State & Local
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June 18, 2024
Ky. Church's Tax Protest Must Go Through Local Board
A Kentucky church must work through its property tax appeal with a local review board before the courts can review the issue, a state appeals court said, upholding a lower court ruling.
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June 18, 2024
Missouri Atty's Departure Dooms 2 Sales Tax Protests
The Missouri Court of Appeals denied two businesses' attempts to revive their sales tax protests Tuesday, saying the state Administrative Hearing Commission correctly dismissed the cases for failure to file status reports after the companies' attorney didn't provide notice that she had changed firms.
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June 18, 2024
Ariz. Developer Stuck With $467K Bill For City's Builder Tax
An Arizona developer who built 22 homes qualifies as an "owner-builder" for purposes of Phoenix's speculative builder tax and is liable for $467,000 in tax, interest and penalties, the state's tax court said.
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June 18, 2024
Va. General Revenue Through May Beats Last Year By $1.48B
Virginia general revenue collection from July through May was $1.48 billion higher than in the same period last fiscal year, according to the state Department of Accounts.
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June 18, 2024
Short-Term Rental Laws And The Litigation They've Sparked
Short-term rentals are a contentious topic in the U.S., disrupting the hospitality industry and sometimes the neighborhoods where they’re located. Here, Law360 Real Estate Authority rounds up the state and local policies involving short-term rentals and the ongoing cases challenging them.
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June 17, 2024
Kansas Pols Agree On Tax Cuts Ahead Of Special Session
Kansas would reduce its income tax brackets to two and exempt Social Security income from tax under a compromise proposal reached between state House and Senate Republican leaders and Gov. Laura Kelly, announced during a joint committee meeting Monday.
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June 17, 2024
Pa. House Panel OKs Sales Of Net Losses, R&D Tax Credits
Pennsylvania would create a program to allow emerging biotechnology and technology businesses to sell their net operating losses and unused research and development tax credits to other companies under a bill advanced by the state House of Representatives' Finance Committee.
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June 17, 2024
Pa. General Revenue Collection Through May Up $610M
Pennsylvania's general revenue collection from July through May was $610 million ahead of last fiscal year's total for the same period, according to the state Department of Revenue.
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June 17, 2024
Calif. General Revenues Up $2.4B Over Revised Estimates
California's total receipts from July through May were $2.4 billion more than projected in revised estimates, according to the state Comptroller's Office.
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June 17, 2024
NJ Revenue Through May Down $182M From Last Fiscal Year
New Jersey collected $182 million less in general revenue from July through May than it did in the same part of last fiscal year, according to a report by the state's Department of the Treasury.
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June 17, 2024
RI Allows Unrestricted Property Tax Rates In Providence
Rhode Island is authorizing the city of Providence to adopt a classification system that allows unrestricted tax rates for residential, commercial, industrial and tangible personal property under bills that became law without the governor's signature.
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June 17, 2024
Mich. Justice Wants Tax-Break Filing Options After Mail Fiasco
A Michigan Supreme Court justice called on the state Legislature to give taxpayers more flexibility in claiming property tax exemptions after a company lost out on an exemption because the U.S. Postal Service never delivered its paperwork.
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June 17, 2024
Ark. Bills Seek Income Tax Cuts, Homestead Credit Expansion
Arkansas would reduce its income tax rates and increase its homestead property tax credit under bills introduced in both the state House of Representatives and Senate for a special legislative session at Republican Gov. Sarah Huckabee Sanders' request.
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June 17, 2024
NJ Tax Court Upholds Town's $1M Valuation Of Residence
The New Jersey Tax Court affirmed the township of Montclair's roughly $1 million valuation of a single-family residence, saying the homeowners failed to account for differences in other properties that they argued warranted cutting the assessment.
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June 17, 2024
NJ Power Broker, Firm CEO Brother Accused Of Racketeering
Powerful New Jersey businessman George E. Norcross III and his brother who is the chief executive officer of law firm Parker McCay have been criminally charged alongside others in a scheme to acquire waterfront property in the distressed city of Camden using threats of economic and reputational harm.
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June 14, 2024
The Tax Angle: More GOP TCJA Teams, Nonprofit Hospitals
From a look at efforts by the Republicans on the Senate Finance Committee to prepare for next year's expiration of the 2017 tax overhaul law to a new call for nonprofit hospitals to provide more charity care, here's a peek into a reporter's notebook on a few of the week's developing tax stories.
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June 14, 2024
IRS Says Ariz. Lacks Standing To Fight Taxation Of Rebates
Arizona did not have standing to lodge its claim that its 2023 income tax rebates should be exempt from federal tax, the Internal Revenue Service told a federal court, arguing the taxes paid by Arizonans did not amount to harm to the state itself.
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June 14, 2024
Mich. Bill Would Clarify Tax On Delivery Network Sales
Michigan would clarify that vendors selling through an online marketplace are liable for collecting and remitting sales tax and that delivery networks can deduct amounts paid to sellers from their tax liability under a bill introduced in the state Senate.
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June 14, 2024
Conn. Panel Backs Woman's Exemption From Bank Execution
A woman is entitled to an exemption from a financial institution execution served by an entity that collected taxes for a Connecticut city to satisfy a business's outstanding personal property tax assessment, the state's appellate court said in an opinion released Friday, affirming a trial court's ruling.
