SALT top stories of 2018

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SALT top stories of 2018 Grant Thornton wraps up a landmark year in state and local taxation with our “SALT top stories of 2018.”

When Grant Thornton released last year’s SALT top stories for 2017, we were watching closely as federal tax reform took center stage, culminating in the enactment of the Tax Cuts and Jobs Act at year’s end. The law sparked a swift reaction from most states throughout 2018, resulting in significant decoupling from many federal provisions that will cause corporate income tax complexity for years to come.

In almost any year, the state legislative activity addressing federal tax reform would be the big SALT story to cover. But just a couple weeks into 2018, the U.S. Supreme Court signaled, in agreeing to hear South Dakota v. Wayfair, Inc., that it was ready to hear a challenge to the sales tax physical presence nexus rule set forth in a 25-year-old court precedent. Ultimately, on June 21, 2018, in a 5-4 decision, the Supreme Court overruled that precedent, concluding that the South Dakota statute at issue, which required remote sellers to collect and remit sales tax if certain economic nexus standards were met, satisfied the substantial nexus standard.

In addition to these developments, several states, perhaps inspired by the federal tax reform efforts and the Wayfair decision, sensed that the time was right to enact historic state-specific tax reforms. Michigan and Texas, two states that had adopted their own dramatic tax reforms in the 2000s, continued to narrowly interpret the scope of some of the key deductions taken by taxpayers to minimize the tax base. And taxpayers and states continued to engage in litigation on the issue of sales factor sourcing, which has become more prominent in determining state corporation income tax apportionment factors over time.

Grant Thornton covers these issues and more, in a detailed examination of the SALT stories that had the most profound impact on taxpayers this year. Download a copy of your report today.


Jamie Yesnowitz
SALT – National Tax Office Principal
Washington D.C.
T +1 202 521 1504

Chuck Jones
SALT - Director
T +1 312 602 8517

Lori Stolly
SALT -- Director
T +1 513 345 4540

Metisse Lutz
SALT – Senior Manager
T +1 303 813 3973