Aprio SALT Newsletter: April 2023

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State & Local Tax News, April 2023

Virginia Legislation Expands Eligibility for Pass-Through Entity Tax Election

Virginia enacted legislation to expand the types of pass-through entities that can make a pass-through entity tax election, and other states are doing the same. Is your business now eligible to make the election?

Pennsylvania Court Upholds the Department’s “Market-Based” Interpretation for Sourcing Revenue

A recent Pennsylvania case upheld the Department of Revenue’s interpretation that service revenue is sourced to the customer state under its former “cost of performance” rule for corporate net income tax apportionment purposes.

Alabama Rules that a Nonresident’s Wages Earned While Working Out-of-State are Taxable

Remote work may be causing states to review, and ultimately depart from, long-standing policy on when a nonresident’s wages are subject to income tax. How could this departure impact your business and employees?

Washington Supreme Court Rules Controversial Capital Gains Tax is Constitutional

The Washington Supreme Court upheld the state’s recently enacted and controversial 7% tax on certain capital gains. Taxpayers, both resident and nonresidents, need to carefully consider potential taxes that may arise from the sale or exchange of capital assets.