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State and Local Thinking -- February 2015

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State and local Thinking February 2015State and Local Thinking

SALT Alerts

SALT Alerts are available via Twitter.

Texas comptroller finds sales tax nexus through software licenses
The Texas comptroller has affirmed an administrative law judge decision that a software company is required to collect and remit sales and use tax on its sales of software licenses to Texas customers. Read the SALT Alert.

Virginia Supreme Court reverses and remands case disallowing apportioned out-of-state deduction for BPOL purposes
The Virginia Supreme Court has reversed and remanded a decision by the Arlington County Circuit Court addressing the out-of-state deduction that may be taken for business, professional and occupational license (BPOL) tax purposes. Read the SALT Alert.

Special considerations for Los Angeles business taxes filing due on March 2, 2015
While the California corporate income tax garners substantial attention from taxpayers doing business in California, municipalities also impose entity-level taxes on businesses that deserve close consideration. Read the SALT Alert.

Oregon Tax Court holds cable company’s video services subject to special apportionment for broadcasters
The Oregon Tax Court has held that an out-of-state cable company’s video services constituted “broadcasting” and were subject to the special apportionment provisions for interstate broadcasters for purposes of Oregon corporate excise (income) tax. Read the SALT Alert.

Pennsylvania provides guidance on sourcing sales of services for corporate taxes
The Pennsylvania Department of Revenue has released an information notice to clarify the new statutory market-based sourcing rules for the sale of services that went into effect for tax years beginning on and after Jan. 1, 2014. Read the SALT Alert.

Florida District Court of Appeal finds Internet sales of flowers to out-of-state customers not subject to sales tax
A Florida District Court of Appeal has ruled that sales of flowers by a Florida-based business via the Internet to customers located outside Florida violated the Commerce Clause of the U.S. Constitution and were not subject to the Florida sales tax. Read the SALT Alert.


Tax webcasts and events

Register for upcoming webcasts

OECD BEPS: Developments affecting US-based companies, Part 2
In Part 1 of our Base Erosion and Profit Shifting (BEPS) webcast series, we presented the U.S. business community's views regarding various aspects (transfer pricing and international tax) of the Organization for Economic Cooperation and Development's (OECD) recent BEPS releases. In this event, we complement Part 1 by presenting various non-U.S. views and reactions to the BEPS releases. Focusing on professionals from the UK and Australia, we will discuss — with a primary focus on transfer pricing — the issues, reactions, viewpoints and challenges that the OECD releases present relative to non-U.S. tax jurisdictions. Participants can expect to gain a broad-based understanding and working knowledge of these matters, such that they may identify, analyze and consider the non-U.S. issues that multinationals will face in light of the OECD work products. Register now.

International tax: Changes impacting technology companies
Whether your focus is software, digital media, Internet or infrastructure, many technology companies have established international operations to expand their footprint. Operations on a global stage present challenges, particularly in tax. Recent changes in the international tax landscape, such as financial statement implications of foreign earnings, the Base Erosion and Profit Shifting (BEPS) Action Plan, the Foreign Account Tax Compliance Act (FATCA) and changes in foreign country laws, should be considered as you strategize for the future. Additionally, increased focus on the permanent reinvestment assertion should factor into your planning. This webcast will identify several of the latest international tax changes and explain the potential impacts on your technology business.

Corporate tax issues: Interest expense limitations and consolidated group continuation rules
This webcast will discuss certain interest expense deductibility limitations that may apply to corporations. In addition, it will cover the rules for determining whether a consolidated group terminates or continues in certain common circumstances. The discussion will include practical examples related to each topic. Register now.


Replay past state and local tax webcasts

A new Congress, a fresh look at tax policy and strategies
We lead this webcast with a Q&A discussion on the 114th Congress and how the political agenda will impact manufacturers. Then we cover how to create an innovative tax strategy — one that takes advantage of external tax trends (federal, state, international) while meeting internal requirements (e.g., corporate acquisitions, foreign expansion). Get more insights about the new role of manufacturing CFOs from our Value-Added CFO series.

Tax changes to the maquiladora industry
In 2014, Mexico implemented significant tax reforms affecting U.S. multinationals’ Mexican investments and subsidiaries, including related income. Maquiladoras are among the taxpayers most affected. This webcast will discuss how those tax reforms have affected the maquiladora industry. Replay the webcast.

Enhanced exemption certificate management tools for tax automation
Grant Thornton LLP's Tax Technology Insights help our clients and contacts stay abreast of developing issues and new offerings in tax processes and technology solutions. This webcast covers enhanced exemption certificate management (ECM) tools for clients interested in an end-to-end solution. This discussion includes a demonstration of Grant Thornton's CertConvert and Avalara's CertCapture products. Both systems are designed to provide streamlined integration with tax calculation applications such as Vertex O Series and OneSource Indirect Tax Determination.

Golden parachute payments: Preparing for M&A
Corporations planning for a merger or acquisition have an extensive list of issues to address, and golden parachute payments must be among them. Harsh tax consequences may be imposed, resulting in a 20% excise tax on executives and a loss of deduction for the corporation. This webcast will help you understand the fundamental parachute payment rules and explore some of the more complex issues. More importantly, you will understand strategies to avoid the tax consequences associated with excess parachute payments.


Significant 2014 SALT developments and predictions for 2015
After much anticipation, New York, the District of Columbia and Rhode Island adopted significant state and local tax reforms in 2014 that touched on all aspects of the corporate income tax calculation. In addition, several provisions in the Multistate Tax Compact continued to be the focus of multistate litigation, and the Multistate Tax Commission recommended revisions to the Compact to its member states. During this webcast, members of Grant Thornton's SALT - National Tax Office discussed the significant SALT developments from 2014 and SALT trends taxpayers may see in 2015.


Thought leadership from our state and local tax professionals

Publications
  • Feb. 9, 2015, State Tax Today, "New Mexico Senator Proposes Market-Sourcing Bill Based on MTC Model Changes," Jamie Yesnowitz, SALT principal, quoted.
  • Jan. 29, 2015, Daily Tax Report, "Practitioners Predict Swift Adoption of MTC Model Statute on Sourcing," Brian Murphy, SALT national managing partner; Chuck Jones, SALT director; Lori Stolly, SALT director; and Jamie Yesnowitz, SALT principal; quoted.

Tax professionals

Meet Rich Hofrichter, SALT partner in the East Region
Rich Hofrichter is a SALT partner in our East Region. He is based in Charlotte, N.C.

Rich has more than 20 years of state and local tax experience in government and in private and public accounting roles. He has experience in both indirect tax law and systems, and he has served a wide range of clients on multistate sales-and-use and other indirect tax matters. He specializes in consulting and compliance, tax system implementations and compliance automation.

Rich has been in a consulting role for more than 10 years. Prior to that, he was in industry for five years and in state government for the previous five years.

He received his BS in Accounting from Virginia Polytechnic Institute and State University.



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This document supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the subject of this document, we encourage you to contact us or an independent tax adviser to discuss the potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this document may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this document is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.