State & Local

Expert Analysis

• 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.

• 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.

• 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.

• Chapter 100 Incentives Can Offer Relief For Mo. Solar Projects

  

  Although the Missouri Supreme Court's decision last year in Johnson v. Springfield Solar 1 overturned the state's tax exemption for solar energy systems, solar developers may still be able to use other mechanisms, like Chapter 100 incentives, to offset project costs, say Lizzy McEntire and Anna Kimbrell at Husch Blackwell.

• Now Is The Time For State And Local Sales Tax Simplification

  

  In the five years since the U.S. Supreme Court’s landmark decision in South Dakota v. Wayfair, state and local governments increasingly rely on sales tax, but simple changes are needed to make compliance more manageable for taxpayers, wherever located, without unduly burdening interstate commerce, says Charles Maniace at Sovos.

• Connecticut Tax Cuts And Missouri Movies: SALT In Review

  

  From income tax cuts in Connecticut to film tax credits in Missouri, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

• What To Make Of IRS' New Advance Pricing Guidance

  

  Recent guidance on the IRS' goals for its advance pricing agreement system provides helpful insight into review and decision-making procedures for advance pricing agreement requests, but it also raises questions about the IRS' objectives, say Richard Slowinski and Stefanie Kavanagh at Alston & Bird.

• For NY Wind And Solar Projects, Some Tax Assessment Clarity

  

  Recent legislation, which moots a challenge to New York’s discounted cash flow method for assessing solar and wind project real property taxes, lifts a cloud of uncertainty and brings new considerations for developers, investors and lenders, say attorneys at Hodgson Russ.

• The Reciprocal Tax Bill Is A Warning Shot At Pillar 2

  

  A bill recently introduced in the House of Representatives to reciprocally tax countries deemed to have imposed discriminatory taxes on U.S. citizens and businesses takes aim at countries implementing the global minimum tax treaty known as Pillar Two, with which the U.S. has not complied, says Alan Cole at the Tax Foundation.

• Cost To Gov't Means Justices Must Review NC Sales Tax Case

  

  The U.S. Supreme Court should review and overrule the North Carolina high court’s decision in Quad Graphics v. North Carolina Department of Revenue — an anticipatory overruling of precedent that expands the state sales tax base and imposes a stealth tax on the federal government, says Richard Pomp at the University of Connecticut Law School.

• Potential Risks And Benefits Of NY Cannabis Crop Rescue Act

  

  Though proposed legislation in New York would help struggling cannabis farmers by allowing them to sell their crops directly to consumers, it poses numerous challenges for retailers and the state’s regulatory framework — and striking the right balance here will be crucial to shaping a sustainable, equitable industry, say Meaghan Feenan and William Wolfe at Harris Beach.

• La. Franchise Tax, Minn. Home Seizure: SALT In Review

  

  From a proposal to phase out Louisiana's corporate franchise tax to the U.S. Supreme Court's ruling that a Minnesota county had no right to sell a woman's home for more than she owed, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

• How New York State Budget Will Affect Business Taxpayers

  

  The comprehensive state budget legislation recently finalized by New York Gov. Kathy Hochul and the state Legislature did not include some especially concerning tax proposals, but it will subject some state taxpayers to increased tax liability and lengthier appeals, say attorneys at McDermott.