State & Local
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January 13, 2025
Tax-Exempt Regs Should Cover Trust Payments, Tribes Say
Five tribal leaders told the U.S. Treasury Department on Monday that trust payments distributed to members, including those issued to minors and special-needs individuals, should be included among the tribal welfare benefits that recent proposed rules would exempt from federal income taxes.
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January 13, 2025
Mich. Creates Research And Development Tax Credits
Michigan is offering a research and development tax credit up to $2 million for qualifying expenses under bills signed by Gov. Gretchen Whitmer on Monday.
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January 13, 2025
Ariz. Taking Rebate Tax Fight With IRS To 9th Circ.
Arizona is turning to the Ninth Circuit its battle with the Internal Revenue Service over the federal taxation of its 2023 rebates to taxpayers with dependents, the state told the lower court that dismissed its case.
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January 13, 2025
Miss. Bill Would Exempt Feminine Hygiene Products From Tax
Mississippi would exempt feminine hygiene products from the state's 7% sales tax and create a sales tax holiday for some electronic devices under a bill introduced in the state House of Representatives.
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January 13, 2025
Trump Wants Higher SALT Cap, House Republican Says
President-elect Donald Trump wants to increase the $10,000 federal cap on state and local tax deductions, a House Ways and Means Committee member said Monday.
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January 13, 2025
Ky. House Bill Seeks Referendum Toward Axing Property Tax
Kentucky would put forward a referendum asking voters to give lawmakers the power to eliminate the state's property tax by exempting all property classes from tax under a bill introduced in the state House of Representatives.
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January 13, 2025
Fla. Preschools Can't Get Sales Tax Break, ALJ Says
A Florida sales and use tax exemption for tax-funded schools isn't available for preschools, an administrative law judge ruled, rejecting two preschools' cases over denials of the tax break.
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January 13, 2025
Hodgson Russ Names New State & Local Tax Leader
Hodgson Russ LLP announced that a longtime partner and the leader of its state and local tax law practice has stepped down from the role after 25 years, with an experienced attorney who's spent his entire career at the New York-based firm set to take over.
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January 13, 2025
Ore. Bill Seeks Flat 5% Capital Gain Tax Rate
Oregon would set a flat tax rate of 5% on capital gains under legislation filed Monday in the state Senate, cutting the rate for most gains.
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January 13, 2025
Ariz. Bill Seeks Wastewater Pipe Sales Tax Break
Pipes used to carry wastewater would be exempt from Arizona sales and use taxes under legislation introduced in the state House of Representatives.
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January 13, 2025
Ga. General Fund Receipts Through Dec. Up $283M
Georgia's general fund receipts from July through December exceeded collections during the same period in the previous fiscal year by $283 million, according to the state Department of Revenue.
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January 13, 2025
Ky. House Advances Cut To Flat Income Tax Rate
Kentucky would reduce its flat income tax rate starting next year as part of a bill passed by the state House of Representatives and headed to the Senate.
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January 13, 2025
Justices Won't Review Philly Credit Denial For Del. Tax Paid
The U.S. Supreme Court declined on Monday to consider a Philadelphia resident's claims that the city's refusal to credit her Delaware state taxes paid against her city wage tax liabilities discriminated against interstate commerce.
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January 10, 2025
Up Next At High Court: Porn ID Check & Retiree Discrimination
The U.S. Supreme Court will return to the bench Monday for a full argument session, in which the justices will debate whether a Texas law requiring pornography websites to verify their visitors aren't minors violates the First Amendment and if retirees have the right to sue former employers for benefits discrimination.
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January 10, 2025
NJ Justices Say Private Lienholders Can Be State Actors
The Garden State's highest court has ruled that a previous version of the New Jersey Tax Sale Law is unconstitutional, pointing to U.S. Supreme Court precedent in concluding that private lienholders are not entitled to surplus equity in property that exceeds the debt owed.
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January 10, 2025
Illinois Joins IRS Direct File Program For 2025
The Internal Revenue Service's free electronic tax filing program, Direct File, will be available in Illinois when tax season begins this month, the Illinois Department of Revenue and Gov. JB Pritzker announced Friday.
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January 10, 2025
Illinois House Bill Would Trim Individual Income Tax Rate
Illinois would shave one-tenth of a percentage point from the state's flat individual income tax rate under a bill introduced in the state House of Representatives.
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January 10, 2025
Vt. Gov. Cautions Lawmakers Against Raising Taxes
Vermont's governor urged lawmakers not to increase taxes during the new legislative session, saying they should find ways to make the state more affordable to attract new residents.
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January 10, 2025
Maine Bill Seeks Excise Tax Exemption For Camper Trailers
Maine would eliminate its excise tax on camper trailers under a bill introduced in the state Senate.
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January 10, 2025
Colo. Bill Seeks $34M Tax Credit To Lure Sundance Festival
Colorado would create a refundable income tax credit worth up to $34 million over 10 years to lure the Sundance Film Festival to the state under legislation introduced in the state House.
