State & Local
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August 09, 2024
Mich. Court Says Tax Cap Voided By Law Firm's New Roof
A new roof installed on the office of a Michigan law firm was an addition to the property, allowing its taxable value to increase beyond a statutory cap, the state Court of Appeals ruled, upholding a state tax tribunal finding.
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August 09, 2024
What Books Tax Pros Recommend For This Summer
As practitioners monitor the tax implications of the U.S. presidential election as well as what might come out of the next European Commission, they may want to take a break with a good book. Here, Law360 takes a look at tax specialists' summer reading recommendations.
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August 09, 2024
Taxation With Representation: Latham, Freshfields, Wachtell
In this week's Taxation With Representation, Quantum Capital Group agrees to a roughly $3 billion deal for Cogentrix Energy, Apax Partners LLP is acquiring Thoughtworks for roughly $1.75 billion, and Mallinckrodt inks a $925 million deal for Therakos.
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August 08, 2024
Meta Tells Court Md. Digital Ad Tax Unlawfully Discriminates
Maryland's tax on digital advertising unlawfully discriminates against electronic commerce and violates the commerce clause and the First Amendment of the U.S. Constitution, Meta told the Maryland Tax Court during oral arguments Thursday in one of several related cases pending before the court.
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August 08, 2024
Dish, DirecTV Say New Laws Show Mo. Fees Never Applied
Two Missouri bills signed into law last month were meant to clarify that streaming and satellite TV services were always exempt from video service provider fees, not change the law to newly exempt the services, Dish and DirecTV told a Missouri court.
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August 08, 2024
No Rebate Estimate For Ore. Biz Tax Measure, Panel Says
An explanatory statement on an Oregon ballot measure to impose a new minimum corporate tax and provide payouts to state residents will not include an estimate of those rebate amounts, a state elections panel said.
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August 08, 2024
Utah Justices Refuse Tax Break For Sports Lab
A Utah sports medicine lab does not use its facilities exclusively for charitable purposes and therefore is not eligible for a property tax exemption, the state Supreme Court said Thursday, upholding a Utah Tax Commission decision.
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August 08, 2024
Ind. Co.'s Out-Of-State Trailer Sale Not Taxable
An Indiana company that sold a trailer to a Florida resident who then registered the trailer in Michigan didn't owe sales tax on the transaction, the Indiana Department of Revenue said.
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August 08, 2024
Nixon Peabody Hires Community Development Counsel In DC
When Steven Feenstra, the newest member of Nixon Peabody LLP's the community development finance practice, visited a client's office some 25 years ago, the photos of the community housing projects the client had helped develop made a lasting impression on him, he told Law360 Pulse in an interview Thursday.
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August 08, 2024
Ind. Company Wrongly Denied Carryover Of Tax Credits
An Indiana company was wrongly assessed additional corporate income tax, the state Department of Revenue said, adding that it had excess tax credits it could use to reduce its 2019 liability.
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August 08, 2024
Ind. Building Co. Can't Get Research Tax Credits, Dept. Says
An Indiana construction company was correctly assessed additional corporate income tax because it failed to establish that it qualified for claimed research expense credits, the state Department of Revenue said.
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August 08, 2024
Ohio Board OKs Valuing Residence At Private Sale Price
An Ohio home was overassessed, the state's tax appeals board said, finding that the property's recent sale was an arm's-length transaction and should be considered when valuing it.
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August 07, 2024
NJ Tax Agency Seeks Required Bids For Transfer Pricing Aide
New Jersey is seeking bids to contract with a transfer pricing specialist because the state's agreement with a prominent economist who helped draft the federal government's transfer pricing rules can't be renewed without a competitive process, a state tax agency representative told Law360 on Wednesday.
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August 07, 2024
Minn. Delays Tax Deadlines For Those Hit By Storms
Minnesota will give people and businesses in 19 counties hit by recent storms and flooding extra time to file and pay their state taxes, the Minnesota Department of Revenue said Wednesday.
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August 07, 2024
Office Buildings Reign Supreme In Terms Of NYC Tax Revenue
According to a Wednesday report from New York state's fiscal watchdog, ongoing woes in the office sector aren't going to punch a hole in the budget for New York City — which can expect to continue to receive an "outsized" proportion of its tax revenue from office buildings.
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August 07, 2024
Tax Holidays Not Cure For Regressive Tax, Think Tank Warns
Sales tax holidays are expensive and do more harm than good, the Institute on Taxation and Economic Policy said, instead advocating for tax policies that provide permanent relief to low- and middle-income taxpayers.
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August 07, 2024
Minn. Justices Affirm Wis. Biz Had Enough Contacts For Tax
A Wisconsin distributor of industrial and packing products had enough contacts with Minnesota to be liable for its corporate franchise tax, the Minnesota Supreme Court ruled Wednesday, affirming a tax court decision.
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August 07, 2024
Tax Court's Economic Substance Foray May Clarify Limits
A U.S. Tax Court judge plans to address an ill-defined provision governing the relevance of the economic substance doctrine in a microcaptive insurance case, offering the courts another chance to clarify an anti-abuse tool the IRS has been deploying more often.
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August 07, 2024
Iowa Revenues In July $128M Higher Than Last Year
Iowa's total receipts for July were $128 million higher than the same month in the previous fiscal year, according to a memo from the state's Department of Management.
