State & Local
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June 27, 2024
Ex-Skadden Tax Head And M&A Pro Joins Freshfields In NY
Freshfields Bruckhaus Deringer LLP has added the former head of the tax practice at Skadden Arps Slate Meagher & Flom LLP as a partner this week, who brings to the role experience in deals like 21st Century Fox's $71 billion acquisition by Disney and the merger of T-Mobile and Sprint.
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June 27, 2024
Fla. County Owes Tax To Other County, Fla. Justices Rule
The Florida Supreme Court ruled Thursday that counties are not immune from being taxed on properties they own in other counties, affirming a decision that said Pinellas County cannot claim sovereign immunity to duck taxes on property it owns in neighboring Pasco County.
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June 27, 2024
Ind. Tax Doesn't Apply To Practice's Supplement Purchases
An Indiana medical practice should be refunded sales tax paid on purchases of dietary supplements because the practice was able to prove the purchases were made for resale, the state Department of Revenue ruled.
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June 27, 2024
Ind. Biz Wrongly Taxed For Sales To Leasing Co., Dept. Says
An Indiana furniture retailer was wrongly assessed additional tax for sales it made to a leasing company, the state Department of Revenue said in a letter of finding.
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June 26, 2024
Conn. Senate OKs Changes To Tax On Cars, Insurance Cos.
Connecticut would change how it values and taxes motor vehicles, exempt some businesses from interest on certain tax underpayments and change the calculation of assessments on insurance companies under emergency-certified omnibus legislation the state Senate passed Wednesday at the start of a special session.
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June 26, 2024
Repatriation Tax Ruling May Sway State Wealth Tax Debates
The U.S. Supreme Court's upholding of the federal repatriation tax could indirectly affect state tax policy discussions, including by influencing consideration of wealth taxes and encouraging states to keep potential due process issues in mind when enacting tax legislation.
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June 26, 2024
Fiserv Co. Challenges Fla. Tax Sourcing Rules
Fiserv entity Checkfree asked a Florida state court to throw out a $4 million corporate income tax assessment, arguing that revenue from its payment facilitation services should be sourced out-of-state where the services are performed.
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June 26, 2024
5th Circ. Affirms Block On ARPA Tax Rule For Texas, La., Miss.
A Texas federal judge properly ruled that the federal government could not enforce a provision in the American Rescue Plan Act that prohibits states from using pandemic aid to offset tax cuts, the Fifth Circuit said.
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June 26, 2024
Maine's Revenue Through May Lags Estimates By $50M
Maine's revenue collection from July through May missed budget estimates by roughly $50 million, according to the state Department of Administrative and Financial Services.
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June 26, 2024
Wis. Revenues Through May Outpace Last Year By $232M
Wisconsin general revenue collection from July through May was $232 million higher than the same period last fiscal year, according to the state Department of Revenue.
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June 26, 2024
Idaho Tax Revenue Through May Down $36M From Forecasts
Idaho's revenue collection from July through May was $36 million lower than predicted, according to the state Division of Financial Management.
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June 26, 2024
Neb. Gov. Signals July Start To Property Tax Special Session
Nebraska's governor announced his intent to call the state's unicameral Legislature into a special session starting July 25 to focus on what he described as a worsening property tax crisis.
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June 26, 2024
Ariz. General Revenues Through May Up $314M From Forecast
Arizona's general revenue collection from July through May was $314 million higher than was forecast, according to the state Joint Budget Committee.
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June 26, 2024
Ore. Tax Court OKs Deduction For Horse Boarder's Biz Costs
The owners of an Oregon horse boarding facility that lost money for eight years operated it with a profit motive, the state tax court ruled, allowing the couple a tax deduction for the business expenses sustained.
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June 25, 2024
Hawaii Adopts Fines For Excise, Rental Tax Reporting Failures
Hawaii will impose fines for failures to comply with the reporting requirements of the state's general excise tax and transient accommodations tax laws as part of a bill signed by the governor.
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June 25, 2024
Hawaii Allows Tax Dept. To Serve Subpoenas Outside State
Hawaii authorized its Department of Taxation to serve administrative subpoenas outside the state under a bill signed by the governor.
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June 25, 2024
Newsom Defends Calif. Tax Policy In State Of State Speech
Gov. Gavin Newsom vigorously defended his state's fiscal policy Tuesday, declaring that California is not a high-tax state despite having the nation's highest overall individual income tax burden and highest gas tax.
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June 25, 2024
Bristol-Myers Fights NJ City's $4.6M Fee On Campus Upgrade
Bristol-Myers Squibb asked the New Jersey Tax Court to reverse the state's upholding of a $4.6 million nonresidential development fee on renovations to buildings on a 91-acre campus, arguing the improvements were excluded from the levy.
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June 25, 2024
Hawaii Conforms To Fed. Code For Income, Estate Tax
Hawaii conformed its income tax and estate and generation-skipping transfer tax laws to the federal tax code as amended through 2023 under a bill signed by the governor.
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June 25, 2024
Ohio Floats Rules Outlining Administration Of Cannabis Taxes
The Ohio Department of Revenue published a proposed regulation outlining how the state will administer cannabis taxes, including assessment processes and recordkeeping requirements.
