State & Local
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March 14, 2024
Okla. House OKs Flattening Income Tax, Then Phasing It Out
Oklahoma would replace the state's six individual income tax brackets with a 4.75% flat tax and set a path toward phasing out the tax as part of a bill passed by the state House of Representatives.
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March 14, 2024
Trump's NY Trial May Be Delayed After Document Dump
The Manhattan district attorney on Thursday proposed delaying former President Donald Trump's hush money trial by up to 30 days after federal prosecutors recently disclosed tens of thousands of pages of documents related to the past criminal case of a key witness, ex-Trump attorney Michael Cohen.
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March 14, 2024
IRS' Signals On Economic Substance Doctrine Draw Scrutiny
The Internal Revenue Service's recent legal success asserting a doctrine to invalidate transactions in tax law enforcement matters may embolden the government to broaden that argument's reach, and lawyers are concerned it doesn't properly apply to transfer pricing matters.
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March 14, 2024
Ore. Skateboard Church Denied Tax Break Over Late Purchase
A tax-exempt Oregon church serving Portland skateboarders is not entitled to a property tax exemption because it did not own its property before the statutory deadline for commencing its charitable activities, the Oregon Tax Court has decided.
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March 14, 2024
Calif. Bill Would Add Candy Tax To Sweeten Child Tax Credit
California would impose a sales and use tax on candy and put the revenue in the general fund to offset the cost of raising the age of the child tax credit if a constitutional amendment was passed under a proposal introduced in the Assembly.
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March 14, 2024
Colo. Senate OKs Tax Credits For Gifts Through Intermediaries
Colorado would allow tax credits for charitable contributions made through qualified intermediaries instead of directly to a recipient organization under legislation approved by the state Senate.
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March 14, 2024
Trump Hush Money 'Half Mary': Blame The Lawyers, Sort Of
Donald Trump's informal advice-of-counsel defense in the criminal hush money case in New York is a potentially risky, long-shot attempt at "having it both ways" by blaming his lawyers without having to testify or divulge details of their relationship, experts say.
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March 13, 2024
Disney, IBM Seeking Tax Loophole, NY High Court Judge Says
Disney and IBM's attempt to take New York tax deductions on royalties received from foreign affiliates is "the biggest loophole" that could be created under a former tax statute, a New York high court judge said Wednesday during oral arguments in disputes involving both companies.
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March 13, 2024
Mich. Justices Open To Counties' Foreclosure Liability Fears
Two members of the Michigan Supreme Court seemed sympathetic to Michigan counties urging the court to limit their liability for holding onto surplus tax foreclosure proceeds, highlighting during oral arguments that counties were following state law in a practice that was later deemed unconstitutional.
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March 13, 2024
Colo. Fees Are Really Taxes, Conservative Group Tells Judge
Colorado's upcoming fees on retail deliveries, short-term vehicle rentals and ride-hailing services violate the state Taxpayer's Bill of Rights and other provisions in state law, a conservative group has told a state judge in seeking a trial.
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March 13, 2024
Alaska Revenue Projections Up $58M For 2024
The Alaska Department of Revenue announced Wednesday that it was increasing its unrestricted general fund revenue forecast for 2024 by $58 million, and its forecast for 2025 by $140 million.
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March 13, 2024
Wash. Assessor Was Wrong To Deny COVID Relief, Hotels Say
A business group representing Washington hotels told a state court that a county assessor erred when he refused to lower the 2020 property assessments for hotels in the area due to financial losses stemming from the coronavirus pandemic.
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March 13, 2024
Longtime Stradley Ronon Tax Partner Joins Grant Thornton
Following more than a quarter-century practicing law with Stradley Ronon Stevens & Young LLP, longtime tax attorney Chris Scarpa decided to change career paths, joining accounting firm Grant Thornton LLP.
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March 13, 2024
Wis. Lawmakers OK Tax Exemption For Metal Bullion
Wisconsin would exempt coins, bars, rounds or sheets that contain a certain percentage of precious metals, such as gold or silver, from the state's sales tax as part of a bill passed by lawmakers that next goes to the state's governor.
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March 13, 2024
Ore. Tax Court Restores Property Value To Local Assessment
Neither the owner of a residential riverfront property in Oregon nor a county assessor showed enough evidence to change the county's $72,000 valuation, the Oregon Tax Court has ruled, rejecting the higher value found by the court's magistrate division.
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March 13, 2024
San Francisco Voters Pass Residential Conversion Tax Break
San Francisco voters have passed a ballot measure that will exempt up to 5 million square feet of residential conversions from real estate transfer taxes — a measure that Mayor London Breed predicted would spur housing production and reduce downtown office vacancy rates.
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March 13, 2024
Wis. Senate OKs Reining In Veto Power On Appropriation Bills
Wisconsin would limit the governor's veto power on appropriation bills, preventing the use of a partial veto in a way that would increase taxes or fees, as part of a joint resolution passed by lawmakers.
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March 12, 2024
Trump Floats Quasi-Advice Of Counsel Defense For NY Trial
Donald Trump's attorneys told a New York judge they will argue that he lacked intent to commit the felonies alleged in his hush money case because the former president knew he had attorneys involved in the payoffs to women during his 2016 election campaign, but that it's not quite an advice-of-counsel defense.
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March 12, 2024
Ohio Revenue Through Feb. Down $375M From Estimates
Ohio's general revenue fund receipts from July through February were $375 million lower than budget forecasts, according to a monthly report by the state's Office of Budget and Management.
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March 12, 2024
NY Lawmakers Float Income Tax Increases On High Earners
New York lawmakers proposed temporarily increasing income tax rates on individuals and corporations with more than $5 million of income in budget proposals the chambers released Tuesday, rebuking Gov. Kathy Hochul's pledge not to raise taxes that could drive high earners outside the state.
