State and Local Thinking -- November 2015

State and local Thinking - November 2015 issueSALT Alerts
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Illinois resumes operation of EDGE and film production incentive programs, but tax credit payouts remain suspended
Illinois Gov. Bruce Rauner on Nov. 10 announced that the Illinois Department of Commerce and Economic Opportunity will immediately resume approvals of the economic development for a growing economy (EDGE) tax credit and the film production tax credit. Read the SALT Alert.

Michigan Court of Appeals holds certain cloud computing not subject to use tax
The Michigan Court of Appeals held in a published decision on Oct. 27 that the purchase and use of certain cloud computing services by a Michigan insurer weren't subject to Michigan use tax. Specifically, transfers of data to a company resulting from the third-party use of prewritten computer software were not subject to use tax because there was no delivery of software to the company. Read the SALT Alert.

District of Columbia Qualified High Technology Company eligibility status addressed
Two recent decisions regarding the District of Columbia Qualified High Technology Company (QHTC) designation shed light on what types of activities will enable companies to claim QHTC tax benefits. Read the SALT Alert.

Chicago City Council approves budget significantly raising property taxes
The Chicago City Council on Oct. 28 approved Mayor Rahm Emanuel’s spending plan and proposed revenue package for the 2016 fiscal year that runs from Jan. 1 through Dec. 31, 2016.  Read the SALT Alert.

Iowa Department of Revenue addresses Wynne by issuing guidance on credits for taxes paid to other states
The Iowa Department of Revenue on Oct. 16 became the second state tax authority to directly respond to the U.S. Supreme Court’s decision in Comptroller of the Treasury v. Wynne following the Maryland comptroller’s acquiescence to the case. The department’s guidance conforms to the Wynne decision and expands the application of the individual income tax credit that Iowa residents may take for taxes paid to other states. Read the SALT Alert.

New Alabama regulation to require out-of-state sellers to collect sales and use tax contrary to Supreme Court precedent
Alabama recently promulgated a controversial regulation requiring certain out-of-state retailers to collect sales and use tax on sales made in Alabama, even though the out-of-state retailers may not have physical presence in Alabama. Read the SALT Alert.

Thought leadership from our State and Local Tax professionals

  • Nov. 2, State Tax Today, "D.C. Council Chair to Introduce Legislation to Repeal Tax Havens List," Jamie Yesnowitz, SALT principal, quoted.

Tax professionals

Meet Jay Baehman, SALT director in Appleton, Wis.
Jay Baehman is a SALT Indirect Tax director in Grant Thornton’s Appleton, Wis., office. He has experience in sales tax, corporate income tax, property tax and individual income tax in the construction, manufacturing and retail industries. With more than 18 years of diversified experience in state tax, Jay supports growth strategies for his clients while managing the state tax effects on their businesses.

Before joining Grant Thornton, Jay was a tax auditor for the state of Wisconsin, auditing businesses for their compliance with Wisconsin income, sales and use, and withholding tax laws.

Jay’s SALT consulting experience includes providing audit representation, conducting reverse sales tax audits, performing nexus studies and providing prospective tax planning. Jay also helps companies implement strategies to obtain direct sales and use tax exemptions on transportation equipment and on certain utilities.

Jay earned a BS in accounting from the University of Wisconsin-Oshkosh.

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