State & Local
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October 11, 2024
Minn. Tax Court Cuts $100K From Lakefront Cabin Value
A Minnesota lakefront cabin property was overvalued by a county assessor, the state's tax court said, reducing the assessment by more than $100,000 and rejecting the county's comparable sales analysis.
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October 11, 2024
Disputes May Loom Over Dividend Deductions For CFCs
U.S. multinational corporations are concerned that rulemakers' interpretation of a law allowing tax-free repatriation of certain overseas earnings could lead to controversy after the Internal Revenue Service published a memo indicating the break is unavailable for controlled foreign corporations.
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October 11, 2024
Veteran MTC Counsel On Wayfair, PL 86-272 Pushback
Nancy Prosser stepped down as general counsel of the Multistate Tax Commission on Sept. 25, capping off a long career in the state and local tax field, mostly on the government side. Here, Law360 speaks to Prosser about her career as well as two key policy issues she has been instrumental in shaping.
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October 11, 2024
Taxation With Representation: Davis Polk, Latham, Kirkland
In this week's Taxation With Representation, Rio Tinto agrees to acquire Arcadium Lithium for roughly $6.7 billion, Ares Management Corp. and GCP International reach a $3.7 billion deal, and Butterfly Equity announces plans to buy The Duckhorn Portfolio for $2 billion.
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October 10, 2024
Mich. Co.'s Industrial Tax Break Appeal Ruled Too Late
A Michigan company is barred from appealing the denial of its industrial tax exemption because the case fell outside the state's one-year statute of limitations, the state's Court of Claims ruled.
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October 10, 2024
Mich. Justice Asks If Disney Fight Harms Multistate Collabs
Michigan's chief justice asked Thursday whether allowing Disney and the owner of IHOP to retain unclaimed property, which state officials say they should get after an audit, could hamper Michigan's ability to participate in multistate audits that yield hundreds of millions of dollars for the state.
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October 10, 2024
Dems Weigh Extending 2017 Cuts To Maintain $400K Tax Vow
Despite criticizing the 2017 Republican tax overhaul as a deficit-busting boon to the wealthy, congressional Democrats may feel pressure to support extending some of the law's individual and small-business provisions or risk breaking their pledge not to raise taxes on those earning $400,000 or less.
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October 10, 2024
Pa. Revenue Beats Estimate By $20M Through Sept.
Pennsylvania's general fund revenue from July through September exceeded a budget forecast by $20 million, according to a report by the state Department of Revenue.
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October 10, 2024
W.Va. Lawmakers Pass Personal Income Tax Cuts
West Virginia would cut its personal income tax rates and fund the reduction through the state's general revenue fund under a bill passed by the Legislature that will now go to Gov. Jim Justice for consideration.
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October 10, 2024
Calif. Says FDIC Must Wait For $21M Tax Refund
A California tax agency urged a New York federal court to toss a lawsuit by the FDIC seeking a $20.7 million tax refund on behalf of the shuttered Signature Bank, saying it's entitled to wait for a possible IRS audit before delivering the payment.
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October 10, 2024
Wyo. Justices Find State Land Leased To Truck Stop Taxable
The state of Wyoming owes tax on property it leased out as a truck stop because that operation doesn't constitute a use for a government purpose that would allow an exemption, the state Supreme Court said.
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October 10, 2024
Calif. Total Receipts Through Sept. $5.5B Over Forecasts
California's total receipts from July through September was $5.5 billion higher than estimates, according to a monthly report the state controller released Thursday.
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October 09, 2024
Voluntary Disclosure Program Seeks To Limit Back Sales Tax
Remote sellers could be eligible for a voluntary disclosure program that would limit their back sales tax liabilities after registering with states that take part in an interstate sales tax compact, under a proposal the Streamlined Sales Tax Governing Board opted to continue exploring Wednesday.
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October 09, 2024
Tenn. Extends Tax Deadlines Due To Hurricane Helene
Tennessee will extend its franchise and excise tax filing deadlines to May 1 for taxpayers affected by Hurricane Helene, the state Department of Reveue announced.
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October 09, 2024
Calif. OTA Affirms Lab's Microchip Editing Services Taxable
A California-based laboratory owes $310,000 in sales tax on services it offers to engineering and technology companies for the editing of microchips, the state Office of Tax Appeals affirmed.
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October 09, 2024
Unclear Road For $275M Biz Tax Plan, DC Panel Chair Says
The District of Columbia Tax Revision Commission may scrap a proposal for a business activity tax that could raise $275 million annually to reduce other business taxes, the panel chair said Wednesday.
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October 09, 2024
Mo. Clinics Fail To Meet Charity Requirement For Exemption
Health clinics in four Missouri counties are not eligible for charitable exemptions from property tax despite being part of a nonprofit organization, the state's tax commission ruled.
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October 09, 2024
Calif. OTA Upholds RV Seller's Penalty For Unreported Sales
A California recreational vehicle dealer was correctly penalized for not reporting $4.2 million worth of sales, the state Office of Tax Appeals said, finding unpersuasive the business' claim that it was difficult to find competent people to handle its tax compliance.
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October 09, 2024
Election Uncertainty Hampers Companies' Tax Planning
With the November election approaching, businesses are bracing for the potential impact of two very different sets of tax policies, with the resulting uncertainty making long-term tax planning increasingly difficult.
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October 09, 2024
Calif. OTA Denies Redo On $200K Tax Bill For Med Equipment
A California orthopedic equipment provider will not get a rehearing on a $200,000 sales tax assessment for items found to not qualify for an exemption allowed for medicine, the state Office of Tax Appeals said.
