Aprio SALT Newsletter: March 2023

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State & Local Tax News, March 2023

Indiana Becomes the 30th State to Enact a Pass-Through Entity Tax

Indiana became the 30th state to enact a pass-through entity tax. If applied appropriately, it can offer owners of pass-through entities significant federal income tax benefits. Should your business elect to pay these taxes?

Arizona Court of Appeals Rules that ADP’s Software License Subscriptions are Taxable

A recent Arizona court decision concludes that licensing software on a subscription basis to customers in Arizona is subject to the state’s Transaction Privilege Tax as a rental of tangible personal property.

Ohio Upholds Assessments Due to Insufficient Documentation to Support Out-of-State Sourcing

What happens when a taxpayer does not have contemporaneous business records to support the amount of in-state versus out-of-state sales reported on its tax return?

New York Refuses to “Split the Baby” and Treat Integrated Service as Taxable Software

A recent New York Board of Tax Appeals decision illustrates that the content of your customer service agreements and marketing materials can have a significant impact on how the state classifies your transactions for sales tax purposes.