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State & Local Tax news

March 2017

In This Issue:

 

Welcome to the March 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 sales and use tax nexus case expanding physical presence to voluntary in-state actors, (ii) a Colorado ruling explaining the corporate income tax analysis for the sale of a parternship interest, (iii) a Missouri case applying the "true object" test to telecommunications services, (iv) a New York advisory opinion analyzing when information services are exempt from sales/use tax, and (v) a Utah state tax commission decision regarding the sales/use tax treatment of shipping pallets.

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
 
ga-tax-tribunal

Georgia Tax Tribunal Finds that In-State Party without Contractual Relationship Creates Nexus for the Out-of-State Seller

By Jeff Glickman, SALT partner

Following other states who recently addressed this issue, Georgia determined that a contract isn't required to establish nexus if the activities performed maintain a market in Georgia.

 
colorado-direction

Colorado Offers Guidance on Corporate Income Tax Treatment of Partnership Sale

By Jeff Weinkle, SALT manager

In a recent case, Colorado ruled to exclude the gain from the transaction from its sales factor since its inclusion would result in inequitable apportionment.

Missouri Supreme Court Rules that Out-of-State Company was Selling Telecommunications Services

By Tina Chunn, SALT senior manager

TracFone could not take Missouri's "in commerce" exemption because the object of the sale was telecommucations services in Missouri, not phones from Florida.

new-york-customer-reports

New York Rules that Customer Reports are Taxable Information Services

By Alissa Graffius, SALT senior associate

A petitioner was denied an exclusion for information services that are "personal or individual in nature" because the information included in its products was public.

 
utah-pallets

Utah Addresses Sales and Use Tax Treatment of Shipping Pallets

By Jess Johanessen, SALT manager

Shipping pallets rented through a pallet pooling program are not "nonreturnable" and do not qualify for an exemption under Utah law.

 

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.