State & Local

Expert Analysis

• 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.

• 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.

• 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.

• Mich. Statute Of Limitations Cases Carry Nationwide Impacts

  

  The outcomes of Dine Brands v. Eubanks and Walt Disney v. Eubanks, currently working their way through the Michigan courts, are likely to affect how statutes of limitations in unclaimed property audits are calculated nationwide as well as within the state, given the widespread adoption of similar model provisions by many other states, say attorneys at McDermott.

• Wash. Fallout And New York Pets: SALT In Review

  

  From the early fallout of Washington state's capital gains ruling to a proposed tax credit for adopting pets in New York, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

• Inside Calif.'s New Unclaimed Property Compliance Program

  

  As California gears up to launch its voluntary compliance program for taxpayers with unreported property owed to the state, eligible holders should be aware of kinks that may initially arise and of potential audit risks, say attorneys at Alston & Bird.

• Missouri's Big Idea And NY's Online Thought: SALT In Review

  

  From a Missouri bill that could eventually end the state's corporate income tax to a proposed tax on online deliveries in New York City, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

• 9th Circ. Ruling Legitimizes Classwide Injury In Predominance

  

  The Ninth Circuit's recent ruling that vacated class certification in Van v. LLR makes clear that the question of injury is highly relevant to the predominance analysis, and underscores the importance of making a persuasive argument that injury is individualized within the class, say attorneys at Skadden.

• Ohio Tax Talk: Tax Amendments In Operating Budget Proposal

  

  Starting in 2023, the Ohio House of Representatives' budget bill would amend sales and use, income, and commercial activity tax provisions, so individuals and businesses must monitor its progression, considering the revisions could carry consequences or liability for taxpayers, say Raghav Agnihotri and Rachael Chamberlain at Frost Brown.

• A Tale Of 2 State Tax Sourcing Decisions: The Pa. Court's Path

  

  The Pennsylvania Supreme Court’s recent decision in Synthes v. Commonwealth appropriately effectuated the Legislature's intent that ambiguous provisions in Section 17 of the Uniform Division of Income for Tax Purposes Act be construed to reflect the marketplace for the taxpayer's services, says Bruce Fort at the Multistate Tax Commission.

• A Tale Of 2 State Tax Sourcing Decisions: The Va. Court's Path

  

  The Virginia Supreme Court's textualist approach in Department of Taxation v. R.J. Reynolds diverges from a recent Pennsylvania Supreme Court analysis and mistakenly precludes consideration of the goals and history underlying provisions of the Uniform Division of Income for Tax Purposes Act, says Bruce Fort at the Multistate Tax Commission.

• Digital Ads And Electric Vehicles: SALT In Review

  

  From the latest move toward a tax on digital advertising to a proposed tax on the charging of electric vehicles, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

• Could The Supreme Court Legalize Marijuana Federally?

  

  Amid slow legislative and executive movement on cannabis reform, it’s worth examining whether the U.S. Supreme Court could provide a pathway to federal cannabis legalization — a decision that would surely require strange bedfellows given the court’s current ideological makeup, say Whitt Steineker and Mason Kruse at Bradley Arant.