State & Local
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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.
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June 26, 2024
Idaho Tax Revenue Through May Down $36M From Forecasts
Idaho's revenue collection from July through May was $36 million lower than predicted, according to the state Division of Financial Management.
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June 26, 2024
Neb. Gov. Signals July Start To Property Tax Special Session
Nebraska's governor announced his intent to call the state's unicameral Legislature into a special session starting July 25 to focus on what he described as a worsening property tax crisis.
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June 26, 2024
Ariz. General Revenues Through May Up $314M From Forecast
Arizona's general revenue collection from July through May was $314 million higher than was forecast, according to the state Joint Budget Committee.
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June 26, 2024
Ore. Tax Court OKs Deduction For Horse Boarder's Biz Costs
The owners of an Oregon horse boarding facility that lost money for eight years operated it with a profit motive, the state tax court ruled, allowing the couple a tax deduction for the business expenses sustained.
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June 25, 2024
Hawaii Adopts Fines For Excise, Rental Tax Reporting Failures
Hawaii will impose fines for failures to comply with the reporting requirements of the state's general excise tax and transient accommodations tax laws as part of a bill signed by the governor.
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June 25, 2024
Hawaii Allows Tax Dept. To Serve Subpoenas Outside State
Hawaii authorized its Department of Taxation to serve administrative subpoenas outside the state under a bill signed by the governor.
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June 25, 2024
Newsom Defends Calif. Tax Policy In State Of State Speech
Gov. Gavin Newsom vigorously defended his state's fiscal policy Tuesday, declaring that California is not a high-tax state despite having the nation's highest overall individual income tax burden and highest gas tax.
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June 25, 2024
Bristol-Myers Fights NJ City's $4.6M Fee On Campus Upgrade
Bristol-Myers Squibb asked the New Jersey Tax Court to reverse the state's upholding of a $4.6 million nonresidential development fee on renovations to buildings on a 91-acre campus, arguing the improvements were excluded from the levy.
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June 25, 2024
Hawaii Conforms To Fed. Code For Income, Estate Tax
Hawaii conformed its income tax and estate and generation-skipping transfer tax laws to the federal tax code as amended through 2023 under a bill signed by the governor.
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June 25, 2024
Ohio Floats Rules Outlining Administration Of Cannabis Taxes
The Ohio Department of Revenue published a proposed regulation outlining how the state will administer cannabis taxes, including assessment processes and recordkeeping requirements.
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June 25, 2024
Pa. Biz Group, Top Senate Tax Writer Oppose Biz Income Reg
A proposed Pennsylvania regulation outlining what constitutes apportionable business income improperly suggests that the state could enforce combined reporting and ignore precedent limiting the taxation of multistate corporations, a business advocacy group and chair of the state Senate's tax-writing committee have argued.
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June 25, 2024
Minn. Tax Court OKs Dept.'s DuPont Apportionment Method
The Minnesota tax department correctly applied an alternative method of apportionment to manufacturing company DuPont that better represented the company's taxable income in the state following transactions involving forward exchange contracts, the state's tax court ruled.
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June 25, 2024
DC Council OKs Tax Hikes On High-End Property, Payroll
Washington, D.C., would impose a special tax rate on high-end residential properties, boost the premium for the district's paid leave program and make other tax and spending changes under legislation passed Tuesday by the district council.
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June 25, 2024
Ariz. Court Slashes Value Of Low-Income Housing Complex
An Arizona housing complex subject to restrictions related to federal low-income housing tax credits was overvalued by a local assessor, the Arizona Tax Court said, slashing the valuation of the property by about three-fourths.
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June 25, 2024
T-Mobile Settles Gross Receipts Tax Dispute With Ohio
T-Mobile reached a settlement with Ohio over the company's claims that the state tax agency incorrectly sourced certain receipts and double-counted others when it issued a $775,000 commercial activity tax assessment, according to a state Board of Tax Appeals order issued Tuesday.
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June 25, 2024
La. Board Finds Part Of Water Levies To Be Illegal Tax
A portion of a conservation district's charges for pumping water is an unconstitutional severance tax, the Louisiana Board of Tax Appeals ruled, saying the charges weren't allowed to be used to fund a metering program.
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June 25, 2024
Ex-DOJ Atty Among New Trio At Chamberlain Hrdlicka
Chamberlain Hrdlicka White Williams & Aughtry has strengthened its tax controversy and litigation practice with the addition of three attorneys in Atlanta, including a former senior trial attorney in the Tax Division of the U.S. Department of Justice for more than three decades.
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June 25, 2024
Tax Pros Worry Credit Sales Could Raise Substance Issues
Tax professionals are concerned that deals involving a new way to sell clean energy tax credits for cash could face IRS scrutiny after the agency scored a high-profile win over a telecommunications company by deploying an aggressive interpretation of what's known as the economic substance doctrine.
