State & Local
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October 11, 2024
Disputes May Loom Over Dividend Deductions For CFCs
U.S. multinational corporations are concerned that rulemakers' interpretation of a law allowing tax-free repatriation of certain overseas earnings could lead to controversy after the Internal Revenue Service published a memo indicating the break is unavailable for controlled foreign corporations.
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October 11, 2024
Veteran MTC Counsel On Wayfair, PL 86-272 Pushback
Nancy Prosser stepped down as general counsel of the Multistate Tax Commission on Sept. 25, capping off a long career in the state and local tax field, mostly on the government side. Here, Law360 speaks to Prosser about her career as well as two key policy issues she has been instrumental in shaping.
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October 11, 2024
Taxation With Representation: Davis Polk, Latham, Kirkland
In this week's Taxation With Representation, Rio Tinto agrees to acquire Arcadium Lithium for roughly $6.7 billion, Ares Management Corp. and GCP International reach a $3.7 billion deal, and Butterfly Equity announces plans to buy The Duckhorn Portfolio for $2 billion.
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October 10, 2024
Mich. Co.'s Industrial Tax Break Appeal Ruled Too Late
A Michigan company is barred from appealing the denial of its industrial tax exemption because the case fell outside the state's one-year statute of limitations, the state's Court of Claims ruled.
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October 10, 2024
Mich. Justice Asks If Disney Fight Harms Multistate Collabs
Michigan's chief justice asked Thursday whether allowing Disney and the owner of IHOP to retain unclaimed property, which state officials say they should get after an audit, could hamper Michigan's ability to participate in multistate audits that yield hundreds of millions of dollars for the state.
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October 10, 2024
Dems Weigh Extending 2017 Cuts To Maintain $400K Tax Vow
Despite criticizing the 2017 Republican tax overhaul as a deficit-busting boon to the wealthy, congressional Democrats may feel pressure to support extending some of the law's individual and small-business provisions or risk breaking their pledge not to raise taxes on those earning $400,000 or less.
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October 10, 2024
Pa. Revenue Beats Estimate By $20M Through Sept.
Pennsylvania's general fund revenue from July through September exceeded a budget forecast by $20 million, according to a report by the state Department of Revenue.
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October 10, 2024
W.Va. Lawmakers Pass Personal Income Tax Cuts
West Virginia would cut its personal income tax rates and fund the reduction through the state's general revenue fund under a bill passed by the Legislature that will now go to Gov. Jim Justice for consideration.
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October 10, 2024
Calif. Says FDIC Must Wait For $21M Tax Refund
A California tax agency urged a New York federal court to toss a lawsuit by the FDIC seeking a $20.7 million tax refund on behalf of the shuttered Signature Bank, saying it's entitled to wait for a possible IRS audit before delivering the payment.
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October 10, 2024
Wyo. Justices Find State Land Leased To Truck Stop Taxable
The state of Wyoming owes tax on property it leased out as a truck stop because that operation doesn't constitute a use for a government purpose that would allow an exemption, the state Supreme Court said.
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October 10, 2024
Calif. Total Receipts Through Sept. $5.5B Over Forecasts
California's total receipts from July through September was $5.5 billion higher than estimates, according to a monthly report the state controller released Thursday.
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October 09, 2024
Voluntary Disclosure Program Seeks To Limit Back Sales Tax
Remote sellers could be eligible for a voluntary disclosure program that would limit their back sales tax liabilities after registering with states that take part in an interstate sales tax compact, under a proposal the Streamlined Sales Tax Governing Board opted to continue exploring Wednesday.
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October 09, 2024
Tenn. Extends Tax Deadlines Due To Hurricane Helene
Tennessee will extend its franchise and excise tax filing deadlines to May 1 for taxpayers affected by Hurricane Helene, the state Department of Reveue announced.
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October 09, 2024
Calif. OTA Affirms Lab's Microchip Editing Services Taxable
A California-based laboratory owes $310,000 in sales tax on services it offers to engineering and technology companies for the editing of microchips, the state Office of Tax Appeals affirmed.
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October 09, 2024
Unclear Road For $275M Biz Tax Plan, DC Panel Chair Says
The District of Columbia Tax Revision Commission may scrap a proposal for a business activity tax that could raise $275 million annually to reduce other business taxes, the panel chair said Wednesday.
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October 09, 2024
Mo. Clinics Fail To Meet Charity Requirement For Exemption
Health clinics in four Missouri counties are not eligible for charitable exemptions from property tax despite being part of a nonprofit organization, the state's tax commission ruled.
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October 09, 2024
Calif. OTA Upholds RV Seller's Penalty For Unreported Sales
A California recreational vehicle dealer was correctly penalized for not reporting $4.2 million worth of sales, the state Office of Tax Appeals said, finding unpersuasive the business' claim that it was difficult to find competent people to handle its tax compliance.
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October 09, 2024
Election Uncertainty Hampers Companies' Tax Planning
With the November election approaching, businesses are bracing for the potential impact of two very different sets of tax policies, with the resulting uncertainty making long-term tax planning increasingly difficult.
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October 09, 2024
Calif. OTA Denies Redo On $200K Tax Bill For Med Equipment
A California orthopedic equipment provider will not get a rehearing on a $200,000 sales tax assessment for items found to not qualify for an exemption allowed for medicine, the state Office of Tax Appeals said.
