State & Local
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December 06, 2024
Alcatel Asks Pa. Justices For Remand On $4M Tax Refund
The Pennsylvania Supreme Court should remand Alcatel-Lucent's case against the commonwealth over a $4 million income tax refund so that a more complete factual record can be established, the company told the justices in an application for reargument.
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December 06, 2024
Taxation With Representation: Skadden, Gibson Dunn
In this week's Taxation With Representation, BlackRock buys HPS Investment Partners, TreeHouse Foods Inc. buys Harris Tea, Aya Healthcare acquires Cross Country Healthcare, and Bruin Capital launches a soccer representation business.
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December 06, 2024
Ore. Court Says Social Security Counts In Tax Break Test
An Oregon man was rightly denied a property tax deferral because his household income exceeded the limit for beneficiaries, the state tax court said, rejecting his argument that his exempt Social Security income should not be counted in that determination.
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December 05, 2024
NYC's Denial Of Tax Break For Paid Commissions Affirmed
New York City properly denied an architectural firm's deductions for commissions paid to a domestic international sales organization owned by the firm's partners, a New York state appeals court affirmed Thursday, saying the city wasn't required to follow the federal deduction rules for the payments.
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December 05, 2024
Ohio Court Affirms Nix Of Bid To Double $42M Property Value
An effort to nearly double the $42 million taxable value of a property to its recent sale price was correctly dismissed, an Ohio state appeals court said, upholding a state law barring complaints based on the untimeliness of a sale.
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December 05, 2024
Texas Court Strikes Down Change In Sales Tax Sourcing
A Texas tax agency regulation that declared that fulfillment centers are not automatically places of business for local sales tax sourcing is harmful to the Texas cities that opposed it and the state comptroller of public accounts is banned from enforcing it, a state trial court judge said.
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December 05, 2024
Mich. House Panel OKs Fix To Avoid Double Tax On Deliveries
Michigan would allow certain marketplace facilitators of deliveries to deduct sales tax that they paid to sellers to avoid potential double-taxation issues under a bill advanced by a state House of Representatives tax-writing committee.
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December 05, 2024
Mich. Legislature OKs Allowing LLC Status For Telecom Cos.
Telecommunication companies would be able to convert to limited liability companies in Michigan while continuing to be considered corporations for state tax purposes under a package of bills passed by the Legislature.
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December 05, 2024
La. Enacts Flat Income Tax, Will End Franchise Tax In 2026
Louisiana will eliminate its tiered corporate and individual income tax regime in favor of flat taxes and will scrap the state's corporate franchise tax in 2026 under a package of bills signed Thursday by the governor.
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December 05, 2024
Ariz. Parcel's Improvements Have No Value, Tax Court Says
The improvements to an industrial parcel in Arizona have no value, the state tax court ruled, agreeing with the owner that a county assessor's valuation of the property was excessive.
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December 04, 2024
Ohio Clarifies Sales Tax Exception For Food Manufacturing
An Ohio sales and use tax exception for property used in manufacturing applies to cleaning supplies used in food production and not just cleaning supplies used in the production of dairy products, the state Department of Taxation clarified in adopted regulatory amendments.
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December 04, 2024
Ind. Tax Board Says Waste Hauler's Equipment Not Taxable
An Indiana-based waste management company was wrongly assessed personal property tax on front-end lifts attached to its garbage trucks, the state's Board of Tax Review said.
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December 04, 2024
Uber Didn't Have To Collect Tax Pre-Wayfair, Court Told
Uber was not required before the Wayfair decision to collect and remit millions in sales taxes on behalf of drivers and customers who use its app, an attorney for the ride-hailing company told a Georgia appellate panel Wednesday, urging the panel to overturn a trial court.
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December 04, 2024
Sunoco Not Owed $2.6M NY Tax Refund, Tribunal Affirms
Sunoco affiliates cannot include oil sales to third parties intended as inventory exchanges when computing the company's business activity allocable to New York, the state Tax Appeals Tribunal ruled, affirming the state's denial of a $2.6 million refund.
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December 04, 2024
Mich. Justices Pan Due Process Claim In Tax Appeal Dispute
Two Michigan Supreme Court justices expressed skepticism Wednesday toward a packaging company's arguments that its due process rights were violated when an assessor's notice of a tax exemption denial didn't provide all the information the business needed to appeal.
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December 04, 2024
Block's Tax Refund Should Be Voided, Atlanta Tells Ga. Court
A Georgia trial court erred when it found that Block, the financial services and mobile payments company, was due a $330,000 occupation tax refund from the city of Atlanta, a lawyer for the city told an appellate panel Wednesday.
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December 04, 2024
Ala. Dept. OKs Regs To Implement Tourism Project Tax Breaks
The Alabama Department of Revenue adopted regulations to implement recently enacted tax rebates for companies that operate qualifying tourism projects, according to a notice published by the state Legislative Services Agency.
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December 04, 2024
Reed Smith Adds State Tax Partner To San Francisco Office
Reed Smith LLP added a partner to its national state tax practice who will work out of its San Francisco office, according to the firm.
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December 04, 2024
Ind. Tax Board Cuts Valuation Of Self-Storage Property
An Indiana storage unit facility's $1.06 million valuation was reduced after the state Board of Tax Review determined it should revert to the prior year's assessment of $915,000 because the owner and county assessor failed to accurately appraise the property.
