State & Local

  • November 22, 2021

    Dems Hope Research Tax Break Can Seal Reconciliation Deal

    A four-year extension of the soon-to-expire full deduction for research and development expenses has emerged as a potential pillar of a bicameral deal on the House-passed reconciliation bill for President Joe Biden's domestic agenda.

  • November 22, 2021

    Ark. Farm Operators Can't Deduct Losses, Judge Rules

    Arkansas farm operators are not eligible for loss deductions claimed on their tax returns after failing to establish a profit motive for their farm operation, an administrative law judge ruled.

  • November 22, 2021

    Ohio House OKs Tax Exemption For Electric Car Parts

    The Ohio House of Representatives passed legislation that would create a temporary sales and use tax exemption for parts such as engines, transmissions, batteries and brakes specifically designed to be used to produce electric vehicle products.

  • November 22, 2021

    Ark. Man Can't Claim Additional Biz Expense Deductions

    An Arkansas man is not eligible for business expense deductions claimed on his state filings, aside from expenses related to travel he substantiated through mileage logs, an administrative law judge ruled.

  • November 22, 2021

    NY Bill Would Allow Tax Credit For Electric Bike Purchases

    New York would allow taxpayers to claim a credit for up to 50% of the cost of electric bike and scooter purchases under a bill introduced in the state Senate.

  • November 19, 2021

    Ariz. Initiative Against Flat Income Tax Qualifies For Ballot

    An Arizona initiative seeking to require voter approval of a new law that would morph the state's four-tier income tax bracket system into a single rate qualified for the 2022 ballot on Friday.

  • November 19, 2021

    Tax Havens Told US To Look Inward, Ex-IRS Official Says

    When Don Fort visited tax havens during his three-decade career at the Internal Revenue Service, officials often challenged him by saying the U.S. needed to police its own states' tax schemes before lecturing others, he said Friday during a panel.

  • November 19, 2021

    NY Cos. Can't Get Brownfield Credit On Tax Paid By Tenants

    Two New York limited liability companies were ineligible for brownfield credits for payments in lieu of taxes to a county development agency because their tenant made the payments, the state Division of Tax Appeals determined Friday.

  • November 19, 2021

    La. Supreme Court Won't Review IRS Levy Dispute

    The Louisiana Supreme Court said that it would not hear a suit contending that the IRS wrongfully levied a bank account belonging to the children of a deceased woman to satisfy the tax debts of their also-deceased father.

  • November 19, 2021

    La. Adopts Sales Tax E-Filing Rule For Consolidated Filers

    Louisiana will require consolidated filers to submit state sales tax returns and payments electronically for tax periods beginning on or after Dec. 1, 2021, according to a rule the state Department of Revenue adopted in the state register released Friday.

  • November 19, 2021

    Colorado Income Tax Cut Qualifies For 2022 Ballot

    A Colorado initiative that would reduce the state's personal and corporate income tax rate for the second time since 2020 qualified for the 2022 ballot, the Colorado secretary of state's office announced.

  • November 19, 2021

    NY Keeps MTA Surcharge Steady For 2022

    New York state's commissioner of taxation and finance will keep the Metropolitan Transportation Authority surcharge on corporate franchise taxpayers at 30% in 2022, the commissioner said in a technical memorandum Friday.

  • November 19, 2021

    Biz Taxes In Pa. And Groceries In Kan.: SALT In Review

    From a call for lower corporate taxes in Pennsylvania to the Kansas governor's proposal to exempt groceries, RSM US LLP's David Brunori offers his thoughts on noteworthy state and local tax news. 

  • November 19, 2021

    Iowa Explains Sales Tax Exemption For Solar Equipment

    Iowa gave more detail on what types of equipment fall under the state's solar energy equipment tax break in updated guidance issued Friday by the state Department of Revenue.

  • November 19, 2021

    NY Couple Can't Deduct Premiums From Bond Interest Income

    A New York couple cannot deduct bond premiums from interest income paid on bonds from other states, an administrative law judge said in a determination released Friday, saying New York state requires an add-back for the gross interest income paid.

  • November 19, 2021

    Mont. Proposes Rules On Lodging, Rental Car Tax Changes

    The Montana Department of Revenue proposed rule changes Friday to clarify the state's lodging facility use tax and its sales and use tax on rental cars.

  • November 19, 2021

    Mass. Cannabis Tax Doesn't Apply To Delivery-Only Services

    Massachusetts cannabis retail tax does not apply to courier services that do not sell the product, but only deliver on behalf of a retailer, the state Department of Revenue said Friday in a working draft regulation.

  • November 19, 2021

    NY Bill Would Eliminate Sales Tax On Motor, Diesel Fuels

    New York would eliminate the state sales and use tax on motor fuels and diesel motor fuels and allow New York City to eliminate local sales tax on the fuels under a bill introduced in the state Assembly.

  • November 19, 2021

    House Sends Biden's $1.75T Budget Plan To Senate

    The House passed President Joe Biden's $1.75 trillion domestic spending package Friday, approving a bill that would raise taxes on wealthy Americans and big corporations to pay for new or expanded tax incentives for child care, renewable energy and health care.

