State & Local
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May 10, 2024
Ill. Remote Seller Rules Violate Wayfair, Calif. Seller Claims
A California-based business argued that Illinois' remote seller system presents unconstitutional burdens, telling the state tax tribunal that Illinois' varying sourcing rules and the quick pace by which it adopted economic nexus violate the U.S. Constitution's commerce clause.
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May 10, 2024
Nev. Tax Commission Floats Updated Regs For Remote Sellers
Nevada would clarify sales tax collection requirements imposed on remote sellers, marketplace sellers and marketplace facilitators under regulatory changes proposed by the state Tax Commission.
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May 10, 2024
Newsom Says No Tax Increases Planned In Calif. Budget
California would not increase taxes or impose new taxes under a revised budget plan presented Friday by Democratic Gov. Gavin Newsom.
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May 10, 2024
Ore. Court Drops Tax Value Of Rural Property
The Oregon Tax Court lowered the real market valuation of a rural property with outbuildings used for storage of a car collection, relying partially on the owner's cost approach to the value.
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May 10, 2024
Miss. To Lower Sales Tax Rate For Oil Cos.' Purchases
Mississippi will reduce the sales tax rate for equipment and services used to drill, survey or explore for oil, natural gas and other minerals to 4.5% as part of a bill signed by the governor.
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May 10, 2024
Colo. Lawmakers OK Quantum Tech Investment Tax Credits
Colorado would create a pair of tax credits to promote investment in quantum technology development facilities by entities receiving certain federal grants under legislation passed by the state Senate and heading to the governor.
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May 10, 2024
NY Senate Bill Seeks Excise Tax On To-Go Alcohol
New York would impose a 5% excise tax on sales of to-go alcoholic drinks under a bill introduced in the state Senate, with funds from the tax to be put toward substance use education and treatment programs.
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May 10, 2024
SD General Revenues Through April Up $24M Over Estimates
South Dakota's general revenue collection was up roughly $24 million over budget estimates from July through April, according to a monthly report by the state Bureau of Finance and Management.
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May 10, 2024
Use Of AI For Tax Comment Letters Poses Ethical Quandaries
While artificial intelligence can streamline the process of conducting a comprehensive review of complex, IRS-proposed federal tax regulations, tax attorneys must be aware of professional and ethical considerations when using it to help draft comment letters to submit to the agency.
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May 10, 2024
Mo. Net Revenue Collection Through April Up $280M
Missouri's net general revenue collection from July through April was $280 million higher than in the previous fiscal year, according to a report by the state Office of Administration, Division of Budget and Planning.
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May 10, 2024
Colo. Lawmakers OK MTC Method For Corp. Tax Reporting
Colorado would conform its method for determining the makeup of a combined corporate group with Multistate Tax Commission standards under legislation approved by lawmakers and sent to Democratic Gov. Jared Polis.
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May 10, 2024
Pa.'s General Revenue Collection Beat Estimates By $739M
Pennsylvania's general fund revenue from July through April was $739 million higher than budget estimates, according to a monthly report released Friday by the state Department of Revenue.
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May 10, 2024
Colo. Lawmakers OK $700M Child Tax Credit
Colorado's lawmakers have approved legislation to create a child tax credit worth about $700 million annually and sent the bill to Democratic Gov. Jared Polis.
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May 10, 2024
The Week In Trump: All Eyes On NY As Other Cases Lag
Donald Trump's Manhattan hush money trial took center stage with dramatic testimony from adult film actress Stormy Daniels, while the former president's criminal cases in Georgia and Florida ran into delays that could last through Election Day.
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May 09, 2024
Court Split Warrants Review Of Philly Credits, Justices Told
A split among state courts over whether state and local taxes must be aggregated when evaluating their constitutionality is more significant than Philadelphia has suggested, a city resident told the U.S. Supreme Court on Thursday in seeking review of the city's refusal to credit her taxes paid to Delaware.
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May 09, 2024
Okla. To End Moratorium On Local Sales Tax Hikes On Food
Oklahoma will end a moratorium barring counties and municipalities from increasing local sales taxes on food under a bill signed by the governor.
