From more states seeking to eliminate tax breaks for data centers to tax policy shifts that will be decided at ballot boxes across the country, the months ahead promise to offer significant tax developments in several states. Here, Law360 highlights state and local tax policies to watch in the second half of 2026.
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State & Local
MONDAY, JULY 13, 2026 Law360 iOS App Law360 Android App Follow Law360 on Facebook Follow Law360 on LinkedIn Follow Law360 on Twitter

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Analysis

State And Local Tax Policy To Watch In 2nd Half Of 2026

By Paul Williams

From more states seeking to eliminate tax breaks for data centers to tax policy shifts that will be decided at ballot boxes across the country, the months ahead promise to offer significant tax developments in several states. Here, Law360 highlights state and local tax policies to watch in the second half of 2026.

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Calif. Republicans Urge US To Deny State's MCO Tax

By Jaqueline McCool

California's managed care organization provider tax, which was restructured and requires federal approval under a recently enacted law, should be rejected by the U.S. government, state Assembly Republicans said in a letter to federal officials.

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Mattress Seller, Mo. Customers End Use Tax Overcharge Fight

By Sanjay Talwani

A Missouri federal court closed a class action by online customers claiming excessive tax charges by a mattress retailer after the parties reached a deal that will see the customers refunded.

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A Tax Regulation With A Hole In The Middle: SALT In Review

From Dunkin' Donuts' successful challenge of a New Jersey sales tax regulation to a proposed income tax cut that won't appear on the Massachusetts ballot, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

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LITIGATION

Mass. Town Says Developer Owes $100K Under Rezoning Deal

By Julie Manganis

The small central Massachusetts town of Lancaster says a developer is trying to wriggle out of paying half of an agreed-upon impact contribution spelled out in a deal to create a mixed-use "enterprise district" through rezoning, according to a lawsuit filed Thursday in state court.

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Mass. Court Says Lack Of Transcript Dooms Tax Break Claim

By Sanjay Talwani

A Massachusetts taxpayer's claim of theft losses due to a botched transmission repair on a business vehicle was denied Friday by a state appeals court, which said he failed to provide a transcript of the relevant proceedings of the Board of Tax Appeals.

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ADMINISTRATIVE RULINGS

Ohio Board Finds Couple's Gains From Biz Sale Deductible

By Paul Williams

A couple can take an Ohio tax deduction for capital gains they received from selling interest in a C corporation, the state Board of Tax Appeals ruled, saying the gains qualified as deductible business income.

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Wis. Tax Commission Upholds Tax On Mich. Tool Seller

By Michael Nunes

Wisconsin's Tax Appeals Commission said that a tool company based in Michigan owes tax for sales made in the state since 2018, disagreeing with the business' contention that the Wisconsin Department of Revenue wrongly estimated its tax bill based on past sales.

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REVENUE REPORTS

Ohio Revenue In Fiscal Year Beats Forecast By $981M

By Michael Nunes

Ohio's total revenue from July 2025 through June exceeded estimates by $981 million, the state Office of Budget Management reported.

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PEOPLE

Roundup

Taxation With Representation: Cleary, Paul Weiss, Fried Frank

By Zak Kostro

In this week's Taxation With Representation, Solstice Advanced Materials Inc. acquires specialty chemicals technology company Element Solutions Inc., Vertex Pharmaceuticals Inc. buys Crinetics Pharmaceuticals Inc., and Lockheed Martin acquires naval defense company Ultra Maritime.

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Law360 Tax Authority Map Promo that reads Tax Ballot Measures Tracker

LAW FIRMS IN TODAY'S NEWS

Baty Otto

Bursor & Fisher

Cleary Gottlieb

Eversheds Sutherland

Fried Frank

Harrington Heep

Holland & Hart

Holland & Knight

Kirkland & Ellis

Paul Weiss

Skadden Arps

COMPANIES IN TODAY'S NEWS

Crinetics Pharmaceuticals Inc.

Dunkin' Brands Group Inc.

Florida Association of Counties

Lockheed Martin Corp.

RSM US LLP

Saatva Inc.

Vertex Pharmaceuticals Inc.

GOVERNMENT AGENCIES IN TODAY'S NEWS

Centers for Medicare & Medicaid Services

Massachusetts Supreme Judicial Court

New Jersey Division of Taxation

New Jersey Legislature

Ohio Board of Tax Appeals

Superior Court of Massachusetts

U.S. Department of Health and Human Services

U.S. District Court for the Western District of Missouri

Wisconsin Department of Revenue