For most companies, the overall tax burden is one of the top five expenses, with the state and local tax burden averaging approximately 45% of that expense.
States have become more aggressive and tax laws are more complex, increasing risk and the cost of compliance. Despite an increase in tax liabilities and a more complex environment, many companies are downsizing or, at best, maintaining the budget of the tax function. Tax departments are forced to spend most internal resources on compliance requirements and reacting to audit issues or to specific transactional events. Responsibility for state and local taxes, particularly indirect taxes (e.g., sales and use, property and employment) may fall under the control of different departments, rendering management of the total state and local tax burden a more time-consuming and complex task.

What comprises state & local tax services?
The key to appropriately managing a company's overall state and local tax cost is to align tax strategies with business initiatives and proceed with assisting the company with implementation.
sources : www.ey.com