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August 07, 2024
Calif. Office Says Partner's Loss Claims Properly Disallowed
A California audiovisual company that is a partner with two other companies cannot claim $853,000 in flow-through partnership losses because the company did not have the basis in the partnerships to be able to claim the losses, the state Office of Tax Appeals ruled.
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August 07, 2024
NH Starts Fiscal Year 2025 $4 Million Over Revenue Estimate
New Hampshire's general fund receipts in July were $4 million higher than budget estimates, according to the state Department of Administrative Services.
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August 07, 2024
Missouri Voters Reject Exemption For Child Care Facilities
Missouri will not allow local governments to exempt child care facilities from property tax after a constitutional amendment was rejected by voters Wednesday.
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August 07, 2024
Logistics Co. CEO Denies Role In NJ Racketeering Scheme
The chief executive officer of logistics firm NFI Industries on Wednesday denied that he played a role in an alleged scheme led by a New Jersey power broker accused of reaping millions in tax credits by using extortion to acquire waterfront property in the distressed city of Camden.
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August 06, 2024
Calif. Sales By Snowmaking Co. Are Taxable, OTA Says
A company that creates and supplies snow for entertainment companies in California had $1.93 million in taxable sales in 2012 through 2015 despite the company saying the snow was not tangible personal property, the California Office of Tax Appeals ruled.
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August 06, 2024
Wash. Appeals Court Reverses On Gas Chain Owing State Tax
A Pacific Northwest gas station chain that issued fuel cards to customers must pay the Washington state business tax when cardholders purchase gas from other participating gas station chains as well as from nonparticipating chains, a state appeals court panel said Tuesday, reversing an earlier opinion.
Expert Analysis
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A Milestone For Offshore Wind In Maine
Recently signed legislation directing Maine to procure up to 3 gigawatts of offshore wind by 2040 offers indisputable promise that the state will soon welcome commercial-scale offshore wind development off its shores, says Joshua Rosen at Foley Hoag.
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Mallory Ruling Doesn't Undermine NC Sales Tax Holding
Contrary to the conclusion reached in a recent Law360 guest article, the U.S. Supreme Court’s recent Mallory ruling shouldn't be read as implicitly repudiating the North Carolina Supreme Court’s sales tax ruling in Quad Graphics v. North Carolina Department of Revenue — the U.S. Supreme Court could have rejected Quad by directly overturning it, says Jonathan Entin at Case Western Reserve.
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Calif. Policymakers Should Aid Crashing Cannabis Market
As California’s cannabis sector nears the brink of financial collapse, it may be time for the state government to seriously consider potential bailout programs for the embattled industry — though the crisis also presents strategic buying opportunities for those with a high tolerance for uncertainty, says Michelle Mabugat at Greenberg Glusker.
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What Came Of Texas Legislature's Long-Promised Tax Relief
Following promises of historic tax relief made possible by a record budget surplus, the Texas legislative session as a whole was one in which taxpayers that are large businesses could have done somewhat better, but the new legislation is clearly still a positive, say attorneys at Baker Botts.
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Looking Behind The Curtain Of Residential Transition Loans
As residential transition loans and securitizations of such loans grow increasingly popular, real estate stakeholders should take care to understand both the unique features and potential challenges offered by this novel asset class, say attorneys at Mayer Brown.
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Where Tax Policies Go Wrong: SALT In Review
RSM's David Brunori reviews the worst tax policies employed by state and local governments, then critiques recent tax developments in Oregon, New York and Boston.
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Mallory Opinion Implicitly Overturned NC Sales Tax Ruling
The U.S. Supreme Court recently declined to review Quad Graphics v. North Carolina Department of Revenue, but importantly kicked the legs from under Quad's outcome a week later, stating in its Mallory decision that the high court has the prerogative to overrule its own decisions, says Richard Pomp at the University of Connecticut.
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Delicious In Conn., Less Tasty In La.: SALT In Review
From Connecticut reducing its beer tax to Louisiana retaining its franchise tax, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Review Of Repatriation Tax Sets Justices On Slippery Slope
The U.S. Supreme Court’s recent decision to review the constitutionality of the repatriation tax in Moore v. U.S. has implications for many tax rules involving unrealized amounts and could leave the court on the brink of invalidating large swaths of the Internal Revenue Code, say attorneys at Eversheds Sutherland.
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How To Avoid A Zombie Office Building Apocalypse
With national office vacancy rates approaching 20%, policymakers, investors and developers will need to come together in order to prevent this troubling trend from sucking the life out of business districts or contaminating the broader real estate market, say Ryan Sommers and Robyn Minter Smyers at Thompson Hine.
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Ohio Tax Talk: Building On Federal Affordable Housing Credit
Ohio's soon-to-be-implemented low-income housing tax credit could significantly affect the state's affordable housing landscape and influence tax-credit deal financing for these projects, though Senate changes may have dampened the new credit's immense potential, say Raghav Agnihotri and Rachael Chamberlain at Frost Brown.
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Holding These Truths Incontrovertible: SALT In Review
RSM's David Brunori offers his thoughts on noteworthy state and local tax news, beginning with "almost irrefutable" observations delivered at a recent tax seminar.
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LA's High-Value Real Estate Transfer Tax Should Be Scrapped
Los Angeles’ recently implemented high-value property transfer tax has chilled the real estate market, is failing to meet revenue expectations and raises significant constitutional concerns, making it a flawed piece of legislation that should be invalidated, says attorney Paul Weinberg.