State & Local
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May 30, 2025
Pa. Justices Back Hospital Tax Break Despite High Salaries
The corporate structure and high executive pay at a Montgomery County, Pennsylvania, hospital were not reason enough to take away its nonprofit, tax-exempt status, the state Supreme Court ruled Friday.
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May 30, 2025
DC Budget Plan Would OK Gambling, Repeal Child Tax Break
Washington, D.C., would legalize and tax certain gambling activities and repeal its new child tax credit before it is ever used under a budget and revenue proposal that also promises cuts in services.
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May 30, 2025
Minn. Tax Court Blasts County Counsel For AI-Written Brief
Counsel for a Minnesota county submitted a brief to the state tax court generated by artificial intelligence with five legal citations for cases that did not exist, the court said, referring the matter to a state disciplinary board.
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May 30, 2025
State & Local Tax Takeaways From May
Many states, looking at a new fiscal year starting in July, finalized their budgets in May, with significant tax implications for individuals and businesses. New York will reduce income taxes on lower- to middle-income taxpayers. In Washington state, several measures intended to close a $16 billion shortfall include an expansion of the sales tax to digital advertising. Here, Law360 presents these and other state and local tax developments to know from the past month.
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May 30, 2025
AT&T Unit Loses Dispute Over Calif. Property Tax Rates
AT&T unit Pacific Bell and other phone companies failed to prove that a California county's differing tax rates for locally assessed and state-assessed properties are unconstitutional, a state appeals court affirmed.
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May 30, 2025
Ind. Tax Dept. Finds Man Sought Refund On Time
An Indiana resident who amended his state and federal tax returns to correct his income filed for a refund within the state's statute of limitations, the Department of State Revenue said, overturning an earlier determination.
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May 30, 2025
Mass. Can't Delay Developer's Suit Over Brownfields Credit
Massachusetts tax officials who have taken more than two years to consider the appeal of a denied brownfields tax credit must hand over the administrative record in the case so that a developer can pursue a motion for judgment on the pleadings, a state court justice has ordered.
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May 30, 2025
Maine Revenue Falls $29M Short Of Projections Through April
Maine revenues from July through April lagged $29 million behind estimates, according to a report by the state Department of Administrative and Financial Services.
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May 30, 2025
Taxation With Representation: Kirkland, Cravath, Latham
In this week's Taxation With Representation, WiseTech completes a $2.1 billion merger with E2open, Acrisure buys a payroll management company for $1.1 billion and Hailey Bieber sells her Rhode skincare and makeup company to e.l.f. beauty for $1 billion.
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May 30, 2025
Fla. Authorizes Sales Tax Exemption For Gold, Silver Coins
Florida will exempt qualifying gold and silver coins from sales tax in 2026, pending approval of certain regulations by state lawmakers, under a bill signed by Gov. Ron DeSantis.
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May 29, 2025
RI Senate Panel Weighs Wealth Tax, Surtax To Fix Budget Gap
Rhode Island Democrats backed a plan Thursday to create a surtax for high-income earners and a wealth tax as potential fixes for a budget gap, while Republicans pushed for a plan to require that any annual tax surplus go toward refunds.
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May 29, 2025
DC Court Blocks Trump's Tariffs As Overreach Of Power
The International Emergency Economic Powers Act does not empower the president to impose tariffs, the D.C. federal district court said Thursday, ruling that President Donald Trump's global levies are unlawful and barring his administration from enforcing them on two toymakers who challenged the policies.
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May 29, 2025
Ore. Extends Tax Breaks For Affordable Housing Development
Oregon will delay the expiration of three property tax breaks intended to help the development of affordable housing under legislation signed by Democratic Gov. Tina Kotek.
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May 29, 2025
Texas To Exempt All Intangible Personal Property From Tax
Texas will exempt all intangible personal property from property tax under a bill signed by Gov. Greg Abbott.
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May 29, 2025
Ind. Man Doesn't Owe Use Tax On Vehicle Title Transfer
An Indiana man does not owe use tax on a change in title of a vehicle from his business to himself, the state Department of Revenue ruled.
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May 29, 2025
Texas Bars Some Property Tax Hikes Above Voter-OK'd Rates
Texas will prohibit school districts from adopting property tax rates above voter-approved thresholds in response to a natural disaster if voters previously rejected a similar proposed rate increase, under a bill signed by Gov. Greg Abbott.
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May 29, 2025
NY Says Fulfillment Service Buyer Not Liable For Sales Tax
An out-of-state online retailer's use of a third party to conduct fulfillment services on its behalf doesn't render it a vendor for New York state sales and use tax purposes, the New York Department of Taxation and Finance said.
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May 29, 2025
NY Says Marketing Co.'s Charges For App Access Are Taxable
A multilevel marketing company must collect sales tax on monthly charges to distributors for access to its mobile application software and a bundle of online products, the New York Department of Taxation and Finance said.
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May 29, 2025
NY Sales Tax Applies To Firm's Investment Systems Sales
New York sales tax applies to a financial services firm's sales of investment and risk management systems because the systems constitute prewritten computer software, the state Department of Taxation and Finance said.
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May 29, 2025
NY Tax Doesn't Apply To Job Search Platform
New York sales tax does not apply to a company's web-based job search and posting platform because the service is not considered a sale of tangible property or information services, the state Department of Taxation and Finance said.