  • November 18, 2021

    Biden Budget Plan Would Add $160B To Deficit, CBO Says

    The Congressional Budget Office said Thursday that President Joe Biden's $1.75 trillion domestic spending package would increase the federal deficit by about $160 billion over a decade, disagreeing with Treasury estimates about revenue that would result from increased IRS enforcement.

  • November 18, 2021

    NC Gov. Signs Budget Phasing Out State Corp. Income Tax

    North Carolina's governor signed a much-delayed state budget bill on Thursday that would phase out the state's corporate income tax by the end of the decade as well as making other significant tax changes.

  • November 18, 2021

    Fla. Conservancy District Can Assess Local Gov't Land

    A Florida conservancy district is entitled to make special assessments of non-ad valorem taxes on land owned by a county and a water management district, a state appellate court ruled, overturning a trial court decision.

  • November 18, 2021

    SC Agency Clarifies Taxability Of Glasses, Eye Care

    South Carolina's tax department clarified in a revenue ruling that sales of prescription glasses by an optician are subject to state sales and use tax, but service charges by an ophthalmologist or optometrist for patient services are not.

  • November 18, 2021

    Ark. Judge Denies Exemption For Farm Equipment

    An Arkansas man's purchase of farm equipment didn't qualify for a tax exemption because he didn't prove it was used exclusively or directly to produce food or fiber, an administrative law judge said.

  • November 18, 2021

    Wis. Bill Seeks To Exempt Pandemic Restaurant Grants From Tax

    Wisconsin would allow businesses that received restaurant revitalization grants as a result of the coronavirus pandemic to exclude the grants from state gross income under a bill introduced in the state Assembly.

Expert Analysis

  • 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.

  • NY Consumer Data And Digital Ad Tax Bills Face Big Hurdles

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    Two recently proposed New York bills — one imposing a tax on the collection of consumer data and another taxing digital advertising services — have many administrative and constitutional issues to resolve before they can be considered practical and passed into law, say attorneys at Bilzin Sumberg.

  • NY Solar Project Order Creates Uncertainty For Developers

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    A recent New York Public Service Commission order ending the requirement for separate deeds for tariff-supported solar projects is a major departure from the commission's prior orders, and raises new compliance and permitting questions for developers, say Kimberly Nason and Kaitlin Vigars at Phillips Lytle.

  • Pa. Tax Talk: Takeaways From 2 Commonwealth Court Rulings

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    A Pennsylvania appellate court's recent decision in Good Shepherd Rehabilitation v. Allentown sets a positive precedent for other nonprofits subject to Allentown's aggressive tax position, and its recent decision in Mandler v. Commonwealth offers a reminder that some taxes, including payroll withholding taxes, are never dischargeable in bankruptcy, says Jennifer Karpchuk at Chamberlain Hrdlicka.

  • Ohio Tax Talk: One Company's Trash Is Another's Exemption

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    The Ohio Supreme Court's recent decision in NAT Transportation v. McClain, allowing a trash hauling company to apply a transportation-for-hire tax exemption by finding that waste can constitute personal property of the disposer, provides taxpayers with a road map for claiming the exemption, say Christopher Tassone and Edward Rivin at Frost Brown.

  • 1st Amendment Questions After Maryland Billboard Tax Ruling

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    The Maryland high court's recent decision in Clear Channel v. Department of Finance of Baltimore, upholding a local excise tax on billboards against a First Amendment challenge, leaves open the possibility that state and local taxes on advertising businesses are unlikely to burden speech and are subject only to rational basis review, say attorneys at Pillsbury.

  • Texas Tax Talk: Sales Tax Sourcing And Court Access Issues

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    Texas taxpayers should focus on two consequential tax policy developments from this legislative session: the insufficient response to the Texas Comptroller of Public Accounts' controversial local sales tax sourcing regulation, and how changes to administrative appeal procedures may affect access to courts, say attorneys at Baker Botts.

  • Kentucky Tax Talk: Biz Expansion, COVID Relief Take Spotlight

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    In a rare off-year legislative session, the Kentucky General Assembly prioritized several tax initiatives to provide immediate assistance to struggling businesses and expand new industries, such as cryptocurrency mining, in a post-pandemic world, say attorneys at Frost Brown.

  • La. Tax Talk: Legislature Takes On Tax Reform

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    Louisiana taxpayers may see some needed tax improvements if the Legislature enacts major proposed reforms, like the long-overdue centralization of state and local sales and use tax collection, elimination of the antiquated corporation franchise tax, and reduction of income tax rates, say attorneys at Kean Miller.

  • Partial Repeal Could Resolve Biden's SALT Cap Dilemma

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    Lawmakers' calls to repeal the cap on federal deductions for state and local taxes are controversial because doing so could cost over $600 billion, but a partial repeal could be accomplished on a revenue-neutral basis, providing relief to some, if not most, affected taxpayers, says Joseph Mandarino at Smith Gambrell.

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