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State & Local

May 07, 2024
Calif. Solar Co.'s Tax Assessment Not Time Barred, OTA Says

The increased tax assessment on a California solar lighting company was not barred by the statute of limitations because the company and government failed to tell the state about the federal adjustment, the state Office of Tax Appeals ruled.
May 06, 2024
Unclaimed Property Class Action Against Pa. Treasurer Axed

A Pennsylvania federal judge has tossed a potential class action challenging the constitutionality of the state's unclaimed property law, finding that the state treasurer doesn't have to pay interest on property that was otherwise abandoned.
May 06, 2024
NJ Pitches Rule Allocating Tax On Nonresident Stock Options

New Jersey would create a formula for calculating a nonresident's state tax liability on compensation from stock options under a proposed regulation issued Monday.
May 06, 2024
NJ Justices Erase Gov't Workplace Probe Confidentiality Rule

The New Jersey Supreme Court on Monday struck down part of a state statute that directs investigators to request, but not require, confidentiality in discrimination or harassment investigations involving state workers, ruling the provision still reached too far and chilled protected speech.
May 06, 2024
Texas Net Revenue Down Through April, Comptroller Says

Texas' net revenue collection from September through April dropped compared with the same period last fiscal year, the state comptroller's office said in a monthly report.
May 06, 2024
Colo. Lawmakers OK Land Cleanup Tax Credit Extension

Colorado would extend its income tax credit for certain costs of environmental remediation of contaminated property for five years under legislation approved unanimously Monday by the state Senate and sent to the governor.
May 06, 2024
Wash. Woman Fights NJ Tax Bill Tied To Fed. Filing Status

A woman who lived in Washington state while married to a New Jersey resident challenged the latter state's assessment of income tax against her, arguing that the couple could file separately in the state even though they filed a joint federal return.
May 06, 2024
NJ Subdivision Assessment Spike Should Remain, Court Says

The property value of a city block bought and developed in New Jersey increased correctly based on the subdivision, the state Tax Court ruled, rejecting the property owner's argument that the assessment was wrong because the city forgot to set the new property lines.
May 06, 2024
Colo. Lawmakers OK Oil, Gas Fees Despite Tax Concerns

The Colorado Legislature passed a bill Monday under which the state would impose two fees on oil and gas production despite calls from lawmakers who said the proposal was structured to skirt limits on that body's taxing authority.
May 06, 2024
Minn. House OKs Tax Bill With Corp. Disclosure Rule

Minnesota would demand disclosure of certain corporate franchise tax information and examine the prospect of worldwide combined reporting under parts of an omnibus tax package passed by the state House of Representatives.
May 06, 2024
Fla. Changes Reporting Rules For 3rd-Party Payment Entities

Florida will require payment settlement entities such as PayPal or Apple Pay that conduct transactions involving payees with addresses in the state to create a method for identifying transactions for goods and services and report that information to the state tax department under a bill signed by Republican Gov. Ron DeSantis.
May 06, 2024
Miss. Will Impose Excise Tax On Heated Tobacco Products

Mississippi will impose an excise tax on heated tobacco products, targeting single-use electronic cigarettes under a bill signed by the governor.
May 06, 2024
Mo. Use Tax Applies To Ill. Co.'s Items Fabricated In State

An out-of-state pipe company owes Missouri use tax on materials that were delivered to a Missouri fabricator for modification before being shipped to an out-of-state customer, the state Department of Revenue said.
May 06, 2024
Mass. April Revenue Up 32% Over 2023

Massachusetts' revenue collection for the month of April was up 32% over April 2023, the state Department of Revenue said in a report.
May 06, 2024
RI Justices Rule Co. Waived Right To Appeal Tax Credit Loss

A Rhode Island real estate company forfeited its right to protest the state Division of Taxation's determination revoking its historic preservation tax credits by signing a settlement agreement, the state Supreme Court said, overruling a lower court.
May 03, 2024
Informal Tax Guidance May Defy APAs, Panelists Say

How far states can go in adopting informal guidance without running afoul of administrative procedure acts is a vexing question that has prompted significant litigation, panelists said Friday.
May 03, 2024
Ohio Justices Urged To Uphold Tax On Goods Held In State

Ohio's imposition of its gross receipts tax on a Kansas-based soap company's goods that were temporarily held in Ohio distribution centers before being shipped elsewhere passes constitutional muster, the state Department of Taxation told the Ohio Supreme Court.
May 03, 2024
Tenn. Expands Sales And Use Tax Exemption For Data Centers

Tennessee expanded a sales and use tax exemption for qualified data centers under a bill signed by the governor.
May 03, 2024
IRS Expects Updates To Hydrogen Credit Emissions Model

The Internal Revenue Service expects the U.S. Department of Energy to update a model used to determine eligibility for the new clean hydrogen production tax credit under recently proposed rules, an IRS attorney said Friday.
May 03, 2024
Hawaii Legislature OKs Adjusting Tax Brackets For Inflation

Hawaii would adjust its income tax brackets and increase its standard deduction to account for inflation under a bill sent to the governor for approval.
May 03, 2024
Iowa Tax Dept. Won't Rule On Payments' Deduction Eligibility

