State & Local

  • October 15, 2021

    Conn. Court Says City Properly Assessed Property Complex

    A tax assessment a Connecticut city imposed on a property that included ESPN as a tenant was proper, a state court has upheld, affirming the city's income valuation of the property was more persuasive than the owner's comparable sales approach.

  • October 15, 2021

    Global Corporate Tax Deal May Create US Treaty Puzzle

    The recently agreed-upon global corporate tax overhaul requires a multilateral treaty that could face roadblocks in the U.S. if ratification depends on traditional Senate tax treaty procedures, but alternative options for implementing it bring their own uncertainties, including constitutional questions.

  • October 15, 2021

    Fla. Space Biz Tax, Fee Break Bill Raises Issues, Panel Told

    A Florida House bill that would grant tax and fee exemptions for Florida-based space commerce and business raises questions about how broad the tax breaks could be applied and could raise legal challenges, a state revenue panel was told Friday.

  • October 15, 2021

    Mass. Updates Annual Property Tax Credit Guidance

    The Massachusetts Department of Revenue on Friday updated the 2021 threshold amounts for individuals age 65 and older to claim the real estate tax credit.

  • October 15, 2021

    Pa. Senate Bill Would Legalize, Tax Cannabis

    A bipartisan pair of Pennsylvania senators introduced legislation that would legalize adult recreational marijuana use in the state and impose a tax that could generate as much as $1 billion in annual revenue.

  • October 15, 2021

    NH Announces Tax Interest Rates for 2022

    New Hampshire interest rates applicable to tax payments will be 5% for underpayments and 2% for overpayments for the 2022 calendar year, the state Department of Revenue said in a technical information release Friday.

  • October 15, 2021

    Tax Group Urges 6th Circ. To Affirm Injunction On Tax-Cut Limit

    A conservative-leaning taxpayer group urged the Sixth Circuit on Friday to uphold a federal court's injunction against a federal provision banning states from using pandemic aid to offset tax cuts, arguing the clawback portion is unconstitutionally ambiguous.

  • October 15, 2021

    IRS Plan To Force Small Account Reporting Illegal, 20 AGs Say

    The Internal Revenue Service's proposal to require banks and other financial institutions to report information on every account with at least $600 is illegal under constitutional protections against unreasonable search and seizure, 20 state attorneys general told the agency Friday.

  • October 15, 2021

    Ark. Landscaping Biz Owner Owes Sales Tax, Judge Rules

    An Arkansas landscaping business owner owes sales taxes because he failed to meet the burden of proof to show his assessed sales were largely not taxable, an administrative law judge ruled.

  • October 15, 2021

    The Federal Deduction Cap And Digital Ads: SALT In Review

    From failed challenges against a federal limit on deductions to the latest assault on digital advertising, RSM US LLP's David Brunori offers his thoughts on noteworthy state and local tax news.

  • October 15, 2021

    NYC Offers More Biz Tax Penalty Relief Because Of Ida

    New York City will allow for the waiver or abatement of penalties for certain business taxes that were scheduled to be due Oct. 15 because of Hurricane Ida, the city Department of Finance said.

  • October 14, 2021

    Calif. Man Can't Discharge Taxes In Bankruptcy, 9th Circ. Says

    A California man cannot escape around $45,000 in state taxes after declaring bankruptcy because he failed to report an increase in federal taxes to the state as required for the liability to be discharged, the Ninth Circuit said Thursday.

  • October 14, 2021

    Mich. House Advances Tampon Tax Repeal Amid Legal Battle

    The Michigan House of Representatives approved two bills Thursday that would exempt menstrual products such as tampons and sanitary napkins from sales and use tax as the state faces a lawsuit claiming the tax unconstitutionally discriminates against women.

  • October 14, 2021

    Michigan House Passes Refiled SALT Cap Workaround Bill

    Michigan's House of Representatives passed legislation Thursday that would offer an entity-level tax permitting pass-through businesses to sidestep the $10,000 federal cap on state and local tax deductions — a program for which the state's budget specifically earmarked funding.

  • October 14, 2021

    Ariz. Tax Dept. Says Car Sharing Businesses Must Pay Tax

    Peer-to-peer car sharing businesses are required to pay transaction privilege tax on all rentals conducted through their platforms, the Arizona Department of Revenue said Thursday.

