Welcome to the January 2018 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) national developments in sales tax nexus, (ii) an Indiana Tax Court ruling overturning the state's attempt to use market-based sourcing, (iii) a New Jersey Tax Court decision prohibiting the state from requiring a non-U.S. taxpayer to include worldwide income for state tax purposes, (iv) a Michigan Court of Appeals opinion explaining when a retailer may also be a contractor for sales tax purposes and (v) a Texas letter ruling addressing sales tax sourcing for certain services purchased over the Internet.
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
Update: Is This the Beginning of a Paradigm Shift in Sales Tax Nexus?
By Jeff Glickman, SALT partner
The Supreme Court has agreed to hear a case that could overturn the physical presence nexus requirement.
Tax Court Rejects Indiana's Narrow Interpretation of Revenue Sourcing Rules
By Jeff Weinkle, SALT manager
The Tax Court determined that an online university's actual income-producing activities took place outside the state and thus should not be sourced to Indiana.
New Jersey Tax Court Rejects State's Attempt to Add Back Foreign Source Income
By Alissa Graffius, SALT senior associate
The Tax Court determined that the Department of Revenue had overstepped its bounds when using a regulation to justify the inclusion of worldwide income in a taxpayer's entire net income.
Michigan Court Rules that Retailer is Also a Contractor for Sales and Use Tax Purposes
By Tina Chunn, SALT senior manager
The installation of counter tops, fixtures and sinks made them no longer tangible personal property - and thus subject to use tax for the installing company.
Texas Ruling Addresses Sales Tax Sourcing for Services Provided Over the Internet
By Jess Johannesen, SALT manager
A Texas taxpayer's use of registration IP addresses to source sales is just one example of how state sales tax rules are evolving in response to technological advances.
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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