State & Local

  • September 22, 2021

    Tobacco Blend Cos. Sue Calif.'s Tax Tribunal Over Rehearing

    Judges on California's tax tribunal used a "fabricated contrary-to-law standard" to overturn the opinion of judicial colleagues in a $2.8 million refund case, granting a rehearing to a state tax agency that was to issue the refund, a lawsuit says.

  • September 22, 2021

    Texas Senate Advances Temporary Property Tax Cut

    The Texas Senate advanced legislation Wednesday that would use some of the state's projected budget surplus to reduce property taxes temporarily.

  • September 22, 2021

    Treasury Urges 6th Circ. To Reverse Tax-Cut Limit Injunction

    The U.S. Treasury urged the Sixth Circuit to reverse an injunction barring the America Rescue Plan's clawback provision from being enforced against Ohio, saying the provision and later rulemaking were proper exercises of the federal government's power.

  • September 22, 2021

    Retailer B&H Escapes NY AG's $7.3M Tax Dodge Suit

    A New York state court dismissed a $7.3 million tax whistleblower suit brought by the state attorney general against Manhattan-based B&H Foto, finding the photography retailer's "instant savings" program transactions aren't manufacturer coupons subject to sales tax.

  • September 22, 2021

    Mich. Bills Would Expand Eligibility For Data Center Tax Breaks

    Michigan would expand the definition of data centers that are eligible for sales and use tax exemptions under two bills introduced in the state House of Representatives.

  • September 21, 2021

    Trump Sues Niece, NYT For $100M Over Tax Record 'Crusade'

    Former President Donald Trump sued The New York Times, several of its reporters and his niece for at least $100 million in New York state court on Tuesday, saying they publicly revealed his confidential tax records in an effort to make money and "advance their political agenda."

  • September 21, 2021

    Pa. Panel Upholds Town's 7% Tax Rate On Off-Road Park

    A Pennsylvania off-road park is subject to a township's 7% amusement tax rate, the state Commonwealth Court ruled Tuesday in a precedential decision, finding the rate was grandfathered in under a state law capping new local amusement taxes.

  • September 21, 2021

    Calif. Tribe Drops Suit Over County's Casino Tax Plan

    The Buena Vista Rancheria of Me-Wuk Indians and a California county have agreed to end their dispute in federal court over a contract the tribe said was unlawful because it created an unfair tax arrangement for its recently built casino.

  • September 21, 2021

    Md. Digital Tax Does Not Violate ITFA, Tax Profs Say

    Digital advertising substantially differs from nondigital advertising because of the way the advertising interacts with users, and thus Maryland's taxation of it does not violate a federal law that prohibits discriminatory taxation of digital products, two tax law professors said.

  • September 21, 2021

    Tobacco Co. Owes NJ $1.4M In Tax Add-Back Row, Panel Says

    A New Jersey appeals court reversed a state tax court opinion Tuesday and found the state tax division properly rejected a tobacco company's deductions of $1.4 million in royalty payments to a subsidiary it added back to its net income.

  • September 21, 2021

    W.Va. Streaming Tax To Face Compact Compliance Challenge

    The business community plans to challenge West Virginia's compliance with the Streamlined Sales and Use Tax Agreement over the state tax agency's announcement that streaming services are taxable under existing statutes, a software industry representative told Law360 on Tuesday.

  • September 21, 2021

    Holland & Knight, RSM Win Pause Of Fund's Negligence Suits

    A New Jersey appeals court on Tuesday paused an investor fund's suits against Holland & Knight, RSM and others alleging faulty advice led to millions in additional federal taxes, saying the cases should wait for the U.S. Tax Court's input.

  • September 21, 2021

    NY Bill Would Give Penalty Relief To Small Rental Businesses

    New York would allow taxing jurisdictions to opt out of assessing penalties and fees for small rental businesses economically impacted by the pandemic under a bill introduced in the state Senate.

