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

Texas made changes to the state tax rules because of COVID-19

Federal taxes are not the only tax liabilities impacted by COVID-19.  Various state and local taxing jurisdictions are also grappling with how to balance the desire to help taxpayers navigate these difficult times with their need for tax revenue to continue offering the services and resources critical to citizens. While the federal government can spend more money than they take in, state governments do not have that luxury.  Consequently, the tax relief being offered varies greatly by jurisdiction and by tax type.  This blog post addresses how the State of Texas has responded to this crisis and what taxpayers can expect going forward.  Many of the items discussed below are also discussed at the Comptroller’s website, where there is a dedicated COVID-19 resources page.

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Topics: SALT

Medical billing taxability changes

Starting in 2020, the Comptroller is changing its policy relating to the taxability of medical billing services.  While insurance services have always been subject to Texas sales tax, the Comptroller previously took the position that medical billing services happen before any insurance claims are submitted, and therefore are not taxable insurance services.  Effective January 1, 2020, the Comptroller will be taking the opposite position – preparation of a claim is an inherent part of the insurance claim process and medical billing services to prepare a medical insurance claim are taxable insurance services.

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2019: Texas Legislature Update

The 86th Texas Legislature did not pass many tax-related bills, but those that passed could have significant consequences. 

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Topics: SALT, State and local taxes, Texas

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

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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.

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Why the Wayfair Decision Could Change How You Do Business.

The Wayfair decision

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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.

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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.

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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.

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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.

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

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