State & Local
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December 19, 2024
Top State And Local Tax Cases Of 2024
From the U.S. Supreme Court declining to hear a construction company's case over South Dakota apportionment to the Minnesota Tax Court's ruling on a packing product company's nexus in the state, this has been a busy year for state and local tax cases. Here, Law360 looks at the most influential cases of 2024 and their impact going into the new year.
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December 18, 2024
NY Apportionment Regs OK, Court Finds In Paychex Dispute
The New York state tax agency did not exceed its authority when it adopted a regulation that doesn't permit Paychex to include reimbursements for certain expenses, such as paying employee wages, in its business receipts, a state court found Wednesday, handing a defeat to Paychex.
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December 18, 2024
Court Urged To Reject Arbitration In Walmart Fla. Tax Suit
A class action claiming Walmart unlawfully taxed delivery fees in Florida should not go to arbitration, the shopper bringing the suit told a Florida federal court, opposing Walmart's motion to compel arbitration and dismiss the case.
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December 18, 2024
Justices Limit Wis. Charity Tax Case To 1st Amendment Fight
The U.S. Supreme Court will limit its review of a Wisconsin Catholic charity's appeal of the state's denial of an unemployment tax exemption, the court said in an amended order, agreeing to review the group's First Amendment question.
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December 18, 2024
Fla. Says Gym Dues Paid During Tax Holiday Are Exempt
Gym membership dues paid during a monthlong summer sales tax holiday in Florida are exempt from tax, the state Department of Revenue said, finding that the date of the actual payment is what determines eligibility.
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December 18, 2024
State Tax Revenue Stable In 2024, But Warning Signs Abound
State tax revenues have been stable in 2024 despite continuing tax rate cuts in many states, but some research groups are predicting difficult years ahead as the last of the federal funding from the pandemic runs out.
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December 17, 2024
Fla. Taxpayer Owes Tax On Palladium Purchases, Dept. Says
A Florida taxpayer is liable to pay state sales tax on its purchases of palladium, as palladium is not tax-exempt in the state, the Florida Department of Revenue said in a technical advisement.
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December 17, 2024
NJ To Add Crypto Question To Personal Income Tax Returns
New Jersey plans on updating its personal income tax returns to include a question asking if a taxpayer held or engaged in transactions involving digital assets such as cryptocurrencies, the state Division of Taxation's top official said Tuesday.
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December 17, 2024
NY Tax Chief Sees New Tech Aiding Partnership Audits
The acting commissioner of New York state's tax agency said Tuesday that she's excited about the possibility of harnessing advancements in technology to further scrutinize returns from complex partnerships that are difficult for auditors to digest on their own.
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December 17, 2024
NY Urges Justices To Pass On IBM, Disney Royalty Tax Fight
The U.S. Supreme Court should decline to hear appeals by IBM and Disney that claim New York state's tax treatment of royalties received from foreign affiliates resulted in unconstitutional discrimination against interstate commerce, the state told the court Tuesday.
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December 17, 2024
Mo. Appeals Court Won't Rethink Quash Of County Pot Taxes
The Missouri Court of Appeals said it will not reconsider its ruling that barred counties from levying taxes on cannabis sales within municipalities, rejecting a request by two counties seeking to impose such taxes.
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December 17, 2024
Pa. Supreme Court Says Judge's Side Job Sinks Tax Rulings
A Pennsylvania state judge who held a side job on a Philadelphia tax appeals board had nullified rulings he made on a local hospital's tax cases, the state's Supreme Court said Tuesday, reasoning that holding both jobs was a "constitutionally impermissible conflict of duties."
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December 17, 2024
Ex-Pol Can't Shake Fraud Rap Over Jury's Racial Makeup
A Massachusetts federal judge denied a Vietnamese-American former state senator's bid to undo his conviction for unlawfully accepting unemployment assistance and filing a false tax return, rejecting claims that jury selection was tainted by "racial animus" on the part of prosecutors.
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December 16, 2024
NY Courts Shifting Bundled Transaction Precedent, Attys Say
A New York state appeals court ruling from earlier this year that upheld a sales tax assessment on usage agreements for laser medical equipment created a presumption of taxability for bundled transactions that is difficult for businesses to overcome, practitioners said Monday.
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December 16, 2024
Va. Gov. Proposes Income Tax Exemption For Workers' Tips
Virginia would exempt income from tips from state income tax as part of a budget proposal from Republican Gov. Glenn Youngkin, the governor's office announced Monday.
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December 16, 2024
NY Gov. Vetoes Change To Property Tax Interest Rates
New York Gov. Kathy Hochul vetoed legislation that would have linked the state's interest rates for delinquent residential property taxes to the prime rate and lowered the minimum rate from 12% to 2%, with a cap of 16%.
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December 16, 2024
Ga. Tax Agency Overvalued Railroad Property, Tribunal Finds
A Georgia short-line railway was overvalued for property tax purposes, the state's tax tribunal said, adopting the company's proposed per-mile value for its leased track and reducing the overall valuation from $4.1 million to $2.6 million.
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December 16, 2024
Mich. House OKs Raising Detroit-Area Hotel Tax
The tax on certain hotel stays in the Detroit metro area could be increased from its current 2% rate under legislation passed unanimously by the Michigan House of Representatives, potentially reaching 4% in 2031.
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December 16, 2024
Ohio Tax Board Floats Regs To Streamline Appeal Resolution
The Ohio Board of Tax Appeals proposed a regulation amendment to clarify its authority to issue orders in response to several common, rarely contested types of filings and streamline the resolution of tax disputes in such cases.