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October 09, 2024
Calif. OTA Says Spouse's Tax Refund Claim Untimely
A California spouse was correctly denied an income tax refund for tax years 2009 and 2010 for overpayments owed to their deceased partner because the claim was filed outside the statute of limitations, the state Office of Tax Appeals ruled.
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October 08, 2024
Louisiana High Court Won't Review Expedia's Hotel Tax Win
The Louisiana Supreme Court on Tuesday rejected state and local government appeals of a ruling that said Expedia and some of its affiliates do not owe Louisiana sales taxes on the full price of accommodation rentals they charged to customers booking through their platforms.
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October 08, 2024
Tax Pact Rejects Option For Multiple Sales Tax Rate Structure
The Streamlined Sales Tax Governing Board rejected a proposal Tuesday that would have allowed states that participate in the sales tax simplification compact it oversees to adopt a second sales tax rate in a specific area, a move that left Nebraska noncompliant with the compact.
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October 08, 2024
Tax Pact OKs Challenges To State Compliance Determinations
The Streamlined Sales Tax Governing Board approved on Tuesday a clarification to the tax simplification compact it oversees that specifies that challenges can be lodged against certain board decisions, including whether a state's tax system complies with the compact.
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October 08, 2024
Tax Pact Board OKs Requiring More State Nexus, Tax Info
The Streamlined Sales Tax Governing Board approved a set of disclosed practices Tuesday that will require states that participate in the tax simplification compact that it oversees to specify how they make nexus and tax determinations in certain scenarios.
Expert Analysis
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Time To Fix NYC's Broken Property Assessment System
A New York appellate court's decision to revive Tax Equity Now New York v. City of New York may force the city to revamp its outdated and unfair real estate tax assessment system, which could be fixed with a couple of simple changes, says Seth Feldman at Romer Debbas.
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Strange Notions Bubble Up: SALT In Review
From an assault on North Carolina's phaseout of its corporate income tax to a court ruling on the taxability of sparkling water in Pennsylvania, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Don't Use The Same Template For Every Client Alert
As the old marketing adage goes, consistency is key, but law firm style guides need consistency that contemplates variety when it comes to client alert formats, allowing attorneys to tailor alerts to best fit the audience and subject matter, says Jessica Kaplan at Legally Penned.
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Think Like A Lawyer: Follow The Iron Rule Of Trial Logic
Many diligent and eager attorneys include every good fact, point and rule in their trial narratives — spurred by the gnawing fear they’ll be second-guessed for leaving something out — but this approach ignores a fundamental principle of successful trial lawyering, says Luke Andrews at Poole Huffman.
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The Art Of Asking: Leveraging Your Contacts For Referrals
Though attorneys may hesitate to ask for referral recommendations to generate new business, research shows that people want to help others they know, like and trust, so consider who in your network you should approach and how to make the ask, says Rebecca Hnatowski at Edwards Advisory.
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4 Ways To Refresh Your Law Firm's Marketing Strategy
With many BigLaw firms relying on an increasingly obsolete marketing approach that prioritizes stiff professionalism over authentic connection, adopting a few key communications strategies to better connect with today's clients and prospects can make all the difference, say Eric Pacifici and Kevin Henderson at SMB Law.
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Consider 2 Alternative Exit Plans In RE Distress Scenarios
In the face of an impending wave of foreclosures, lenders and borrowers alike should consider two exit strategies — deed-in-lieu of foreclosure and consent foreclosure — that can mitigate potential costs and diminution in property value that could be incurred during a lengthy proceeding, say attorneys at BCLP.
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SC's Courts Have It Wrong On Amazon Marketplace Sales Tax
The South Carolina Supreme Court should step in and correct the misguided change in tax law effectuated by lower court rulings that found Amazon owes state sales tax for marketplace sales made prior to the U.S. Supreme Court’s Wayfair v. South Dakota decision in 2018, says Hayes Holderness at the University of Richmond.
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Constitutional Shenanigans And Other Sports: SALT In Review
From a challenge to New York's end run on a federal law to voters' rejection of a sales tax that would aid Kansas City's major league teams, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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This Earth Day, Consider How Your Firm Can Go Greener
As Earth Day approaches, law firms and attorneys should consider adopting more sustainable practices to reduce their carbon footprint — from minimizing single-use plastics to purchasing carbon offsets for air travel — which ultimately can also reduce costs for clients, say M’Lynn Phillips and Lisa Walters at IMS Legal Strategies.
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Weisselberg's Perjury At Trial Spotlights Atty Ethics Issues
Former Trump Organization executive Allen Weisselberg’s recent guilty plea for perjury in the New York attorney general's civil fraud trial should serve as a reminder to attorneys of their ethical duties when they know a client has lied or plans to lie in court, and the potential penalties for not fulfilling those obligations, say Hilary Gerzhoy and Julienne Pasichow at HWG.
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Practicing Law With Parkinson's Disease
This Parkinson’s Awareness Month, Adam Siegler at Greenberg Traurig discusses his experience working as a lawyer with Parkinson’s disease, sharing both lessons on how to cope with a diagnosis and advice for supporting colleagues who live with the disease.
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Why Supreme Court Should Allow Repatriation Tax To Stand
If the U.S. Supreme Court doesn't reject the taxpayers' misguided claims in Moore v. U.S. that the mandatory repatriation tax is unconstitutional, it could wreak havoc on our system of taxation and result in a catastrophic loss of revenue for the government, say Christina Mason and Theresa Balducci at Herrick Feinstein.