State & Local
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March 12, 2024
Pike Test Could Solve Ill. Remote Seller Suit, Official Says
A little-used constitutional test could solve the issue of whether Illinois' policy of requiring retailers to base their sourcing methods on whether they are in-state or remote is unconstitutional, a Multistate Tax Commission official said Tuesday.
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March 12, 2024
Fla. Revenue Collection $74M Above Estimates
Florida's general revenue collection from July through January was $74 million higher than forecast, according to a monthly revenue report by the state's Office of Economic and Demographic Research.
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March 12, 2024
Md. Lowers Yearly Revenue Forecast By $120M
The Maryland Board of Revenue Estimates lowered reduced its revenue collection forecast for fiscal year 2024 by $120 million after lower-than-expected tax collections, according to a quarterly report.
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March 12, 2024
Tenn. Senate Panel OKs Corp. Tax Overhaul, Rebate
Tennessee corporations could see a $400 million annual franchise tax cut along with nearly $1.6 billion in potential refunds for past payments under legislation approved by a state Senate panel Tuesday.
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March 12, 2024
Colo. Dept. Says Out-Of-State Retailer May Collect Sales Tax
A retailer who makes sales into Colorado but whose business activities do not meet the statutory definition of doing business in the state may voluntarily collect sales taxes, the Colorado Department of Revenue said.
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March 12, 2024
Tenn. Senate Panel OKs Plan To Bar State Property Taxes
Tennessee voters could decide whether to constitutionally bar state property taxes under a resolution approved Tuesday by a Senate panel to advance the measure to next year's General Assembly.
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March 12, 2024
Mo. Senate Panel OKs Corp. Income Tax Rate Cuts
Missouri would cut its corporate income tax rate to 3.75% in 2025, and continue to cut the rate until it reaches 2.25% if certain revenue targets are hit, under a bill advanced by the Senate's tax committee.
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March 12, 2024
Colo. Lawmakers OK Multistate Online Insurance Tax Filing
Insurance companies in Colorado would be required to pay some taxes through a multistate third-party online application under legislation approved by the state Senate.
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March 12, 2024
Wyo. Ditches Transactions Sales Tax Threshold For Sellers
Wyoming will revoke the requirement for remote sellers who make more than 200 transactions to collect and remit sales tax, and clarify some sections of the state's sales tax statute as part of a bill signed by the governor
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March 12, 2024
Mo. Senate Panel OKs Phaseout Of Corp. Income Tax
A Missouri Senate committee advanced legislation that would phase out the state's corporate income tax by 2029, a plan that would lead to a roughly $900 million reduction in annual revenue when the tax is extinguished.
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March 12, 2024
La. House Bill Would Move Tax Board To Revenue Department
Louisiana's tax commission would become part of the state's Department of Revenue rather than an independent agency situated in the governor's office under a bill introduced in the state House of Representatives.
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March 12, 2024
La. Bill Would Nix Sales Taxes For Cars Brought Into State
Louisiana taxpayers would be exempt from paying local sales and use taxes on vehicles they had previously titled in another state under a bill introduced in the state House of Representatives.
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March 11, 2024
Sales Tax Pact Floats Nexus, Registration Advice For States
A Streamlined Sales Tax Governing Board council said Monday it is considering pushing states to provide remote sellers with at least 30 days to begin collecting sales tax after crossing economic nexus thresholds, and for gross sales to be the basis for calculating those thresholds.
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March 11, 2024
Sales Tax Pact Eyes New Tax Treatment For Digital Codes
States could collect tax on sales of digital codes that represent software, in-app purchases and non-fungible tokens at the time the code is sold under a proposal that a Streamlined Sales Tax Governing Board council debated Monday.
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March 11, 2024
Fewer NYC Rental Apartments' Tax Appeals Succeed
Property tax assessment appeals from rental apartment buildings in 2023 received the lowest number of reduction offers in a decade and accounted for half the number of offers in 2022, law firm Rosenberg & Estis PC said in a Monday statement.
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March 11, 2024
Tax Judge Struck By Lack Of Transparency From States
Transparency is a key consideration for judges deciding how much deference to give to the position of a taxing authority, a senior state tax court judge said Monday, noting she has been struck sometimes by a lack of transparency from state taxing agencies.
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March 11, 2024
Microsoft Win May Spark More Calif. Refunds, Pro Says
Businesses that have both activity in California and foreign source income should consider whether they should file for a refund in the wake of a recent decision by the state's Office of Tax Appeals in favor of Microsoft, a practitioner said Monday.
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March 11, 2024
Tax Pact Group Tweaks Liability Relief In Digital Goods Plan
States would not be required to provide liability relief to sellers of digital goods that collect the wrong amount of sales tax unless those sellers request a buyer's complete street address under a proposal discussed Monday by a Streamlined Sales Tax Governing Board council.
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March 11, 2024
Md. Biz Groups Hammer Bill To Expand Sales Tax To Services
A long lineup of business representatives attacked a $3 billion proposal before a Maryland House panel Monday to expand the state's sales tax to services while cutting its rate, saying the costs would trickle down to consumers and hurt the economy.
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March 11, 2024
Ore. Revenue Collection Up Almost $1B In 2023
Oregon increased its tax collection in fiscal year 2023 by roughly $1 billion compared with the previous year, according to a report from the state's Department of Revenue.