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June 25, 2024
Pa. Biz Group, Top Senate Tax Writer Oppose Biz Income Reg
A proposed Pennsylvania regulation outlining what constitutes apportionable business income improperly suggests that the state could enforce combined reporting and ignore precedent limiting the taxation of multistate corporations, a business advocacy group and chair of the state Senate's tax-writing committee have argued.
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June 25, 2024
Minn. Tax Court OKs Dept.'s DuPont Apportionment Method
The Minnesota tax department correctly applied an alternative method of apportionment to manufacturing company DuPont that better represented the company's taxable income in the state following transactions involving forward exchange contracts, the state's tax court ruled.
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June 25, 2024
DC Council OKs Tax Hikes On High-End Property, Payroll
Washington, D.C., would impose a special tax rate on high-end residential properties, boost the premium for the district's paid leave program and make other tax and spending changes under legislation passed Tuesday by the district council.
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June 25, 2024
Ariz. Court Slashes Value Of Low-Income Housing Complex
An Arizona housing complex subject to restrictions related to federal low-income housing tax credits was overvalued by a local assessor, the Arizona Tax Court said, slashing the valuation of the property by about three-fourths.
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June 25, 2024
T-Mobile Settles Gross Receipts Tax Dispute With Ohio
T-Mobile reached a settlement with Ohio over the company's claims that the state tax agency incorrectly sourced certain receipts and double-counted others when it issued a $775,000 commercial activity tax assessment, according to a state Board of Tax Appeals order issued Tuesday.
Expert Analysis
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Parsing Tax Implications Of NYC Office Leasing Transactions
Though New York City's tax laws generally do not require negotiated contractual risk allocation in the case of sublease and early lease termination transactions, it is still helpful for counsel to both landlords and tenants to understand the laws' nuances, say attorneys at Lowenstein Sandler.
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Digital Biz Purchases And Tax Cuts In Texas: SALT In Review
From the taxing of digital business purchases to proposed tax cuts in Texas, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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3 Principles Should Guide MTC's Digital Products Tax Work
As the Multistate Tax Commission's project to harmonize sales tax on digital products moves forward, three key principles will help the commission's work group arrive at unambiguous definitions and help states avoid unintended costs, say Charles Kearns and Jeffrey Friedman at Eversheds Sutherland.
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OECD Treatment Of Purchased Ga. Film Credits Isn't Peachy
Producers considering Georgia as a prospective location for filming may already be concerned that the Organization for Economic Cooperation and Development's July decision will hamper the eventual 2026 or later sale of their Georgia film tax credits, says Alan Lederman at Gunster.
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A Milestone For Offshore Wind In Maine
Recently signed legislation directing Maine to procure up to 3 gigawatts of offshore wind by 2040 offers indisputable promise that the state will soon welcome commercial-scale offshore wind development off its shores, says Joshua Rosen at Foley Hoag.
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Mallory Ruling Doesn't Undermine NC Sales Tax Holding
Contrary to the conclusion reached in a recent Law360 guest article, the U.S. Supreme Court’s recent Mallory ruling shouldn't be read as implicitly repudiating the North Carolina Supreme Court’s sales tax ruling in Quad Graphics v. North Carolina Department of Revenue — the U.S. Supreme Court could have rejected Quad by directly overturning it, says Jonathan Entin at Case Western Reserve.
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Calif. Policymakers Should Aid Crashing Cannabis Market
As California’s cannabis sector nears the brink of financial collapse, it may be time for the state government to seriously consider potential bailout programs for the embattled industry — though the crisis also presents strategic buying opportunities for those with a high tolerance for uncertainty, says Michelle Mabugat at Greenberg Glusker.
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What Came Of Texas Legislature's Long-Promised Tax Relief
Following promises of historic tax relief made possible by a record budget surplus, the Texas legislative session as a whole was one in which taxpayers that are large businesses could have done somewhat better, but the new legislation is clearly still a positive, say attorneys at Baker Botts.
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Looking Behind The Curtain Of Residential Transition Loans
As residential transition loans and securitizations of such loans grow increasingly popular, real estate stakeholders should take care to understand both the unique features and potential challenges offered by this novel asset class, say attorneys at Mayer Brown.
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Where Tax Policies Go Wrong: SALT In Review
RSM's David Brunori reviews the worst tax policies employed by state and local governments, then critiques recent tax developments in Oregon, New York and Boston.
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Mallory Opinion Implicitly Overturned NC Sales Tax Ruling
The U.S. Supreme Court recently declined to review Quad Graphics v. North Carolina Department of Revenue, but importantly kicked the legs from under Quad's outcome a week later, stating in its Mallory decision that the high court has the prerogative to overrule its own decisions, says Richard Pomp at the University of Connecticut.
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Delicious In Conn., Less Tasty In La.: SALT In Review
From Connecticut reducing its beer tax to Louisiana retaining its franchise tax, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Review Of Repatriation Tax Sets Justices On Slippery Slope
The U.S. Supreme Court’s recent decision to review the constitutionality of the repatriation tax in Moore v. U.S. has implications for many tax rules involving unrealized amounts and could leave the court on the brink of invalidating large swaths of the Internal Revenue Code, say attorneys at Eversheds Sutherland.