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Welcome to the October 2015 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) Arizona’s treatment of SaaS for sales tax purposes, (ii) a controversial new Alabama regulation adopting an economic nexus standard for sales and use taxes and (iii) the relationship between payroll withholding data and payroll factor apportionment.
In case you missed prior issues of this newsletter, please click here. Please note that due to the holidays, our next issue will be a double issue for November/December 2015 and will be issued around mid-December.
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.
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Jeff Glickman, J.D., LL.M.
Partner-in-Charge, State & Local Tax Practice. |
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Arizona Issues Letter Ruling on Taxation of SaaS
By Jeff Weinkle, , SALT manager
Earlier this year, Arizona issued a Taxpayer Information Ruling, in which it determined that a SaaS subscription to a hosted website development application was subject to the transaction privilege tax as a rental of tangible property. Read More
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Alabama Accepts Justice Kennedy’s Invitation and Adopts Economic Nexus Regulation for Sales/Use Tax
By Jeff Glickman, SALT partner
The Alabama Department of Revenue has issued a rule which establishes that an out-of-state seller who lacks physical presence but still makes retail sales of tangible personal property may have substantial economic presence and be required to collect and remit sales tax – but is this constitutional? Read More
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Virginia: Payroll Reports Do Not Always Clearly Show Payroll Factor for Apportionment
By Tina Chunn, SALT associate
Many companies typically rely on payroll reports as support for wages paid by state to calculate the payroll factor, but a recent Virginia ruling request highlights the discrepancies that can occur. Read More
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California: Certain Asset Sales Must Be Excluded from the Sales Factor
By Jess Johannesen, SALT senior associate
If non-routine dispositions are determined to be business income that is subject to apportionment, then should the sale (or gain) be included or excluded from the sales factor numerator and/or denominator? Read More
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Congress Agrees to Short-Term Extension of Internet Tax Freedom Act
By Jeff Glickman, SALT partner
The Internet Tax Freedom Act, which prevents states from taxing Internet access and from enacting multiple or discriminatory taxes on electronic commerce, has been extended through Dec. 11, 2015. Read More
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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 in industry, state government, public accounting and private law practice. We specialize in all areas of SALT, including matters related to corporate and personal income taxes, sales/use tax, nexus, 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.
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