State & Local

  • August 19, 2024

    Treasury Floats Timing Shift For Foreign Currency Accounting

    The U.S. Treasury Department proposed regulations Monday that would adjust the timing for when companies could opt to use the so-called mark-to-market accounting method for gains or losses that arise from foreign currency transactions.

  • August 16, 2024

    Neb. Gov. Says He'll Veto Watered-Down Property Tax Cut Bill

    Nebraska's governor said in a statement Friday that he would veto any bill passed during the Legislature's special session on property tax relief that weakens proposed caps on property tax increases.

  • August 16, 2024

    Harris Proposes Tax Break For Homebuilders

    Vice President Kamala Harris, the presumptive Democratic nominee for president, proposed several housing-related tax proposals, including creating a tax incentive for homebuilders that sell to first-time homebuyers, during a campaign speech Friday.

  • August 16, 2024

    Ohio Collects $3.8B At Start Of Fiscal Year

    Ohio collected $3.83 billion in revenue in July, the start of fiscal year 2025, in line with budget estimates, according to the state's Office of Budget and Management.

  • August 16, 2024

    Pa. Resident Owes NY Tax While Teleworking During COVID

    A Pennsylvania resident owes New York tax on days he worked from home in 2020 while his employer's office in the Empire State was closed during the COVID-19 pandemic, a New York administrative law judge determined.

  • August 16, 2024

    Association Sues Over Calif. Law Targeting Microsoft Tax Win

    A second taxpayers' group has challenged as unconstitutional a portion of California's new tax law written to prevent more wins like the one Microsoft secured when the state Office of Tax Appeals ruled it could include 100% of the dividends from foreign affiliates in its California sales factor denominator.

  • August 16, 2024

    NY Tax Doesn't Apply To Nonresident's Dividend Income

    A New York nonresident is not liable for tax on dividend income, because the dividends weren't earned as a product of work done in the state, a state administrative law judge ruled.

  • August 16, 2024

    North Carolina Joins Direct File, Maine Plans To Follow

    The Internal Revenue Service's free electronic filing tax program, Direct File, will be available in North Carolina for the 2025 tax filing season, the IRS and U.S. Department of the Treasury announced Friday, and Maine is also planning to join.

  • August 16, 2024

    Ch. 7 Trustee Can't Recover Tax Payment, States Tell Justices

    A group of roughly two dozen states threw their support behind the federal government in asking the U.S. Supreme Court to overturn a ruling that forced the IRS to return a tax payment after a bankruptcy trustee argued it was a fraudulent transfer and recoverable under state law.

  • August 16, 2024

    NJ's 13-Month Revenue Up $98M From FY 2023

    New Jersey collected $98 million more revenue over the past 13 months than in the previous fiscal year, according to a report by the state's Department of the Treasury.

  • August 16, 2024

    IRS, State Agencies, Tax Industry Create Anti-Scam Task Force

    The Internal Revenue Service announced Friday that it is teaming with state tax agencies and tax industry representatives to create a task force to combat a growing number of scams and schemes targeting taxpayers.

  • August 16, 2024

    Taxation With Representation: Cleary, Kirkland, Skadden

    In this week's Taxation with Representation, Mars Inc. sets a 2024 record with its $36 billion acquisition of Kellanova, Carlyle inks a $3.8 billion purchase with Baxter International Inc., and Performance Food Group Co. agrees to a $2.1 billion cash deal with Cheney Bros. Inc.

  • August 19, 2024

    New Jersey Legislation To Watch: A Midyear Report

    New Jersey proposals for a corporate transit tax and mandatory business showdowns during sweltering weather have generated concerns from industry sectors fatigued by rising costs, while the rise of artifical intelligence and corresponding legislation appears to have united those fearing the digital-age hazard of "deepfakes."

  • August 15, 2024

    Group Challenges Calif. Law Targeting Microsoft's Tax Win

    A portion of California's new tax law written to prevent more wins such as Microsoft secured when the state's Office of Tax Appeals ruled it could include 100% of the dividends from foreign affiliates in its California sales factor denominator is unconstitutional, a national taxpayers group said.

  • August 15, 2024

    Skechers Appeals Wis.' Nix Of Royalty Fees Deduction

    A Skechers USA subsidiary had economic substance and an additional finding of a business purpose is unnecessary for related companies to engage in transactions resulting in the company claiming nearly a half-billion dollars in deductions in Wisconsin, Skechers said in an appeal obtained Thursday by Law360.

  • August 15, 2024

    Pa. District's Appeal Method Is Constitutional, Court Affirms

    A Pennsylvania Court of Common Pleas correctly ruled that a school district did not violate the state's uniformity clause when using a monetary threshold to decide which property tax assessments to appeal, the state Commonwealth Court affirmed Thursday.

  • August 15, 2024

    Tax Pros Navigate Chaos, Rewards In Climate Law's 2nd Year

    Energy tax attorneys have been knee-deep in project finance deals for the past year since the Inflation Reduction Act of 2022 triggered a flurry of clean energy investments, but the work, they say, has been fulfilling as part of broader efforts to save the environment.

  • August 15, 2024

    Colo. Gov. Calls Special Session On Property Tax Relief

    Colorado lawmakers will return to Denver after Gov. Jared Polis called Thursday for a special session to focus on property tax relief in a bid to stave off the effect of two possible ballot measures proposing deeper cuts.

  • August 15, 2024

    Ga. Begins 2025 Fiscal Year With General Revenues Up $66M

    Georgia's general fund receipts for July, the first month of the 2025 fiscal year, were $66 million higher than last year, according to the state Department of Revenue.

