State & Local

Expert Analysis

• How Justice Breyer Influenced State Tax Jurisprudence

  

  U.S. Supreme Court Justice Stephen Breyer, who announced his retirement last week, leaves behind a series of notable decisions that will continue to shape state and local taxation, especially in the areas of the commerce and equal protection clauses, say attorneys at Eversheds Sutherland.

• Takeaways From 6th Circ.'s RE Tax Foreclosure Ruling

  

  The Sixth Circuit's recent decision in Lowry v. Southfield sheds light on when exactly real estate tax foreclosures can be avoided as fraudulent transfers, and could potentially impede municipalities' ability to collect unpaid property taxes through tax sales, says Scott Bernstein at Skolnick Legal Group.

• Pa. High Court Tax Refund Ruling Leaves Questions

  

  The Pennsylvania Supreme Court's recent General Motors v. Commonwealth tax decision deciding the constitutionality of limitations on net loss deductions and net loss carryovers raises questions about retroactivity, remedies in future cases, and financial statements, says Michael Semes at BakerHostetler.

• Top 10 SALT Developments Of 2021: Part 2

  

  Attorneys at Grant Thornton continue their countdown of the 10 biggest state and local tax issues of 2021, including pass-through entity tax regimes, American Rescue Plan Act tax mandate challenges and the extended tax implications of telework.

• Top 10 SALT Developments Of 2021: Part 1

  

  Attorneys at Grant Thornton count down the 10 biggest state and local tax issues of 2021, including remote seller and digital advertising tax challenges, and recent net operating loss developments.

• 3 Forces That Will Define Sales Tax Compliance In 2022

  

  As we head into 2022, it's likely that many of the legal and cultural shifts we saw this year — such as increased adoption of economic nexus and marketplace facilitator laws, growth in state budgets and continuation of remote work — will define sales tax compliance in the new year, says Liz Armbruester at Avalara.

• Texas Tax Talk: Exemption Win Signals Taxpayer Opportunity

  

  A Texas appellate court’s recent ruling in Hegar v. Texas Westmoreland Coal, holding that mineral extraction equipment qualifies for the Texas sales tax manufacturing exemption, may yield opportunities for taxpayers in other industries to push back on comptroller exemption denials, say attorneys at Baker Botts.

• Ohio Tax Talk: Property Tax Bill May Affect School Revenues

  

  A bill pending in the Ohio Legislature proposing changes to the real property tax valuation process could lead to a decrease in school district challenges to property tax adjustments — and therefore a dip in the school districts' property tax revenues, says Yazan Ashrawi at Frost Brown.

• Kentucky Tax Talk: Why Local-Level Reform May Finally Work

  

  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

  

  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

  

  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

  

  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

  

  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.