SALTovation: Navigating the Complexities of State and Local Tax by Aprio

In this episode of the SALTovation Podcast, Meredith Smith and Judy Vorndran join Stephanie Lipinski Galland, Principal at Miles & Stockbridge, for a lively conversation about how the shift from a "bricks" to a "clicks" world has reshaped sales tax. A 10th-generation Virginian, Stephanie highlights her time at the Virginia Department of Taxation and at the Gap, where she helped navigate one of the earliest decisions in online retail: whether to collect sales tax at the point of an internet sale, which turned online tax collection into a business problem, not just a tax one.The discussion moves from the complexities of state and local tax to the practical realities of M&A, where deals close on Monday and the request for a state clearance letter lands on Friday. Stephanie explains why an indemnification paragraph may be worth little without documentation, why lowering the purchase price can be more practical than holding funds in escrow for years, and why summaries rarely satisfy a burden of proof when an audit finally arrives.Key Takeaways:● State and local tax can behave like a puzzle without pre-described pieces. Outside of a few states, broad statutes and fewer regulations mean practitioners often have to build the answer rather than look it up.● Clearance letters and bulk sale notices may require advance lead time. Some jurisdictions expect contact days before closing, so a Friday request for a Monday deal can be impossible to satisfy.● An indemnification clause may not be enough on its own. When assessments and appeals can stretch for years, lowering the purchase price can be more practical than holding funds in escrow.● Documentation can make or break a position. Summaries are rarely primary source documents, and records lost across software migrations can leave a company unable to meet its burden of proof.● Collecting tax online can be a business decision, not only a tax one. Point-of-sale systems, in-store returns, and same-store comps mean the choice to collect at the point of sale can affect store performance and audit exposure.● Proactive SALT advice is available. If companies cannot justify a full-time in-house specialist, outside SALT advisors can help companies mitigate risk.Guest:Stephanie Lipinski Galland, Principal, Miles & StockbridgeLinkedIn: https://www.linkedin.com/in/stephanie-lipinski-galland-1205a991/Stephanie Lipinski Galland is a Principal at Miles & Stockbridge with more than 30 years representing businesses before state and local taxing authorities on income, franchise, sales, use, and unclaimed property matters, as well as M&A due diligence and administrative appeals. She previously served as Director of Taxation at Gap Inc. and worked at the Virginia Department of Taxation, and she teaches state and local tax as an Adjunct Professor at Georgetown University Law Center. A Fellow of the American College of Tax Counsel and a former Chair of the ABA's State and Local Tax Committee, she was named Best Lawyers' 2026 "Lawyer of the Year" for Litigation and Controversy (Tax) in Richmond.Connect:● Website: https://www.aprio.com/business-tax/state-local-tax-salt-consulting/● Meredith Smith on LinkedIn: https://www.linkedin.com/in/meredith-smith-047aa13/● Judy Vorndran on LinkedIn: https://www.linkedin.com/in/judyvorndran/● Stephanie Lipinski Galland on LinkedIn: https://www.linkedin.com/in/stephanie-lipinski-galland-1205a991/● Subscribe on your favorite podcast app.Disclaimer:The information provided in this podcast is for general informational and educational purposes only and does not constitute legal, tax, accounting, or professional advice. The views expressed by the hosts and guests are their own and do not necessarily reflect those of Aprio or its affiliates. Listeners should consult their own qualified advisors before making decisions based on the topics discussed. SALTovation is a production of Aprio.#Aprio #SALT #InternetSalesTax #MeredithAndStacey #AccountforAnything #TaxPodcast #SALTovation #StateTax #TaxPolicy #TaxCompliance #SalesTax #MandA #Nexus #EcommerceMentioned in this episode:Schedule a Call with the Aprio Team Now!Introductory Call

Our conversation continues with Glenn McCoy as we examine pressing issues such as ethics, artificial intelligence, and tariffs. McCoy underscores how these factors are reshaping the future of tax practice, stressing the need for professionals to stay adaptable and well-informed amid rapid technological innovation and regulatory change. He also offers his perspective on the ethical challenges posed by artificial intelligence in tax preparation, along with the evolving role of tariffs and their impact on taxation.Key Takeaways:State and local tax is becoming more complex and significant.Ethics and artificial intelligence are key issues shaping tax practice.Tariffs impact sales, income, and property taxes for businesses.Networking strengthens relationships and professional growth.AI in tax requires careful ethical consideration.ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Mentioned in this episode:Schedule a Call with the Aprio Team Now!Introductory Call

In this episode, Stacey and Meredith explore the complex world of state and local taxation, focusing on one of the most misunderstood topics: nexus. Our team of tax professionals unpacks the common myths businesses often hold, especially around physical presence and economic nexus rules.A key misconception we address is the belief that a company’s tax responsibilities stop at its state of incorporation. In reality, doing business and making sales across multiple states can create tax obligations in each of those jurisdictions.Key Takeaways:State and local tax compliance goes far beyond a company’s headquarters.Many businesses mistakenly assume that only physical presence determines their tax obligations.Because tax laws differ widely from state to state, compliance must be tailored to each jurisdiction.Nexus can be triggered in overlooked ways, including remote sales and employee activity.Chapters00:00 - Intro03:06 - Nexus and State Tax Jurisdiction13:00 - Tax Compliance in Multi-State Operations16:36 - Drop Shipments and Sales Tax24:45 - Software Limitations in Business Compliance40:20 - Navigating State Tax ComplianceConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Mentioned in this episode:Schedule a Call with the Aprio Team Now!Introductory Call

