SALT Developments in the Southeast: Tennessee's Franchise Tax, Nexus Determinations, Current Cases

Continuous SALT changes are taking place across the nation. States are firming up and enacting legislation surrounding sourcing rules and nexus. All states imposing taxes have implemented PTE taxation regimes, and sales tax rules continue to evolve post-Wayfair.

In January 2024, South Carolina's Court of Appeals determined that Amazon, as a marketplace facilitator, had an obligation to collect sales taxes extending back to 2016, which predates the Wayfair decision. Also in 2024, Georgia, like many other states, enacted a tax on digital items. Digital downloads, code, and other digital products are subject to sales tax effective Jan. 1, 2024.

In 2023, Tennessee adopted a single-sales factor for apportionment. Most recently, the state proposed significant changes to its franchise tax, which could affect current estimated tax payments and offer refund opportunities. SALT practitioners working with businesses in the Southeast, and with potential nexus in these states, need to understand the impact of recent changes to minimize taxes and avoid penalties for these taxpayers.

Listen as our panel of SALT controversy experts covers recent state and local tax developments in the Southeastern states.

1. SALT developments in the Southeast: introduction
2. Recent legislative changes
3. Recent cases
4. PTE taxes and elections
5. Florida
6. Georgia
7. Tennessee
8. Virginia
9. Other states

The panel will cover these and other key issues:

• Tennessee's proposed franchise tax changes
• PTE elections and responses to the SALT cap by Southeastern states
• Recent rulings and court cases in specific southeastern states
• Current rules for nexus determinations in Georgia, North Carolina, and other Southeastern states

Learning Objectives

After completing this course, you will be able to:

• Determine how certain Southeastern states have responded to the SALT cap
• Identify recent legislation that impacts SALT tax in Southeastern states
• Ascertain how certain states in the Southeast tax digital items
• Decide what actions might need to be taken by businesses subject to Tennessee franchise tax

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of SALT taxation, nexus and apportionment as it applies to multi-state businesses.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.