State & Local
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July 05, 2024
Mich. Tax Panel Drops Vacant Store's Value By $500K Per Year
The highest and best use of a vacant commercial property at the time of its assessment was to demolish the improvements and hold it for future development, a Michigan panel ruled, lowering the property's valuation by nearly $500,000 for each of two years.
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July 05, 2024
Top State And Local Tax Policies Of 2024: Midyear Report
States in 2024 have picked different ways through tax policy to respond to key challenges. Here, Law360 looks at some of the top trends in state and local tax policy so far this year.
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July 03, 2024
Maryland Fends Off Chamber's Challenge To Digital Ad Tax
A disputed provision of Maryland's tax on digital advertising doesn't violate the First Amendment, a federal judge in the state found Wednesday, throwing out a challenge to the tax brought by the U.S. Chamber of Commerce and other business groups.
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July 03, 2024
Wash. Mall, Retail Center Seek $1.3M In Property Tax Refunds
A Seattle mall and shopping center are seeking property tax refunds topping $1.3 million, according to complaints in state court that claim the county assessor failed to use appropriate data and overvalued the properties.
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July 03, 2024
Wash. Regs Provide More Definitions For Capital Gains Tax
Washington state clarified substantive aspects of its tax on capital gains by supplying additional definitions and examples of when the tax applies under regulations adopted by the state Department of Revenue.
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July 03, 2024
Fox Rothschild Hires Pryor Cashman Nonprofit Leads
Fox Rothschild LLP announced Wednesday the hiring of two Pryor Cashman LLP partners for its corporate department in New York.
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July 03, 2024
Hawaii Creates Panel To Study Mitigation Of Biz Tax Burdens
Hawaii will create a business revitalization task force to study potential mitigation of regulatory and tax burdens imposed on companies in the state as part of a bid to improve its economic competitiveness and business climate under a bill signed by the governor.
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July 03, 2024
NY Extends Tax Breaks For Green Roofs On City Buildings
New York is extending for another three years a property tax abatement program that encourages residential and commercial buildings in New York City as part of a bill signed by Gov. Kathy Hochul.
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July 03, 2024
Minn. Tax Dept. Clarifies Rules On Third-Party Installations
Installation of a product in Minnesota by a party other than its seller is generally subject to state sales tax if the sale of the item itself is taxable, the state tax department said.
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July 03, 2024
Kansas' June Tax Collection Up $40M From Prior Year
Kansas collected $1.03 billion in tax revenue in June, about $40 million more than it collected in the same month last year, according to revenue figures released by the governor's office.
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July 03, 2024
Mo. General Revenues Exceed Last Fiscal Year By $194M
Missouri general revenue collection throughout the 2024 fiscal year was $194 million higher than the previous fiscal year, according to a report by the state's Office of Administration, Division of Budget and Planning.
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July 03, 2024
Arkansas' June General Revenue Drops 2.5% From Last Year
Arkansas' general revenue for June was at $751 million, 2.5% below June 2023, the state Department of Finance and Administration announced.
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July 03, 2024
Top State & Local Tax Cases Of 2024: Midyear Report
In the first half of 2024, the Ohio Supreme Court upheld the constitutionality of the state's law allowing municipalities to tax remote workers, while Microsoft sealed victory in a fight with California to include foreign dividends in its sales factor denominator, resulting in a $94 million refund. Here, Law360 looks at some of the top state and local tax cases of the past six months.
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July 02, 2024
Chevron's Fall Places State Tax Rules Under Microscope
State tax regulations could face increased judicial scrutiny in light of the U.S. Supreme Court's decision to jettison the decades-old Chevron deference doctrine, which instructed courts to defer to federal agencies' interpretations of ambiguous laws.
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July 02, 2024
Calif. Couple Overstated Basis, Owe More Tax, OTA Says
A California couple overstated the amount of basis they had in a residence they sold, the state Office of Tax Appeals said, siding with the state Franchise Tax Board that the couple had less basis in the home and thus greater taxable gain.
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July 02, 2024
Conn. Remodels Taxes On Cars, Insurance Co. Assessments
Connecticut will remodel its motor vehicle tax regime, exempt some taxpayers from paying interest on underpayments of corporation business and personal income taxes and adjust the calculation of assessments on domestic insurance companies under legislation signed by the governor.
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July 02, 2024
Tax Consultant's Claim To Commissions Brought In Bad Faith
A California state appeals court found a wage and hour lawsuit against a tax credit firm was brought in bad faith because the worker lacked evidence to support her allegations, upholding a lower court's ruling and awarding attorney fees and costs to the firm.
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July 02, 2024
Mass. Dept. Says No Sales Tax On Genetic Testing
Charges for genetic testing of customers in Massachusetts don't incur sales tax, the state tax department said in a letter ruling released Tuesday, because personal services are exempt and the test kits provided constitute an inconsequential component of the transaction.
