Above-The-Line Considerations For Your Company

States and localities are continuing to experiment with different above-the-line tax systems, nonuniform methods of taxing similar items and taxes on out-of-state entities that have relationships with in-state contacts. San Francisco has decided to revamp its local tax regime by switching from a payroll to a gross receipts base. More generally, an issue of multistate importance has developed over the taxation of software as a service (SaaS). Finally, states have enacted click-through and affiliate nexus legislation, which has become the most pervasive trend in sales and use taxation over the past several years. Knowledge of these developments will allow multistate businesses to consider potential new filing obligations and adjust their software systems to support compliance.