State & Local
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June 28, 2024
Vt. General Revenues Through May Up $41M From Last Year
Vermont's general fund revenue from July through May exceeded last year by roughly $41 million, according to a report by the state Agency of Administration.
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June 28, 2024
Mich. Revenues Through May Fall $530M From Last Year
Michigan's general fund revenues from October through May were down $530 million compared with the same period last fiscal year, the State Budget Office reported Friday.
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June 28, 2024
Taxation With Representation: Kirkland, Vinson, Skadden
In this week's Taxation with Representation, Aareal Bank AG and Advent International sell a property management and maintenance software company, Webtoon Entertainment Inc. and Tamboran Resources Corp. price initial public offerings, SM Energy Company acquires oil and gas assets, and Nokia sells Alcatel Submarine Networks to the French state.
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June 27, 2024
IRS To Offer Combined Filing For Energy Investment Credits
The Internal Revenue Service will let clean energy project owners that are claiming investment tax credits for more than 200 facilities file the claims with a single form, an agency official said Thursday.
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June 27, 2024
Calif. Budget Will Prevent Another Microsoft-Style Tax Win
A measure in California's new budget tax law, enacted Thursday, will potentially save the state more than $1 billion by preventing more wins like the one Microsoft secured when the state Office of Tax Appeals ruled it could include 100% of the dividends from foreign affiliates in its California sales factor denominator.
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June 27, 2024
Ill. Extends R&D Tax Credit, Adds Quantum Computing Credits
Illinois extended its research and development tax credit, expanded eligibility for a program that provides tax breaks to electric vehicle manufacturers and created tax credits for quantum computer component parts manufacturers under a bill signed by Gov. J.B. Pritzker.
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June 27, 2024
RI To Allow Single-Sales-Factor Apportionment For Banks
Rhode Island will allow banking institutions doing business that is subject to tax in and outside the state to apportion their income using only the receipts factor under a bill signed into law by the governor.
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June 27, 2024
Ind. Dept. Says Some Of Co.'s Software Purchases Are Exempt
The Indiana Department of Revenue ruled that only some purchases of prewritten software by a company are exempt from sales tax because the company proved it wasn't a purchase of tangible property.
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June 27, 2024
Nev. Regs Clarify Sales Tax Exemption Letters For Nonprofits
Nevada clarified under regulatory amendments approved by the state Legislative Commission that a letter providing for an exemption from sales and use tax for eligible nonprofit organizations applies only to tax liabilities that would have accrued on or after the date such a letter was issued.
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June 27, 2024
NY Historic Building Rehab Tax Credits Apply Per Structure
New York's $5 million tax-credit cap for rehabilitation projects of historic properties is applied on a per-structure basis even if multiple structures are included on a single application, the state Department of Taxation and Finance said in a declaratory ruling.
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June 27, 2024
Google Tells Md. Court Digital Ad Tax Violates Federal Law
Maryland's first-in-the-nation digital advertising tax violates a federal law protecting electronic commerce from discriminatory treatment as well as the U.S. Constitution, Google told the state's tax court during oral arguments Thursday.
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June 27, 2024
AG Says Trump Recusal Bid Relies On 'Distortion Of Facts'
New York's attorney general says Donald Trump is relying on a "distortion of facts" in seeking to oust the judge who ordered the former president to pay $465 million in penalties in his civil fraud case.
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June 27, 2024
Conn. Lawmakers OK Tax Changes For Cars, Insurance Biz
A Connecticut proposal to retool the state's motor vehicle tax regime in a bid to head off a potential tax increase, as well as change assessments on insurance companies, was passed by the state House on Thursday and next goes to the governor.
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June 27, 2024
Mich. Lawmakers OK Flexibilty For Remote Tribunal Hearings
The Michigan Tax Tribunal would be allowed to hold remote hearings for residential property and small-claims matters at one party's request under a bill passed Thursday by the state Legislature.
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June 27, 2024
Mich. Senate OKs Fix For Potential Double Tax On Deliveries
Michigan would allow certain marketplace facilitators of deliveries to deduct sales tax that they paid to sellers to avoid potential double-taxation issues under a bill approved by the state Senate.
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June 27, 2024
Ex-Skadden Tax Head And M&A Pro Joins Freshfields In NY
Freshfields Bruckhaus Deringer LLP has added the former head of the tax practice at Skadden Arps Slate Meagher & Flom LLP as a partner this week, who brings to the role experience in deals like 21st Century Fox's $71 billion acquisition by Disney and the merger of T-Mobile and Sprint.
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June 27, 2024
Fla. County Owes Tax To Other County, Fla. Justices Rule
The Florida Supreme Court ruled Thursday that counties are not immune from being taxed on properties they own in other counties, affirming a decision that said Pinellas County cannot claim sovereign immunity to duck taxes on property it owns in neighboring Pasco County.
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June 27, 2024
Ind. Tax Doesn't Apply To Practice's Supplement Purchases
An Indiana medical practice should be refunded sales tax paid on purchases of dietary supplements because the practice was able to prove the purchases were made for resale, the state Department of Revenue ruled.
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June 27, 2024
Ind. Biz Wrongly Taxed For Sales To Leasing Co., Dept. Says
An Indiana furniture retailer was wrongly assessed additional tax for sales it made to a leasing company, the state Department of Revenue said in a letter of finding.
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June 26, 2024
Conn. Senate OKs Changes To Tax On Cars, Insurance Cos.
Connecticut would change how it values and taxes motor vehicles, exempt some businesses from interest on certain tax underpayments and change the calculation of assessments on insurance companies under emergency-certified omnibus legislation the state Senate passed Wednesday at the start of a special session.
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June 26, 2024
Repatriation Tax Ruling May Sway State Wealth Tax Debates
The U.S. Supreme Court's upholding of the federal repatriation tax could indirectly affect state tax policy discussions, including by influencing consideration of wealth taxes and encouraging states to keep potential due process issues in mind when enacting tax legislation.
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June 26, 2024
Fiserv Co. Challenges Fla. Tax Sourcing Rules
Fiserv entity Checkfree asked a Florida state court to throw out a $4 million corporate income tax assessment, arguing that revenue from its payment facilitation services should be sourced out-of-state where the services are performed.
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June 26, 2024
5th Circ. Affirms Block On ARPA Tax Rule For Texas, La., Miss.
A Texas federal judge properly ruled that the federal government could not enforce a provision in the American Rescue Plan Act that prohibits states from using pandemic aid to offset tax cuts, the Fifth Circuit said.
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June 26, 2024
Maine's Revenue Through May Lags Estimates By $50M
Maine's revenue collection from July through May missed budget estimates by roughly $50 million, according to the state Department of Administrative and Financial Services.
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June 26, 2024
Wis. Revenues Through May Outpace Last Year By $232M
Wisconsin general revenue collection from July through May was $232 million higher than the same period last fiscal year, according to the state Department of Revenue.
Expert Analysis
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.