State & Local
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June 07, 2024
Ind. Utility Co. Liable For Sales Tax On Products Purchases
An Indiana water processing facility is liable for sales tax on its purchases of products like pipes and limestone because the purchases don't fall under the state's manufacturing or environmental exemptions, the Department of State Revenue said.
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June 07, 2024
Taxation With Representation: Vinson, Latham, Ropes & Gray
In this Week's Taxation with Representation, Waste Management buys Stericycle, Becton Dickinson pays $4.2 billion for Edwards Lifesciences' critical care products unit, Aquiline Capital Partners raises over $3.4 billion in fund capital, and Bain Capital buys PowerSchool Holdings.
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June 07, 2024
Pa. Business Income Rule Sparks Worries Of Tax Overreach
A regulation that the Pennsylvania Department of Revenue proposed to outline what constitutes apportionable business income has raised concerns from tax practitioners over whether the agency is seeking to expand its taxing authority over multistate businesses.
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June 06, 2024
NRA Can't Undo $6.4M Misconduct Verdict In NY AG Case
A New York judge on Thursday rejected a request by the National Rifle Association and its longtime executives to set aside a jury's $6.4 million verdict that found they misspent charitable funds, saying Attorney General Letitia James provided sufficient evidence for the jurors to rule in her favor.
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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.
Expert Analysis
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Connecticut Tax Cuts And Missouri Movies: SALT In Review
From income tax cuts in Connecticut to film tax credits in Missouri, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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What To Make Of IRS' New Advance Pricing Guidance
Recent guidance on the IRS' goals for its advance pricing agreement system provides helpful insight into review and decision-making procedures for advance pricing agreement requests, but it also raises questions about the IRS' objectives, say Richard Slowinski and Stefanie Kavanagh at Alston & Bird.
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For NY Wind And Solar Projects, Some Tax Assessment Clarity
Recent legislation, which moots a challenge to New York’s discounted cash flow method for assessing solar and wind project real property taxes, lifts a cloud of uncertainty and brings new considerations for developers, investors and lenders, say attorneys at Hodgson Russ.
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The Reciprocal Tax Bill Is A Warning Shot At Pillar 2
A bill recently introduced in the House of Representatives to reciprocally tax countries deemed to have imposed discriminatory taxes on U.S. citizens and businesses takes aim at countries implementing the global minimum tax treaty known as Pillar Two, with which the U.S. has not complied, says Alan Cole at the Tax Foundation.
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Cost To Gov't Means Justices Must Review NC Sales Tax Case
The U.S. Supreme Court should review and overrule the North Carolina high court’s decision in Quad Graphics v. North Carolina Department of Revenue — an anticipatory overruling of precedent that expands the state sales tax base and imposes a stealth tax on the federal government, says Richard Pomp at the University of Connecticut Law School.
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Potential Risks And Benefits Of NY Cannabis Crop Rescue Act
Though proposed legislation in New York would help struggling cannabis farmers by allowing them to sell their crops directly to consumers, it poses numerous challenges for retailers and the state’s regulatory framework — and striking the right balance here will be crucial to shaping a sustainable, equitable industry, say Meaghan Feenan and William Wolfe at Harris Beach.
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La. Franchise Tax, Minn. Home Seizure: SALT In Review
From a proposal to phase out Louisiana's corporate franchise tax to the U.S. Supreme Court's ruling that a Minnesota county had no right to sell a woman's home for more than she owed, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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How New York State Budget Will Affect Business Taxpayers
The comprehensive state budget legislation recently finalized by New York Gov. Kathy Hochul and the state Legislature did not include some especially concerning tax proposals, but it will subject some state taxpayers to increased tax liability and lengthier appeals, say attorneys at McDermott.
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Taxing The Internet And Remote Workers: SALT In Review
From a New York ruling against the taxing of internet services to an attack on Philadelphia's taxing of remote workers, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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How Cities Can Tackle Post-Pandemic Budgeting Dilemmas
Due to increasing office vacancies around the country, cities may consider politically unpopular actions to avoid bankruptcy, but they could also look to the capital markets to ride out the current real estate crisis and achieve debt service savings to help balance their budgets, say attorneys at Cadwalader.
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State Payroll Taxes Need Remote Work Reforms
To alleviate employer confusion around remote employee payroll tax, lower enforcement costs and better compete for top talent, states should allow a specific number of remote work days without withholding, simplify their administrative requirements and coordinate their tax policy reforms, say attorneys at Miller Canfield.
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Cannabis Supercenters: Key Benefits And Legal Issues
Barstow, California’s novel plan to convert an abandoned mall into a cannabis supercenter could offer a potential blueprint for cannabis companies to thrive in a saturated market and for communities to repurpose underutilized retail spaces — but certain financing, zoning and leasing issues will need to be assessed, says Christopher Gordon at Fox Rothschild.
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Taxing The Digital Economy: The Good, The Bad And The Ugly
U.S. tech companies should watch for important developments in international taxation, including the resolution of Apple's decade-old state aid case, growing frustration with the Organization for Economic Cooperation and Development's global tax plan and adoption of the digital services tax instead, says Joyce Beebe at Rice University's Baker Institute for Public Policy.