State & Local
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May 31, 2024
Water Services Co. Asks NJ Court For $1.3M Sales Tax Refund
A water services company told the New Jersey Tax Court it was wrongly denied a sales and use tax refund of nearly $1.3 million, saying its claims were timely filed and the transactions at issue were not taxable.
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May 31, 2024
Calif. High Court Affirms Biz Transfer Was Ownership Change
A California corporation that transferred its ownership of two grocery stores to a trust that held all the corporation's voting stock constituted a change in the properties' ownership, allowing their assessed value to be doubled to $10 million, the state's top court affirmed.
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May 31, 2024
Calif. Tax Director Sees AI Aiding Tax Administration
Nicolas Maduros, as director of the California Department of Tax and Fee Administration, is leading an effort to modernize sales tax administration through the use of artificial intelligence. He's also president of the board of trustees of the Federation of Tax Administrators. Law360 spoke to him about both roles.
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May 31, 2024
Colorado Enacts $700M Child Tax Credit
Colorado created a child tax credit worth about $700 million annually under legislation signed Friday by Democratic Gov. Jared Polis.
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May 31, 2024
La. Sets Tax Dept. Notice Requirement For Foreign Biz
Louisiana will require the state's Department of Revenue to send notices to taxpayers outside the U.S. through first-class international mail with electronic delivery confirmation under a bill signed by the governor.
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May 31, 2024
La. To Offer Sales Tax Rebates For Lithium Recovery
Louisiana will create a temporary rebate program for sales tax paid by companies for equipment, material or machinery purchased for lithium recovery projects as part of a bill signed by the state's governor.
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May 31, 2024
Del. Net Revenue Through April $64M Higher Than Prior Year
Delaware's net general revenue receipts from July through April beat last fiscal year's total for that period by $64 million, according to the state Department of Finance.
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May 31, 2024
Wis. General Revenues Through April Up $144M
Wisconsin general fund revenue from July through April was $144 million higher than during the same period last fiscal year, according to the state Department of Revenue.
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May 31, 2024
Taxation With Representation: Cravath, Cleary, Fried Frank
In this week's Taxation With Representation, T-Mobile buys United States Cellular Corp.'s wireless operations, Energy Transfer plans to buy WTG Midstream, ConocoPhillips acquires Marathon Oil, and Goldman Sachs Alternatives raises over $20 billion for its direct lending strategy.
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May 30, 2024
Trump's Niece Can't Escape His Suit Over NYT Tax Story
A New York appellate panel ruled Thursday that former President Donald Trump can pursue claims that his niece, Mary Trump, breached a confidentiality agreement by sharing his tax records with The New York Times, handing him a legal win the same day he was convicted of 34 felony counts.
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May 30, 2024
Gas Station Chain Owes Wash. Tax For In-Network Sales
A Pacific Northwest gas station chain that issued fuel cards to customers must pay the Washington state business and occupation tax when holders of those cards purchase gas from other participating gas station chains, a Washington appeals court panel found, partially upholding the trial court.
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May 30, 2024
Casino Asks Ind. Justices To Review Add-Back Law's Scope
A casino operator asked the Indiana Supreme Court to review a state tax court decision that said the company needed to add back excise taxes and license fees paid to other states when determining its Indiana income tax base.
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May 30, 2024
Colo. Creates Low-Income Housing Investment Tax Credit
Colorado will allow an income tax credit for investments in certain low-income housing projects and increase the amount of affordable housing tax credits it offers under a bill signed Thursday by Democratic Gov. Jared Polis.
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May 30, 2024
Mich. Senate Bill Seeks Biz Tax Break For Organ Donor Leave
Michigan businesses that offer employees paid leave to donate organs would be able to receive a tax credit under a bill introduced in the state Senate on Thursday.
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May 30, 2024
Maine Revenues Through April Down $102M From Forecast
Maine's revenue collection from July through April missed budget projections by $102 million, according to the state Department of Administrative and Financial Services.
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May 30, 2024
Ariz. Looks To Keep Rebate Tax Fight With IRS Alive
Arizona's one-time income tax rebates last year should not be subject to federal tax, the state told a federal court, urging it to reject the Internal Revenue Service's push to dismiss the state's suit challenging the taxation.
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May 30, 2024
Colorado Extends Rural Jump-Start Tax Credits
Colorado extended income tax credits for certain new businesses and new hires through 2030 under a bill signed by Democratic Gov. Jared Polis.
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May 30, 2024
Mass. Foreclosure Law May Be Unconstitutional, Judge Says
A Massachusetts law blocking towns and cities from returning excess funds from foreclosure sales may be an unconstitutional taking, a federal judge has said.
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May 30, 2024
NY To Provide Sales Tax Break For Energy Storage Equipment
New York will exempt receipts for retail sales of residential energy storage systems equipment from state and local sales and use taxes, effective Saturday, the state Department of Taxation and Finance said Thursday.
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May 30, 2024
Mich. Total Revenue Through April Falls $590M From Last Year
Michigan's total general revenue from October through April was down $590 million compared with the same period last fiscal year, the state Budget Office said Thursday.
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May 30, 2024
Ex-KPMG Manager Joins Davis+Gilbert As Tax Partner
A former managing director at KPMG has joined New York law firm Davis+Gilbert LLP as a tax partner in its corporate and transactions practice, Davis+Gilbert announced.