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June 14, 2024
Mich. Co.'s Former Head Liable For Biz's $229K Unpaid Taxes
The Michigan Tax Tribunal correctly assessed the former president and controller of a now-defunct automotive coating company with $229,000 in unpaid withholding taxes because he was in control of the company's financial operations, a state appeals court panel ruled.
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June 14, 2024
St. Louis Agrees To Return Tax Paid By Remote Workers
St. Louis has agreed to return income taxes paid by remote workers outside the city after a Missouri appeals court ruled it could not impose the tax, the parties said Friday.
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June 14, 2024
Ark. Gov. Calls Special Session To Cut Tax Rates
Arkansas Gov. Sarah Huckabee Sanders called a special session of the state Legislature to amend the state's top income tax rates and increase the homestead tax credit.
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June 14, 2024
Taxation With Representation: Kirkland, Arnold & Porter
In this week's Taxation with Representation, Noble Corp. PLC buys Diamond Offshore Drilling Inc., Cognizant buys Belcan, AlphaSense raises funding to buy Tegus, and Matador Resources Co. acquires a subsidiary of the EnCap Investments portfolio company Ameredev II Parent.
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June 13, 2024
Staffing Hurdles Could Slow Impact Of IRS Audit Boost
The Internal Revenue Service's intended ramping up of enforcement on wealthy people, large corporations and complex partnerships may not have a meaningful impact in the short term because of challenges in hiring and training people to do the work.
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June 13, 2024
NYC Dance Club's Tickets Freed From $2M In Sales Tax
A New York City dance club isn't on the hook for a $2 million state sales tax bill on its admission charges because its techno music shows qualified as a tax-exempt live music performance, a state administrative law judge determined Thursday.
Expert Analysis
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Mallory Ruling Doesn't Undermine NC Sales Tax Holding
Contrary to the conclusion reached in a recent Law360 guest article, the U.S. Supreme Court’s recent Mallory ruling shouldn't be read as implicitly repudiating the North Carolina Supreme Court’s sales tax ruling in Quad Graphics v. North Carolina Department of Revenue — the U.S. Supreme Court could have rejected Quad by directly overturning it, says Jonathan Entin at Case Western Reserve.
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Calif. Policymakers Should Aid Crashing Cannabis Market
As California’s cannabis sector nears the brink of financial collapse, it may be time for the state government to seriously consider potential bailout programs for the embattled industry — though the crisis also presents strategic buying opportunities for those with a high tolerance for uncertainty, says Michelle Mabugat at Greenberg Glusker.
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What Came Of Texas Legislature's Long-Promised Tax Relief
Following promises of historic tax relief made possible by a record budget surplus, the Texas legislative session as a whole was one in which taxpayers that are large businesses could have done somewhat better, but the new legislation is clearly still a positive, say attorneys at Baker Botts.
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Looking Behind The Curtain Of Residential Transition Loans
As residential transition loans and securitizations of such loans grow increasingly popular, real estate stakeholders should take care to understand both the unique features and potential challenges offered by this novel asset class, say attorneys at Mayer Brown.
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Where Tax Policies Go Wrong: SALT In Review
RSM's David Brunori reviews the worst tax policies employed by state and local governments, then critiques recent tax developments in Oregon, New York and Boston.
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Mallory Opinion Implicitly Overturned NC Sales Tax Ruling
The U.S. Supreme Court recently declined to review Quad Graphics v. North Carolina Department of Revenue, but importantly kicked the legs from under Quad's outcome a week later, stating in its Mallory decision that the high court has the prerogative to overrule its own decisions, says Richard Pomp at the University of Connecticut.
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Delicious In Conn., Less Tasty In La.: SALT In Review
From Connecticut reducing its beer tax to Louisiana retaining its franchise tax, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Review Of Repatriation Tax Sets Justices On Slippery Slope
The U.S. Supreme Court’s recent decision to review the constitutionality of the repatriation tax in Moore v. U.S. has implications for many tax rules involving unrealized amounts and could leave the court on the brink of invalidating large swaths of the Internal Revenue Code, say attorneys at Eversheds Sutherland.
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How To Avoid A Zombie Office Building Apocalypse
With national office vacancy rates approaching 20%, policymakers, investors and developers will need to come together in order to prevent this troubling trend from sucking the life out of business districts or contaminating the broader real estate market, say Ryan Sommers and Robyn Minter Smyers at Thompson Hine.
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Ohio Tax Talk: Building On Federal Affordable Housing Credit
Ohio's soon-to-be-implemented low-income housing tax credit could significantly affect the state's affordable housing landscape and influence tax-credit deal financing for these projects, though Senate changes may have dampened the new credit's immense potential, say Raghav Agnihotri and Rachael Chamberlain at Frost Brown.
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Holding These Truths Incontrovertible: SALT In Review
RSM's David Brunori offers his thoughts on noteworthy state and local tax news, beginning with "almost irrefutable" observations delivered at a recent tax seminar.
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LA's High-Value Real Estate Transfer Tax Should Be Scrapped
Los Angeles’ recently implemented high-value property transfer tax has chilled the real estate market, is failing to meet revenue expectations and raises significant constitutional concerns, making it a flawed piece of legislation that should be invalidated, says attorney Paul Weinberg.
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Avoiding Negative Tax Consequences In Loan Modifications
Borrowers who may be caught in the dramatic uptick in nonperforming commercial real estate loans should consider strategies to avoid income and capital gains tax that may be triggered by loan modifications, says Aman Badyal at Glaser Weil.