State & Local

Expert Analysis

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• Kentucky Tax Talk: Where Art Thou Kentucky Amnesty?

  

  Attorneys at Frost Brown unpack the reasons why Kentucky's tax amnesty program never got off the ground this year, why implementation in 2023 won't be impeded by similar hurdles and how administration of the program may affect other Department of Revenue services once it gets going.

• 5 Proof Of Domicile Takeaways From Calif. Tax Appeals Ruling

  

  The California Office of Tax Appeals' recent Beckwith decision, which boiled down to a dispute over when a taxpayer moved from Tennessee to California for income tax purposes, provides valuable lessons on the evidence needed to establish the ties and intent that underlie tax domicile and residence, says Eric Coffill at Eversheds Sutherland.

• The Tax Comity Doctrine And Other Oddities: SALT In Review

  

  From the little-known tax comity doctrine to governments' continuing pursuit of streaming services, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

• State AGs Are Realizing Power Of False Claims Statutes

  

  State attorneys general appear to be ramping up investigations, prosecutions and interventions using long-underappreciated state and municipal false claims statutes, and early indications signal an increasing focus on cybersecurity misrepresentations, private equity firms' misconduct and securities fraud, say attorneys at Troutman Pepper.

• Foreign Tax Credit Proposal Is Some Help, But More Is Needed

  

  New foreign tax credit regulations proposed by the U.S. Treasury Department provided some measure of relief on cost recovery and royalty withholding, two of the most troublesome aspects of the 2021 final foreign tax credit regulations, but the final regulations are still harmful to many taxpayers, making litigation inevitable, say attorneys at Fenwick.