Jon Wellington, J.D., Principal, State and Local Tax

Jon Wellington is a licensed attorney that has spent nearly 20 years serving the public. Specializing in matters unique to state and local taxation (“SALT”), Jon is the leader of the firm’s SALT practice. Drawing on experience working with some of the largest accounting firms in the world, Jon’s expertise in SALT matters includes audit defense, income and franchise tax planning, sales and use consulting, nexus studies, and property tax minimization. Jon is exceptionally well-versed in the SALT needs for clients in the construction, manufacturing/distribution, and not-for-profit sectors.

Recent Posts

The Wayfair Decision Part 2

In response to the Supreme Court decision in South Dakota v. Wayfair (click here for our previous article on this subject), the Texas Comptroller has adopted amendments to Rule 3.286 regarding “remote sellers” (vendors with no physical presence in Texas).  These amendments go into effect on January 1, 2019.

Summary

Read More

Topics: SALT, Wayfair, State and local taxes, LGT

Your contractor’s license: Don’t leave home without it

The notion of starting work on a project without a license may seem unthinkable. But, in their rush to win bids and start work, many contractors have run afoul of licensing issues. Here’s how it can happen.

Read More

Why the Wayfair Decision Could Change How You Do Business.

The Wayfair decision

Read More

Topics: SALT, Wayfair

New Texas Tax Amnesty Program

On May 1, 2018, Texas will begin a two-month tax amnesty program. If you have any potential exposure for any Texas back taxes, LGT would welcome the opportunity to discuss the program with you to determine whether it would be worth pursuing. Additional information about the program is below.

Read More

Topics: Tax

Pros and cons on joint ventures

Joint ventures offer several potential advantages. They enable smaller construction companies to take on large projects while dividing the contractual and financial risks of such projects. Further, those projects could be in geographic locations that you otherwise would not be able to access. A joint venture can also enable you to increase your bonding capacity, provide an opportunity to learn about more sophisticated technologies, and access other contractors’ relationships.

Read More

Topics: Real Estate, Accounting Tips, Tax, Construction

Buyer Beware – Avoid unexpected tax liability when buying assets from another business

Many business owners know that when they acquire another business entity that they will be assuming any potential tax liabilities of the acquired business, known as, “successor liability.”  But Texas laws also allow for successor liability even if you purchase some — but not all — of another company’s assets.  It is therefore important to make sure that you are aware of these laws, and how to avoid the most common pitfalls.

Read More

Topics: Accounting Tips, Tax

Warning about state laws for NFPs

Not-for-profit organizations (“NFPs”) may not realize that operating outside their home state may create regulatory and tax compliance responsibilities. States have a vested interest in making sure that NFPs are operating for their intended charitable purposes, and are not fraudulently soliciting its residents for donations.

Read More

Topics: Accounting Tips, Not-for-Profit, Tax

Nexus Issues in the Manufacturing and Distribution Industry

In the wake of the recession, states and municipalities are seeking to boost revenue by prioritizing the collection of taxes from out-of-state companies. Some states have even created new departments devoted exclusively to finding out-of-state companies that should be paying taxes but are not. For example, the Texas Comptroller’s Office has a department focused on such companies, known as the Business Activity Research Team, or “BART.” States are also taking advantage of cross-border agreements with other states’ departments of revenue to share information and are collaborating with federal customs agents. While it may be difficult to determine whether your activity in other states triggers a tax liability (i.e., if you have “nexus”), ignorance is no defense and the penalties for noncompliance can be steep, making this a critical issue for small businesses.

Read More

Topics: Manufacturing & Distribution

Upcoming Sales Tax Holiday for Emergency Preparation Supplies

The Texas Comptroller's Office is offering taxpayers a sales tax holiday between 12:01 A.M. on Saturday, April 23, and midnight on Monday, April 25, for purchases of certain emergency preparation supplies. During the sales tax holiday, those items may be purchased tax-free without limit and with no need for an exemption certificate.

Read More

Topics: Accounting Tips

Are You Aware Of Your State and Local Tax Liabilities?

Does your company operate in multiple states? If so, you may owe state and local taxes to some of those states, even if you do not realize it. While it may be difficult to determine whether your activity in other states triggers a tax liability, ignorance is no defense, and the penalties for noncompliance can be steep, making this a critical issue for small businesses.

Read More

Topics: Manufacturing & Distribution, Accounting Tips