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State & Local Tax news

Nov./Dec. 2020

Welcome to the November/December 2020 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 contains articles addressing:

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 me at Thank you.

Jeff Glickman
Jeff Glickman, J.D., LL.M.
Partner-in-Charge, State & Local Tax Practice


Do You Know Where Your Employees Are?

By Jeff Glickman, SALT Partner

Do you need a payroll tax review? As if complying with payroll-related taxes isn’t difficult enough, with telecommuting becoming the new normal due to COVID-19, do you know where your employees are actually working and are you withholding payroll taxes in the correct state?



IRS Approves Deduction for Entity-Level Income Tax Payment Made by Pass-Through Entities

By Betsy Tuck, SALT Manager

In response to the $10,000 SALT deduction limitation under the Tax Cuts and Jobs Act, several states enacted pass-through entity-level income taxes as a workaround.  Due to a recent Internal Revenue Service notice approving the workaround, expect more states to follow suit and find out what that may mean for you.



Tennessee Issues Ruling on Survival of Net Operating Losses After Merger

By Tina Chunn, SALT Senior Manager

When engaging in corporate mergers and acquisitions, including internal reorganizations, it is important for companies with state tax benefits, such as net operating losses, to be mindful of their treatment for state income tax purposes since not all states will permit those benefits to be used by the successor taxpayer.




New York Ruling Addresses Sales Tax on Single Charge for Software and Services

By Jess Johannesen, SALT Senior Manager

When a business provides multiple products/services, each one must be separately analyzed to determine taxability for sales tax purposes. If any one of those products/services are taxable, bundling them into one charge with the nontaxable services could make the entire amount taxable.



Partner is Subject to California $800 LLC Fee Based on Flow-Through of Partnership Factors

By Betsy Tuck, SALT Manager

When determining if a limited liability company is doing business in California and owes the $800 LLC Tax, it must take into account its share of any California property, payroll, and sales from a pass-through entity of which it is a member.



Ohio Court Holds that Taxpayers’ Receipts from Sale of Ohio-based Contracts are not Ohio Receipts

By Jess Johannesen, SALT Senior Manager

State revenue sourcing rules for services and intangibles often don’t provide clear answers. It’s important to analyze your transactions carefully to ensure that you are not overstating your state apportionment percentage.



New York Rules that Fees for Access to an Online Course Library are Not Subject to Sales Tax

By Kristen Mantilla, SALT Associate

With the rise in online learning, businesses offering these products and services need to be aware that the features offered and the manner in which they are provided can impact the state sales tax treatment. 


About Aprio's State and Local Tax Practice

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.