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December 04, 2024
Oracle Can't Seek Fla. Tax Refunds Without Repaying Clients
Oracle can't obtain refunds for Florida state and local taxes that it improperly collected on sales of electronically delivered software to three businesses because the company didn't reimburse those customers first, a state appeals court ruled Wednesday.
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December 03, 2024
Calif. Furniture Chain Owner Owes Fraud Penalty, OTA Says
The owner of a California furniture stores chain committed sales tax fraud, and the relevant tax agency was correct in charging him a 25% fraud penalty and in finding he had more than $6.4 million in unreported taxable sales, the state Office of Tax Appeals ruled.
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December 03, 2024
Calif. Senate Bill Seeks To Shield Tips From Income Tax
California would exclude tips from gross income for state personal income tax purposes under a bill introduced in the state Senate.
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December 03, 2024
Calif. OTA Denies Architect Firm's R&D Tax Credit Claim
The California Office of Tax Appeals denied an architectural firm's claim of research and development tax credits, saying the firm failed to substantiate the amount of time its employees dedicated to qualifying research activities.
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December 03, 2024
Calif. Bill Seeks Constitutional Amendment To Curb Tax Hikes
California would declare state lawmakers' intent to amend the state constitution to limit the state and local governments' power to raise taxes as part of a bill introduced in the Assembly.
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December 03, 2024
Calif. OTA Says LLC Interest Sale Invalid For Tax Purposes
A sale of limited liability company interest between business partners in California can't be used to offset cancellation of debt income stemming from a Texas apartment complex that the LLC owned, the California Office of Tax Appeals ruled.
Expert Analysis
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5 Tips To Succeed In A Master Of Laws Program And Beyond
As lawyers and recent law school graduates begin their Master of Laws coursework across the country, they should keep a few pointers in mind to get the most out of their programs and kick-start successful careers in their practice areas, says Kelley Miller at Reed Smith.
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Portland's Gross Receipts Tax Oversteps City's Authority
Recent measures by Portland, Oregon, that expand the voter-approved scope of the Clean Energy Surcharge on certain retail sales eviscerate the common meaning of the word "retail" and exceed the city's chartered authority to levy tax, say Nikki Dobay at Greenberg Traurig and Jeff Newgard at Peak Policy.
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How Law Firms Can Avoid 'Collaboration Drag'
Law firm decision making can be stifled by “collaboration drag” — characterized by too many pointless meetings, too much peer feedback and too little dissent — but a few strategies can help stakeholders improve decision-making processes and build consensus, says Steve Groom at Miles Mediation.
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Assessing The Practicality Of Harris' Affordable Housing Plan
Vice President Kamala Harris' proposed "Build the American Dream" plan to tackle housing affordability issues takes solid recommendations into account and may fare better than California's unsuccessful attempt at a similar program, but the scope of the problem is beyond what a three-point plan can solve, says Brooke Miller at Sheppard Mullin.
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Litigation Funding Disclosure Key To Open, Impartial Process
Blanket investor and funding agreement disclosures should be required in all civil cases where the investor has a financial interest in the outcome in order to address issues ranging from potential conflicts of interest to national security concerns, says Bob Goodlatte, former U.S. House Representative for Virginia.
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What NFL Draft Picks Have In Common With Lateral Law Hires
Nearly half of law firm lateral hires leave within a few years — a failure rate that is strikingly similar to the performance of NFL quarterbacks drafted in the first round — in part because evaluators focus too heavily on quantifiable metrics and not enough on a prospect's character traits, says Howard Rosenberg at Baretz+Brunelle.
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Replacing The Stigma Of Menopause With Law Firm Support
A large proportion of the workforce is forced to pull the brakes on their career aspirations because of the taboo surrounding menopause and a lack of consistent support, but law firms can initiate the cultural shift needed by formulating thoughtful workplace policies, says Barbara Hamilton-Bruce at Simmons & Simmons.
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Planning Law Firm Content Calendars: What, When, Where
During the slower month of August, law firms should begin working on their 2025 content calendars, planning out a content creation and distribution framework that aligns with the firm’s objectives and maintains audience engagement throughout the year, says Jessica Kaplan at Legally Penned.
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Specific Attacks On A Vague Tax Law: SALT In Review
From legal assaults on California's vague new sales-factor law to Minnesota Gov. Tim Walz's record on tax policy, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Law Firms Should Move From Reactive To Proactive Marketing
Most law firm marketing and business development teams operate in silos, leading to an ad hoc, reactive approach, but shifting to a culture of proactive planning — beginning with comprehensive campaigns — can help firms effectively execute their broader business strategy, says Paul Manuele at PR Manuele Consulting.
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The Big Issues A BigLaw Associates' Union Could Address
A BigLaw associates’ union could address a number of issues that have the potential to meaningfully improve working conditions, diversity and attorney well-being — from restructured billable hour requirements to origination credit allocation, return-to-office mandates and more, says Tara Rhoades at The Sanity Plea.
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It's Time For A BigLaw Associates' Union
As BigLaw faces a steady stream of criticism about its employment policies and practices, an associates union could effect real change — and it could start with law students organizing around opposition to recent recruiting trends, says Tara Rhoades at The Sanity Plea.
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How Justices Upended The Administrative Procedure Act
In its recent Loper Bright, Corner Post and Jarkesy decisions, the U.S. Supreme Court fundamentally changed the Administrative Procedure Act in ways that undermine Congress and the executive branch, shift power to the judiciary, curtail public and business input, and create great uncertainty, say Alene Taber and Beth Hummer at Hanson Bridgett.