State & Local

Expert Analysis

• 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.

• Expect Seamless Transition To Controversial Ariz. Flat Tax

  

  The unexpectedly early implementation of Arizona's new 2.5% flat income tax rate in January should be a painless and welcome change for individual taxpayers, even as the long-term impact on state and local economies is the subject of debate, say Karen Jurichko Lowell and Pat Derdenger at Lewis Roca.

• Tax Cuts Hither And Yon: SALT In Review

  

  From proposed tax cuts in Mississippi and Montana to a new, voter-approved limit in Arizona, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

• Midterms And Powerball: SALT In Review

  

  From the midterm election results to the latest Powerball winner, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

• Ohio Tax Talk: One Step Closer To Telework Income Tax Clarity

  

  An Ohio court's recent ruling in Morsy v. Dumas that Cleveland must reimburse city tax on income an employee earned while she worked from another state during the pandemic is limited in the time period to which it applies, but may have important ramifications for the Ohio municipal income tax system as a whole, say Raghav Agnihotri and Rachael Chamberlain at Frost Brown.

• 30 Years of TABOR: SALT In Review

  

  From the anniversary of the Colorado Taxpayer's Bill of Rights to a Missouri barkeep whose tax obligations reached beyond the grave, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

• Rankings And Semiconductors: SALT In Review

  

  From an annual ranking of states' business tax climates to yet another incentive package for the semiconductor industry, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

• Making The Most Of New Tax Credits For EV Charging Stations

  

  The Inflation Reduction Act recently extended, expanded and renewed the tax credits available for electric vehicle charging station projects — but developers must navigate new challenges, including geographic and prevailing wage requirements, to take full advantage of the updated credits, says James English at Clark Hill.

• Key Income Tax Issues Triggered By Remote Employees

  

  A host of fact-specific tax determinations arise in connection with remote work arrangements, from defining working-condition fringe benefit exclusions to nexus-dependent state withholding obligations, complicating compliance for corporate tax counsel and human resources professionals, say Thomas Cryan and Spencer Walters at Ivins Phillips.

• Justices Poised To Reject Narrowing Unclaimed Property Law

  

  After U.S. Supreme Court oral arguments in the so-called MoneyGram case — a dispute between Delaware and several other states over which has the right to about $300 million in unclaimed property — the court seems ready to rule against Delaware, but nuances of the court's reasoning will have a broader sweep, say attorneys at Alston & Bird.

• Digital Tax In Md., Incentives In Ore.: SALT In Review

  

  From the defeat of Maryland's tax on digital advertising to incentives proposed in Oregon, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

• Texas Tax Talk: Previewing 2023 Legislative Priorities

  

  Recent directives issued by the Texas House Ways and Means and Senate Finance Committees suggest high-profile items such as property tax reform, tax incentives for large, capital-intensive industrial projects, and more will be prioritized in the 2023 legislative session, say Alison Andrews and Matthew Larsen at Baker Botts.

• Rushed Multilateral Negotiations Caused Two-Pillar Tax Mess

  

  Cracks appearing in the two pillars of the 2021 global tax plan stem from a multilateral tax policy process that rushed to issue rules without first resolving fundamental differences between countries or ensuring that the U.S., a key player, could implement them, says Jefferson VanderWolk at Squire Patton.