State & Local

  • December 03, 2021

    Cannabis Bill Roundup: House Members Pitch New CBD Bill

    U.S. House of Representative members this past week introduced new bills to hasten both the expungement of state-level cannabis convictions and the federal regulation of hemp-derived CBD, while lawmakers in Kentucky and Florida prefiled their own bills to reform marijuana policy. Here are the major recent developments in cannabis law reform.

  • December 03, 2021

    Md. Final Digital Tax Regs Little Changed, Despite Concerns

    The Maryland comptroller published final regulations Friday governing the state's first-in-the-nation digital ad tax that were almost identical to proposed regulations from August, despite receiving multiple comments from practitioners and businesses hoping for changes.

  • December 03, 2021

    Gas Tax In Fla. And Discord In Ariz.: SALT In Review

    From a call for a substantial gas tax holiday in Florida to Arizona's protracted contretemps over a flat tax, RSM US LLP's David Brunori offers his thoughts on noteworthy state and local tax news. 

  • December 03, 2021

    Former NY Tax Dept. Worker Indicted In Sick Leave Scheme

    A former tax compliance agent with the New York State Department of Taxation and Finance was indicted, charged with fabricating extended sick leave paperwork and collecting a salary from the agency while a full-time employee elsewhere, the Nassau County District Attorney's Office announced Friday.

  • December 03, 2021

    Pa. Couple Owes Income Tax On Like-Kind Exchanges

    A Pennsylvania couple is responsible for personal income tax assessed on their like-kind exchange, the Pennsylvania Commonwealth Court ruled, finding that the state Department of Revenue did not abuse its power when issuing the assessment.

  • December 03, 2021

    Mich. Bill Seeks Corp., Individual Tax Cut, Child Credit

    Michigan would cut its corporate income tax rate from 6% to 4.9% and its flat personal income tax rate from 4.25% to 3.9% under a bill introduced in the state Senate.

  • December 03, 2021

    Mich. Bills Would Allow Virtual Tax Tribunal Hearings

    Michigan Tax Tribunal hearings could be held electronically by telephone or video conferencing under a pair of bills introduced in the state House.

  • December 03, 2021

    SC Issues Guidance On SALT Cap Workaround

    The owners of pass-through entities that elect to pay tax at the entity level on income apportioned to South Carolina will have that income excluded from their state taxable income, the state Department of Revenue said in a ruling Friday.

  • December 03, 2021

    Taxation With Representation: Skadden, Latham

    In this week's Taxation With Representation, insurance broker Arthur J. Gallagher & Co. will acquire the reinsurance broking arm of rival Willis Towers Watson, industrial 3D printing business Essentium will go public with blank-check company Atlantic Coastal, and Distributed energy firm Voltus will go public by merging with special purpose acquisition vehicle Broadscale Acquisition Corp.

  • December 03, 2021

    Mich. House Bill Would Create R&D Tax Credit

    Michigan would let taxpayers claim a tax credit equal to 15% of the cost of research and development expenses under a bill introduced in the state House of Representatives.

  • December 02, 2021

    Biz Groups Urge Justices To Hear NJ Partnership Fee Row

    A host of business advocacy organizations urged the U.S. Supreme Court on Thursday to hear a partnership's challenge to New Jersey's partnership-filing fees, arguing that the per-partner levies are unconstitutional because they aren't apportioned.

  • December 02, 2021

    Calif. City's Surcharge Is Unconstitutional, Appeals Court Says

    A surcharge imposed by Long Beach, California, on water department customers is unconstitutional and invalid because the requirements were not met for the city to assess a fee or charge, a state appellate court confirmed.

  • December 02, 2021

    Texas Sees Boost In Oil And Gas Tax Revenue

    Texas natural gas production tax revenue totaled $291 million in November, a 282% increase compared with November 2020, the Texas comptroller said.

  • December 02, 2021

    La. Shelves Worker Misclassification Tax Amnesty Program

    Louisiana delayed the rollout of a tax amnesty program for businesses that voluntarily report that they improperly classified their workers as independent contractors rather than employees, citing a warning from the federal government that the program would violate federal law.