  • October 14, 2021

    Fed. Judge Tosses E-Biz Group's Calif. Sales Tax Challenge

    A federal judge dismissed an e-commerce trade group's attempt to block California from pursuing back sales taxes from sellers with inventory housed at in-state Amazon fulfillment centers, finding a federal law requires the claims to be filed in state courts.

  • October 14, 2021

    Miss. Adopts Tax Exclusion For Nonphysical Injury Damages

    Mississippi will provide an income tax exclusion for damages taxpayers are awarded to cover medical care costs for emotional distress arising from nonphysical injuries under regulatory amendments adopted by the state Department of Revenue.

  • October 14, 2021

    Pa. Use Tax Doesn't Cover Traffic Signal Support, Court Affirms

    A Pennsylvania construction company's purchases of equipment used to support traffic signals are exempt from the state's use tax because the equipment falls within the definition of traffic signals, which are exempt, the Commonwealth Court affirmed Thursday.

  • October 14, 2021

    Iowa Tax Rules May Apply To Market Operators, State Says

    Some Iowa trade shows, flea markets, farmers markets, craft fairs and other similar events may be considered marketplace facilitators under state tax law, the state Department of Revenue said in guidance.

  • October 14, 2021

    Philly Extends Income Tax Deadlines Due To Hurricane Ida

    Philadelphia extended deadlines to file business income and receipts tax, net profits tax and school income tax returns until Jan. 3 due to Hurricane Ida, the city Department of Revenue said.

  • October 13, 2021

    Biz Groups Call Md.'s Digital Ad Tax Unconstitutional

    The U.S. Chamber of Commerce and other business trade groups urged a federal court Wednesday to find Maryland's first-in-the-nation digital advertising tax unconstitutional, disputing arguments that internet-based advertising services are fundamentally different from other forms of advertising.

  • October 13, 2021

    Biz Concerns Prompt Hearing On Miss. Cloud Computing Tax

    The Mississippi Department of Revenue scheduled a public hearing on proposed amendments to a regulation that would subject certain cloud computing services to sales tax after several business advocacy groups objected to the rule's potential effects on various industries.

  • October 13, 2021

    Texas House Panel Advances Temporary Property Tax Cut

    Texas would use funding from the most recent coronavirus pandemic aid package to provide $3 billion of property tax relief through one-time payments under legislation approved by the House Ways and Means Committee.

  • October 13, 2021

    Tenn. Sales Tax Doesn't Apply To Cloud Platform's Services

    A Tennessee cloud platform company's monthly subscription fees and one-time access fees are not subject to state sales and use tax because neither constitute telecommunications services nor use of computer software, the state's Department of Revenue ruled.

  • October 13, 2021

    NY Postpones Some Tax Filing Deadlines Due To Hurricane

    New York will postpone filing and payment deadlines occurring from Friday until Jan. 3 for some filers as a response to Hurricane Ida, the state Department of Taxation and Finance said in a notice.

Featured Stories

  • The Federal Deduction Cap And Digital Ads: SALT In Review

    David Brunori

    From failed challenges against a federal limit on deductions to the latest assault on digital advertising, RSM US LLP's David Brunori offers his thoughts on noteworthy state and local tax news.

  • Global Corporate Tax Deal May Create US Treaty Puzzle

    Natalie Olivo

    The recently agreed-upon global corporate tax overhaul requires a multilateral treaty that could face roadblocks in the U.S. if ratification depends on traditional Senate tax treaty procedures, but alternative options for implementing it bring their own uncertainties, including constitutional questions.

  • 3-Step Corporate Tax Rate Gains Steam In Congress

    Alan K. Ota

    A push to pair higher corporate tax rates for big companies with lower rates for smaller businesses has gained traction in Congress, where Democrats hope to build support for a streamlined version of the pending $3.5 trillion reconciliation bill.

Expert Analysis

  • Ohio Tax Talk: Lessons From Apple Commercial Activity Audit

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    The Ohio Tax Commissioner’s recent audit of Apple, which led to allegations that the company underpaid its commercial activity tax, serves as a reminder for other Ohio taxpayers to educate themselves on the tax's exemptions and the supporting documentation they require, says Edward Rivin at Frost Brown.

