State & Local
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September 30, 2024
Calif. Lets Cities Exceed 2% Cap On Transactions And Use Tax
California authorized certain local jurisdictions to impose a transactions and use tax for general or specific purposes that exceeds a 2% statutory cap, under a bill signed by Democratic Gov. Gavin Newsom.
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September 30, 2024
Key State And Local Tax Takeaways From September
From IBM and Disney asking the U.S. Supreme Court to tackle their disputes with New York over the taxation of foreign royalties they received to a Michigan court battle over whether insurance companies should file as a unitary group, September provided a busy start to autumn in the state and local tax world. Here, Law360 presents key developments to know from the past month.
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September 30, 2024
Calif. Requires Disclosure Of Local Tax Rebate Agreements
California will require cities and counties to annually disclose to the state Department of Tax and Fee Administration information regarding agreements that result in the direct or indirect payment, transfer, diversion or rebate of local sales and use tax revenue under a bill signed by Democratic Gov. Gavin Newsom.
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September 30, 2024
Colo. Panel Advances Small Biz Property Tax Break
Colorado would reduce personal property taxes of small businesses with an income tax credit under draft legislation endorsed by an interim panel.
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September 30, 2024
Delaware Revenue Receipts Up By $21M Through Aug.
Delaware's revenue receipts from July through August increased by more than $21 million from the same period last fiscal year, according to the state Department of Finance.
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September 30, 2024
W.Va. Bill Seeks Personal Income Tax Cuts At Gov.'s Request
West Virginia would lower its income tax rates for all brackets under a Senate bill introduced Monday in a special legislative session that was called by Gov. Jim Justice in an attempt to cut taxes.
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September 30, 2024
Paychex Tells NY Court Apportionment Reg Ripe For Ruling
Paychex told a New York state court that its challenge to a state apportionment rule is ready for adjudication, with the employment services provider saying it shouldn't have to wait for the conclusion of an audit to bring its dispute to court.
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September 30, 2024
Ex-Jersey Shore Mayor Admits To Benefits Theft, Tax Crimes
The former mayor of Wildwood, New Jersey, has admitted to unlawfully obtaining state health benefits, failing to disclose his outside employment and neglecting to report income from that job on state tax returns, New Jersey Attorney General Matthew J. Platkin and the Office of Public Integrity and Accountability announced Monday.
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September 30, 2024
Idaho Tax Revenue Through Aug. Up $191K From Forecast
Idaho's general revenue collection from July through August outpaced budget estimates by $191,000, according to a report from the state Division of Financial Management.
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September 30, 2024
Ala. Doctor Can't Claim Rural Physician Credit, Tribunal Says
An Alabama doctor cannot claim the state's rural physician tax credit because the community the doctor worked in didn't qualify, the state tax tribunal ruled.
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September 30, 2024
Mich. General Revenues Through Aug. Down $435M
Michigan's general revenues from October 2023 through August were $435 million below the last fiscal year, according to a monthly report from the state budget office on Monday.
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September 27, 2024
Transfer Pricing Guru On Assisting States, Combined Filing
Ednaldo Silva’s transfer pricing analytics company EdgarStat LLC recently renewed its contract with New Jersey, furthering his decadeslong run of assisting states that aim to curb profit shifting by scrutinizing intercompany transactions. Silva spoke to Law360 about his transfer pricing philosophy and how he envisions combined reporting affecting the field.
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September 27, 2024
Ex-Residents Say Mass. Stretched Law To Tax $4.7M Gain
Massachusetts' taxation of a $4.7 million gain from a stock sale wrongly commingled the business of a former resident taxpayer with that of a company he owned, he and his wife told a state appeals court.
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September 27, 2024
Ex-Mass. State Sen. Says Conviction By All-White Jury Unfair
A former Massachusetts state senator has said his conviction on pandemic unemployment aid and tax fraud charges should be thrown out in part because the jury was all white.
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September 27, 2024
NJ Assembly OKs Assessing Tax Anytime For Fraud Refunds
New Jersey would eliminate a statute of limitations on income tax assessments for erroneous refunds induced by fraud under a bill passed by the state Assembly.
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September 27, 2024
Mich. Bills Seek To Create Aerospace R&D Credits
Michigan would create a research and development tax credit for aerospace and defense businesses, for up to $5 million per taxpayer annually, under bills introduced in the state Senate.
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September 27, 2024
Delta, PacifiCorp Intangibles Taxable, Ore. Tells State Justices
Oregon's tax court was wrong to exempt Delta Air Lines from taxation of its intangible property and was correct to refuse the exemption for energy provider PacifiCorp, the state's tax department told the Oregon Supreme Court.
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September 27, 2024
La. Dept. Says No Tax Due On Casinos' Gifts To Patrons
Louisiana casinos and gambling businesses are not subject to the state's sales and use tax for complimentary items they give to patrons as incentives, the state Department of Revenue said in a notice.
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September 27, 2024
Tenn. Water Treatment Plant's Piping Ruled Tax-Exempt
Tennessee sales and use tax won't apply to contractors' purchases of piping used in the expansion of a municipal water treatment plant, the state Department of Revenue said in a ruling.
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September 27, 2024
Ind. Tax Dept. Says Ky. Truck Driver Wrongly Taxed
A Kentucky truck driver who worked for an Indiana-based company was incorrectly assessed local income tax for the county where the business is located, the Indiana Department of State Revenue said in a letter ruling.