  • December 02, 2021

    Ark. Taxpayer Not Eligible For Tax Refund On Materials

    An Arkansas taxpayer is not eligible for a refund of sales tax paid on materials used to install an electrical device after failing to provide documentation that showed the purchases were exempt, an administrative law judge ruled.

  • December 02, 2021

    Ark. Man Failed To Prove Entitlement To Loss Deduction

    An Arkansas man who owns and operates a business cannot claim a loss deduction on his tax returns because he failed to prove he was entitled to the deduction, an administrative law judge ruled.

  • December 02, 2021

    Mich. Bill Would Expand Home Transfers Subject To Value Cap

    Transfers of certain residential property from a partnership or limited liability company to a partner, member or a partner's family member would remain eligible for the cap on increased taxable value under a bill introduced in the Michigan House.

  • December 02, 2021

    Mich. Justices Won't Consider Value Cap After LLC Change

    The Michigan Supreme Court denied a request to review a ruling that a property can be reassessed at market value after two of the three limited liability company members who owned the property relinquished their membership in the business.

  • December 02, 2021

    Mich. Bill Proposes Tax Deduction For Wagering Losses

    Michigan taxpayers would be able to deduct wagering losses from their state individual tax returns under a bill introduced in the state Senate.

  • December 01, 2021

    Ark. Residents Owe Tax On Vehicle Sale, Judge Says

    Sellers of a vehicle in Arkansas are ineligible for a credit against gross receipt taxes because they did not show proof that they bought another vehicle within 45 days as required by law, an administrative law judge ruled.

  • December 01, 2021

    Calif. Tax Dept. OKs Marketplace Sales Clarification

    Drop shippers that ship goods into California on behalf of a marketplace facilitator will not be liable for the collection of the state's use tax, the California Department of Tax and Fee Administration said Wednesday in final regulations. 

  • December 01, 2021

    Wash. Wrongly Assessed Public Utility Tax On Pole Space

    An electric and natural gas utility company with customers in Washington had public utility tax wrongly assessed on its licensing of space on its utility poles, the state Department of Revenue ruled.

  • December 01, 2021

    Tax Pros Say Int'l, Fed. And State Tax Connections Intensifying

    Tax professionals should be on the lookout for several key developments that are arising out of strengthened connections between federal, international and state and local tax as tax regimes are overhauled, conference panelists said Wednesday.

  • December 01, 2021

    Ala. Judge Blocks City Tax On BNSF Railway Fuel Purchases

    BNSF Railway Co. is entitled to a $1.25 million refund of an Alabama city's diesel fuel tax, a state judge ruled Wednesday, finding an Eleventh Circuit decision barring the state from imposing discriminatory taxes on railroads applies to localities.

  • December 01, 2021

    Fla. Justices Won't Review Denied Tax Refund On Hotel Sale

    The Florida Supreme Court declined Wednesday to review an appeals court's finding that a third-party study failed to substantiate a refund claim for stamp tax paid on tangible and intangible personal property included in a hotel sale.

Featured Stories

  • Gas Tax In Fla. And Discord In Ariz.: SALT In Review

    David Brunori

    From a call for a substantial gas tax holiday in Florida to Arizona's protracted contretemps over a flat tax, RSM US LLP's David Brunori offers his thoughts on noteworthy state and local tax news. 

  • Dems Face Intraparty Fight Over Tax Incentive Cutoffs

    Alan K. Ota

    As congressional Democrats try to cut a bicameral deal on the House-passed reconciliation bill containing President Joe Biden's domestic agenda, they face intraparty disputes over potential restrictions on the child tax credit and other individual tax incentives.

  • 7 Things Tax Pros Are Grateful For This Thanksgiving Season

    Amy Lee Rosen

    From the continued extension of federal and state tax deadlines because of the pandemic to clarification on forgiven Paycheck Protection Program loans and the agreement on a global corporate tax overhaul, tax attorneys are grateful for many things this Thanksgiving. Here, Law360 reviews seven developments tax professionals are thankful for this year.

Expert Analysis

  • Ohio Tax Talk: Property Tax Bill May Affect School Revenues

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    A bill pending in the Ohio Legislature proposing changes to the real property tax valuation process could lead to a decrease in school district challenges to property tax adjustments — and therefore a dip in the school districts' property tax revenues, says Yazan Ashrawi at Frost Brown.

