State & Local
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May 06, 2024
Fla. Changes Reporting Rules For 3rd-Party Payment Entities
Florida will require payment settlement entities such as PayPal or Apple Pay that conduct transactions involving payees with addresses in the state to create a method for identifying transactions for goods and services and report that information to the state tax department under a bill signed by Republican Gov. Ron DeSantis.
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May 06, 2024
Miss. Will Impose Excise Tax On Heated Tobacco Products
Mississippi will impose an excise tax on heated tobacco products, targeting single-use electronic cigarettes under a bill signed by the governor.
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May 06, 2024
Mo. Use Tax Applies To Ill. Co.'s Items Fabricated In State
An out-of-state pipe company owes Missouri use tax on materials that were delivered to a Missouri fabricator for modification before being shipped to an out-of-state customer, the state Department of Revenue said.
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May 06, 2024
Mass. April Revenue Up 32% Over 2023
Massachusetts' revenue collection for the month of April was up 32% over April 2023, the state Department of Revenue said in a report.
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May 06, 2024
RI Justices Rule Co. Waived Right To Appeal Tax Credit Loss
A Rhode Island real estate company forfeited its right to protest the state Division of Taxation's determination revoking its historic preservation tax credits by signing a settlement agreement, the state Supreme Court said, overruling a lower court.
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May 03, 2024
Informal Tax Guidance May Defy APAs, Panelists Say
How far states can go in adopting informal guidance without running afoul of administrative procedure acts is a vexing question that has prompted significant litigation, panelists said Friday.
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May 03, 2024
Ohio Justices Urged To Uphold Tax On Goods Held In State
Ohio's imposition of its gross receipts tax on a Kansas-based soap company's goods that were temporarily held in Ohio distribution centers before being shipped elsewhere passes constitutional muster, the state Department of Taxation told the Ohio Supreme Court.
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May 03, 2024
Tenn. Expands Sales And Use Tax Exemption For Data Centers
Tennessee expanded a sales and use tax exemption for qualified data centers under a bill signed by the governor.
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May 03, 2024
IRS Expects Updates To Hydrogen Credit Emissions Model
The Internal Revenue Service expects the U.S. Department of Energy to update a model used to determine eligibility for the new clean hydrogen production tax credit under recently proposed rules, an IRS attorney said Friday.
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May 03, 2024
Hawaii Legislature OKs Adjusting Tax Brackets For Inflation
Hawaii would adjust its income tax brackets and increase its standard deduction to account for inflation under a bill sent to the governor for approval.
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May 03, 2024
Iowa Tax Dept. Won't Rule On Payments' Deduction Eligibility
The Iowa Department of Revenue refused to issue a decision on whether installment payments to employee-shareholders of various companies resulting from the sale of certain stock qualify for a capital gain deduction for state income tax purposes, finding the matter would be better resolved through rulemaking.
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May 03, 2024
Ark. Net General Revenue Down From Last Fiscal Year
Arkansas' net general revenue through April was down 5.5% from the total at the same point last fiscal year, the state Department of Finance and Administration said in a memorandum.
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May 03, 2024
Colo. Senate Panel Clears Oil And Gas Fees
Colorado would create oil and gas production fees as part of a bill advanced by the Senate Finance Committee, but detractors said the fees would amount to a tax that would increase energy costs.
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May 03, 2024
Mo. Says Agent's Purchases For Exempt Entities Aren't Taxed
An agent of organizations that are exempt from Missouri taxes doesn't need to collect and remit sales tax on purchases of food or sales of meals on their behalf, the state Department of Revenue said.
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May 03, 2024
Kansas' April Revenue Beats Estimates By 8%
General revenue for Kansas in April was approximately 8% above estimates at $1.42 billion, the governor reported in a news release.
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May 03, 2024
Taxation With Representation: Skadden, Wachtell, Davis Polk
In this week's Taxation With Representation, L'Occitane International said its executive director and chair is leading an offer to buy the company's shares he doesn't already own, UMB Financial agreed to purchase Heartland Financial USA, Medline said it agreed to acquire Ecolab's global surgical solutions business and The Mosaic Co. said it agreed to sell its stake in a phosphate production joint venture.
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May 02, 2024
Calif. Bill Eyes Data Extraction Tax, Akin To Digital Ad Tax
California would levy the 7.25% state sales and use tax on large online companies with digital advertising revenue above $2.5 billion and would direct the tax revenue raised toward tax credits for local journalism outlets under a bill introduced by a key state senator.
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May 02, 2024
Fiserv Presses Fla. Appeals Court To Revive Tax Sourcing Suit
A Florida appeals court should overturn a lower court's dismissal of a tax sourcing challenge from Fiserv entities for failure to pay the contested amounts because state precedent doesn't allow the jurisdictional issue to negate the case, the companies argued.
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May 02, 2024
Mass. Property Is Agricultural, Appellate Board Says
A 14-acre property should be classified as agricultural, as the owner proved the land's main use was farming, the Massachusetts Appellate Tax Board said in a ruling released Thursday.
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May 02, 2024
Wyden Pushes Intuit To Help Users Get Refunds After Error
The Senate's top tax writer told Intuit's CEO that the company needs to help taxpayers in Oregon, the senator's home state, receive the full refunds they're entitled to after a reported error in its TurboTax product caused some Oregonians to overpay their state taxes.
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May 02, 2024
NY Assembly Bill Would Increase Tax Exemption For Clothing
New York would increase its tax exemption for items of clothing to $200 per item under a bill introduced in the state Assembly.