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May 09, 2024
Iowa Streamlines Abandoned Property Delivery To Owners
Iowa streamlined its procedure for the delivery of abandoned property by allowing the state treasurer to deliver such property directly to a person determined to be its owner under a bill signed by the governor.
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May 09, 2024
NY Tribunal Affirms Couple Can't Claim Real Estate Deduction
A New York couple was correctly denied a real estate deduction on their personal income tax returns because the husband didn't qualify as a real estate professional, the state Tax Appeals Tribunal affirmed in a decision released Thursday.
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May 09, 2024
Mass. Tax Board Axes Home's Value Based On Similar Sales
A Massachusetts home was overvalued, the state Appellate Tax Board ruled, finding evidence of comparable sales presented by the homeowner to be persuasive.
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May 09, 2024
Ala. To Give Employers Tax Credit For Offering Child Care
Alabama employers that offer a child care facility for their employees will be able to claim an income tax credit up to $600,000 per year under a bill enacted by the governor Thursday.
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May 09, 2024
Ore. Tax Court Drops Valuation Of Mobile Home Park
An Oregon mobile home park should be reduced in value from $2.3 million to $1.7 million because an income analysis presented by the owners reflected the property's real market value better than a local assessor's method, the state's tax court said.
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May 09, 2024
Colo. Lawmakers Approve Extended Property Tax Cuts
Colorado would extend its current temporary property tax rate reductions into 2024 and would lower tax rates for future years under legislation passed by Colorado lawmakers that could save property owners about $1 billion in its first year.
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May 09, 2024
Va. Cos.' Agent Can Add Info In Tax Suit, Commissioner Says
A taxpayer who served as the buying agent for companies that provide mobile communications services to customers in Virginia may offer additional documentation to resolve a disputed retail sales and use tax assessment that resulted from an audit, the state tax commissioner said.
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May 09, 2024
NYC Pizzeria Owes Sales Tax On Bulk Sale Purchase Of Biz
A New York City pizzeria is liable for sales tax owed to the state by a business it purchased, an administrative law judge said in a determination released Thursday.
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May 09, 2024
Treasury's Energy Tax Credit Regs Leave Room For 'Chaining'
The U.S. Department of the Treasury has said it is prohibiting the practice known as chaining that links two new ways to monetize clean energy tax credits, but recent final rules governing the two methods left the door open to possible exceptions.
Calif. OTA In Untested Area On Ruling That Biz Wants Binding
A decision by California's Office of Tax Appeals that Microsoft can include 100% of the dividends from foreign affiliates in its California sales factor denominator pleased businesses, who now want the OTA to designate the opinion as precedential, thus binding on it and the state Franchise Tax Board.
Apple Tells Court Md. Digital Ad Tax Violates Federal Law
Maryland's tax on digital advertising unlawfully discriminates against electronic commerce and violates the commerce clause of the U.S. Constitution, Apple told the Maryland Tax Court during oral arguments Thursday.
Calif. Senate Committee Recommends Data Extraction Tax
California would levy its 7.25% state sales and use tax on large online companies with digital advertising revenue above $2.5 billion and use the tax revenue to fund a credit regime for local news outlets under a bill passed by a Senate committee Wednesday.
Editor's Pick
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Law360 Revenue Report Map Tracks Health Of State Coffers
As state coffers fluctuate because of federal pandemic aid drying up, demographics shifting and remote work becoming commonplace, Law360 Tax Authority is providing up-to-date coverage on state tax revenue with the launch of its Revenue Report Map.
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Nev. Sales Tax Revenue In Jan. Rises $23.8M From Last Year
Nevada brought in $23.8 million more in sales tax revenue in January than in the same month last year, the state Department of Taxation said in a monthly report.
Featured Stories
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Use Of AI For Tax Comment Letters Poses Ethical Quandaries
While artificial intelligence can streamline the process of conducting a comprehensive review of complex, IRS-proposed federal tax regulations, tax attorneys must be aware of professional and ethical considerations when using it to help draft comment letters to submit to the agency.
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Calif. OTA In Untested Area On Ruling That Biz Wants Binding
A decision by California's Office of Tax Appeals that Microsoft can include 100% of the dividends from foreign affiliates in its California sales factor denominator pleased businesses, who now want the OTA to designate the opinion as precedential, thus binding on it and the state Franchise Tax Board.
