State & Local

  • November 14, 2022

    Ark. Biz Owner Failed To Prove Biz Deductions, Dept. Rules

    An Arkansas woman who owns an accessory and clothing business can't claim business expense deductions because she failed to provide documentation proving she was eligible for them, the state Department of Finance and Administration ruled.

  • November 13, 2022

    Retirement, R&D Tax Breaks Top Congress' Year-End Wishlist

    When Congress returns to Washington the week of Nov. 14, lawmakers will have a short window to pass a year-end legislative package that could extend expired research and development tax breaks and send bipartisan retirement legislation to President Joe Biden's desk.

  • November 10, 2022

    Trump Org Payments Risked GC's Law License, Witness Says

    Trump Organization controller Jeffrey McConney testified to a Manhattan jury Thursday that an accountant warned the company that the way it paid bonuses to executives could result in the chief legal officer losing his law license, prompting the lawyer to immediately change how he was paid.

  • November 10, 2022

    Calif. LLC Member Liable For Unpaid Sales Taxes, OTA Rules

    A member of a limited liability company that operated a California used car dealership is personally liable for more than $103,000 in unpaid sales and use taxes and penalties assessed against the LLC, the state Office of Tax Appeals said.

  • November 10, 2022

    NY Issues Regs To Administer Digital Gaming Tax Credits

    The New York Department of Economic Development issued regulations to establish administrative processes for a new digital gaming media production tax credit program, according to a notice published in the state register.

  • November 10, 2022

    Pa., Other States, Urge Judge's Support In MoneyGram Suit

    States battling Delaware in the U.S. Supreme Court over claim to abandoned MoneyGram checks urged a court-appointed special master to maintain his original findings that federal law governs the checks and they belong to the challenging states.

  • November 10, 2022

    Va. Commissioner Abates Tax After Domicile Change

    A taxpayer's Virginia income tax assessment was abated by the state's tax commissioner in a determination released Thursday after the taxpayer successfully proved a change in domicile to another state.

  • November 10, 2022

    SD Tax Exemption For Food Would Bar Local Levies, AG Says

    A pair of proposed ballot measures to exempt food and drink from South Dakota's sales tax would also prevent municipalities from taxing those items, the state attorney general said in a final explanation of the measures.

  • November 10, 2022

    Va. Pass-Through May Need To Withhold Tax From Nonresident

    A pass-through entity with income sourced in Virginia may be required to withhold tax from a nonresident whose interest in the pass-through is held as part of an individual retirement account, the state's tax commissioner said in a letter published Thursday.

  • November 10, 2022

    Va. Tax Dept. Says Md. Woman Never Abandoned Va. Domicile

    A taxpayer who lived in Virginia until 2011 never proved she abandoned her domicile or intended to acquire a Maryland domicile and should file a 2017 Virginia tax return, the Virginia tax commissioner said.

  • November 10, 2022

    Ark. Taxpayer's ATV Purchase Doesn't Qualify For Exemption

    An Arkansas taxpayer who purchased all-terrain vehicles does not qualify for a farm equipment exemption because the vehicles were not used directly in commercial farming activity, a state administrative law judge ruled. 

  • November 10, 2022

    Va. Accommodations Intermediaries Must Collect Sales Tax

    Accommodations intermediaries are considered marketplace facilitators and are responsible for collecting and remitting retail sales and use tax on their sales, according to a ruling by the Virginia tax commissioner released Thursday, clarifying recent legislation.

  • November 10, 2022

    Va. Security Company Is Not Eligible For Tax Exclusion

    A Virginia security company wasn't eligible for an exclusion of gross receipts from business, professional and occupational license tax because its receipts were not part of the software development process, the state tax commissioner said in a ruling released Thursday. 

  • November 10, 2022

    22 Jurisdictions Agree To Share Gig Economy Tax Data

    Officials from 22 jurisdictions have agreed to exchange information collected by digital platform operators through a global framework that would help countries tax income earned through the app-based gig economy, the Organization for Economic Cooperation and Development said Thursday.

  • November 10, 2022

    Calif. Tax Panel Won't Rehear Co.'s Bad Debt Case

    A California company and its owner are not entitled to a new hearing on their claim for bad debt deduction, a state tax panel said, rejecting their effort to present new evidence that the debt was worthless at the time.

  • November 09, 2022

    Trump Fails To Halt Monitorship As Request Goes To Panel

    A New York appeals court judge on Wednesday denied Donald Trump's emergency bid to halt plans to impose a Trump Organization monitor during the state attorney general's $250 million fraud lawsuit, opting to bring his request to stay the monitorship before "a full bench" this month. 

  • November 09, 2022

    Calif. Man Entitled To Step-Up In Basis On Co. Sale, OTA Says

    A Californian is entitled to a step-up in basis for the value of stock in a company he owned when it was liquidated and his assets were deemed to be contributed to a partnership based in Australia, the state Office of Tax Appeals said.

  • November 09, 2022

    Telecom Groups Push For Broadband Grant Tax Exemption

    Several major telecom groups have pressed Congress to approve a recently introduced bill that would prevent the taxation of broadband grants under last year's infrastructure law and American Rescue Plan.

  • November 09, 2022

    Calif. Property Ruled Ineligible For Tax-Free Exchange

    A trust failed to establish that a California property was held for investment to satisfy the requirement for a like-kind tax-free exchange and is liable for income tax on the transaction, the state Office of Tax Appeals said.

  • November 09, 2022

    9th Circ. Nixes Fed. Jurisdiction In Amazon Sellers' Tax Fight

    Federal courts lack jurisdiction to hear an e-commerce trade group's attempt to block California from pursuing back sales taxes from sellers with inventory stored in-state through participation in an Amazon program, a Ninth Circuit panel affirmed Wednesday.

  • November 09, 2022

    Mo. Voters OK Legalizing, Taxing Cannabis

    Missouri voters passed a ballot measure to amend the state's constitution to legalize the retail sale of cannabis and levy a 6% tax on recreational sales.

  • November 09, 2022

    Mass. Voters Approve Income Tax Hike On Millionaires

    Massachusetts voters approved a constitutional amendment that will do away with the state's flat income tax system by imposing a 4% tax on incomes over $1 million, according to unofficial results on Wednesday, a change that is estimated to raise more than $1 billion annually.

  • November 09, 2022

    Ore. Couple's Tax Complaint Dismissed For Nonpayment

    An Oregon couple may not challenge a 2016 state income tax assessment in the state tax court's regular division because they did not pay the assessed amount before filing the complaint, a judge said.

  • November 09, 2022

    W.Va. Voters Turn Down Property Tax Break For Biz Machinery

    West Virginia voters rejected a ballot measure that would have amended the state constitution to allow the Legislature to exempt personal property used in business activity from personal property tax and motor vehicles from ad valorem property tax.

  • November 09, 2022

    Mass. Millionaires' Loss Is Attys' Gain As Tax Measure Passes

    Massachusetts' newly passed "millionaire's tax" could provide a windfall for the coffers of both the state and tax attorneys, who predict that the new 4% surtax on incomes of more than $1 million will lead to business from those looking to minimize their tax hit.

Expert Analysis

  • 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.

  • How Western States Help The Wealthy Avoid Taxes, Creditors

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    The race by certain states in the western U.S. to legalize shell companies, private trusts and other mechanisms allowing wealthy individuals to avoid taxes and creditors underlies the U.S.' status as a secrecy haven of choice, says Daniel Pascucci at Mintz.

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