State & Local
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June 06, 2024
Vt. Conforms State Law To Fed. Income, Estate Tax Statutes
Vermont conformed its income tax law to federal income tax and estate tax statutes and will allow municipalities to enact local-option taxes without charter amendments that require approval by the state General Assembly under a bill signed by the governor.
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June 06, 2024
Colorado To Study Simplification Of Local Lodging Taxes
Colorado will expand the scope of a task force responsible for simplifying the state's sales and use tax regime to improve the local lodging tax system as part of a bill signed into law by Democratic Gov. Jared Polis.
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June 06, 2024
Generative AI Poses Novel State Tax Questions, Tax Pros Say
Open questions are swirling around state tax rules for the usage of generative artificial intelligence platforms, including whether they should be treated as canned or custom software, tax professionals said Thursday.
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June 06, 2024
Ind. Tax Court Backs Lower Valuation For Department Store
The value of an Indiana Dillard's store was correctly reduced to about $5 million for tax years 2018 through 2020 by the state tax board after taking into consideration the owner's income approach analysis, the state's tax court ruled.
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June 06, 2024
NY Lawmakers OK Change To Tax Tribunal's Client Rep Rules
New York would allow individuals to choose from an expanded list of representatives in matters before the Tax Appeals Tribunal under a bill passed by the state Legislature that goes next to Democratic Gov. Kathy Hochul.
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June 06, 2024
Fox Rothschild Brings On Tax Pro From Atlanta Boutique
Fox Rothschild LLP has added an attorney in Atlanta from tax law boutique Wiggam Law to strengthen the firm's taxation and wealth planning department.
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June 06, 2024
Colorado Extends Contaminated Land Cleanup Tax Credit
Colorado will extend its environmental remediation of contaminated land income tax credit for five years under a bill signed by Democratic Gov. Jared Polis.
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June 06, 2024
NY Senate OKs Bill Expanding Digital Gaming Credit
New York would expand its income tax credit for digital gaming production by lowering the production cost required to qualify and eliminating the in-state production cost threshold under a bill passed by the Senate.
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June 06, 2024
State Digital Tax Rules Lack Consistency, Clarity, Tax Pros Say
Courts have reached different conclusions over whether state definitions of tangible personal property encompass certain elements of the digital economy, underscoring the inconsistent tax treatment of digital transactions and a need for guidance on the issue, tax professionals said Thursday.
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June 06, 2024
Mass. Tax Collections Beat Estimates By $700M Through May
Massachusetts' total tax collections from July through May were $700 million higher than expected, according to the state Department of Revenue.
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June 06, 2024
NJ Corp. Tax Overhaul Regs Expected By Nov., Director Says
New Jersey is on track to release regulations this fall on an omnibus law from last year that changed several provisions of the state's corporate income tax system, the state Division of Taxation's acting director said Thursday.
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June 05, 2024
Citibank Can't Avoid Paying $6M Wash. Biz Tax
Washington's high court won't spare Citibank from a $6 million business tax bill, declining to revisit a ruling that the bank's money-making activities amounted to a physical presence in the state despite not having any local branches open at the time.
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June 05, 2024
Ill. Budget Has Higher Cap On NOLs, Sports Betting Tax Hike
Illinois will extend a cap on corporate net operating loss deductions, increase its sports betting tax and reduce sales tax rebates for retailers under a $53.1 billion fiscal year 2025 budget signed Wednesday by Democratic Gov. J.B. Pritzker.
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June 05, 2024
Colo. To Exempt Modular Homes From Sales Tax
Colorado will exempt new modular home sales from state tax under a bill signed into law by Gov. Jared Polis.
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June 05, 2024
Calif. OTA Says Avis Owes $12.6M Tax On Asset Acquisition
An acquisition by car rental company Avis of an indirect affiliate's vehicle management business does not constitute a merger and is therefore subject to tax, the California Office of Tax Appeals ruled.
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June 05, 2024
Colo. To Allow Tax Credit For Employee-Owned Businesses
Colorado will allow new businesses that are employee-owned to claim an income tax credit for business expenses under a bill signed by Democratic Gov. Jared Polis.
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June 05, 2024
NY Gov. Indefinitely Halts Manhattan Congestion Pricing
New York Gov. Kathy Hochul on Wednesday shelved congestion pricing just weeks before officials were set to implement a fee for vehicles entering Manhattan's busiest corridor, in a dramatic about-face following intense backlash and litigation from residents and business owners grappling with the high cost of living.
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June 05, 2024
Hawaii To Adjust Income Tax Brackets, Up Standard Deduction
Hawaii will adjust its individual income tax brackets and increase its standard deduction to account for inflation and will exempt certain medical services from the state's general excise tax under bills signed by the governor.
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June 05, 2024
Minn. Justices Back Doctor's Penalty For Frivolous Tax Claim
Minnesota's penalty for filing a frivolous tax claim is constitutional, and the penalty as applied to a nonresident doctor and his wife over nearly $1.2 million in undeclared income is also sound, the Minnesota Supreme Court said Wednesday.