  • Kentucky Tax Talk: Why Local-Level Reform May Finally Work

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    Though the Kentucky General Assembly has been trying to expand local taxing authority for decades, tax reform may finally have a real chance of success in 2022, as local authorities have gained a new perspective after many struggled to maintain reliable revenue streams during the pandemic, say attorneys at Frost Brown.

  • Taxpayer Considerations For La. Audit Program Participation

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    While the Louisiana Department of Revenue's recently announced transfer pricing managed audit program could resolve time-consuming, expensive audits for many taxpayers, companies nevertheless need to consider the attendant risks in participation, say Jaye Calhoun and William Kolarik at Kean Miller.

  • Pa. Tax Talk: Tax Cap Cases Highlight Chevron Issues

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    The Commonwealth Court's recent decision in Alcatel-Lucent USA v. Pennsylvania — the latest in a string of cases using the Chevron test to address remedy for a tax cap for net loss carryover — underscores the subjective nature of the test and how it can be construed to reach seemingly disparate results, says Jennifer Karpchuk at Chamberlain Hrdlicka.

  • Opportunity Zone Regulations Require More Fine Tuning

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    Problems with the latest revisions to the qualified opportunity zone investment rules reinforce a recurring theme of regulatory hiccups that may prevent investors and communities from actualizing the program's potential benefits, unless we have more guidance, says Mitchell Goldberg at Berger Singerman.

  • Ohio Tax Talk: Lessons From Apple Commercial Activity Audit

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    The Ohio Tax Commissioner’s recent audit of Apple, which led to allegations that the company underpaid its commercial activity tax, serves as a reminder for other Ohio taxpayers to educate themselves on the tax's exemptions and the supporting documentation they require, says Edward Rivin at Frost Brown.

  • How Florida Borrowers Can Reduce Mortgage Taxes

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    The steady growth of Florida development activity involving apartments, retail centers, office buildings and other projects has been accompanied by a corresponding rise in transaction taxes, but there are some strategies that borrowers can employ to reduce mortgage taxes when buying or refinancing, says Gary Kaleita at Lowndes.

  • Texas Tax Talk: Alarming Redefinition Of Nontaxable Services

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    In a concerning trend following two rulings from the Texas Comptroller, taxpayers in a variety of industries are facing audits that attempt to reclassify traditionally nontaxable service agreements as taxable equipment rentals, thereby unexpectedly increasing businesses' sales tax exposure, say attorneys at Baker Botts.

  • Kentucky Tax Talk: Confusion Over Manufacturing Exemptions

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    The Kentucky Court of Appeals' recent opinion in Century Aluminum v. Department of Revenue grappled with the state's sales and use tax exemptions for machinery, equipment and supplies used in manufacturing — but the decision seems to be at odds with an earlier court ruling, leaving taxpayers with unclear guidance, say attorneys at Frost Brown.

  • NY Tax Considerations For Fund Managers Handling Crypto

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    Attorneys at Mayer Brown address whether transactions in cryptocurrency and nonfungible tokens should be considered eligible for the self-trading exemptions under New York City unincorporated business tax and New York state personal income tax.

  • Pa. Tax Talk: Uniformity Clause At The State's High Court

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    As the Pennsylvania Supreme Court considers whether a property tax assessment violated the state Constitution's uniformity clause in Kennett Consolidated School District v. Chester County Board of Assessment Appeals, a 2019 ruling from the court — Sands Bethworks Gaming v. Department of Revenue — may help predict the pending outcome, says Jennifer Karpchuk at Chamberlain Hrdlicka.

  • Ohio Tax Talk: Adjusting To The Latest Telework Tax Rules

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    Due to Ohio's recently enacted H.B. 110, Ohio businesses with pandemic-related work-from-home policies must carefully analyze their withholding practices and individuals working remotely must consider whether they have overpaid their municipal income tax liability, say Christopher Tassone and Edward Rivin at Frost Brown.

  • How Tax Code Changes Affect State AG Settlement Talks

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    Meghan Stoppel and Gianna Puccinelli at Cozen O'Connor discuss how newly implemented tax code regulations that allow companies to deduct some payments made to resolve a government investigation or prosecution will change settlement negotiations with state attorneys general.