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October 09, 2024
Calif. OTA Says Spouse's Tax Refund Claim Untimely
A California spouse was correctly denied an income tax refund for tax years 2009 and 2010 for overpayments owed to their deceased partner because the claim was filed outside the statute of limitations, the state Office of Tax Appeals ruled.
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October 08, 2024
Louisiana High Court Won't Review Expedia's Hotel Tax Win
The Louisiana Supreme Court on Tuesday rejected state and local government appeals of a ruling that said Expedia and some of its affiliates do not owe Louisiana sales taxes on the full price of accommodation rentals they charged to customers booking through their platforms.
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October 08, 2024
Tax Pact Rejects Option For Multiple Sales Tax Rate Structure
The Streamlined Sales Tax Governing Board rejected a proposal Tuesday that would have allowed states that participate in the sales tax simplification compact it oversees to adopt a second sales tax rate in a specific area, a move that left Nebraska noncompliant with the compact.
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October 08, 2024
Tax Pact OKs Challenges To State Compliance Determinations
The Streamlined Sales Tax Governing Board approved on Tuesday a clarification to the tax simplification compact it oversees that specifies that challenges can be lodged against certain board decisions, including whether a state's tax system complies with the compact.
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October 08, 2024
Tax Pact Board OKs Requiring More State Nexus, Tax Info
The Streamlined Sales Tax Governing Board approved a set of disclosed practices Tuesday that will require states that participate in the tax simplification compact that it oversees to specify how they make nexus and tax determinations in certain scenarios.
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October 08, 2024
Hawaiian Justices Revive Airline's $1.6M Tax Appeal
A tax appeal by Hawaiian Airlines was incorrectly dismissed, Hawaii's highest court ruled, remanding the case to the state tax court for a decision over whether the airline is liable for a $1.6 million assessment.
Expert Analysis
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Employee Experience Strategy Can Boost Law Firm Success
Amid continuing business uncertainty, law firms should consider adopting a holistic employee experience strategy — prioritizing consistency, targeting signature moments and leveraging measurement tools — to maximize productivity and profitability, says Haley Revel at Calibrate Consulting.
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6 Practice Pointers For Pro Bono Immigration Practice
An attorney taking on their first pro bono immigration matter may find the law and procedures beguiling, but understanding key deadlines, the significance of individual immigration judges' rules and specialized aspects of the practice can help avoid common missteps, says Steven Malm at Haynes Boone.
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Lessons From Country Singer's Personal Service Saga
Recent reports that country singer Luke Combs won a judgment against a Florida woman who didn’t receive notice of the counterfeit suit against her should serve as a reminder for attorneys on best practices for effectuating service by electronic means, say attorneys at Jenner & Block.
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7 E-Discovery Predictions For 2024 And Beyond
The legal and technical issues of e-discovery now affect virtually every lawsuit, and in the year to come, practitioners can expect practices and policies to evolve in a number of ways, from the expanded use of relevancy redactions to mandated information security provisions in protective orders, say attorneys at Littler.
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Other Views On Administration And Land Tax: SALT In Review
From another take on ranking the states' tax agencies to the latest proposal on a different approach to land values, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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5 Litigation Funding Trends To Note In 2024
Over the next year and beyond, litigation funding will continue to evolve in ways that affect attorneys and the larger litigation landscape, from the growth of a secondary market for funded claims, to rising interest rates restricting the availability of capital, says Jeffery Lula at GLS Capital.
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4 Legal Ethics Considerations For The New Year
As attorneys and clients reset for a new year, now is a good time to take a step back and review some core ethical issues that attorneys should keep front of mind in 2024, including approaching generative artificial intelligence with caution and care, and avoiding pitfalls in outside counsel guidelines, say attorneys at HWG.
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What The Law Firm Of The Future Will Look Like
As the legal landscape shifts, it’s become increasingly clear that the BigLaw business model must adapt in four key ways to remain viable, from fostering workplace flexibility to embracing technology, say Kevin Henderson and Eric Pacifici at SMB Law Group.
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4 PR Pointers When Your Case Is In The News
Media coverage of new lawsuits exploded last year, demonstrating why defense attorneys should devise a public relations plan that complements their legal strategy, incorporating several objectives to balance ethical obligations and advocacy, say Nathan Burchfiel at Pinkston and Ryan June at Castañeda + Heidelman.
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10 Considerations For Litigating A New York Tax Case
While some of New York’s recently adopted corporate tax regulations are likely to face legal challenges, aggrieved taxpayers should answer certain questions before deciding to embark on the tax litigation process, say Cyavash Ahmadi and Jeffrey Friedman at Eversheds Sutherland.
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Revenue Agencies At Their Finest: SALT In Review
From a survey of the nation's best departments of revenue to baseball superstar Shohei Ohtani's creative free-agent contract, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Law Firm Strategies For Successfully Navigating 2024 Trends
Though law firms face the dual challenge of external and internal pressures as they enter 2024, firms willing to pivot will be able to stand out by adapting to stakeholder needs and reimagining their infrastructure, says Shireen Hilal at Maior Consultants.
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Attorneys' Busiest Times Can Be Business Opportunities
Attorneys who resolve to grow their revenue and client base in 2024 should be careful not to abandon their goals when they get too busy with client work, because these periods of zero bandwidth can actually be a catalyst for future growth, says Amy Drysdale at Alchemy Consulting.