State & Local

Expert Analysis

• Ohio Tax Talk: Telework Case Shows Tax Grounds Eroding

  

  The Ohio Supreme Court case Schaad v. Alder, which considers a city's right to temporarily tax remote workers during the pandemic, highlights how sustained increases in telework may undermine the rationale allowing municipalities to tax employee income regardless of their residence, say Yazan Ashrawi and Raghav Agnihotri at Frost Brown.

• Digital Ads In NM And Farms In NJ: SALT In Review

  

  From New Mexico's proposed rules on digital advertising to New Jersey's move toward relief for farmers, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

• Senate Cannabis Bill May Give Some Cos. A Competitive Edge

  

  Though the recently introduced Cannabis Administration and Opportunity Act is unlikely to pass, it provides a bellwether for federal legalization, with a robust regulatory framework that would offer large food and beverage companies a structural advantage and poise multistate cannabis operators for further growth, say attorneys at Perkins Coie.

• NY's Out-Of-State Play And Ala.'s Add-Back: SALT In Review

  

  From New York state's move toward taxing out-of-state entities' partnership sales to Pfizer's victory against Alabama's add-back rule, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

• Lessons For Federal Lawmakers As Calif. Alters Cannabis Tax

  

  California recently eliminated a cultivation tax that had for years burdened the state’s licensed cannabis market, providing important lessons for federal lawmakers on cumbersome regulations and unduly high taxes as they debate legalization, says Raza Lawrence at Zuber Lawler.

• Texas Tax Talk: Ruling May Erode Pro-Taxpayer Presumption

  

  Following the recent Texas Supreme Court opinion in Hegar v. Health Care Service, the state comptroller may try to limit the utility of a long-standing presumption that ambiguous tax statutes must be construed strictly against the taxing authority and liberally for the taxpayer, say attorneys at Baker Botts.

• MTC Activity And Tax Rebates All Over: SALT In Review

  

  From the highly active Multistate Tax Commission to tax rebates seemingly everywhere, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

• Emerging SALT Trends For Cryptocurrency And NFTs

  

  Attorneys at Venable discuss trends in state and local tax with respect to cryptocurrency and non-fungible tokens, and the issues for purchasers, sellers and owners in this growing marketplace that SALT authorities must address.

• E-Cigarettes And Film Tax Credits: SALT In Review

  From excise taxes on e-cigarettes across the land to a study that bolsters doubts about film tax credits, RSM US LLP's David Brunori offers his thoughts on noteworthy state and local tax news.

• Inside The OECD Transfer Pricing Documentation Guidance

  Excerpt from Practical Guidance

  

  The Organization for Economic Cooperation and Development's recently modified documentation guidelines can assist tax administrations in developing requirements for transfer pricing risk assessments and evaluations, and help multinational entity taxpayers demonstrate satisfaction of the arm's-length principle, says Neil Aragones at Lexis Tax.

• Calif. Tax Board Nonresident Asset Ruling Raises New Issues

  

  The California Franchise Tax Board's recent ruling on whether a nonresident's disposition of a partnership interest gives rise to California-sourced income raises new issues for sourcing gain or loss using partnership apportionment factors where unrealized receivables and inventory are involved, says Eric Coffill at Eversheds Sutherland.

• Tech Co.'s Suit May Create Hurdles For Research Tax Credits

  

  The recently filed U.S. Tax Court case Perficient v. Commissioner — challenging standards under research credit regulations that determine whether research is funded by any grant or contract — could make it difficult to substantiate research tax credits, say Dennis St. Martin and Kevin Benton at Grant Thornton.

• A Close Look At The Decentralized Effort To Tax Digital Assets

  

  Clarity on taxation is one of the biggest hurdles to mass adoption of cryptocurrency, and although digital asset innovation has consistently outpaced worldwide government regulation, recent efforts in the U.S. and elsewhere hint at an emerging standard, says Joshua Smeltzer at Gray Reed.