SALT Report: July 2016

July 7, 2016

Each month, our State and Local Tax team will provide highlights of recent state tax law changes that may affect you. Updates are sorted by state so that you can easily view the changes that impact the state(s) in which you are doing business.

Contact any member of our State and Local Tax team for specific guidance.

Colorado

Michigan

  • Effective May 6, 2016, filing requirements for manufacturing personal property exemption amended. If you hold an industrial facilities exemption certificate that has been extended, you must file the combined document by February 20 of each year.

Mississippi

New York

Oklahoma

Washington

  • A Washington taxpayer’s payments to a technology company for services provided to the taxpayer’s clients were subject to Business and Occupation (B&O) tax because those payments constituted a cost of providing legal services to clients via a website and were not considered deductible advances.
  • For Washington B&O tax purposes, a taxpayer established substantial nexus through its independent sales representative’s visits and internet sales. The internet sales could not be dissociated from those made during the representative’s visits to customers, during which the representative established and maintained a market for the products, as well as directly solicited sales. Additionally, a misunderstanding or lack of knowledge of a tax liability was not considered a circumstance beyond the taxpayer’s control and did not qualify for a waiver of the penalty.
  • Guidance released on changes to the nexus law: Trade Convention Exception from Nexus for Retail Sales. Beginning July 1, 2016, attendance or participation by a representative at one "trade convention" per calendar year does not establish nexus for retail sales tax or retailing B&O tax purposes. The exception does not apply to persons making retail sales at a trade convention in Washington.

Wisconsin

The following guides have been updated or revised: