State & Local

  • October 18, 2021

    NY Bill Would Repeal $336M In Fossil Fuel Tax Breaks

    A New York state bill would eliminate tax exemptions associated with fossil fuels and ban certain fossil fuel businesses from participating in state economic development programs to save about $336 million annually, the bill's sponsor said.

  • October 18, 2021

    Citgo Loses Appeal In $2M Texas Franchise Tax Fight

    Citgo improperly included gross proceeds from sales of noninventory securities in the sales factor denominator used to calculate the company's apportioned margin for franchise tax purposes, a Texas appeals court said, affirming a lower court's decision.

  • October 18, 2021

    Fla. Bill Would Require Rental Ad Platforms To Collect Tax

    A Florida bill introduced Monday would require certain vacation rental advertising platforms such as Airbnb to collect and remit tax, while also changing the powers of local governments to regulate such rentals.

  • October 18, 2021

    Tribe Asks Judge To Block Mich. Use Tax Apportionment Bid

    The Keweenaw Bay Indian Community asked a federal judge to deny Michigan's request to apportion a use tax that the court previously blocked from being collected on property inside tribal territory, accusing the state of trying to circumvent the injunction.

  • October 18, 2021

    Dems Eye Manufacturing Tax Breaks To Boost Budget Support

    Congressional Democrats are promoting incentives for domestic production of semiconductors, green energy technology and other items as a way to broaden support for a streamlined version of the budget reconciliation bill containing President Joe Biden's domestic agenda.

  • October 18, 2021

    Mich. Dept. Correctly Adjusted Co.'s Tax Return, Court Affirms

    The Michigan Department of Treasury can adjust a company's 2011 tax return to disallow an overpayment credit that it determined after an audit did not apply, the state Court of Appeals affirmed.

  • October 18, 2021

    Ark. Man Can't Claim Farm Equipment Exemption, Judge Says

    An Arkansas taxpayer cannot claim a farm equipment sales tax exemption because he failed to prove how his equipment was used directly in farming activity, an administrative law judge ruled.

  • October 18, 2021

    Wis. Will Allow Municipalities To Waive Property Tax Penalties

    Wisconsin will allow municipalities to waive interest and penalties on late 2021 property tax payments under a bill signed by the governor.

  • October 15, 2021

    Conn. Court Says City Properly Assessed Property Complex

    A tax assessment a Connecticut city imposed on a property that included ESPN as a tenant was proper, a state court has upheld, affirming the city's income valuation of the property was more persuasive than the owner's comparable sales approach.

  • October 15, 2021

    Global Corporate Tax Deal May Create US Treaty Puzzle

    The recently agreed-upon global corporate tax overhaul requires a multilateral treaty that could face roadblocks in the U.S. if ratification depends on traditional Senate tax treaty procedures, but alternative options for implementing it bring their own uncertainties, including constitutional questions.

  • October 15, 2021

    Fla. Space Biz Tax, Fee Break Bill Raises Issues, Panel Told

    A Florida House bill that would grant tax and fee exemptions for Florida-based space commerce and business raises questions about how broad the tax breaks could be applied and could raise legal challenges, a state revenue panel was told Friday.

  • October 15, 2021

    Mass. Updates Annual Property Tax Credit Guidance

    The Massachusetts Department of Revenue on Friday updated the 2021 threshold amounts for individuals age 65 and older to claim the real estate tax credit.

  • October 15, 2021

    Pa. Senate Bill Would Legalize, Tax Cannabis

    A bipartisan pair of Pennsylvania senators introduced legislation that would legalize adult recreational marijuana use in the state and impose a tax that could generate as much as $1 billion in annual revenue.

  • October 15, 2021

    NH Announces Tax Interest Rates for 2022

    New Hampshire interest rates applicable to tax payments will be 5% for underpayments and 2% for overpayments for the 2022 calendar year, the state Department of Revenue said in a technical information release Friday.

  • October 15, 2021

    Tax Group Urges 6th Circ. To Affirm Injunction On Tax-Cut Limit

    A conservative-leaning taxpayer group urged the Sixth Circuit on Friday to uphold a federal court's injunction against a federal provision banning states from using pandemic aid to offset tax cuts, arguing the clawback portion is unconstitutionally ambiguous.

  • October 15, 2021

    IRS Plan To Force Small Account Reporting Illegal, 20 AGs Say

    The Internal Revenue Service's proposal to require banks and other financial institutions to report information on every account with at least $600 is illegal under constitutional protections against unreasonable search and seizure, 20 state attorneys general told the agency Friday.

  • October 15, 2021

    Ark. Landscaping Biz Owner Owes Sales Tax, Judge Rules

    An Arkansas landscaping business owner owes sales taxes because he failed to meet the burden of proof to show his assessed sales were largely not taxable, an administrative law judge ruled.

  • October 15, 2021

    The Federal Deduction Cap And Digital Ads: SALT In Review

    From failed challenges against a federal limit on deductions to the latest assault on digital advertising, RSM US LLP's David Brunori offers his thoughts on noteworthy state and local tax news.

  • October 15, 2021

    NYC Offers More Biz Tax Penalty Relief Because Of Ida

    New York City will allow for the waiver or abatement of penalties for certain business taxes that were scheduled to be due Oct. 15 because of Hurricane Ida, the city Department of Finance said.

  • October 14, 2021

    Calif. Man Can't Discharge Taxes In Bankruptcy, 9th Circ. Says

    A California man cannot escape around $45,000 in state taxes after declaring bankruptcy because he failed to report an increase in federal taxes to the state as required for the liability to be discharged, the Ninth Circuit said Thursday.