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June 25, 2024
Ore. Tax Court Affirms $13M Valuation For Lowe's Retail Outlet
The Oregon Tax Court affirmed the $13.4 million tax valuation of a Lowe's home improvement warehouse, rejecting the company's argument that the property should be valued as if it did not have a lease in place.
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June 24, 2024
Conn. Gov. Calls Special Session To Address Tax On Cars
Connecticut's governor called on the state Legislature to convene a special session Wednesday to consider legislation affecting taxes imposed on motor vehicles and other provisions governing assessments on insurance companies and interest payments imposed on certain businesses that kept employees on payroll during the pandemic.
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June 24, 2024
MTC Modifies Draft Rule On Sourcing Trucking Receipts
The Multistate Tax Commission released a tweak to its draft alternative trucking sourcing rule that would strictly source receipts from ground transportation companies to the state of delivery during a meeting Monday.
Expert Analysis
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Maximizing Law Firm Profitability In Uncertain Times
As threats of an economic downturn loom, firms can boost profits by embracing the power of bottom-line management and creating an ecosystem where strategic financial oversight and robust timekeeping practices meet evolved client relations, says Shireen Hilal at Maior Strategic Consulting.
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Preparing Your Legal Department For Pillar 2 Compliance
Multinational entities should familiarize themselves with Pillar Two of the Organization for Economic Cooperation and Development’s BEPs 2.0 project and prepare their internal legal tracking systems for related reporting requirements that may go into effect as early as January, says Daniel Robyn at Ernst & Young.
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What Large Language Models Mean For Document Review
Courts often subject parties using technology assisted review to greater scrutiny than parties conducting linear, manual document review, so parties using large language models for document review should expect even more attention, along with a corresponding need for quality control and validation, say attorneys at Sidley.
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Participating In Living History Makes Me A Better Lawyer
My role as a baron in a living history group, and my work as volunteer corporate counsel for a book series fan association, has provided me several opportunities to practice in unexpected areas of law — opening doors to experiences that have nurtured invaluable personal and professional skills, says Matthew Parker at the Nebraska Department of Health and Human Services.
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Another Ark. Tax Cut And Chicago Transit: SALT In Review
From yet another income tax cut in Arkansas to proposed extra funding for Chicago transit, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Private Equity Owners Can Remedy Law Firms' Agency Issues
Nonlawyer, private-equity ownership of law firms can benefit shareholders and others vulnerable to governance issues such as disparate interests, and can in turn help resolve agency problems, says Michael Di Gennaro at The Law Practice Exchange.
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Kentucky Tax Talk: Taking Up The Dormant Commerce Clause
Attorneys at Frost Brown examine whether the U.S. Supreme Court is likely to review Foresight Coal Sales v. Kent Chandler to consider whether a Kentucky utility rate law discriminates against interstate commerce, and how the decision may affect dormant commerce clause jurisprudence.
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TCJA Workarounds And A Misstep In Va.: SALT In Review
From federal SALT deduction workarounds to Virginia's missed opportunity, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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How Taxpayers Can Prep As Justices Weigh Repatriation Tax
The U.S. Supreme Court might strike down the 2017 federal tax overhaul's corporate repatriation tax in Moore v. U.S., so taxpayers should file protective tax refund claims before the case is decided and repatriate previously taxed earnings that could become entangled in dubious potential Section 965 refunds, say Jenny Austin and Gary Wilcox at Mayer Brown.
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Digital Services And Asphalt Production: SALT In Review
From Massachusetts' proposed gross receipts tax on digital providers to a dispute over equipment used to make asphalt in North Carolina, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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What's Notable In Connecticut's New Cannabis Laws
The Connecticut Legislature recently passed four bills containing cannabis provisions — ranging from applicable tax credits to labor agreement requirements — that may prove to be a mixed bag for state operators, say Sarah Westby and Deanna McWeeney at Shipman & Goodwin.
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NJ Justices Clarify Bribery Law Scope, But Questions Remain
The New Jersey Supreme Court’s recent State v. O'Donnell decision clarified that the state’s bribery law unambiguously applies to candidates for public office, but there are still unresolved questions about how the ruling may affect lobbyists, undeclared candidates and political speech, says Scott Coffina at Pietragallo Gordon.
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Parsing Tax Implications Of NYC Office Leasing Transactions
Though New York City's tax laws generally do not require negotiated contractual risk allocation in the case of sublease and early lease termination transactions, it is still helpful for counsel to both landlords and tenants to understand the laws' nuances, say attorneys at Lowenstein Sandler.