State & Local
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April 30, 2024
Okla. Will Allow Making Pass-Through Election With Filing
A partnership or S corporation in Oklahoma will be able to make the election to be taxed as a pass-through entity by filing a timely income tax return under a bill signed by the governor.
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April 30, 2024
Maine Gov. Vetoes Plan For New Top Income Tax Bracket
Maine's governor vetoed legislation that would have created a new tax bracket for high-income earners and expanded the tax bracket for the state's lowest income tax rate.
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April 30, 2024
Okla. Removes Limit On Industrial Development Tax Credit
Oklahoma will expand a tax credit for qualified economic development expenditures in industrial parks, removing a limit on the credit, under a bill signed by the governor.
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April 30, 2024
Va. Tax Head Says Some Corp. Fees Not Subject To Add-Back
A corporation filing a combined return for its affiliates in Virginia should have its exception to the state's add-back increased because buyer service fees should not be included in royalty expenses, the state tax commissioner ruled.
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April 30, 2024
IRS Rejects Arizona's Effort To Exempt State Tax Rebates
The state of Arizona can't sue the federal government to litigate the personal claims of its taxpayers, the Internal Revenue Service told a federal court in an effort to dismiss a bid by the state to exempt state tax rebates from federal income taxes.
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April 30, 2024
Va. Tax Head Orders Adjustment Of Liability Over NJ Rule
A corporation with affiliates filing in Virginia should have its corporate income tax liability adjusted because the amount of tax the affiliates paid to New Jersey was higher due to a state rule, the Virginia tax commissioner said.
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April 30, 2024
The Tax Angle: TCJA Teams, Dear Colleague Letters
From a look at House GOP efforts to prepare for next year's expiration of their 2017 tax overhaul to ongoing attempts by lawmakers to draw attention and support for their own tax legislation, here's a peek into a reporter's notebook on a few of the week's developing tax stories.
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April 30, 2024
NYC Judge Upholds Hotel Taxes On Apartment Subleases
A company that leased residential apartments in New York City is liable for more than $200,000 in disputed hotel taxes on short-term subleases of the units, an administrative law judge found.
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April 30, 2024
Va. Mining Co. Can Appeal Refund Denial, Commissioner Says
A mining company that operated in Virginia can move forward with an appeal of a county's denial of a machinery and tools tax refund, the state's tax commissioner ruled.
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April 30, 2024
Ind. Dept. Drops Transaction Threshold From Nexus Rules
The Indiana Department of Revenue issued updated guidance Tuesday to reflect legislation that removed a 200-transaction threshold from the state's rules for determining sales tax nexus for remote sellers.
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April 30, 2024
MTC To Tweak Draft Rule On Sourcing Trucking Receipts
A Multistate Tax Commission work group is revising a draft rule that would provide states with an alternative method for sourcing receipts from trucking companies and is aiming to have changes finalized in the coming months, the work group's chair said Tuesday.
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April 30, 2024
Calif. Tax Committee Puts Digital Ad Tax Bill On Hold
A California bill that would create a Maryland-style digital ad tax is on hold, tabled by a key committee.
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April 29, 2024
Vetoed Kan. Tax Cut Bill Falls One Vote Short Of Override
The Kansas Senate fell one vote short Monday in its attempt to override the governor's veto of legislation that sought to cut taxes for individuals, banks and property owners, with some Republicans joining Democrats who opposed the plan's estimated $460 million annual price tag.
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April 29, 2024
Ex-COO Of Mo. Charity Gets 3 Years For Bribing Officials
The former chief operating officer of a Missouri-based healthcare charity was sentenced to three years in prison Monday after admitting she and her husband, the charity's ex-chief financial officer, conspired to bribe elected officials in Arkansas, according to Missouri federal court documents.
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April 29, 2024
Calif. Senate OKs Eased Rules For SALT Cap Workaround
California would ease payment requirements for eligible business owners seeking to pay an elective pass-through entity tax to get around the federal cap on state and local tax deductions under a bill that passed the state Senate.
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April 29, 2024
Pa. Retirement Home Wants Ed Board Tax Challenge Nixed
The nonprofit owner of a retirement community in a suburb of Pittsburgh has filed a lawsuit against the local school board claiming that the board violated a soon-to-expire payment in lieu of taxes, or PILOT, agreement that was brokered almost 15 years ago.
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April 29, 2024
Colo. House OKs Sales Tax Break For Modular Homes
Modular and manufactured homes would be completely exempt from Colorado sales and use taxes under legislation passed Monday by the House of Representatives that also amends some tax credits and eliminates several unused ones.
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April 29, 2024
Ind. Co. Rightly Denied Additional Refund, Tax Dept. Says
An Indiana manufacturing company was correctly denied an additional sales tax refund for safety equipment and service contracts for computer software, according to a decision by the Department of Revenue.
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April 29, 2024
Colo. House OKs Agricultural Stewardship Tax Credits
Colorado farms and ranches using certain agricultural stewardship practices would be eligible for tax credits worth up to $300,000 under legislation passed Monday by the state House of Representatives.