  • October 14, 2021

    Mich. House Advances Tampon Tax Repeal Amid Legal Battle

    The Michigan House of Representatives approved two bills Thursday that would exempt menstrual products such as tampons and sanitary napkins from sales and use tax as the state faces a lawsuit claiming the tax unconstitutionally discriminates against women.

  • October 14, 2021

    Michigan House Passes Refiled SALT Cap Workaround Bill

    Michigan's House of Representatives passed legislation Thursday that would offer an entity-level tax permitting pass-through businesses to sidestep the $10,000 federal cap on state and local tax deductions — a program for which the state's budget specifically earmarked funding.

  • October 14, 2021

    Ariz. Tax Dept. Says Car Sharing Businesses Must Pay Tax

    Peer-to-peer car sharing businesses are required to pay transaction privilege tax on all rentals conducted through their platforms, the Arizona Department of Revenue said Thursday.

  • October 14, 2021

    Fed. Judge Tosses E-Biz Group's Calif. Sales Tax Challenge

    A federal judge dismissed an e-commerce trade group's attempt to block California from pursuing back sales taxes from sellers with inventory housed at in-state Amazon fulfillment centers, finding a federal law requires the claims to be filed in state courts.

  • October 14, 2021

    Miss. Adopts Tax Exclusion For Nonphysical Injury Damages

    Mississippi will provide an income tax exclusion for damages taxpayers are awarded to cover medical care costs for emotional distress arising from nonphysical injuries under regulatory amendments adopted by the state Department of Revenue.

Expert Analysis

  • SD Ruling Threatens Marijuana Legalization Momentum

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    A South Dakota state court decision in Thom v. Barnett, invalidating a state constitutional amendment legalizing recreational marijuana, serves as a reminder that legalization efforts at any level could meet some resistance, says David Standa at Locke Lord.

  • Ohio Tax Talk: Don't Neglect The Business Income Deduction

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    While the Ohio business income deduction is frequently forgotten or misunderstood by taxpayers, in part due to conflicting guidance from the Ohio Supreme Court and the Department of Taxation, tax preparers should look to the mechanics of business income to reap the deduction's benefits this tax season, say Christopher Tassone and Edward Rivin at Frost Brown.

  • La. Tax Talk: Fair Market Value, Jeopardy, Inventory Tax Credit

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    Louisiana corporate taxpayers have recently notched a couple of victories against the Louisiana Department of Revenue, including in the fair market valuation and nexus arenas, say attorneys at Kean Miller.

  • 10 State And Local Tax Predictions For 2021

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    Chuck Jones, Lori Stolly and Patrick Skeehan at Grant Thornton forecast the biggest state and local tax issues for 2021 as jurisdictions continue to deal with the economic fallout of the COVID-19 pandemic.

  • How To Reliably Value Income-Producing Real Estate

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    Amid the pandemic-fueled surge in tax appeals and loan workouts, using the income approach to calculate the present worth of a property's future income provides the most reliable indication of value and does not rely on subjective adjustments, say Mark Dunec at FTI Consulting and Anthony DellaPelle at McKirdy Riskin.

  • What's On The Horizon For Unclaimed Property In 2021

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    Unclaimed property professionals who run holder compliance programs should buckle themselves in for what portends to be a perfect storm of legislative, enforcement and litigation contests this year between state administrators and holders, say attorneys at Alston & Bird.

  • 2 Cases Highlight Superpriority Lien Risks For Lenders

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    Two recent decisions from a New York state court and a Nevada federal court reaffirm the importance of lenders paying off superpriority liens, which may extinguish their mortgages or deeds of trust if not swiftly addressed, say Michael O'Donnell and Michael Crowley at Riker Danzig.

  • 5 Significant Louisiana Tax Developments Of 2020

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    Despite being under lockdown for most of 2020, the Louisiana courts and Legislature were very active on tax issues — including the tax treatment of marketplace facilitators, complimentary hotel rooms and out-of-state companies — with both good and bad results for taxpayers, say attorneys at Kean Miller.

  • NY Tax Talk: 2020 In The Rearview

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    Craig Reilly at Hodgson Russ highlights New York City's and state's notable tax updates from the last year — many of them related to budget shortfalls due to COVID-19 — and wishes good riddance to 2020.

  • Kentucky Tax Talk: What's On Next Year's Legislative Agenda

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    As the Kentucky Legislature gears up for its 2021 session, taxpayers should watch out for several proposed changes, including property tax assessment modifications and sector tax breaks, say attorneys at Frost Brown.

  • The Future Of Drug Decriminalization After Oregon

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    Advocates intend to use Oregon's new law decriminalizing personal possession of cocaine, heroin and methamphetamines to achieve similar reforms elsewhere, but unlike marijuana reform, the broader drug decriminalization movement may not prove as popular with other states, says Tom Firestone at Baker McKenzie.

  • Texas Tax Talk: 2021's Legislative Priorities

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    Despite concerns that COVID-19 uncertainty may limit the next Texas legislative session, the Legislature is likely to prioritize property tax proposals including those addressing school district taxes, appraisal comparables and sales tax increases, say Matt Larsen and Derek Young of Baker Botts.

  • La. Taxpayers Deserve Opportunity To Support Deductions

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    Recently, the Louisiana Department of Revenue has been more aggressive in rejecting legitimate interest expense deductions, but state and federal precedent demonstrate taxpayers should be allowed to prove that interest expenses can be traced to a particular income class, say attorneys at Kean Miller.

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