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December 16, 2024
Mich. Appeals Court OKs Poverty Tax Break For Resident
A Michigan resident qualified for a poverty tax break on property taxes, the state Court of Appeals ruled, saying the state Tax Tribunal incorrectly relied on the federal poverty guidelines instead of its own alternative income guidelines under state law.
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December 16, 2024
High Court Won't Review Ore. Tax On Out-Of-State Co.
The U.S. Supreme Court said Monday it will not review an Oregon Supreme Court finding that an out-of-state tobacco company was liable for state taxes, letting stand a decision that the company's Oregon activities negated protections against state taxation in federal law.
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December 13, 2024
Supreme Court To Review Wis. Catholic Charity Tax Case
The U.S. Supreme Court plans to examine whether a group of Catholic charities is exempt from Wisconsin's unemployment tax, agreeing Friday to review a state Supreme Court finding that the organizations are not operated primarily for religious purposes.
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December 13, 2024
NC Justices Grant Philip Morris Win On Tax Credit Cap
North Carolina's $6 million cap on cigarette export tax credits limits only the credits that can be claimed in a year, not the amount of credit that can be generated, the North Carolina Supreme Court ruled Friday, handing a victory to tobacco giant Philip Morris.
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December 13, 2024
Amazon Was A Taxable Seller Before Wayfair, SC Agency Says
Amazon's sales of third-party products in South Carolina were subject to taxation even before the U.S. Supreme Court's landmark Wayfair decision, the state Revenue Department told the state Supreme Court on Friday, urging it to uphold an appeals court decision.
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December 13, 2024
Ark. Justices Back Biz's $4M Refund In Apportionment Fight
An Arkansas motor fuel company is eligible for a $4 million income tax refund after amending its corporate income tax returns to apportion all its interest expenses to the state, the Arkansas Supreme Court affirmed, saying the expenses were nonbusiness expenses that could be deducted.
Expert Analysis
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Financial Incentives May Alleviate Affordable Housing Crisis
There is a wide array of financial incentives and assistance that the government can provide to both real estate developers and individuals to chip away at the housing affordability problem from multiple angles, say Eric DeBear and Madeline Williams at Cozen.
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Why Attorneys Should Consider Community Leadership Roles
Volunteering and nonprofit board service are complementary to, but distinct from, traditional pro bono work, and taking on these community leadership roles can produce dividends for lawyers, their firms and the nonprofit causes they support, says Katie Beacham at Kilpatrick.
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Firms Must Offer A Trifecta Of Services In Post-Chevron World
After the U.S. Supreme Court’s Loper Bright Enterprises v. Raimondo decision overturning Chevron deference, law firms will need to integrate litigation, lobbying and communications functions to keep up with the ramifications of the ruling and provide adequate counsel quickly, says Neil Hare at Dentons.
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5 Tips To Succeed In A Master Of Laws Program And Beyond
As lawyers and recent law school graduates begin their Master of Laws coursework across the country, they should keep a few pointers in mind to get the most out of their programs and kick-start successful careers in their practice areas, says Kelley Miller at Reed Smith.
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Portland's Gross Receipts Tax Oversteps City's Authority
Recent measures by Portland, Oregon, that expand the voter-approved scope of the Clean Energy Surcharge on certain retail sales eviscerate the common meaning of the word "retail" and exceed the city's chartered authority to levy tax, say Nikki Dobay at Greenberg Traurig and Jeff Newgard at Peak Policy.
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How Law Firms Can Avoid 'Collaboration Drag'
Law firm decision making can be stifled by “collaboration drag” — characterized by too many pointless meetings, too much peer feedback and too little dissent — but a few strategies can help stakeholders improve decision-making processes and build consensus, says Steve Groom at Miles Mediation.
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Assessing The Practicality Of Harris' Affordable Housing Plan
Vice President Kamala Harris' proposed "Build the American Dream" plan to tackle housing affordability issues takes solid recommendations into account and may fare better than California's unsuccessful attempt at a similar program, but the scope of the problem is beyond what a three-point plan can solve, says Brooke Miller at Sheppard Mullin.
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Litigation Funding Disclosure Key To Open, Impartial Process
Blanket investor and funding agreement disclosures should be required in all civil cases where the investor has a financial interest in the outcome in order to address issues ranging from potential conflicts of interest to national security concerns, says Bob Goodlatte, former U.S. House Representative for Virginia.
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What NFL Draft Picks Have In Common With Lateral Law Hires
Nearly half of law firm lateral hires leave within a few years — a failure rate that is strikingly similar to the performance of NFL quarterbacks drafted in the first round — in part because evaluators focus too heavily on quantifiable metrics and not enough on a prospect's character traits, says Howard Rosenberg at Baretz+Brunelle.
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Replacing The Stigma Of Menopause With Law Firm Support
A large proportion of the workforce is forced to pull the brakes on their career aspirations because of the taboo surrounding menopause and a lack of consistent support, but law firms can initiate the cultural shift needed by formulating thoughtful workplace policies, says Barbara Hamilton-Bruce at Simmons & Simmons.
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Planning Law Firm Content Calendars: What, When, Where
During the slower month of August, law firms should begin working on their 2025 content calendars, planning out a content creation and distribution framework that aligns with the firm’s objectives and maintains audience engagement throughout the year, says Jessica Kaplan at Legally Penned.
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Specific Attacks On A Vague Tax Law: SALT In Review
From legal assaults on California's vague new sales-factor law to Minnesota Gov. Tim Walz's record on tax policy, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Law Firms Should Move From Reactive To Proactive Marketing
Most law firm marketing and business development teams operate in silos, leading to an ad hoc, reactive approach, but shifting to a culture of proactive planning — beginning with comprehensive campaigns — can help firms effectively execute their broader business strategy, says Paul Manuele at PR Manuele Consulting.