The Iowa Department of Revenue refused to issue a decision on whether installment payments to employee-shareholders of various companies resulting from the sale of certain stock qualify for a capital gain deduction for state income tax purposes, finding the matter would be better resolved through rulemaking.
May 03, 2024
Ark. Net General Revenue Down From Last Fiscal Year

Arkansas' net general revenue through April was down 5.5% from the total at the same point last fiscal year, the state Department of Finance and Administration said in a memorandum.
May 03, 2024
Colo. Senate Panel Clears Oil And Gas Fees

Colorado would create oil and gas production fees as part of a bill advanced by the Senate Finance Committee, but detractors said the fees would amount to a tax that would increase energy costs.
May 03, 2024
Mo. Says Agent's Purchases For Exempt Entities Aren't Taxed

An agent of organizations that are exempt from Missouri taxes doesn't need to collect and remit sales tax on purchases of food or sales of meals on their behalf, the state Department of Revenue said.
May 03, 2024
Kansas' April Revenue Beats Estimates By 8%

General revenue for Kansas in April was approximately 8% above estimates at $1.42 billion, the governor reported in a news release.

Expert Analysis

Attorneys' Busiest Times Can Be Business Opportunities

Attorneys who resolve to grow their revenue and client base in 2024 should be careful not to abandon their goals when they get too busy with client work, because these periods of zero bandwidth can actually be a catalyst for future growth, says Amy Drysdale at Alchemy Consulting.
How Attorneys Can Be More Efficient This Holiday Season

Attorneys should consider a few key tips to speed up their work during the holidays so they can join the festivities — from streamlining the document review process to creating similar folder structures, says Bennett Rawicki at Hilgers Graben.
5 Trends To Watch In Property And Casualty Class Actions

In 2023, class action decisions have altered the landscape for five major types of claims affecting property and casualty insurers — total loss vehicle valuation, labor depreciation, other structural loss estimating theories, total loss vehicle tax and regulatory fees, and New Mexico's uninsured and underinsured motorist coverage sale requirements, say Mark Johnson and Mathew Drocton at BakerHostetler.
A Bold Idea And A Striking Disregard: SALT In Review

From a far-reaching proposal in Nebraska to a Minnesota government agency's disregard of case law, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
5 Traps To Avoid When Selling CRE In Las Vegas Area

When dealing with commercial real estate in Clark County, Nevada — which includes the Las Vegas metro area — even sophisticated sellers may be ensnared by a myriad of tricky issues, ranging from transfer tax nuances to arbitration laws, says Chris Walther at Fennemore Craig.
How Clients May Use AI To Monitor Attorneys

Excerpt from Practical Guidance

Artificial intelligence tools will increasingly enable clients to monitor and evaluate their counsel’s activities, so attorneys must clearly define the terms of engagement and likewise take advantage of the efficiencies offered by AI, says Ronald Levine at Herrick Feinstein.
The Pop Culture Docket: Judge D'Emic On Moby Grape

The 1968 Moby Grape song "Murder in My Heart for the Judge" tells the tale of a fictional defendant treated with scorn by the judge, illustrating how much the legal system has evolved in the past 50 years, largely due to problem-solving courts and the principles of procedural justice, says Kings County Supreme Court Administrative Judge Matthew D'Emic.
Breaking Down High Court's New Code Of Conduct

The U.S. Supreme Court recently adopted its first-ever code of conduct, and counsel will need to work closely with clients in navigating its provisions, from gift-giving to recusal bids, say Phillip Gordon and Mateo Forero at Holtzman Vogel.
Legal Profession Gender Parity Requires Equal Parental Leave

To truly foster equity in the legal profession and to promote attorney retention, workplaces need to better support all parents, regardless of gender — starting by offering equal and robust parental leave to both birthing and non-birthing parents, says Ali Spindler at Irwin Fritchie.
'Manufacturing' Amid Mass. Adoption Of Single-Sales Factor

Massachusetts’ recent adoption of single-sales-factor apportionment will benefit companies that have a greater in-state physical presence, reinforce the importance of understanding market-sourcing rules, and reduce the manufacturing classification's importance to tax apportionment, though the classification continues to be significant to other aspects of taxation, say attorneys at McDermott.
An Unsound Silence: SALT In Review

From the U.S. Supreme Court's silence on an apportionment ruling to the latest assault on streaming services, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
A Year-End Look At Florida's Capital Investment Tax Credit

Notwithstanding the Walt Disney Co.’s feud with Gov. Ron DeSantis this year, Florida's capital investment tax credit will continue to make the state a favored destination for large corporations, particularly in light of the new federal alternative minimum tax and the Pillar Two top-up tax, says Alan Lederman at Gunster.
Understanding Discovery Obligations In Era Of Generative AI

Excerpt from Practical Guidance

Attorneys and businesses must adapt to the unique discovery challenges presented by generative artificial intelligence, such as chatbot content and prompts, while upholding the principles of fairness, transparency and compliance with legal obligations in federal civil litigation, say attorneys at King & Spalding.