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June 05, 2024
Win May Embolden IRS Use Of Economic Substance Doctrine
The IRS' successful wielding of the economic substance doctrine to characterize multinational telecommunications corporation Liberty Global's sophisticated set of intercompany deals as an abusive tax shelter could encourage the agency to apply similar analysis to even the most basic tax transactions.
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June 05, 2024
Ohio Senate Bill Seeks To Double Film Tax Credit Cap
Ohio would double the amount of film and theater production tax credits it can award annually and eliminate its credit for film and theater capital improvement projects under a bill introduced in the state Senate.
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June 05, 2024
Colo. To Look At Federal Taxable Income As State Basis
Colorado is directing its state auditor to evaluate its use of federal taxable income as the basis for state taxable income under legislation signed into law by Gov. Jared Polis.
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June 04, 2024
Recreational Marijuana To Be On SD Ballot For 3rd Time
Recreational marijuana advocates have successfully put a measure on South Dakota's November ballot, giving state voters a third shot at legalizing the drug just two years after they declined to do so.
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June 04, 2024
Mastercard Owes $7.7M In SC Income Tax Case, ALJ Rules
Mastercard's network, which allows cardholders to buy goods and services and withdraw money, is its income-producing activity, occurs within South Carolina, and thus obligates the company to pay about $7.7 million in taxes, fees and interest, a state administrative law judge ruled in a decision posted Tuesday.
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June 04, 2024
NY Senate OKs Tax Break For Mobile Internet Access Gear
New York would exempt from property tax equipment used for the transmission and switching of radio signals to provide commercial mobile radio service or mobile internet access service under a bill approved by the state Senate.
Expert Analysis
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Key Income Tax Issues Triggered By Remote Employees
A host of fact-specific tax determinations arise in connection with remote work arrangements, from defining working-condition fringe benefit exclusions to nexus-dependent state withholding obligations, complicating compliance for corporate tax counsel and human resources professionals, say Thomas Cryan and Spencer Walters at Ivins Phillips.
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Justices Poised To Reject Narrowing Unclaimed Property Law
After U.S. Supreme Court oral arguments in the so-called MoneyGram case — a dispute between Delaware and several other states over which has the right to about $300 million in unclaimed property — the court seems ready to rule against Delaware, but nuances of the court's reasoning will have a broader sweep, say attorneys at Alston & Bird.
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Digital Tax In Md., Incentives In Ore.: SALT In Review
From the defeat of Maryland's tax on digital advertising to incentives proposed in Oregon, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Texas Tax Talk: Previewing 2023 Legislative Priorities
Recent directives issued by the Texas House Ways and Means and Senate Finance Committees suggest high-profile items such as property tax reform, tax incentives for large, capital-intensive industrial projects, and more will be prioritized in the 2023 legislative session, say Alison Andrews and Matthew Larsen at Baker Botts.
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Rushed Multilateral Negotiations Caused Two-Pillar Tax Mess
Cracks appearing in the two pillars of the 2021 global tax plan stem from a multilateral tax policy process that rushed to issue rules without first resolving fundamental differences between countries or ensuring that the U.S., a key player, could implement them, says Jefferson VanderWolk at Squire Patton.
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Post-Litigation Refund Strategies To Defeat Class Certification
The Third Circuit's recent revival of the Duncan v. Governor of the Virgin Islands class action shows that defendants should strongly consider tendering refunds to class representatives — even after they file suit — to create a substantial obstacle to certification, say attorneys at Covington.
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Football In Florida, Chips In New York: SALT In Review
From the tax implications of an NFL star's relocation in Miami to the incentives that lured a chipmaker to upstate New York, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Internet Gaming Biz Hit The Jackpot With Wire Act Ruling
A Rhode Island federal court's order in IGT v. Garland last month — siding with the First Circuit's interpretation of the Wire Act and confirming it applies only to sports betting — opens up opportunities for interstate online gaming and gambling, which will entail harmonized regulation and taxation regimes, say attorneys at Blank Rome.
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The CHIPS Act: Key Takeaways For Semiconductor Industry
The Biden administration’s recently signed CHIPS Act signals that the U.S. is making progress toward bolstering the domestic semiconductor industry, and manufacturers must prepare by understanding the requirements of the act and associated Department of Commerce guidance, say attorneys at Miller & Chevalier.
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Groceries In SD, Streaming Services In Illinois: SALT In Review
From the South Dakota governor's proposed grocery exemption to the defeat of a tax on streaming services in Illinois, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Digital Taxation Is Necessary, But Tough To Manage
The U.S. government has started to tackle complex new tax laws as the digital economy continues to grow, but this demands guidelines that will facilitate the growth while protecting investors and the government's finances, say attorneys at Cadwalader.
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Whistleblowers Will Be Key To Curbing Cannabis Fraud In NY
As New York begins accepting license applications for its legal marijuana market, qui tam suits brought by whistleblowers under the New York False Claims Act will be a valuable tool for safeguarding the integrity of the developing industry, especially with regard to combating tax fraud, say Max Rodriguez and Sidney Cobb at Pollock Cohen.
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Tax Cuts Proposed In Fla., Vetoed In Calif.: SALT In Review
From Florida's proposed $1.1 billion in tax cuts to the California governor's veto of a business exemption, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.