In this episode of the SALTovation podcast, we dive into the complex world of sales tax compliance and explore how technology is playing a vital role in helping businesses stay ahead. We welcome back Scott Peterson from Avalara, who brings deep insight into the ever-changing landscape of state tax policy and the challenges companies face in keeping up.Scott shares how Avalara works closely with both businesses and government agencies to simplify the process of managing tax obligations, from handling large volumes of returns to adapting to shifting regulations.Key Takeaways:Key challenges in sales tax compliance for businessesThe role of state communication in tax policy updatesHow technology streamlines multi-jurisdiction complianceAvalara’s collaboration with governments to improve complianceChapters00:00 - Intro01:40 - Navigating Tax Policy Changes10:47 - Understanding Tax Compliance and Responsibilities15:34 - Navigating Tax Regulations in a Digital Age24:00 - Navigating Tax Compliance in a Digital AgeConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Mentioned in this episode:Schedule a Call with the Aprio Team Now!Introductory Call

In this episode, we’re joined by Dave Kupiec, CPA, JD, and Natalie Martin, JD, of Kupiec & Martin, LLC, for a deep dive into Illinois tax law. Drawing on their extensive experience with the Illinois Department of Revenue and major corporations, they unpack the recent Pepsi case, offering insights into the state’s Tax Tribunal and appellate process.We explore the importance of strong documentation, how administrative decisions can impact taxpayers, and key strategies for navigating Illinois’s complex tax landscape.Key Takeaways:The Pepsi case shows how complex Illinois tax disputes can be.Good documentation is essential for dealing with audits and legal decisions.Illinois tax rules are always changing and can greatly affect businesses.Knowing how Illinois tax law works helps with better planning and staying compliant.Chapters00:00 - Intro03:49 - Understanding the Illinois Tax Tribunal14:00 - Importance of Documentation in Tax Cases31:21 - The Evolution of Sales Tax Legislation in Illinois41:20 - Taxation and Remote Sellers: An Unusual Amnesty ProposalConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk To A Tax Advocate Today:https://taxops.com/contact/Mentioned in this episode:Schedule a Call with the Aprio Team Now!Introductory Call

As Colorado heads into 2025, big fiscal decisions loom. In this episode, we sit down with Ed Sealover, VP of Strategic Initiatives at the Colorado Chamber of Commerce, to unpack the state’s growing budget deficit and what it could mean for both businesses and residents.We explore hot-button issues like the proposed rollback of software tax exemptions and the controversial retail delivery fees. Ed breaks down the tough balancing act lawmakers face, and how to fund essential services without stifling economic growth.From the halls of the Capitol to the boardrooms of local businesses, we examine how these tax debates reflect deeper political tensions and impact Colorado’s economic future.Key Takeaways:Colorado’s Budget Woes: The episode unpacks the state’s growing budget deficit and the fiscal hurdles ahead in 2025.Labor Law Shake-Up: A deep dive into the proposed overhaul of the Labor Peace Act and what it could mean for unionization efforts.Tax Policy Tensions: Examines hot-button tax proposals—including changes to software exemptions and retail delivery fees—and their impact on businesses and consumers.Balancing Act at the Capitol: Highlights the challenge lawmakers face in funding public services while supporting a healthy business environment.ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!Mentioned in this episode:Schedule a Call with the Aprio Team Now!Introductory Call

More than a dozen states have repealed the 200 transaction threshold for economic nexus, aiming to ease the burden on small sellers. Our guest Diane Yetter, President and Founder of Yetter Tax and the Sales Tax Institute, breaks down what these changes mean for businesses, particularly those navigating multi-state sales. Diane explains why small sellers can no longer rely solely on transaction counts to determine nexus and why a broader understanding of tax obligations is now essential. We unpack the benefits of these reforms, the challenges that persist, and what steps businesses should take to stay compliant in an ever-evolving regulatory environment.Key Takeaways:A growing number of states are repealing the 200 transaction threshold, helping reduce compliance burdens for small sellers.Guest Diane Yetter stresses the importance of understanding both economic and physical nexus requirements.These policy changes are considered a win for taxpayers, particularly small businesses.Significant changes to Illinois’ tax structure raise concerns about potential discrimination against out-of-state sellers.ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!Talk To A Tax Advocate Today:https://taxops.com/contact/Mentioned in this episode:Schedule a Call with the Aprio Team Now!Introductory Call

We’re talking with Brent Reeves, a seasoned entrepreneur and trailblazer in tax technology, on the SALTovation podcast this week. Brent shares the story behind launching SureTax and how that journey led to the creation of his latest venture, CereTax.We dive into what it takes to disrupt the sales tax space—from building agile teams to staying ahead of constantly shifting compliance demands. Brent breaks down how his approach to solving real-world tax challenges with smart, scalable tech has helped businesses of all sizes stay compliant and future-ready.Join us as we explore the art of building tax software that not only works today but evolves with tomorrow’s complexities.Key Takeaways:Brent Reeves details his entrepreneurial journey from SureTax to launching CereTax successfully.The importance of agile teams and innovative tax solutions in business.Understanding tax complexities is critical for effective software development and is why technology must adapt to ever-changing tax laws and regulations.ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!Talk To A Tax Advocate Today:https://taxops.com/contact/Mentioned in this episode:Schedule a Call with the Aprio Team Now!Introductory Call