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March 12, 2024
Pike Test Could Solve Ill. Remote Seller Suit, Official Says
A little-used constitutional test could solve the issue of whether Illinois' policy of requiring retailers to base their sourcing methods on whether they are in-state or remote is unconstitutional, a Multistate Tax Commission official said Tuesday.
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March 12, 2024
Fla. Revenue Collection $74M Above Estimates
Florida's general revenue collection from July through January was $74 million higher than forecast, according to a monthly revenue report by the state's Office of Economic and Demographic Research.
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March 12, 2024
Md. Lowers Yearly Revenue Forecast By $120M
The Maryland Board of Revenue Estimates lowered reduced its revenue collection forecast for fiscal year 2024 by $120 million after lower-than-expected tax collections, according to a quarterly report.
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March 12, 2024
Tenn. Senate Panel OKs Corp. Tax Overhaul, Rebate
Tennessee corporations could see a $400 million annual franchise tax cut along with nearly $1.6 billion in potential refunds for past payments under legislation approved by a state Senate panel Tuesday.
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March 12, 2024
Colo. Dept. Says Out-Of-State Retailer May Collect Sales Tax
A retailer who makes sales into Colorado but whose business activities do not meet the statutory definition of doing business in the state may voluntarily collect sales taxes, the Colorado Department of Revenue said.
Expert Analysis
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What Ohio Tax Bill Would Mean For Business Sales
A pending Ohio bill would codify two situations in which selling an equity or ownership interest in a business would be considered business income, clarifying a number of ambiguous tax situations, say attorneys at Taft.
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Mich. Marijuana Bill Could Boost Tribal Economic Growth
New legislation in Michigan could help Native American tribes raise revenue for government services by creating a pathway for their marijuana businesses to interact with state-licensed facilities — a cooperative approach that supports tribal sovereignty and provides a model for resolving related jurisdictional challenges, says Paul Mooney at Dykema.
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The Efficacy Of Real Estate Joint Venture Exit Strategies
The pandemic has highlighted the importance of negotiating exit strategies for joint ventures, but more may not be better — parties should carefully assess which options are best suited to the particular venture, factoring in certain helpful considerations, say Kris Ferranti and Jonathan Newman at Shearman.
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NY Tribunal Ruling Instructive On Sales Taxation Of Artwork
A recent ruling from the New York Tax Appeals Tribunal in a case involving purchase of a Picasso painting sheds light on two important tax-structuring issues in the art industry — the form-over-substance nature of sales tax and the proper analysis to determine whether property is purchased exclusively for resale, say Joseph Endres and Joshua Lawrence at Hodgson Russ.
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Justices Must Apply Law Evenly In Shadow Docket Rulings
In recent shadow docket decisions, the U.S. Supreme Court has inconsistently applied the requirement that parties demonstrate irreparable harm to obtain injunctive relief, which is problematic for two separate but related reasons, says David Hopkins at Benesch.
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Federal Cannabis Bill Needs A Regulatory Plan To Succeed
The Marijuana Opportunity Reinvestment and Expungement Act, which was passed by the U.S. House of Representatives on Friday, is laudable but fundamentally flawed because it lacks a robust regulatory plan that would allow for bipartisan support, says Andrew Kline at Perkins Coie.
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Ohio Tax Talk: How Small Business Relief Would Work
Yazan Ashrawi and Raghav Agnihotri at Frost Brown discuss how a bill recently approved by the Ohio Senate would reduce federal income tax liability for pass-through entity owners of small businesses, and offer planning considerations for those taxpayers.
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What NJ Taxpayers Should Know About Russia Sanction Law
While several other states' pension funds have moved to divest themselves of Russian financial holdings, New Jersey's new law — swiftly introduced and enacted in response to Russia's invasion of Ukraine — appears to be the first legislation of its kind at the state level to limit economic development and tax incentives for private entities, say attorneys at Baker McKenzie.
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Kentucky Tax Talk: Inside Louisville's New Tax Regulations
Businesses of all sizes should reevaluate their obligations under the Louisville Metro Revenue Commission's new regulations governing local taxes, particularly given some unexpected changes and a stricter approach to the occupational license tax, say attorneys at Frost Brown.
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Mich. Unclaimed Property Rulings Offer Hope For Auditees
Two recent decisions from a Michigan circuit court, holding that commencing an unclaimed property audit does not toll the state's time limit to demand unclaimed funds, may offer property holders a glimmer of relief from burdensome, lengthy audits, say attorneys at Reed Smith.
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Pa. Tax Talk: Ambiguity Issue In High Court Qui Tam Ruling
The most concerning aspect of the Pennsylvania Supreme Court's recent decision in O'Donnell v. Allegheny County, finding that qui tam payments are taxable income, is the majority's steadfast assertion that there is no ambiguity in this interpretation — when the dissenting opinion proves there is, says Jennifer Karpchuk at Chamberlain Hrdlicka.
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Why I'll Miss Arguing Before Justice Breyer
Carter Phillips at Sidley shares some of his fondest memories of retiring Justice Stephen Breyer both inside and out of the courtroom, and explains why he thinks the justice’s multipronged questions during U.S. Supreme Court oral arguments were everything an advocate could ask for.
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Texas Tax Talk: Comptroller Appeals May Fuel Litigation
This Texas Supreme Court term has seen a very active comptroller bringing particularly aggressive arguments on appeal, such as those stretching the statutory language for tax liability, in a trend that could force taxpayers to litigate positions they thought were secure, say attorneys at Baker Botts.