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January 10, 2025
Maine Senate Bill Aims To Bolster Seed Capital Tax Credit
Maine would increase the amount of income tax credits allowed to be claimed in future years in a program that provides credits for investments in Maine businesses under a bill introduced in the state Senate.
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January 10, 2025
Md. Bill Would Swap Electric Vehicle Tax Credit With Rebates
Maryland would repeal its electric vehicle excise tax credit and replace it with a rebate program under a bill introduced in the state House of Delegates.
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January 10, 2025
Charter Asks NY Panel To Cancel $7.8M Tax Bill In Rate Fight
A New York tribunal misinterpreted state law when it found Charter Communications Inc.'s combined group ineligible for a reduced tax rate offered to certain technology businesses, the company argued in asking a state appeals court to cancel a $7.8 million tax assessment.
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January 10, 2025
Colo. Bill Would Order Study Of Severance Tax, Water Funding
Colorado's Department of Natural Resources would have to assemble a third-party group to help put together a study of the state's severance taxes and water funding under a bill introduced in the Senate.
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January 10, 2025
Taxation With Representation: Kirkland, Davis Polk, Wachtell
In this week's Taxation With Representation, Constellation acquires Calpine, Cintas seeks a deal with UniFirst Corp., Stryker Corp. acquires Inari Medical Inc., and Paychex Inc. buys Paycor.
Expert Analysis
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Striking A Balance Between AI Use And Attorney Well-Being
As the legal industry increasingly adopts generative artificial intelligence tools to boost efficiency, leaders must note the hidden costs of increased productivity, and work to protect attorneys’ well-being while unlocking AI’s full potential, says Ed Sohn at Factor.
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Overreach In Texas And An Acronym In Peril: SALT In Review
From the Council on State Taxation's take on a proposal in Texas to the potential end of a fundamental truth in Montana, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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How Judiciary Can Minimize AI Risks In Secondary Sources
Because courts’ standing orders on generative artificial intelligence and other safeguards do not address the risk of hallucinations in secondary source materials, the judiciary should consider enlisting legal publishers and database hosts to protect against AI-generated inaccuracies, say attorneys at Lankler Siffert & Wohl.
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NY Tax Talk: Questions In Corporate Franchise Tax Regs Case
In the first challenge to New York's Corporate Franchise Tax regulations — Paychex v. Department of Taxation and Finance — the court has an important opportunity to provide clarity on a major retroactive application issue, say attorneys at Eversheds Sutherland.
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How Attorneys Can Break Free From Career Enmeshment
Ambitious attorneys can sometimes experience career enmeshment — when your sense of self-worth becomes unhealthily tangled up in your legal vocation — but taking the time to discover and realign with your core personal values can help you recover your identity, says Janna Koretz at Azimuth Psychological.
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Lawyers With Disabilities Are Seeking Equity, Not Pity
Attorneys living with disabilities face extra challenges — including the need for special accommodations, the fear of stigmatization and the risk of being tokenized — but if given equitable opportunities, they can still rise to the top of their field, says Kate Reder Sheikh, a former attorney and legal recruiter at Major Lindsey & Africa.
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Judicial Committee Best Venue For Litigation Funding Rules
The Advisory Committee on Civil Rules' recent decision to consider developing a rule for litigation funding disclosure is a welcome development, ensuring that the result will be the product of a thorough, inclusive and deliberative process that appropriately balances all interests, says Stewart Ackerly at Statera Capital.
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The Strategic Advantages Of Appointing A Law Firm CEO
The impact on law firms of the recent CrowdStrike outage underscores that the business of law is no longer merely about providing supplemental support for legal practice — and helps explain why some law firms are appointing dedicated, full-time CEOs to navigate the challenges of the modern legal landscape, says Jennifer Johnson at Calibrate Strategies.
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How Cos. Can Build A Strong In-House Pro Bono Program
During this year’s pro bono celebration week, companies should consider some key pointers to grow and maintain a vibrant in-house program for attorneys to provide free legal services for the public good, says Mary Benton at Alston & Bird.
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Home Canning Makes Me A Better Lawyer
Making my own pickles and jams requires seeing a process through from start to finish, as does representing clients from the start of a dispute at the Patent Trial and Appeal Board through any appeals to the Federal Circuit, says attorney Kevin McNish.
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Sound Ideas And An Ill-Advised Gamble: SALT In Review
From potential reforms in Louisiana to tax incentives for a gambling company in Colorado, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Use The Right Kind Of Feedback To Help Gen Z Attorneys
Generation Z associates bring unique perspectives and expectations to the workplace, so it’s imperative that supervising attorneys adapt their feedback approach in order to help young lawyers learn and grow — which is good for law firms, too, says Rachael Bosch at Fringe Professional Development.
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Congress Can And Must Enact A Supreme Court Ethics Code
As public confidence in the U.S. Supreme Court dips to historic lows following reports raising conflict of interest concerns, Congress must exercise its constitutional power to enact a mandatory and enforceable code of ethics for the high court, says Muhammad Faridi, president of the New York City Bar Association.