  • September 20, 2021

    States Could Adopt Online Biz Tax Shield Plan Without Warning

    A top concern about the Multistate Tax Commission's reinterpretation of a federal statute about when business activities exceed federal protections against state income tax is that businesses may not know if a state adopted the reinterpretation, a panelist said Monday.

  • September 20, 2021

    NJ Publishes Pot Regulations, Details Tax, Fee Rules

    New Jersey's Cannabis Regulatory Commission published regulations Monday implementing the legalization and taxation of cannabis for adult use, including the rates of a social equity excise fee and how localities can tax cannabis once legal sales begin.

  • September 20, 2021

    NJ Dem Reps Say No SALT Cap Repeal, No Reconciliation

    A group of New Jersey congressional Democrats said Monday that they will vote against a proposed $3.5 trillion reconciliation bill unless the federal deduction for state and local taxes is fully restored.

  • September 20, 2021

    Chicago Mayor Pitches $76.5M Property Tax Raise In Budget

    Chicago Mayor Lori Lightfoot floated a $76.5 million increase to the city's property tax levy Monday as she unveiled a budget recommendation that would forgo raising other taxes to help close a projected $733 million budget shortfall.

  • September 20, 2021

    Proskauer Bolsters Tax Practice With 2 Hires In NY

    Proskauer Rose LLP has added a pair of battle-tested tax partners to its New York office from Cadwalader Wickersham & Taft LLP and KPMG, the firm announced.

  • September 20, 2021

    Maine Rejects Biz Owner's Bid For Out-Of-State Tax Credit

    A Maine taxpayer cannot claim a credit for taxes paid in Connecticut by his pass-through business because the credit is limited to taxes on individuals, the state Board of Tax Appeals said in a ruling released Monday.

  • September 20, 2021

    Fla. Looks To Amend Peer-To-Peer Vehicle Sharing Tax Regs

    Florida's Department of Revenue proposed regulations Monday to address legislative changes to the rental car surcharge, which requires peer-to-peer car-sharing programs to collect and remit rental car surcharges.

  • September 20, 2021

    Maine Resident Owes Tax On Gambling Winnings Despite Losses

    A Maine resident owes income tax on her gambling winnings because her adjusted gross income was more than $145,000 and state-itemized deductions stop at that amount, the state Tax Board said in a ruling released Monday.

  • September 20, 2021

    Ind. Restaurant's Value Was Correctly Assessed, Tax Court Rules

    An Indiana fast food restaurant's property value was correctly assessed using market-based evidence as support, the state tax court ruled, rejecting the property owner's contention that the state board's final determination was erroneous.

  • September 20, 2021

    NJ Municipal Tax Expert Can Testify In Another Town's Fight

    A New Jersey state appeals court ruled Monday that a municipal tax assessor can testify on behalf of a private entity challenging property value figures in another town, reasoning that there's no law or regulation to the contrary.

  • September 20, 2021

    Calif. Would Clarify Tax Charged On Newspaper Subscriptions

    California would issue a methodology for calculating the sales tax on mixed newspaper subscriptions under a proposed regulation amendment.

  • September 20, 2021

    'Indictments Are Coming' In Trump Org. Case, CFO's Atty Says

    An attorney for Trump Organization finance chief Allen Weisselberg told a New York state court Monday that he expects there will be additional indictments in the Manhattan district attorney's tax fraud case against former President Donald Trump's business.

Expert Analysis

  • Pa. Tax Talk: Takeaways From 2 Commonwealth Court Rulings

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    A Pennsylvania appellate court's recent decision in Good Shepherd Rehabilitation v. Allentown sets a positive precedent for other nonprofits subject to Allentown's aggressive tax position, and its recent decision in Mandler v. Commonwealth offers a reminder that some taxes, including payroll withholding taxes, are never dischargeable in bankruptcy, says Jennifer Karpchuk at Chamberlain Hrdlicka.

