Aprio SALT Newsletter: February 2023

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State & Local Tax News, February 2023

Texas Court Addresses Flow-Through of Sales Tax Exemptions for Government Contractors

A Texas court decision is an important reminder that being a government contractor does not necessarily exempt your business from sales tax on purchases made in connection with that contract.

A B2B Online Platform Does Not Meet Florida’s Definition of a Marketplace Facilitator

Does your online marketplace qualify you as a marketplace facilitator and require you to collect and remit sales tax? Recent Florida guidance illustrates the different requirements among states.

California Rules that Nonresident S Corporation Shareholders Owe Tax on Sale of Goodwill

When a pass-through entity sells its business assets, the owners are likely to be taxed on the gain in the states where the entity does business and not their states of residence. Find out how to mitigate any unfavorable impact.

Rhode Island Assesses Sales Tax on Seller Who Failed to Comply with the Resale Certificate Process

A Rhode Island decision upheld an assessment of tax, penalties and interest against a seller for failure to follow the state’s specific process for collecting a resale certificate. Find out how your business can avoid this unfortunate outcome.