  • How Florida Borrowers Can Reduce Mortgage Taxes

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    The steady growth of Florida development activity involving apartments, retail centers, office buildings and other projects has been accompanied by a corresponding rise in transaction taxes, but there are some strategies that borrowers can employ to reduce mortgage taxes when buying or refinancing, says Gary Kaleita at Lowndes.

  • Texas Tax Talk: Alarming Redefinition Of Nontaxable Services

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    In a concerning trend following two rulings from the Texas Comptroller, taxpayers in a variety of industries are facing audits that attempt to reclassify traditionally nontaxable service agreements as taxable equipment rentals, thereby unexpectedly increasing businesses' sales tax exposure, say attorneys at Baker Botts.

  • Kentucky Tax Talk: Confusion Over Manufacturing Exemptions

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    The Kentucky Court of Appeals' recent opinion in Century Aluminum v. Department of Revenue grappled with the state's sales and use tax exemptions for machinery, equipment and supplies used in manufacturing — but the decision seems to be at odds with an earlier court ruling, leaving taxpayers with unclear guidance, say attorneys at Frost Brown.

  • NY Tax Considerations For Fund Managers Handling Crypto

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    Attorneys at Mayer Brown address whether transactions in cryptocurrency and nonfungible tokens should be considered eligible for the self-trading exemptions under New York City unincorporated business tax and New York state personal income tax.

  • Pa. Tax Talk: Uniformity Clause At The State's High Court

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    As the Pennsylvania Supreme Court considers whether a property tax assessment violated the state Constitution's uniformity clause in Kennett Consolidated School District v. Chester County Board of Assessment Appeals, a 2019 ruling from the court — Sands Bethworks Gaming v. Department of Revenue — may help predict the pending outcome, says Jennifer Karpchuk at Chamberlain Hrdlicka.

  • Ohio Tax Talk: Adjusting To The Latest Telework Tax Rules

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    Due to Ohio's recently enacted H.B. 110, Ohio businesses with pandemic-related work-from-home policies must carefully analyze their withholding practices and individuals working remotely must consider whether they have overpaid their municipal income tax liability, say Christopher Tassone and Edward Rivin at Frost Brown.

  • How Tax Code Changes Affect State AG Settlement Talks

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    Meghan Stoppel and Gianna Puccinelli at Cozen O'Connor discuss how newly implemented tax code regulations that allow companies to deduct some payments made to resolve a government investigation or prosecution will change settlement negotiations with state attorneys general.

  • How Western States Help The Wealthy Avoid Taxes, Creditors

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    The race by certain states in the western U.S. to legalize shell companies, private trusts and other mechanisms allowing wealthy individuals to avoid taxes and creditors underlies the U.S.' status as a secrecy haven of choice, says Daniel Pascucci at Mintz.

  • Texas Tax Talk: Planning For Property Tax Break's Sunset

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    With the Texas Economic Development Act and its property tax benefits expiring on Dec. 31, 2022, developers considering a large project in the state should analyze the program's advantages and requirements and be prepared to apply well in advance of the sunset date, say attorneys at Baker Botts.

  • The Changing Pennsylvania Tax Landscape For Remote Work

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    Businesses with employees in Pennsylvania should be prepared to adapt to a post-COVID-19 world now that temporary guidance regarding remote work has expired and pre-pandemic rules regarding employment tax withholding and nexus have been applied, say Wendi Kotzen and Christopher Jones at Ballard Spahr.

  • Justices Open The Door Wider For Donor Info Law Challenges

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    The U.S. Supreme Court’s recent decision in Americans for Prosperity Foundation v. Bonta, striking down California's requirement that charities disclose the identity of major donors, will make similar state and federal statutes more vulnerable to constitutional challenge, says Lloyd Mayer at Notre Dame Law School.

  • Justices Should Find California Donor Law Unconstitutional

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    The U.S. Supreme Court's decision in Americans for Prosperity Foundation v. Bonta should strike down a California law requiring charities to disclose their donors because the state’s interest in this information is not sufficiently compelling to overcome constitutional rights to free speech and peaceful assembly, says James Skyles at Skyles Law Group and M2M Legal.