State & Local
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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.
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June 13, 2024
Mich. Bill Seeks Income Tax Credit For Home Down Payments
Michigan would create an income tax credit for homebuyers who purchase a single-family residence that would equal a portion of the down payment amount as part of a bill introduced in the state House of Representatives.
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June 13, 2024
Ohio Senate OKs Requiring Tax Payments For Property Splits
Ohio would require delinquent property taxes to be paid before a real parcel was subdivided or transferred and would prohibit tax-delinquent property owners from buying tax-foreclosed property under a bill passed by the state Senate.
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June 13, 2024
NY Babysitter Can Get Earned Income Tax Credits, ALJ Rules
A New York woman who was paid cash for babysitting was able to prove she was entitled to the state's and New York City's earned income tax credits, an administrative law judge said in a determination released Thursday.
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June 13, 2024
Mo. City Tax Credit Suit Tossed Over Federal Jurisdiction
A federal judge dismissed a Kansas City, Missouri, resident's claims that the city unconstitutionally refused to credit his state income taxes paid to Kansas against his city earnings tax liabilities, ruling that a federal law barred the case from being lodged in federal court.
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June 13, 2024
La. AG Tells Parish That Sheriff Has Tax Collection Authority
A Louisiana parish cannot shift occupational license tax collection responsibilities from its sheriff to its president's office, the state attorney general's office said in an opinion.
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June 13, 2024
Ariz. Lawmakers OK Expanding Jet Fuel Definition For Tax
Arizona would expand the definition of jet fuel subject to state's 3.05-cent-per-gallon excise tax under a bill sent to Democratic Gov. Katie Hobbs.
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June 12, 2024
NY Court Strikes Housing Tax Break's Labor Dispute Process
A New York state court has undercut a provision in a since-expired affordable housing tax break that enabled a city watchdog to issue judgments against developers who underpaid construction workers, deeming the provision unconstitutional because decisions could not be appealed.
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June 12, 2024
Senate Budget Chair Seeks End To Carried Interest Tax Break
Lawmakers should end the favorable tax treatment of income from carried interest compared with ordinary earned income, Senate Budget Committee Chairman Sheldon Whitehouse said Wednesday.
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June 12, 2024
Digital Taxes May Take Hold Regardless Of Treaty Signing
An internationally agreed-upon freeze on digital levies may continue to thaw even if countries meet their impending deadline to sign a related treaty for new corporate tax rules, in part because the accord faces a hazy path to formal ratification.
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June 12, 2024
Mass. Tax Board Knocks $4M Off Valuation Of Elder Housing
A Massachusetts tax panel slashed the valuation of a residential complex for low-income seniors by nearly two-thirds in a decision released Wednesday, agreeing with the owner that restrictions on the property justified a lower assessment.
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June 12, 2024
NM Home Dialysis Co. Gets $2M Tax Bill Thrown Out
A New Mexico business that provides at-home dialysis care to patients was wrongly hit with a $2 million gross receipts tax assessment and penalty notice, the state Administrative Hearings Office ruled, finding the company provided exempt healthcare services.
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June 12, 2024
Mass. Tax Board Says No To Decrease In Parcel Values
The owner of a pair of Massachusetts land parcels failed to show they were overvalued by local assessors, a state tax board ruled in a decision released Wednesday, saying the owner sought relief beyond the board's authority on several issues.
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June 12, 2024
Ohio Bill Seeks Tax Break For Items Bought By Logistics Cos.
Ohio would create a sales and use tax exemption for items purchased by logistics businesses to transport manufactured products, general merchandise and grocery products under a bill introduced in the state Senate.
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.