Aprio SALT Newsletter: May 2023

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State & Local Tax News, May 2023

Georgia’s 2023 Regular Legislative Session Ends with Several Notable Tax Bills

Governor Kemp signed legislation making notable tax changes, such as expanding eligibility for the state’s pass-through entity tax, decoupling from IRC Section 174, and imposing sales tax on digital goods.

Tennessee Rules that Memberships to Live and On-Demand Fitness Classes are Subject to Sales Tax

A Tennessee ruling concluded that membership fees that included access to live and on-demand fitness classes were taxable as digital goods. Should your business be collecting sales tax on its digital goods?

Sale of Partnership Interest by Another Partnership Creates California Income for Nonresident

When a pass-through entity sells its ownership interest in another pass-through entity, the owners of the selling entity may be required to pay tax in the states where the sold entity engaged in business.

Florida Court Requires Cost-of-Performance Sourcing Method for Service Revenue

A Florida court opinion illustrates that not every state is successful when it attempts to apply a market-based approach to sourcing service revenues when the rules require the cost-of-performance method.