  • Ohio Tax Talk: One Company's Trash Is Another's Exemption

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    The Ohio Supreme Court's recent decision in NAT Transportation v. McClain, allowing a trash hauling company to apply a transportation-for-hire tax exemption by finding that waste can constitute personal property of the disposer, provides taxpayers with a road map for claiming the exemption, say Christopher Tassone and Edward Rivin at Frost Brown.

  • 1st Amendment Questions After Maryland Billboard Tax Ruling

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    The Maryland high court's recent decision in Clear Channel v. Department of Finance of Baltimore, upholding a local excise tax on billboards against a First Amendment challenge, leaves open the possibility that state and local taxes on advertising businesses are unlikely to burden speech and are subject only to rational basis review, say attorneys at Pillsbury.

  • Texas Tax Talk: Sales Tax Sourcing And Court Access Issues

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    Texas taxpayers should focus on two consequential tax policy developments from this legislative session: the insufficient response to the Texas Comptroller of Public Accounts' controversial local sales tax sourcing regulation, and how changes to administrative appeal procedures may affect access to courts, say attorneys at Baker Botts.

  • Kentucky Tax Talk: Biz Expansion, COVID Relief Take Spotlight

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    In a rare off-year legislative session, the Kentucky General Assembly prioritized several tax initiatives to provide immediate assistance to struggling businesses and expand new industries, such as cryptocurrency mining, in a post-pandemic world, say attorneys at Frost Brown.

  • La. Tax Talk: Legislature Takes On Tax Reform

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    Louisiana taxpayers may see some needed tax improvements if the Legislature enacts major proposed reforms, like the long-overdue centralization of state and local sales and use tax collection, elimination of the antiquated corporation franchise tax, and reduction of income tax rates, say attorneys at Kean Miller.

  • Partial Repeal Could Resolve Biden's SALT Cap Dilemma

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    Lawmakers' calls to repeal the cap on federal deductions for state and local taxes are controversial because doing so could cost over $600 billion, but a partial repeal could be accomplished on a revenue-neutral basis, providing relief to some, if not most, affected taxpayers, says Joseph Mandarino at Smith Gambrell.

  • Alcohol Taxation Provides Good Model For Cannabis Taxes

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    Although the alcohol taxation system isn't perfect, it could serve as a useful template for cannabis taxation with a three-tier licensing scheme and tax rates based on potency, says Louis Terminello at Greenspoon Marder.

  • How NY's Cannabis Legalization Act Prioritizes Equity

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    Elements of New York's recently passed Marijuana Regulation and Taxation Act, such as its prohibition of vertically integrated operators, show consideration for social and economic equity in the new industry, says Simon Malinowski at Harris Bricken.

  • High Court Hotels.com Case Could Alter Appellate Strategy

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    If the U.S. Supreme Court upholds the Fifth Circuit in the upcoming San Antonio v. Hotels.com case, ruling that district courts may not amend taxable appellate costs, it could reprioritize the incentive structure and decision-making calculus of appeals, says Patrick Hammon at McManis Faulkner.

  • NY Data Tax Bill Would Create Practical, Policy Hurdles

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    A recently proposed New York bill would impose an excise tax on commercial data collectors, raising implementation, record-keeping and tax pyramiding concerns for companies, say attorneys at BakerHostetler.

  • Ohio Tax Talk: Ensuring A Nonprofit's Property Tax Exemption

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    A recent Ohio Board of Tax Appeals decision, Dayton Raiders Facilities v. McClain, should put nonprofit organizations on notice that it is the taxpayer's burden to show that the property for which a tax exemption is sought is being used exclusively for a charitable purpose, say Christopher Tassone and Edward Rivin at Frost Brown.

  • 3 Key Improvements To Maryland Pass-Through Entity Tax

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    Attorneys at Venable explain how three recent changes to Maryland's 2020 pass-through entity tax legislation simplify the ability to elect for entity-level taxation and circumvent the $10,000 limit on the federal deductibility of state and local taxes.

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