State & Local
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January 23, 2025
Ill. Bill Seeks Redevelopment Zones With Lower Tax Rates
Illinois would authorize local governments to designate community redevelopment zones with reduced retailers' occupation and use tax rates under a bill introduced in the state Senate.
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January 22, 2025
'Unicorn Prosecution' Could Upend Legal Practice, Court Told
Brown & Connery LLP partner William Tambussi told a New Jersey state judge Wednesday that the entire practice of law in the Garden State rests on his impending decision on the charges against him in the state's sweeping racketeering case targeting power broker George E. Norcross III, arguing that a lawyer has never been prosecuted for routine legal work.
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January 22, 2025
GOP, Dems From High-Tax States Push To Kill SALT Cap
Republican and Democratic lawmakers from high-tax states said Wednesday that raising or eliminating the $10,000 cap on the state and local tax deduction would be essential to gaining their support for a bill to renew expiring Tax Cuts and Jobs Act tax breaks.
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January 22, 2025
Idaho Lawmakers OK Updated Conformity To Federal Tax Law
Idaho would conform the state's income tax law to changes made to the Internal Revenue Code that affect the 2024 tax year under a bill passed by the state Legislature and headed to the governor.
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January 22, 2025
GOP Again Floats Reciprocal Taxes In Affront To Global Deal
Republicans on the House Ways and Means Committee on Wednesday renewed their proposal for reciprocal taxes against countries that participate in an international minimum tax agreement, following up on President Donald Trump's rejection of the global accord.
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January 22, 2025
Kan. House Bill Would Create Film Production Credit
Kansas would offer an income tax credit for qualifying film production under a bill introduced in the state House of Representatives.
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January 22, 2025
Minn. Panel Advances Limit On Tax Reassessments
Minnesota would limit the authority of its tax department to issue revised assessments after providing erroneous information relied on by taxpayers under legislation advanced Wednesday by a state Senate committee.
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January 22, 2025
Hawaii Bill Aims To Cut Emissions By Increasing Oil Tax
Hawaii would gradually raise the rate of its tax on petroleum in an attempt to curb greenhouse gas emissions under a bill introduced in the state House of Representatives.
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January 22, 2025
Wyden Urges National Standard For Hemp Regulation
Sen. Ron Wyden, D-Ore., rallied on Wednesday for his bill that would beef up regulation of products with hemp-derived cannabinoids in order to protect consumers, particularly children.
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January 22, 2025
NY Assembly Bill Would Double Threshold For Mansion Tax
New York would double the threshold at which properties incur an additional state 1% real estate transfer tax as part of a bill filed in the Assembly.
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January 22, 2025
Maine Bill Seeks New Income Tax Brackets On Higher Income
Maine would raise income tax thresholds and create three new tax brackets, including a new top bracket levying an 8.2% tax on income over $500,000, under a bill introduced in the state House of Representatives.
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January 22, 2025
Hawaii House Bill Floats Tax Surcharge On Vacant Homes
Hawaii would establish an excise tax surcharge on vacant residential homes under a bill introduced in the state House of Representatives.
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January 22, 2025
Hawaii House Bill Seeks Increase In Capital Gains Tax
Hawaii would increase its tax on capital gains to 9% under a bill introduced in the state House of Representatives.
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January 22, 2025
Hawaii Floats Tax Credit For Some Insurers Of Condos
Hawaii would allow insurers that cover the full insurable value of a condominium to claim an insurance premium tax credit under a bill introduced in the state House of Representatives.
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January 22, 2025
Ind. Budget Bill Would Exempt Tip Income From Tax
Indiana would exempt income earned from tips from personal income tax under a budget bill introduced in the state House of Representatives.
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January 22, 2025
Mich. Changes Deadline For Flow-Through Entity Election
Michigan changed when taxpayers electing to pay the state's tax on flow-through entities must file the election with the state Department of Treasury and how such taxpayers can avoid penalties and interest under a bill signed by Democratic Gov. Gretchen Whitmer.
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January 22, 2025
Hawaii House Bill Seeks To End Income Tax
Hawaii would end its state income tax under a bill introduced in the state House of Representatives.
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January 22, 2025
Md. Bill Seeks To Add Digital Ad Tax To Appeals Process
Maryland would authorize the same appeals process for digital advertising tax assessments as it does for most other taxes under legislation introduced Wednesday in the House of Delegates.
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January 22, 2025
Hawaii House Bill Would Mandate Combined Reporting
Hawaii would mandate worldwide combined reporting under a bill introduced in the state House of Representatives.
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January 22, 2025
Ariz. Bill Seeks Ballot Measure To Cut Income Tax Rate
Arizona would ask voters in 2026 whether to cut the state's flat income tax rate from 2.5% to 2% under a House resolution.
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January 22, 2025
Minn. Bill Seeks Cap On Property Value Increases
Minnesota would impose a 3% annual cap on the increase in the assessed market value of a residential property under legislation in the state Senate.
