiana.
South Carolina Determined that Book Retailer's Discount Membership Fee is Taxable
By Jess Johannesen, SALT manager
The Administrative Law Court determined that the membership program could not exist without the retail sale of the bookstore's tangible goods and thus the fees were taxable.
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.
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