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March 11, 2024
Calif. Revenue Through Feb. Down $5.4B From Forecast
California's total receipts for July through February were $5.4 billion below the forecast in the governor's 2024-25 budget, according to the monthly report by the state controller.
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March 11, 2024
Trump Wants NY Trial Paused As Justices Weigh Immunity
Donald Trump asked a New York judge to pause his hush-money case to await a U.S. Supreme Court ruling in a separate case on whether he is shielded from criminal charges by presidential immunity.
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March 11, 2024
Mich. Justices Tell Panel To Revisit 'Robotic' Tax Ruling
A Michigan appellate panel must reconsider its decision to uphold the denial of a man's principal-residence tax exemption under the Michigan Supreme Court's order to gather more information about the evidence the tax tribunal considered, revisiting a decision one appellate judge labeled "robotic acceptance" of the government's evidence.
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March 11, 2024
Fla. Voters To Decide On Homestead Exemption Increase
Florida will have voters decide on a November ballot measure whether to create a constitutional amendment to index the homestead exemption to inflation under a joint resolution passed by state lawmakers.
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March 11, 2024
Minn. Senate Bill Would Boost Inheritance Tax Exclusion
Minnesota would boost its inheritance tax exclusion from $3 million to $7 million under legislation introduced Monday in the state Senate.
Expert Analysis
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Texas Tax Talk: Ruling May Erode Pro-Taxpayer Presumption
Following the recent Texas Supreme Court opinion in Hegar v. Health Care Service, the state comptroller may try to limit the utility of a long-standing presumption that ambiguous tax statutes must be construed strictly against the taxing authority and liberally for the taxpayer, say attorneys at Baker Botts.
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MTC Activity And Tax Rebates All Over: SALT In Review
From the highly active Multistate Tax Commission to tax rebates seemingly everywhere, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Emerging SALT Trends For Cryptocurrency And NFTs
Attorneys at Venable discuss trends in state and local tax with respect to cryptocurrency and non-fungible tokens, and the issues for purchasers, sellers and owners in this growing marketplace that SALT authorities must address.
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E-Cigarettes And Film Tax Credits: SALT In Review
From excise taxes on e-cigarettes across the land to a study that bolsters doubts about film tax credits, RSM US LLP's David Brunori offers his thoughts on noteworthy state and local tax news.
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Inside The OECD Transfer Pricing Documentation Guidance
Excerpt from Practical Guidance
The Organization for Economic Cooperation and Development's recently modified documentation guidelines can assist tax administrations in developing requirements for transfer pricing risk assessments and evaluations, and help multinational entity taxpayers demonstrate satisfaction of the arm's-length principle, says Neil Aragones at Lexis Tax.
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Calif. Tax Board Nonresident Asset Ruling Raises New Issues
The California Franchise Tax Board's recent ruling on whether a nonresident's disposition of a partnership interest gives rise to California-sourced income raises new issues for sourcing gain or loss using partnership apportionment factors where unrealized receivables and inventory are involved, says Eric Coffill at Eversheds Sutherland.
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Tech Co.'s Suit May Create Hurdles For Research Tax Credits
The recently filed U.S. Tax Court case Perficient v. Commissioner — challenging standards under research credit regulations that determine whether research is funded by any grant or contract — could make it difficult to substantiate research tax credits, say Dennis St. Martin and Kevin Benton at Grant Thornton.
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A Close Look At The Decentralized Effort To Tax Digital Assets
Clarity on taxation is one of the biggest hurdles to mass adoption of cryptocurrency, and although digital asset innovation has consistently outpaced worldwide government regulation, recent efforts in the U.S. and elsewhere hint at an emerging standard, says Joshua Smeltzer at Gray Reed.
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Kentucky Tax Talk: Speeding Up Public Service Co. Protests
Public service companies with Kentucky tax liability should consider the recent groundbreaking changes to the state’s protest procedures, particularly if they have protests pending that might be expedited in light of the new legislation, say attorneys at Frost Brown.
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Notes On Social Equity From A Former Cannabis Regulator
Duane Morris’ Matthew McCarthy, former lead prosecutor in regulatory enforcement actions at the Maryland Medical Cannabis Commission, shares observations on the multifaceted efforts by government and the cannabis business community to build a more equitable industry and foster diverse ownership, highlighting the role of data reporting and community outreach.
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Watching The Legal Sports Betting Ecosystem Take Shape
The number of U.S. states getting in on the recently legalized $4.29 billion sports-betting industry is on the rise, and stakeholders must be aware that the regulatory scheme looks dramatically different from state to state, say James Johnston and Louis DiLorenzo at Davis+Gilbert.
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How To Address Research Expenditures Amid Uncertainty
Taxpayers need to prepare for the significant technical and compliance challenges of following Internal Revenue Code Section 174's new rules for experimentation expenditure capitalization and amortization, notwithstanding the rules' unresolved legislative future, say tax advisers at Grant Thornton.
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Advising A Cannabis Business Amid Patchwork Of Regs
Excerpt from Practical Guidance
As the cannabis industry continues to grow, so does its widely varied patchwork of local, state and federal regulation, and practitioners should familiarize themselves with the specific rules on tax, real estate, intellectual property and banking applicable in the jurisdictions where their clients operate, say Patrick Hines and Fallon Martin at Hodgson Russ.