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May 29, 2025
Indiana Tax Department Reverses Financial Co.'s NOL Denial
An Indiana-based financial institution was wrongly denied its net operating loss carryforward, which resulted in an additional tax assessment, the Department of State Revenue said in a letter of finding.
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May 29, 2025
Oregon Allows Associations Standing In State Tax Court
Oregon associations and organizations will be able to seek declaratory relief in state tax court on behalf of their aggrieved members under legislation signed by the governor.
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May 29, 2025
Del. Delays Start Of Tax Agency Trade Name Filing Process
Delaware delayed the effective date of legislation allowing companies doing business in the state under trade names that don't disclose their legal names to register their trade names by filing a certificate with the state Division of Revenue under a bill signed by the governor.
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May 28, 2025
Judge Shields NY Congestion Pricing From Feds' Threats
New York's congestion pricing program can keep running at least through the fall, after a federal judge on Wednesday signaled that the U.S. Department of Transportation likely overstepped its authority by purportedly terminating a federal agreement that gave congestion pricing the green light.
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May 28, 2025
4 Big Questions Raised By International Retaliatory Tax In GOP Bill
Republicans' evolving international retaliatory tax proposal has been viewed as an effort to influence foreign tax regimes and as a possible tool in global tax and trade talks, but it has sparked concerns that it could escalate a trade war or otherwise hurt the U.S. economy. Here, Law360 explores four questions raised by the proposal.
Expert Analysis
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7 Tips For Associates To Thrive In Hybrid Work Environments
Excerpt from Practical Guidance
As the vast majority of law firms have embraced some type of hybrid work policy, associates should consider a few strategies to get the most out of both their in-person and remote workdays, says James Argionis at Cozen O’Connor.
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How Law Firms Can Counteract The Loneliness Epidemic
The legal industry is facing an urgent epidemic of loneliness, affecting lawyer well-being, productivity, retention and profitability, and law firm leaders should take concrete steps to encourage the development of genuine workplace connections, says Michelle Gomez at Littler and Gwen Mellor Romans at Herald Talent.
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5 Keys To Building Stronger Attorney-Client Relationships
Attorneys are often focused on being seen as the expert, but bonding with clients and prospects by sharing a few key personal details provides the basis for a caring, trusted and profoundly deeper business relationship, says Deb Feder at Feder Development.
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Death, Taxes And Relocations: SALT In Review
From a move to phase out Minnesota's estate tax to proposed inducements for relocating to Alabama and West Virginia, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Attorneys Must Act Now To Protect Judicial Independence
Given the Trump administration's recent moves threatening the independence of the judiciary, including efforts to impeach judges who ruled against executive actions, lawyers must protect the rule of law and resist attempts to dilute the judicial branch’s authority, says attorney Bhavleen Sabharwal.
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Rethinking 'No Comment' For Clients Facing Public Crises
“No comment” is no longer a cost-free or even a viable public communications strategy for companies in crisis, and counsel must tailor their guidance based on a variety of competing factors to help clients emerge successfully, says Robert Bowers at Moore & Van Allen.
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How Design Thinking Can Help Lawyers Find Purpose In Work
Lawyers everywhere are feeling overwhelmed amid mass government layoffs, increasing political instability and a justice system stretched to its limits — but a design-thinking framework can help attorneys navigate this uncertainty and find meaning in their work, say law professors at the University of Michigan.
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Justices' Certiorari Denial Leaves Interstate Tax Questions
Since the U.S. Supreme Court recently declined to review a Philadelphia resident’s claim that her Delaware state income taxes should be credited against her city wage tax liabilities, constitutional questions about state and local tax distinctions linger, and some states may continue to apply Supreme Court precedent differently, say attorneys at Dentons.
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A Proposal With Sugar On Top In Mass.: SALT In Review
From a call to exempt candy from sales tax in Massachusetts to an unusual property tax idea in New Jersey, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Inconsistent Injury-In-Fact Rules Hinder Federal Practice
A recent Third Circuit decision, contradicting a previous ruling about whether consumers of contaminated products have suffered an injury in fact, illustrates the deep confusion this U.S. Supreme Court standard creates among federal judges and practitioners, who deserve a simpler method of determining which cases have federal standing, says Eric Dwoskin at Dwoskin Wasdin.
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In-House Counsel Pointers For Preserving Atty-Client Privilege
Several recent rulings illustrate the challenges in-house counsel can face when attempting to preserve attorney-client privilege, but a few best practices can help safeguard communications and effectively assert the privilege in an increasingly scrutinized corporate environment, says Daniel Garrie at Law & Forensics.
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National Bank Act Rulings Facilitate More Preemption Analysis
Two recent National Bank Act preemption decisions from an Illinois federal court and the Ninth Circuit provide the first applications of the U.S. Supreme Court’s May ruling in Cantero v. Bank of America, opening the potential for several circuit courts to address the issue this year, say attorneys at Moore & Van Allen.
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Lights, Camera, Ethics? TV Lawyers Tend To Set Bad Example
Though fictional movies and television shows portraying lawyers are fun to watch, Hollywood’s inaccurate depictions of legal ethics can desensitize attorneys to ethics violations and lead real-life clients to believe that good lawyers take a scorched-earth approach, says Nancy Rapoport at the University of Nevada, Las Vegas.