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May 02, 2024
Iowa Accelerates Transition To Flat Tax, Cuts Rate
Iowa is accelerating its transition to a flat individual income tax rate, slightly reducing the rate and extending the targeted jobs withholding credit, among other changes, under a tax omnibus signed by the governor.
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May 02, 2024
Nixon Peabody Adds Two Community Finance Attys In DC
Nixon Peabody LLP has hired two partners, who will focus their practices on helping nonprofits and other clients understand and obtain tax credits for a range of community development projects, to its community development finance practice in Washington, D.C., the firm announced Thursday.
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May 02, 2024
Colorado To Revise, Modernize Sales And Use Tax Statutes
Colorado will update the state's sales and use tax statutes and require more coordination between local taxing jurisdictions and the state Department of Revenue under legislation signed into law by Gov. Jared Polis.
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May 02, 2024
Iowa Creates Tax Break For Products Sold To Fairs
Iowa will provide a sales and use tax exemption for tangible personal property, digital products and services sold to a county or district fair and will designate such fairs as exempt entities under a bill signed by the governor.
Expert Analysis
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E-Cigarettes And Film Tax Credits: SALT In Review
From excise taxes on e-cigarettes across the land to a study that bolsters doubts about film tax credits, RSM US LLP's David Brunori offers his thoughts on noteworthy state and local tax news.
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Inside The OECD Transfer Pricing Documentation Guidance
Excerpt from Practical Guidance
The Organization for Economic Cooperation and Development's recently modified documentation guidelines can assist tax administrations in developing requirements for transfer pricing risk assessments and evaluations, and help multinational entity taxpayers demonstrate satisfaction of the arm's-length principle, says Neil Aragones at Lexis Tax.
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Calif. Tax Board Nonresident Asset Ruling Raises New Issues
The California Franchise Tax Board's recent ruling on whether a nonresident's disposition of a partnership interest gives rise to California-sourced income raises new issues for sourcing gain or loss using partnership apportionment factors where unrealized receivables and inventory are involved, says Eric Coffill at Eversheds Sutherland.
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Tech Co.'s Suit May Create Hurdles For Research Tax Credits
The recently filed U.S. Tax Court case Perficient v. Commissioner — challenging standards under research credit regulations that determine whether research is funded by any grant or contract — could make it difficult to substantiate research tax credits, say Dennis St. Martin and Kevin Benton at Grant Thornton.
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A Close Look At The Decentralized Effort To Tax Digital Assets
Clarity on taxation is one of the biggest hurdles to mass adoption of cryptocurrency, and although digital asset innovation has consistently outpaced worldwide government regulation, recent efforts in the U.S. and elsewhere hint at an emerging standard, says Joshua Smeltzer at Gray Reed.
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Kentucky Tax Talk: Speeding Up Public Service Co. Protests
Public service companies with Kentucky tax liability should consider the recent groundbreaking changes to the state’s protest procedures, particularly if they have protests pending that might be expedited in light of the new legislation, say attorneys at Frost Brown.
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Notes On Social Equity From A Former Cannabis Regulator
Duane Morris’ Matthew McCarthy, former lead prosecutor in regulatory enforcement actions at the Maryland Medical Cannabis Commission, shares observations on the multifaceted efforts by government and the cannabis business community to build a more equitable industry and foster diverse ownership, highlighting the role of data reporting and community outreach.
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Watching The Legal Sports Betting Ecosystem Take Shape
The number of U.S. states getting in on the recently legalized $4.29 billion sports-betting industry is on the rise, and stakeholders must be aware that the regulatory scheme looks dramatically different from state to state, say James Johnston and Louis DiLorenzo at Davis+Gilbert.
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How To Address Research Expenditures Amid Uncertainty
Taxpayers need to prepare for the significant technical and compliance challenges of following Internal Revenue Code Section 174's new rules for experimentation expenditure capitalization and amortization, notwithstanding the rules' unresolved legislative future, say tax advisers at Grant Thornton.
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Advising A Cannabis Business Amid Patchwork Of Regs
Excerpt from Practical Guidance
As the cannabis industry continues to grow, so does its widely varied patchwork of local, state and federal regulation, and practitioners should familiarize themselves with the specific rules on tax, real estate, intellectual property and banking applicable in the jurisdictions where their clients operate, say Patrick Hines and Fallon Martin at Hodgson Russ.
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Is NJ's Voluntary Transfer Pricing Initiative Really Voluntary?
The New Jersey Division of Taxation's voluntary transfer pricing audit initiative promises penalty abatement to taxpayers that elect to participate and agree to the division's proposed adjustments, but the effective penalties associated with nonparticipation raise questions about the program's voluntary nature, say attorneys at McDermott.
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Boardroom Lessons From Shareholders' Diversity Lawsuits
Corporate efforts to promote diversity, equity and inclusion in the workplace are gaining momentum, and shareholder derivative lawsuits offer important lessons on how boards may protect themselves while fostering diverse workforces and safeguarding company goodwill, say attorneys at Covington.
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Mass. Bills Will Have Broad Impact On Cannabis Industry
Legislation recently passed by both chambers of the Massachusetts Legislature will make sweeping changes to the commonwealth’s cannabis industry, altering everything from municipal agreements to on-site consumption, and improving social equity while reducing businesses' tax burdens, says Cloe Pippin at Foley Hoag.