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April 29, 2024
Wyo. Revenue Outpaces Forecast By $69M Through March
Wyoming general fund revenue through March exceeded a budget forecast by $69 million, according to a semiannual report by the state Consensus Revenue Estimating Group.
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April 29, 2024
Maine March Revenue Beats Budget Forecast By $20M
Maine net revenue collections from July through March was up $20.46 million from budget forecasts, according to a monthly report by the state Department of Administrative and Financial Services.
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April 29, 2024
Kan. Lawmakers Approve 10-Year Film Tax Credit Package
Kansas would create a 10-year income and sales tax incentive program for filmmakers under legislation approved Monday by the state House of Representatives that now heads to the governor.
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April 29, 2024
Minn. Tax Court Won't Change Medical Building Value Boost
The Minnesota Tax Court said it correctly increased the valuation of a medical building, rejecting the building owner's arguments that it improperly applied valuation approaches to the property in a previous decision.
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April 26, 2024
10th Circ. Says Colo. Tax Ballot Law Doesn't Compel Speech
A Colorado law requiring that financial impacts be included in the titles of some tax-related ballot initiatives does not cause "improperly compelled" speech, the Tenth Circuit said Friday, rejecting a conservative group's bid to block the law.
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April 26, 2024
Mich. Biz Groups Can't Block Corporate Transparency Act
A Michigan federal judge denied a group of small businesses immediate relief from the reporting requirements of a federal anti-money laundering law but voiced concerns about the law's privacy implications in a Friday bench ruling.
Expert Analysis
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The Pop Culture Docket: Judge Espinosa On 'Lincoln Lawyer'
The murder trials in Netflix’s “The Lincoln Lawyer” illustrate the stark contrast between the ethical high ground that fosters and maintains the criminal justice system's integrity, and the ethical abyss that can undermine it, with an important reminder for all legal practitioners, say Judge Adam Espinosa and Andrew Howard at the Colorado 2nd Judicial District Court.
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Permanence And Other Elusive Notions: SALT In Review
From a Michigan income tax that may or may not be permanent to a victory in court for online travel companies, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Newman Suspension Shows Need For Judicial Reform
The recent suspension of U.S. Circuit Judge Pauline Newman following her alleged refusal to participate in a disability inquiry reveals the need for judicial misconduct reforms to ensure that judges step down when they can no longer serve effectively, says Aliza Shatzman at The Legal Accountability Project.
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How And Why Your Firm Should Implement Fixed-Fee Billing
Amid rising burnout in the legal industry and client efforts to curtail spending, pivoting to a fixed-fee billing model may improve client-attorney relationships and offer lawyers financial, logistical and stress relief — while still maintaining profit margins, say Kevin Henderson and Eric Pacifici at SMB Law Group.
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How Law Firms Can Use Account-Based Marketing Strategies
Amid several evolving legal industry trends, account-based marketing can help law firms uncover additional revenue-generating opportunities with existing clients, with key considerations ranging from data analytics to relationship building, say Jennifer Ramsey at stage LLC and consultant Gina Sponzilli.
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Strategic Succession Planning At Law Firms Is Crucial
Senior partners' reluctance to retire, the rise of the nonequity partner tier and generational differences in expectations are all contributing to an increasing number of departures from BigLaw, making it imperative for firms to encourage retirement among senior ranks and provide clearer leadership pathways to junior attorneys, says Laura Leopard at Leopard Solutions.
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Potential Calamities, Greatly Exaggerated: SALT In Review
From fears of judicial upheaval to a tax break for space travel, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Maximizing Law Firm Profitability In Uncertain Times
As threats of an economic downturn loom, firms can boost profits by embracing the power of bottom-line management and creating an ecosystem where strategic financial oversight and robust timekeeping practices meet evolved client relations, says Shireen Hilal at Maior Strategic Consulting.
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Preparing Your Legal Department For Pillar 2 Compliance
Multinational entities should familiarize themselves with Pillar Two of the Organization for Economic Cooperation and Development’s BEPs 2.0 project and prepare their internal legal tracking systems for related reporting requirements that may go into effect as early as January, says Daniel Robyn at Ernst & Young.
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What Large Language Models Mean For Document Review
Courts often subject parties using technology assisted review to greater scrutiny than parties conducting linear, manual document review, so parties using large language models for document review should expect even more attention, along with a corresponding need for quality control and validation, say attorneys at Sidley.
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Participating In Living History Makes Me A Better Lawyer
My role as a baron in a living history group, and my work as volunteer corporate counsel for a book series fan association, has provided me several opportunities to practice in unexpected areas of law — opening doors to experiences that have nurtured invaluable personal and professional skills, says Matthew Parker at the Nebraska Department of Health and Human Services.
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Another Ark. Tax Cut And Chicago Transit: SALT In Review
From yet another income tax cut in Arkansas to proposed extra funding for Chicago transit, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Private Equity Owners Can Remedy Law Firms' Agency Issues
Nonlawyer, private-equity ownership of law firms can benefit shareholders and others vulnerable to governance issues such as disparate interests, and can in turn help resolve agency problems, says Michael Di Gennaro at The Law Practice Exchange.