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September 27, 2024
Taxation With Representation: Kirkland, Skadden, Cleary
In this week's Taxation With Representation, Blackstone and Vista Equity Partners acquire Smartsheet Inc., Macquarie Asset Management takes a stake in D.E. Shaw Renewables Investment Group, and Apogee Enterprises Inc. buys UW Interco LLC from Heartwood Partners.
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September 27, 2024
Vt. General Revenue Through Aug. Gets $30M Boost
Vermont's general revenue collection from July through August beat the total from the same period last year by roughly $30 million, according to the state Agency for Administration.
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September 26, 2024
Pa. Supreme Court Upholds Taxes On Like-Kind Exchanges
A group of Pennsylvania real estate partners owe the state personal income tax assessed on their like-kind exchange, Pennsylvania's highest court ruled Thursday, with the majority upholding a lower court finding that the state Department of Revenue correctly issued the assessment.
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September 26, 2024
Colo. Property Tax Deferral Program Could Balloon, Panel Told
Use of a property tax deferral program in Colorado is expected to rise under a recent legislative change opening it to nearly all property owners, the state's treasurer told a legislative commission Thursday, calling the extent of the program's growth difficult to predict.
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September 26, 2024
Ohio Justices Nix Woodland Deduction Rate As Arbitrarily Low
The Ohio Supreme Court ordered the state's tax commissioner Thursday to recompute the value of a deduction for clearing woodlands that factors into assessments of agricultural properties, agreeing with a group of landowners who argued the figure was set arbitrarily low.
Expert Analysis
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Pro Bono Work Is Powerful Self-Help For Attorneys
Oct. 22-28 is Pro Bono Week, serving as a useful reminder that offering free legal help to the public can help attorneys expand their legal toolbox, forge community relationships and create human connections, despite the challenges of this kind of work, says Orlando Lopez at Culhane Meadows.
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The Pop Culture Docket: Judge Espinosa On 'Lincoln Lawyer'
The murder trials in Netflix’s “The Lincoln Lawyer” illustrate the stark contrast between the ethical high ground that fosters and maintains the criminal justice system's integrity, and the ethical abyss that can undermine it, with an important reminder for all legal practitioners, say Judge Adam Espinosa and Andrew Howard at the Colorado 2nd Judicial District Court.
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Permanence And Other Elusive Notions: SALT In Review
From a Michigan income tax that may or may not be permanent to a victory in court for online travel companies, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Newman Suspension Shows Need For Judicial Reform
The recent suspension of U.S. Circuit Judge Pauline Newman following her alleged refusal to participate in a disability inquiry reveals the need for judicial misconduct reforms to ensure that judges step down when they can no longer serve effectively, says Aliza Shatzman at The Legal Accountability Project.
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How And Why Your Firm Should Implement Fixed-Fee Billing
Amid rising burnout in the legal industry and client efforts to curtail spending, pivoting to a fixed-fee billing model may improve client-attorney relationships and offer lawyers financial, logistical and stress relief — while still maintaining profit margins, say Kevin Henderson and Eric Pacifici at SMB Law Group.
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How Law Firms Can Use Account-Based Marketing Strategies
Amid several evolving legal industry trends, account-based marketing can help law firms uncover additional revenue-generating opportunities with existing clients, with key considerations ranging from data analytics to relationship building, say Jennifer Ramsey at stage LLC and consultant Gina Sponzilli.
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Strategic Succession Planning At Law Firms Is Crucial
Senior partners' reluctance to retire, the rise of the nonequity partner tier and generational differences in expectations are all contributing to an increasing number of departures from BigLaw, making it imperative for firms to encourage retirement among senior ranks and provide clearer leadership pathways to junior attorneys, says Laura Leopard at Leopard Solutions.
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Potential Calamities, Greatly Exaggerated: SALT In Review
From fears of judicial upheaval to a tax break for space travel, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Maximizing Law Firm Profitability In Uncertain Times
As threats of an economic downturn loom, firms can boost profits by embracing the power of bottom-line management and creating an ecosystem where strategic financial oversight and robust timekeeping practices meet evolved client relations, says Shireen Hilal at Maior Strategic Consulting.
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Preparing Your Legal Department For Pillar 2 Compliance
Multinational entities should familiarize themselves with Pillar Two of the Organization for Economic Cooperation and Development’s BEPs 2.0 project and prepare their internal legal tracking systems for related reporting requirements that may go into effect as early as January, says Daniel Robyn at Ernst & Young.
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What Large Language Models Mean For Document Review
Courts often subject parties using technology assisted review to greater scrutiny than parties conducting linear, manual document review, so parties using large language models for document review should expect even more attention, along with a corresponding need for quality control and validation, say attorneys at Sidley.
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Participating In Living History Makes Me A Better Lawyer
My role as a baron in a living history group, and my work as volunteer corporate counsel for a book series fan association, has provided me several opportunities to practice in unexpected areas of law — opening doors to experiences that have nurtured invaluable personal and professional skills, says Matthew Parker at the Nebraska Department of Health and Human Services.
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Another Ark. Tax Cut And Chicago Transit: SALT In Review
From yet another income tax cut in Arkansas to proposed extra funding for Chicago transit, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.