Welcome to the November/December 2016 issue of the HA&W State & Local Tax (SALT) Newsletter.
Welcome to the November/December 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) the U.S. Supreme Court’s denial of an appeal over Colorado’s use tax reporting law, (ii) potential refund opportunities in Mississippi and Alabama, (iii) the Ohio Supreme Court’s opinion upholding factor presence nexus provisions, (iv) who the Arizona retailer is in online transactions and (v) a Washington tax determination on the tax impact of bundled transactions and the significance of invoicing methods.
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
UPDATE: U.S. Supreme Court Refuses to Hear Colorado Use Tax Reporting Case
On Dec. 12, 2016, the U.S. Supreme Court ended almost five years of litigation over Colorado’s use tax reporting law by declining to review the Tenth Circuit’s opinion.
Mississippi Rules that Denial of Deduction for Dividends Received from Out-of-State Subsidiaries is Unconstitutional
By Jeff Glickman, SALT partner
The Mississippi Supreme Court finds that the state’s denial of a dividend received deduction discriminated against interstate commerce, opening the door to refund opportunities.
Arizona Explains Who Is Responsible for Tax Collection for Online Marketplace Transactions
By Alissa Graffius, SALT senior associate
An Arizona tax ruling states that an online marketplace is responsible for the state’s Transaction Privilege Tax if it provides certain services to third-party merchants and has control over fulfillment.
Alabama Tax Tribunal: Regulation Limiting Credit for Tax Paid to Other States Invalid
By Jeff Weinkle, SALT manager
Alabama residents who paid taxes to other states and whose credits were limited by the invalid regulation may have a refund opportunity going back to 2013.
Colorado Rules that Foreign Company Had Nexus Due to Consignment
By Alissa Graffius, SALT senior associate
Foreign companies that structure their U.S. business to avoid creating a permanent establishment in the U.S. may still be subject to state sales and use tax.
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.