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July 02, 2024
Mont. Revenue Drops $180M From Last Fiscal Year
Montana collected $180 million less in general fund revenue during the fiscal year that ended in June than it did in the previous year, the state Department of Revenue said in a preliminary report.
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July 02, 2024
Calif. OTA Upholds Apportionment Method On $85M Gain
California's Franchise Tax Board applied the correct apportionment method to a nonresident's $85 million income, the state Office of Tax Appeals said, upholding an additional tax assessment of $650,000.
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July 02, 2024
W.Va. Revenues For Fiscal Year Top Forecast By $590M
West Virginia's general fund collections in fiscal year 2024 were $590 million ahead of budget estimates, the State Budget Office said in a preliminary report.
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July 02, 2024
Mass. Panel Won't Cut Tax Value Over Denied Building Permits
The owner of commercial property in Massachusetts failed to show that local denials of building permits impacted the tax value of the property, a state panel said in a decision released Tuesday, rejecting the owner's appeal of a local assessment.
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July 02, 2024
Ark. June Revenue Drops From Previous Year, Dept. Says
Arkansas net available general revenue for the month of June fell 2.5% below the previous year's collections, the state Department of Finance and Administration said Tuesday.
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July 02, 2024
Pennsylvania Ends Fiscal Year Above Revenue Estimates
Pennsylvania's revenue for the 2023-24 fiscal year was 1.9% above the state's revenue estimates, the state Department of Revenue announced.
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July 02, 2024
Mass. Panel OKs Penalty For Filing Estate Tax 7 Years Late
A Massachusetts estate is liable for about $258,000 in penalties and interest for filing a required tax return seven years late, a state panel said in a decision released Tuesday.
Expert Analysis
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Ohio Tax Talk: Amnesty Or Voluntary Disclosure?
Ohio's governor recently signed legislation to allow a two-month tax amnesty if the revenue is needed, but considering Ohio's current tax surplus and the fact that many taxpayers would be precluded, those owing back taxes should consider whether voluntary disclosure remains a better option, say Raghav Agnihotri and Rachael Chamberlain at Frost Brown.
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Property In Pa. And Corporate Income In Mo.: SALT In Review
From the latest attempt to do away with Pennsylvania's property tax to an assault on Missouri's corporate income tax, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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The Forces Defining Sales Tax Policy And Compliance In 2023
In the coming year, expect to see tax policymakers grapple with the complexity of state and local tax compliance, cryptocurrency, metaverse transactions, and more, says Scott Peterson at Avalara.
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Start The Revolution Without Me: SALT In Review
From a sweeping push toward taxing the rich to a proposed tax review board in Indiana, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Atty-Client Privilege Arguments Give Justices A Moving Target
Recent oral arguments before the U.S. Supreme Court in a case regarding the scope of the attorney-client privilege appeared to raise more questions about multipurpose counsel communications than they answered, as the parties presented shifting iterations of a predictable, easily applied test for evaluating the communications' purpose, say Trey Bourn and Thomas DiStanislao at Butler Snow.
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States Must Align Distribution Age Rules With Secure 2.0
To prevent unintended escheatment of retirement benefits, states will need to undertake legislative efforts to amend unclaimed property standards that conflict with the Secure 2.0 Act's required minimum distribution age increases, says Michael Giovannini at Alston & Bird.
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Va. Tax Nixed, NJ Shoplifter Targeted: SALT In Review
From a tax declared unconstitutional in Virginia to a New Jersey prosecutor's attempt to include sales tax in a shoplifting charge, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Midterm Cannabis Results Remind That Progress Is Not Linear
It may appear odd that the majority of state proposals for adult-use cannabis failed in November’s midterm elections when legalization is polling at an all-time high, but history moves in fits and starts, and there are clearly still some blind spots and hidden variables affecting voter perceptions, say Whitt Steineker and Mason Kruse at Bradley Arant.
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Wash. B&O Tax Proposal Is A Step In The Right Direction
The Washington Tax Structure Work Group’s proposal to swap the state’s problematic business and occupation tax for a Texas-style margins tax is far from a perfect solution, but it has opened the door for a long-overdue conversation about B&O tax changes that would provide much-needed administrative relief, says Nikki Dobay at Greenberg Traurig.
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This Year's Top 10 Developments In State And Local Tax
Attorneys at Grant Thornton rank the 10 biggest state and local tax issues of 2022, including the adoption of state pass-through entity taxes, Maryland's digital advertising tax and American Rescue Plan Act litigation.
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What To Expect In 2023: SALT In Review
Starting with predictions for the coming year, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Texas Tax Talk: What To Know About The Prefiled Bills
Many of the Texas tax bills prefiled ahead of the state's January 2023 legislative session predictably reduce property tax, but it remains unclear how online sales tax sourcing will be addressed, and an expiring school district property tax incentive program will be reimplemented, say Matt Larsen and Alison Andrews at Baker Botts.
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Tax Cuts In Both Dakotas: SALT In Review
From tax-cut proposals in the Dakotas to a New Mexico artist who tried to represent himself, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.