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May 30, 2024
Colo. To Offer Freight Rail, Rail Operator Tax Credits
Colorado will offer two new tax credits for use of freight rails that start or end in coal transition communities and for the cost of improving or maintaining a rail line at risk of abandonment under a bill signed by the governor.
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May 30, 2024
Black Business Owners Sue Over Impact Of Transparency Act
The Corporate Transparency Act creates unique burdens on businesses owned by people of color, immigrants and other marginalized groups, the Black Economic Council of Massachusetts and several company owners said in the latest legal challenge to the anti-money laundering law.
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May 29, 2024
Iowa Offers Tax Penalty Relief For Counties Hit By Storms
Iowa will consider requests for tax penalty relief from people in several counties who missed state tax filing and payment deadlines because their records were destroyed by recent storms, the state Department of Revenue said Wednesday.
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May 29, 2024
NJ Tax Chief Urges Cos. To Respond To Nexus Questionnaires
The New Jersey Division of Taxation's top official encouraged businesses Wednesday not to ignore questionnaires from the agency regarding whether they had filing obligations before the state switched to combined reporting, warning that failure to respond could lead to high estimated assessments.
Expert Analysis
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The Reciprocal Tax Bill Is A Warning Shot At Pillar 2
A bill recently introduced in the House of Representatives to reciprocally tax countries deemed to have imposed discriminatory taxes on U.S. citizens and businesses takes aim at countries implementing the global minimum tax treaty known as Pillar Two, with which the U.S. has not complied, says Alan Cole at the Tax Foundation.
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Cost To Gov't Means Justices Must Review NC Sales Tax Case
The U.S. Supreme Court should review and overrule the North Carolina high court’s decision in Quad Graphics v. North Carolina Department of Revenue — an anticipatory overruling of precedent that expands the state sales tax base and imposes a stealth tax on the federal government, says Richard Pomp at the University of Connecticut Law School.
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Potential Risks And Benefits Of NY Cannabis Crop Rescue Act
Though proposed legislation in New York would help struggling cannabis farmers by allowing them to sell their crops directly to consumers, it poses numerous challenges for retailers and the state’s regulatory framework — and striking the right balance here will be crucial to shaping a sustainable, equitable industry, say Meaghan Feenan and William Wolfe at Harris Beach.
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La. Franchise Tax, Minn. Home Seizure: SALT In Review
From a proposal to phase out Louisiana's corporate franchise tax to the U.S. Supreme Court's ruling that a Minnesota county had no right to sell a woman's home for more than she owed, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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How New York State Budget Will Affect Business Taxpayers
The comprehensive state budget legislation recently finalized by New York Gov. Kathy Hochul and the state Legislature did not include some especially concerning tax proposals, but it will subject some state taxpayers to increased tax liability and lengthier appeals, say attorneys at McDermott.
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Taxing The Internet And Remote Workers: SALT In Review
From a New York ruling against the taxing of internet services to an attack on Philadelphia's taxing of remote workers, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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How Cities Can Tackle Post-Pandemic Budgeting Dilemmas
Due to increasing office vacancies around the country, cities may consider politically unpopular actions to avoid bankruptcy, but they could also look to the capital markets to ride out the current real estate crisis and achieve debt service savings to help balance their budgets, say attorneys at Cadwalader.
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State Payroll Taxes Need Remote Work Reforms
To alleviate employer confusion around remote employee payroll tax, lower enforcement costs and better compete for top talent, states should allow a specific number of remote work days without withholding, simplify their administrative requirements and coordinate their tax policy reforms, say attorneys at Miller Canfield.
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Cannabis Supercenters: Key Benefits And Legal Issues
Barstow, California’s novel plan to convert an abandoned mall into a cannabis supercenter could offer a potential blueprint for cannabis companies to thrive in a saturated market and for communities to repurpose underutilized retail spaces — but certain financing, zoning and leasing issues will need to be assessed, says Christopher Gordon at Fox Rothschild.
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Taxing The Digital Economy: The Good, The Bad And The Ugly
U.S. tech companies should watch for important developments in international taxation, including the resolution of Apple's decade-old state aid case, growing frustration with the Organization for Economic Cooperation and Development's global tax plan and adoption of the digital services tax instead, says Joyce Beebe at Rice University's Baker Institute for Public Policy.
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Kentucky Tax Talk: Pros, Cons Of The SALT Cap Workaround
Recent legislation that allows pass-through entities to be taxed at the entity level — Kentucky’s response to the federal cap on state and local tax deductions — could result in significant savings for taxpayers, but whether it applies to sole proprietorships and other aspects of the law are unclear, say attorneys at Frost Brown.
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Big Tax Changes For Multinational Cos. In Budget Proposal
The Biden administration’s fiscal year 2024 budget proposes changes that would materially alter decades-old Internal Revenue Code provisions, requiring a shift in multinational corporations' tax planning strategies comparable to that required after enactment of the Tax Cuts and Jobs Act, say Xenia Garofalo and Kyle Colonna at Eversheds Sutherland.
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Home Seized, Tax Paid, Government Enriched: SALT In Review
From a Minnesota county's profit on a home seizure to a California proposal to raise corporate income taxes, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.