State & Local

State & Local Tax Takeaways From July

Maria Koklanaris
Senior Tax Correspondent

From litigation in state high courts to an exemption for capital gains in Missouri and state and federal communication about the new tax overhaul law, July was a hot month in the state and local tax arena. Here, Law360 looks at these and other highlights from last month.

New Int'l Tax Rules Heighten Discrimination Worries In States

Paul Williams
Tax Correspondent

The new federal tax law's broader tax base for international income could magnify foreign commerce discrimination concerns that are already present in states that conformed to prior iterations of the federal tax code.

Tax Overhaul Is Mixed Bag For Interest Expense Deductions

Natalie Olivo
Senior Tax Correspondent

Companies that are eager to increase their interest expense deductions under the new federal tax overhaul may end up with a smaller tax break than expected due to how the law factors their foreign income into the deduction calculation.

Taxpayers Face Tough Choices Under NJ's New Nexus Rules

Though New Jersey’s new rules expanding the commercial nexus that triggers state taxation are likely to be challenged, businesses still need to carefully consider whether it’s best to minimize potential tax by reducing online customer support services or maintain their current instate services and begin paying tax, say attorneys at Husch Blackwell.

Bar Exam Reform Must Expand Beyond A Single Updated Test

Recently released information about the National Conference of Bar Examiners’ new NextGen Uniform Bar Exam highlights why a single test is not ideal for measuring newly licensed lawyers’ competency, demonstrating the need for collaborative development, implementation and reform processes, says Gregory Bordelon at Suffolk University.

A Simple Way Courts Can Help Attys Avoid AI Hallucinations

As attorneys increasingly rely on generative artificial intelligence for legal research, courts should consider expanding online quality control programs to flag potential hallucinations — permitting counsel to correct mistakes and sparing judges the burden of imposing sanctions, say attorneys at Lankler Siffert & Wohl and Connors.

New NY Residential Real Estate Rules May Be Overbroad

New legislation imposing a 90-day-waiting period and tax deduction restrictions on certain New York real estate investors may have broad effects and unintended consequences, creating impediments for a wide range of corporate and other transactions, says Libin Zhang at Fried Frank.

Budget Act's Deduction Limit Penalizes Losing Gamblers

A provision in the One Big Beautiful Bill Act that reduces the deduction for gambling losses is unfair to professional and recreational players, risks driving online activity to offshore sites, and will set back efforts to legalize and regulate the industry, says Walter Bourdaghs at Kang Haggerty.

The Legal Education Status Quo Is No Longer Tenable

As underscored by the fallout from California’s February bar exam, legal education and licensure are tethered to outdated systems, and the industry must implement several key reforms to remain relevant and responsive to 21st century legal needs, says Matthew Nehmer at The Colleges of Law.

6 Questions We Should Ask About The Trump Trade Deals

Whenever the text becomes available, certain questions will help determine whether the Trump administration’s trade deals with U.S. trading partners have been crafted to form durable economic relationships, or ephemeral ties likely to break upon interpretive disagreement or a change in political will, says Ted Posner at Baker Botts.

E-Discovery Quarterly: Rulings On Relevance Redactions

In recent cases addressing redactions that parties sought to apply based on the relevance of information — as opposed to considerations of privilege — courts have generally limited a party’s ability to withhold nonresponsive or irrelevant material, providing a few lessons for discovery strategy, say attorneys at Sidley.

A Bad Idea, And Another, And Another: SALT In Review

From a proposed false claims act in Pennsylvania to a possible repeal of property taxes in Texas, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

Section 1983 Has Promise After End Of Nationwide Injunctions

After the U.S. Supreme Court recently struck down the practice of nationwide injunctions in Trump v. Casa, Section 1983 civil rights suits can provide a better pathway to hold the government accountable — but this will require reforms to qualified immunity, says Marc Levin at the Council on Criminal Justice.

Playing Soccer Makes Me A Better Lawyer

Soccer has become a key contributor to how I approach my work, and the lessons I’ve learned on the pitch about leadership, adaptability, resilience and communication make me better at what I do every day in my legal career, says Whitney O’Byrne at MoFo.

Adapting To Private Practice: From ATF Director To BigLaw

As a two-time boomerang partner, returning to BigLaw after stints as a U.S. attorney and the director of the Bureau of Alcohol, Tobacco, Firearms and Explosives, people ask me how I know when to move on, but there’s no single answer — just clearly set your priorities, says Steven Dettelbach at BakerHostetler.

Playing Baseball Makes Me A Better Lawyer

Playing baseball in college, and now Wiffle ball in a local league, has taught me that teamwork, mental endurance and emotional intelligence are not only important to success in the sport, but also to success as a trial attorney, says Kevan Dorsey at Swift Currie.