State & Local
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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.
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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.
Expert Analysis
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Tax Cuts In Both Dakotas: SALT In Review
From tax-cut proposals in the Dakotas to a New Mexico artist who tried to represent himself, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Kentucky Tax Talk: Where Art Thou Kentucky Amnesty?
Attorneys at Frost Brown unpack the reasons why Kentucky's tax amnesty program never got off the ground this year, why implementation in 2023 won't be impeded by similar hurdles and how administration of the program may affect other Department of Revenue services once it gets going.
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5 Proof Of Domicile Takeaways From Calif. Tax Appeals Ruling
The California Office of Tax Appeals' recent Beckwith decision, which boiled down to a dispute over when a taxpayer moved from Tennessee to California for income tax purposes, provides valuable lessons on the evidence needed to establish the ties and intent that underlie tax domicile and residence, says Eric Coffill at Eversheds Sutherland.
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The Tax Comity Doctrine And Other Oddities: SALT In Review
From the little-known tax comity doctrine to governments' continuing pursuit of streaming services, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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State AGs Are Realizing Power Of False Claims Statutes
State attorneys general appear to be ramping up investigations, prosecutions and interventions using long-underappreciated state and municipal false claims statutes, and early indications signal an increasing focus on cybersecurity misrepresentations, private equity firms' misconduct and securities fraud, say attorneys at Troutman Pepper.
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Foreign Tax Credit Proposal Is Some Help, But More Is Needed
New foreign tax credit regulations proposed by the U.S. Treasury Department provided some measure of relief on cost recovery and royalty withholding, two of the most troublesome aspects of the 2021 final foreign tax credit regulations, but the final regulations are still harmful to many taxpayers, making litigation inevitable, say attorneys at Fenwick.
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Expect Seamless Transition To Controversial Ariz. Flat Tax
The unexpectedly early implementation of Arizona's new 2.5% flat income tax rate in January should be a painless and welcome change for individual taxpayers, even as the long-term impact on state and local economies is the subject of debate, say Karen Jurichko Lowell and Pat Derdenger at Lewis Roca.
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Tax Cuts Hither And Yon: SALT In Review
From proposed tax cuts in Mississippi and Montana to a new, voter-approved limit in Arizona, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Midterms And Powerball: SALT In Review
From the midterm election results to the latest Powerball winner, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Ohio Tax Talk: One Step Closer To Telework Income Tax Clarity
An Ohio court's recent ruling in Morsy v. Dumas that Cleveland must reimburse city tax on income an employee earned while she worked from another state during the pandemic is limited in the time period to which it applies, but may have important ramifications for the Ohio municipal income tax system as a whole, say Raghav Agnihotri and Rachael Chamberlain at Frost Brown.
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30 Years of TABOR: SALT In Review
From the anniversary of the Colorado Taxpayer's Bill of Rights to a Missouri barkeep whose tax obligations reached beyond the grave, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Rankings And Semiconductors: SALT In Review
From an annual ranking of states' business tax climates to yet another incentive package for the semiconductor industry, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Making The Most Of New Tax Credits For EV Charging Stations
The Inflation Reduction Act recently extended, expanded and renewed the tax credits available for electric vehicle charging station projects — but developers must navigate new challenges, including geographic and prevailing wage requirements, to take full advantage of the updated credits, says James English at Clark Hill.