IN THIS ISSUE

Welcome to the October 2016 issue of the HA&W 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 includes articles addressing (i) Georgia’s new rural hospital income tax credit program, (ii) Florida’s rules regarding “good faith” acceptance of resale certificates, (iii) Colorado’s factor presence nexus standards, (iv) when a taxpayer may be required to deconsolidate under Florida’s consolidated reporting rules and (v) the application of Washington’s real estate excise tax to the transfer of an LLC interest.

In case you missed prior issues of this newsletter, please click here. Please note that due to the holidays, our next issue will be a double issue for November/December 2016 and will be sent around mid-December.

If you have any comments, questions or suggestions regarding current or future topics, or if you would like to learn more about HA&W’s SALT practice, please email us at jeff.glickman@hawcpa.com. Thank you.

 

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

Georgia Enacts New Tax Credit for Donations to Rural Hospitals

By Jeff Weinkle, SALT manager

Georgia’s new Qualified Rural Hospital Organization Expense Tax Credit offers taxpayers a credit for up to 70 percent of their donation to an approved organization.

illustration image

Florida Rules that Contract Language Renders Resale Exemption Inapplicable

By Tina Chunn, SALT senior manager

Written transaction documentation must be consistent with the actual transaction, because discrepancies may open an avenue for the state to deny the intended tax treatment.

Colorado Issues Guidance on Application of Factor Presence Nexus Rules

By Jess Johannesen, SALT manager

A taxpayer may have nexus in Colorado if more than $500,000 of its sales are sourced to the state, even if the taxpayer does not have a physical presence there.

Florida Concludes that Consolidated Group Ceases to Exist Upon Acquisition

By Alissa Graffius, SALT senior associate

Consolidated groups may be required to deconsolidate and file separate returns under certain circumstances, including transactions such as acquisitions and restructurings.

Washington Reminds Taxpayers that Transferring Equity Interests Can Result in Real Estate Transfer Tax

By Jeff Glickman, SALT partner

Some states apply real estate transfer tax to the sale of a controlling equity interest in an entity that owns real estate, as a recent Washington Tax Determination highlights.

About HA&W's State & Local Tax Practice

HA&W's State & 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 & 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.