State & Local Tax (SALT)

Topics

April 1, 2008

Sweet Rewards: State and Local Incentives Arrangements

Many state governments and local communities help businesses grow and expand by offering various credits or incentives for routine investments, for workforce training, or for more targeted behaviors, such as locating in an enterprise zone.

March 1, 2008

Current Corporate Income Tax Developments (Part I)

This article focuses on some of the more interesting items in the following corporate income tax areas: nexus; Sec. 338(h)(10) transactions; allocable/apportionable income; and tax base.

December 1, 2007

Michigan Business Tax: Overview and Issues to Consider

Editor: Scott Salmon, CPA, M.Acc. Companies doing business in Michigan have become accustomed to the infamous single business tax (SBT), which has a federal taxable income starting point and add-backs for compensation and depreciation expense. For a state dependent on the cyclical auto industry, this value-added tax provided a smooth

November 1, 2007

Who Is Subject to the New Texas Margin Tax?

Editor: Kevin F. Reilly, J.D., CPA In May 2008, most taxpayers doing business in Texas will face the reality of a new franchise tax regime—the margin tax (2006 TX H.B. 3). The new law requires that taxpayers doing business in Texas must pay a franchise tax based on their taxable

September 1, 2007

Fin 48 and State and Local Income Taxes

Scott Salmon, CPA, M.Acc. The required adoption of Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48), for enterprises with fiscal years beginning after December 15, 2006, has placed increased scrutiny on state and local income taxes. Given that in the past, state and

August 1, 2007

Change in Ohio Residency Rules

Editor: Anthony S. Bakale, CPA, M.Tax. There may be a lot more incentive to becoming a resident of a state like Florida than just the weather. While at times the weather may be enough of an incentive, the potential state tax savings can be even greater. Higher-income-tax states like Ohio

June 1, 2007

Economic Nexus and the Uncertainty of Quill’s Physical-Presence Test

Editor: Mary Van Leuven, J.D., LL.M. In March 2007, two petitions for certiorari were filed with the U.S. Supreme Court that, if granted, could potentially decide one of the most important unanswered questions facing state taxpayers. That question involves the issue of economic nexus—specifically, whether it is Constitutional for a

June 1, 2007

Sourcing Service Receipts

Co-Author: Deborah Rood, CPA, MST Past items in TTA have discussed state taxation of service providers. However, with the advent of telecommuting and the explosion of electronic commerce, “sourcing” a taxpayer’s receipts to a particular state has become much more challenging. While the terms “duty days” and “games played” have

April 1, 2007

Acquiring Property? Remember Sales Tax Due Diligence

Co-Editors: Michael Metz, CPA; Nick Gruidl, CPA, MBT As the mergers and acquisitions market continues to heat up, so should the scrutiny of sales tax in the due diligence review. Unlike income tax, sales tax is transaction-based and applies to sales, regardless of whether the company is in a profit

April 1, 2007

Current Corporate Income Tax Developments (Part II)

This two-part article discusses myriad recent state tax activities in the corporate income tax area. Part II addresses apportionment, unitary groups/filing methods, administration and other significant issues.