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Current Trends in State Income Tax: PTE Elections, Revenue Sourcing, PL 86-272, SaaS, NFTs, and Cryptocurrency

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Tuesday, January 10, 2023

Recorded event now available

This webinar will provide a brief introduction to trends in state and local taxation. Our panel of SALT experts will review the latest changes made by states to the landscape of taxation, including states' interpretations of Public Law 86-272, changes to revenue sourcing, and recently added pass-through entity tax elections passed by most states. They will also address the move by states to tax SaaS, marketplace facilitators, and emerging technologies.


With 50 states and D.C., staying abreast of the rapidly changing tax rules affecting state income tax and sales and use tax is challenging. Even when states adopt the same tax framework, each state's interpretation of its application is different. Almost 30 states have created pass-through entity taxation regimes. Some states allow members to reduce their adjusted gross income if the PTE pays the tax, while others require members to include their share of income on their individual tax returns while allowing a credit to offset this income.

Texas apportions receipts from services based on the location where the service is performed. The state's regulations explain that it is determined based on the location of the "receipt-producing end-product act." However, Texas Supreme Court's decision in Sirius XM Radio v. Hegar rejected this test, favoring Texas' "origin-based system" which looks at where the service is performed and ruled in favor of Sirius XM. The landscape of state and local taxation is constantly changing. SALT professionals must stay apprised of the latest developments in state and local taxes nationwide.

Listen as our panel of state and local tax experts discusses the most recent changes in SALT, and how to address these, for state and local tax advisers working with multistate businesses.



  1. Changing state tax landscape
  2. Impact of Wayfair on nexus and new state tax laws
  3. Trends in sales and use tax
    1. Economic nexus
    2. Taxability of Software as a Service (SaaS)
    3. Taxability of emerging technologies
    4. Marketplace facilitator laws
  4. Trends in state income tax
    1. Public Law 86-272
    2. Migration to single sales factor
    3. Revenue sourcing: market-based and cost of performance
    4. Texas sourcing update
  5. New pass-through entity tax elections


The panel will cover these and other critical issues:

  • Varying interpretations of market-based sourcing provisions by state
  • Why a state-by-state analysis is needed to properly source revenue
  • A review of sales and use tax thresholds by state
  • How states are taxing emerging technologies like NFTs and cryptocurrency
  • How certain states interpret PL 86-272
  • Specific state responses to the SALT deduction cap and their PTE election requirements


Thacher, Alex
Alex Thacher


Mr. Thacher leads the firm’s SALT practice, primarily focused on state and local tax consulting, as well as...  |  Read More

Tilman, Brandee
Brandee A. Tilman, JD, LLM

Partner, State & Local Tax

Ms. Tilman is Armanino’s National State & Local Income Tax practice leader. She brings over 20 years of...  |  Read More

Le Clair, Heather
Heather M. Le Clair, JD, LLM

Managing Director, Tax

Ms. Le Clair is a managing director in the Armanino National State and Local Tax practice and co-Lead of the National...  |  Read More

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