State & Local
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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May 03, 2024
Taxation With Representation: Skadden, Wachtell, Davis Polk
In this week's Taxation With Representation, L'Occitane International said its executive director and chair is leading an offer to buy the company's shares he doesn't already own, UMB Financial agreed to purchase Heartland Financial USA, Medline said it agreed to acquire Ecolab's global surgical solutions business and The Mosaic Co. said it agreed to sell its stake in a phosphate production joint venture.
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May 02, 2024
Calif. Bill Eyes Data Extraction Tax, Akin To Digital Ad Tax
California would levy the 7.25% state sales and use tax on large online companies with digital advertising revenue above $2.5 billion and would direct the tax revenue raised toward tax credits for local journalism outlets under a bill introduced by a key state senator.
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May 02, 2024
Fiserv Presses Fla. Appeals Court To Revive Tax Sourcing Suit
A Florida appeals court should overturn a lower court's dismissal of a tax sourcing challenge from Fiserv entities for failure to pay the contested amounts because state precedent doesn't allow the jurisdictional issue to negate the case, the companies argued.
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May 02, 2024
Mass. Property Is Agricultural, Appellate Board Says
A 14-acre property should be classified as agricultural, as the owner proved the land's main use was farming, the Massachusetts Appellate Tax Board said in a ruling released Thursday.
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May 02, 2024
Wyden Pushes Intuit To Help Users Get Refunds After Error
The Senate's top tax writer told Intuit's CEO that the company needs to help taxpayers in Oregon, the senator's home state, receive the full refunds they're entitled to after a reported error in its TurboTax product caused some Oregonians to overpay their state taxes.
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May 02, 2024
NY Assembly Bill Would Increase Tax Exemption For Clothing
New York would increase its tax exemption for items of clothing to $200 per item under a bill introduced in the state Assembly.
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May 02, 2024
Iowa Accelerates Transition To Flat Tax, Cuts Rate
Iowa is accelerating its transition to a flat individual income tax rate, slightly reducing the rate and extending the targeted jobs withholding credit, among other changes, under a tax omnibus signed by the governor.
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May 02, 2024
Nixon Peabody Adds Two Community Finance Attys In DC
Nixon Peabody LLP has hired two partners, who will focus their practices on helping nonprofits and other clients understand and obtain tax credits for a range of community development projects, to its community development finance practice in Washington, D.C., the firm announced Thursday.
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May 02, 2024
Colorado To Revise, Modernize Sales And Use Tax Statutes
Colorado will update the state's sales and use tax statutes and require more coordination between local taxing jurisdictions and the state Department of Revenue under legislation signed into law by Gov. Jared Polis.
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May 02, 2024
Iowa Creates Tax Break For Products Sold To Fairs
Iowa will provide a sales and use tax exemption for tangible personal property, digital products and services sold to a county or district fair and will designate such fairs as exempt entities under a bill signed by the governor.
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May 02, 2024
Mich. General Revenue Through March Drops $307M
Michigan's general revenue fund collection from October through March was down $307 million compared with the same period last year, the State Budget Office reported.
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May 02, 2024
W.Va. Revenues $637M Over Budget Forecast
West Virginia's general fund collections from July through April were $637.4 million ahead of budget estimates, according to the state budget office.
Expert Analysis
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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.
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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.
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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.
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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.
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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.
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Taxing The Internet And Remote Workers: SALT In Review
From a New York ruling against the taxing of internet services to an attack on Philadelphia's taxing of remote workers, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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How Cities Can Tackle Post-Pandemic Budgeting Dilemmas
Due to increasing office vacancies around the country, cities may consider politically unpopular actions to avoid bankruptcy, but they could also look to the capital markets to ride out the current real estate crisis and achieve debt service savings to help balance their budgets, say attorneys at Cadwalader.
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State Payroll Taxes Need Remote Work Reforms
To alleviate employer confusion around remote employee payroll tax, lower enforcement costs and better compete for top talent, states should allow a specific number of remote work days without withholding, simplify their administrative requirements and coordinate their tax policy reforms, say attorneys at Miller Canfield.
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Cannabis Supercenters: Key Benefits And Legal Issues
Barstow, California’s novel plan to convert an abandoned mall into a cannabis supercenter could offer a potential blueprint for cannabis companies to thrive in a saturated market and for communities to repurpose underutilized retail spaces — but certain financing, zoning and leasing issues will need to be assessed, says Christopher Gordon at Fox Rothschild.
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Taxing The Digital Economy: The Good, The Bad And The Ugly
U.S. tech companies should watch for important developments in international taxation, including the resolution of Apple's decade-old state aid case, growing frustration with the Organization for Economic Cooperation and Development's global tax plan and adoption of the digital services tax instead, says Joyce Beebe at Rice University's Baker Institute for Public Policy.
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Kentucky Tax Talk: Pros, Cons Of The SALT Cap Workaround
Recent legislation that allows pass-through entities to be taxed at the entity level — Kentucky’s response to the federal cap on state and local tax deductions — could result in significant savings for taxpayers, but whether it applies to sole proprietorships and other aspects of the law are unclear, say attorneys at Frost Brown.
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Big Tax Changes For Multinational Cos. In Budget Proposal
The Biden administration’s fiscal year 2024 budget proposes changes that would materially alter decades-old Internal Revenue Code provisions, requiring a shift in multinational corporations' tax planning strategies comparable to that required after enactment of the Tax Cuts and Jobs Act, say Xenia Garofalo and Kyle Colonna at Eversheds Sutherland.
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Home Seized, Tax Paid, Government Enriched: SALT In Review
From a Minnesota county's profit on a home seizure to a California proposal to raise corporate income taxes, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.