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January 22, 2025
Minn. Bill Would Expand Sales Tax Break For Baby Items
Minnesota would expand its existing sales and use tax exemption for baby products to include car seats, cribs and changing tables under legislation introduced in the state Senate.
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January 22, 2025
Minn. Senate Bill Seeks Income Tax Break For Med Costs
Minnesota would allow its tax filers to subtract uncompensated medical care and health insurance costs from their state taxable income under legislation introduced in the state Senate.
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January 21, 2025
Hochul Pitches Shifts To Partnership Filing Rules, Entity Taxes
New York would push back the annual election date for entity-level taxes and draw from the Multistate Tax Commission's model for allowing partnerships to file state tax adjustments stemming from federal partnership audit changes under a budget plan Gov. Kathy Hochul unveiled Tuesday.
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January 21, 2025
Detroit Council OKs $45K Settlement Over Holding Co.'s Gain
The city of Detroit approved a settlement Tuesday in the Michigan Tax Tribunal in a long-running tax assessment dispute stemming from a holding company's gain from selling stock in a Canadian tobacco testing company.
Expert Analysis
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How To Grow Marketing, Biz Dev Teams In A Tight Market
Faced with fierce competition and rising operating costs, firms are feeling the pressure to build a well-oiled marketing and business development team that supports strategic priorities, but they’ll need to be flexible and creative given a tight talent market, says Ben Curle at Ambition.
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Rock Climbing Makes Me A Better Lawyer
Rock climbing requires problem-solving, focus, risk management and resilience, skills that are also invaluable assets in my role as a finance lawyer, says Mei Zhang at Haynes and Boone.
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Think Like A Lawyer: Dance The Legal Standard Two-Step
From rookie brief writers to Chief Justice John Roberts, lawyers should master the legal standard two-step — framing the governing standard at the outset, and clarifying why they meet that standard — which has benefits for both the drafter and reader, says Luke Andrews at Poole Huffman.
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Shake-Ups For Courts In Different Fields: SALT In Review
From the end of Chevron deference in the courts to the planned sale of the NBA's reigning champion, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Kentucky Tax Talk: Appeals Court Revisits Leases' Tax Effects
With better facts and greater emphasis on the Kentucky Constitution, Walgreen Co. may succeed in its latest Kentucky Court of Appeals challenge to a tax assessor's method of valuing leaseholds on real property for purposes of determining ad valorem tax, say Mark Sommer and Elizabeth Ethington at Frost Brown Todd.
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Lead Like 'Ted Lasso' By Embracing Cognitive Diversity
The Apple TV+ series “Ted Lasso” aptly illustrates how embracing cognitive diversity can be a winning strategy for teams, providing a useful lesson for law firms, which can benefit significantly from fresh, diverse perspectives and collaborative problem-solving, says Paul Manuele at PR Manuele Consulting.
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Now More Than Ever, Lawyers Must Exhibit Professionalism
As society becomes increasingly fractured and workplace incivility is on the rise, attorneys must champion professionalism and lead by example, demonstrating how lawyers can respectfully disagree without being disagreeable, says Edward Casmere at Norton Rose.
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Reading Between The Lines Of Justices' Moore Ruling
The U.S. Supreme Court's recent Moore v. U.S. decision, that the Internal Revenue Code Section 965 did not violate the 16th Amendment, was narrowly tailored to minimally disrupt existing tax regimes, but the justices' various opinions leave the door open to future tax challenges and provide clues for what the battles may look like, say Caroline Ngo and Le Chen at McDermott.
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A Midyear Forecast: Tailwinds Expected For Atty Hourly Rates
Hourly rates for partners, associates and support staff continued to rise in the first half of this year, and this growth shows no signs of slowing for the rest of 2024 and into next year, driven in part by the return of mergers and acquisitions and the widespread adoption of artificial intelligence, says Chuck Chandler at Valeo Partners.
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Another Crack In The Shield: SALT In Review
From the latest assault on a federal shield against taxing out-of-state businesses to an update on beer taxes, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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States Should Loosen Law Firm Ownership Restrictions
Despite growing buzz, normalized nonlawyer ownership of law firms is a distant prospect, so the legal community should focus first on liberalizing state restrictions on attorney and firm purchases of practices, which would bolster succession planning and improve access to justice, says Michael Di Gennaro at The Law Practice Exchange.
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Texas Ethics Opinion Flags Hazards Of Unauthorized Practice
The Texas Professional Ethics Committee's recently issued proposed opinion finding that in-house counsel providing legal services to the company's clients constitutes the unauthorized practice of law is a valuable clarification given that a UPL violation — a misdemeanor in most states — carries high stakes, say Hilary Gerzhoy and Julienne Pasichow at HWG.
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How To Clean Up Your Generative AI-Produced Legal Drafts
As law firms increasingly rely on generative artificial intelligence tools to produce legal text, attorneys should be on guard for the overuse of cohesive devices in initial drafts, and consider a few editing pointers to clean up AI’s repetitive and choppy outputs, says Ivy Grey at WordRake.