  • August 15, 2024

    Ky. General Revenue In July Up $141M From Last Year

    Kentucky general revenue in July was $141 million higher than last year, according to the state Budget Director's Office.

  • August 15, 2024

    Calif. General Revenue In July $866M Over Estimates

    California's general revenue collection in the first month of the 2025 fiscal year was $866 million higher than forecast, according to the state controller.

  • August 15, 2024

    Alaska Bans Local Taxes On Transfers Of Real Property

    Alaska will not allow localities to levy or collect sales and use tax on the transfer of real property under a bill signed by the governor. 

  • August 14, 2024

    Biz Says Mich. Cities Ignore Taxpayers In Fee-Or-Tax Fight

    A pipe fitting business has urged the Michigan Supreme Court to reject municipal organizations' "histrionic" arguments that cities' financial stability will be in jeopardy if the top court finds Detroit's fire inspection fee is a disguised tax, saying the groups are disregarding citizens' rights to be free from illegal taxes.

  • August 14, 2024

    Mich. Judges Weigh Adjusting Asset Basis After Tax Law Shift

    A panel of Michigan appellate judges grappled Wednesday with whether two companies were entitled to account for depreciation they didn't receive credit for under Michigan law to increase the basis of assets they sold when determining their state tax liabilities.

  • August 14, 2024

    Biz Founder Owes Mass. Tax On $4.7M Gain, Tax Dept. Says

    A $4.7 million capital gain from a stock sale by former Massachusetts residents is subject to state tax because it stemmed from a business the couple had in Massachusetts, the state Department of Revenue told a Massachusetts appeals court, urging it to uphold the state tax board's findings.

Expert Analysis

  • Attorneys, Law Schools Must Adapt To New Era Of Evidence

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    Technological advancements mean more direct evidence is being created than ever before, and attorneys as well as law schools must modify their methods to account for new challenges in how this evidence is collected and used to try cases, says Reuben Guttman at Guttman Buschner.

  • Tips For Litigating Against Pro Se Parties In Complex Disputes

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    Litigating against self-represented parties in complex cases can pose unique challenges for attorneys, but for the most part, it requires the same skills that are useful in other cases — from documenting everything to understanding one’s ethical duties, says Bryan Ketroser at Alto Litigation.

  • Pro Bono Work Is Powerful Self-Help For Attorneys

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    Oct. 22-28 is Pro Bono Week, serving as a useful reminder that offering free legal help to the public can help attorneys expand their legal toolbox, forge community relationships and create human connections, despite the challenges of this kind of work, says Orlando Lopez at Culhane Meadows.

  • The Pop Culture Docket: Judge Espinosa On 'Lincoln Lawyer'

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    The murder trials in Netflix’s “The Lincoln Lawyer” illustrate the stark contrast between the ethical high ground that fosters and maintains the criminal justice system's integrity, and the ethical abyss that can undermine it, with an important reminder for all legal practitioners, say Judge Adam Espinosa and Andrew Howard at the Colorado 2nd Judicial District Court.

  • Permanence And Other Elusive Notions: SALT In Review

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    From a Michigan income tax that may or may not be permanent to a victory in court for online travel companies, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

  • Newman Suspension Shows Need For Judicial Reform

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    The recent suspension of U.S. Circuit Judge Pauline Newman following her alleged refusal to participate in a disability inquiry reveals the need for judicial misconduct reforms to ensure that judges step down when they can no longer serve effectively, says Aliza Shatzman at The Legal Accountability Project.

  • How And Why Your Firm Should Implement Fixed-Fee Billing

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    Amid rising burnout in the legal industry and client efforts to curtail spending, pivoting to a fixed-fee billing model may improve client-attorney relationships and offer lawyers financial, logistical and stress relief — while still maintaining profit margins, say Kevin Henderson and Eric Pacifici at SMB Law Group.

  • How Law Firms Can Use Account-Based Marketing Strategies

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    Amid several evolving legal industry trends, account-based marketing can help law firms uncover additional revenue-generating opportunities with existing clients, with key considerations ranging from data analytics to relationship building, say Jennifer Ramsey at stage LLC and consultant Gina Sponzilli.

  • Strategic Succession Planning At Law Firms Is Crucial

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    Senior partners' reluctance to retire, the rise of the nonequity partner tier and generational differences in expectations are all contributing to an increasing number of departures from BigLaw, making it imperative for firms to encourage retirement among senior ranks and provide clearer leadership pathways to junior attorneys, says Laura Leopard at Leopard Solutions.

  • Potential Calamities, Greatly Exaggerated: SALT In Review

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    From fears of judicial upheaval to a tax break for space travel, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

  • Maximizing Law Firm Profitability In Uncertain Times

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    As threats of an economic downturn loom, firms can boost profits by embracing the power of bottom-line management and creating an ecosystem where strategic financial oversight and robust timekeeping practices meet evolved client relations, says Shireen Hilal at Maior Strategic Consulting.

  • Preparing Your Legal Department For Pillar 2 Compliance

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    Multinational entities should familiarize themselves with Pillar Two of the Organization for Economic Cooperation and Development’s BEPs 2.0 project and prepare their internal legal tracking systems for related reporting requirements that may go into effect as early as January, says Daniel Robyn at Ernst & Young.

  • What Large Language Models Mean For Document Review

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    Courts often subject parties using technology assisted review to greater scrutiny than parties conducting linear, manual document review, so parties using large language models for document review should expect even more attention, along with a corresponding need for quality control and validation, say attorneys at Sidley.

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