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Treasury's Energy Tax Credit Regs Leave Room For 'Chaining'
The U.S. Department of the Treasury has said it is prohibiting the practice known as chaining that links two new ways to monetize clean energy tax credits, but recent final rules governing the two methods left the door open to possible exceptions.
Expert Analysis
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E-Discovery Quarterly: Recent Rulings On Text Message Data
Electronically stored information on cellphones, and in particular text messages, can present unique litigation challenges, and recent court decisions demonstrate that counsel must carefully balance what data should be preserved, collected, reviewed and produced, say attorneys at Sidley.
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Kentucky Tax Talk: Budget Focus Cools Tax Reform Efforts
There were some noteworthy tax developments during Kentucky’s legislative session — like the revival of local tax reform and enactment of another tax amnesty program — but major tax initiatives, like those seen in recent years, were largely tabled as legislators focused on establishing the state’s two-year budget, say attorneys at Frost Brown.
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NY Tax Talk: Primary Function Is Key Analysis For Sales Tax
Two sales tax cases recently decided by New York's Appellate Division illustrate why both taxpayers and the state's Department of Revenue subscribe to the primary function test, a logical way to determine whether business transactions are subject to sales tax, say Elizabeth Cha and Jeremy Gove at Eversheds Sutherland.
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Time To Fix NYC's Broken Property Assessment System
A New York appellate court's decision to revive Tax Equity Now New York v. City of New York may force the city to revamp its outdated and unfair real estate tax assessment system, which could be fixed with a couple of simple changes, says Seth Feldman at Romer Debbas.
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Strange Notions Bubble Up: SALT In Review
From an assault on North Carolina's phaseout of its corporate income tax to a court ruling on the taxability of sparkling water in Pennsylvania, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Don't Use The Same Template For Every Client Alert
As the old marketing adage goes, consistency is key, but law firm style guides need consistency that contemplates variety when it comes to client alert formats, allowing attorneys to tailor alerts to best fit the audience and subject matter, says Jessica Kaplan at Legally Penned.
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Think Like A Lawyer: Follow The Iron Rule Of Trial Logic
Many diligent and eager attorneys include every good fact, point and rule in their trial narratives — spurred by the gnawing fear they’ll be second-guessed for leaving something out — but this approach ignores a fundamental principle of successful trial lawyering, says Luke Andrews at Poole Huffman.
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The Art Of Asking: Leveraging Your Contacts For Referrals
Though attorneys may hesitate to ask for referral recommendations to generate new business, research shows that people want to help others they know, like and trust, so consider who in your network you should approach and how to make the ask, says Rebecca Hnatowski at Edwards Advisory.
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4 Ways To Refresh Your Law Firm's Marketing Strategy
With many BigLaw firms relying on an increasingly obsolete marketing approach that prioritizes stiff professionalism over authentic connection, adopting a few key communications strategies to better connect with today's clients and prospects can make all the difference, say Eric Pacifici and Kevin Henderson at SMB Law.
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Consider 2 Alternative Exit Plans In RE Distress Scenarios
In the face of an impending wave of foreclosures, lenders and borrowers alike should consider two exit strategies — deed-in-lieu of foreclosure and consent foreclosure — that can mitigate potential costs and diminution in property value that could be incurred during a lengthy proceeding, say attorneys at BCLP.
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SC's Courts Have It Wrong On Amazon Marketplace Sales Tax
The South Carolina Supreme Court should step in and correct the misguided change in tax law effectuated by lower court rulings that found Amazon owes state sales tax for marketplace sales made prior to the U.S. Supreme Court’s Wayfair v. South Dakota decision in 2018, says Hayes Holderness at the University of Richmond.
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Constitutional Shenanigans And Other Sports: SALT In Review
From a challenge to New York's end run on a federal law to voters' rejection of a sales tax that would aid Kansas City's major league teams, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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This Earth Day, Consider How Your Firm Can Go Greener
As Earth Day approaches, law firms and attorneys should consider adopting more sustainable practices to reduce their carbon footprint — from minimizing single-use plastics to purchasing carbon offsets for air travel — which ultimately can also reduce costs for clients, say M’Lynn Phillips and Lisa Walters at IMS Legal Strategies.