State & Local

  • December 17, 2024

    NY Tax Chief Sees New Tech Aiding Partnership Audits

    The acting commissioner of New York state's tax agency said Tuesday that she's excited about the possibility of harnessing advancements in technology to further scrutinize returns from complex partnerships that are difficult for auditors to digest on their own.

  • December 17, 2024

    NY Urges Justices To Pass On IBM, Disney Royalty Tax Fight

    The U.S. Supreme Court should decline to hear appeals by IBM and Disney that claim New York state's tax treatment of royalties received from foreign affiliates resulted in unconstitutional discrimination against interstate commerce, the state told the court Tuesday.

  • December 17, 2024

    Mo. Appeals Court Won't Rethink Quash Of County Pot Taxes

    The Missouri Court of Appeals said it will not reconsider its ruling that barred counties from levying taxes on cannabis sales within municipalities, rejecting a request by two counties seeking to impose such taxes.

  • December 17, 2024

    Pa. Supreme Court Says Judge's Side Job Sinks Tax Rulings

    A Pennsylvania state judge who held a side job on a Philadelphia tax appeals board had nullified rulings he made on a local hospital's tax cases, the state's Supreme Court said Tuesday, reasoning that holding both jobs was a "constitutionally impermissible conflict of duties."

  • December 17, 2024

    Ex-Pol Can't Shake Fraud Rap Over Jury's Racial Makeup

    A Massachusetts federal judge denied a Vietnamese-American former state senator's bid to undo his conviction for unlawfully accepting unemployment assistance and filing a false tax return, rejecting claims that jury selection was tainted by "racial animus" on the part of prosecutors.

  • December 16, 2024

    NY Courts Shifting Bundled Transaction Precedent, Attys Say

    A New York state appeals court ruling from earlier this year that upheld a sales tax assessment on usage agreements for laser medical equipment created a presumption of taxability for bundled transactions that is difficult for businesses to overcome, practitioners said Monday.

  • December 16, 2024

    Va. Gov. Proposes Income Tax Exemption For Workers' Tips

    Virginia would exempt income from tips from state income tax as part of a budget proposal from Republican Gov. Glenn Youngkin, the governor's office announced Monday.

  • December 16, 2024

    NY Gov. Vetoes Change To Property Tax Interest Rates

    New York Gov. Kathy Hochul vetoed legislation that would have linked the state's interest rates for delinquent residential property taxes to the prime rate and lowered the minimum rate from 12% to 2%, with a cap of 16%.

  • December 16, 2024

    Ga. Tax Agency Overvalued Railroad Property, Tribunal Finds

    A Georgia short-line railway was overvalued for property tax purposes, the state's tax tribunal said, adopting the company's proposed per-mile value for its leased track and reducing the overall valuation from $4.1 million to $2.6 million.

  • December 16, 2024

    Mich. House OKs Raising Detroit-Area Hotel Tax

    The tax on certain hotel stays in the Detroit metro area could be increased from its current 2% rate under legislation passed unanimously by the Michigan House of Representatives, potentially reaching 4% in 2031.

  • December 16, 2024

    Ohio Tax Board Floats Regs To Streamline Appeal Resolution

    The Ohio Board of Tax Appeals proposed a regulation amendment to clarify its authority to issue orders in response to several common, rarely contested types of filings and streamline the resolution of tax disputes in such cases.

  • December 16, 2024

    Mich. Appeals Court OKs Poverty Tax Break For Resident

    A Michigan resident qualified for a poverty tax break on property taxes, the state Court of Appeals ruled, saying the state Tax Tribunal incorrectly relied on the federal poverty guidelines instead of its own alternative income guidelines under state law.

  • December 16, 2024

    High Court Won't Review Ore. Tax On Out-Of-State Co.

    The U.S. Supreme Court said Monday it will not review an Oregon Supreme Court finding that an out-of-state tobacco company was liable for state taxes, letting stand a decision that the company's Oregon activities negated protections against state taxation in federal law.

  • December 13, 2024

    Supreme Court To Review Wis. Catholic Charity Tax Case

    The U.S. Supreme Court plans to examine whether a group of Catholic charities is exempt from Wisconsin's unemployment tax, agreeing Friday to review a state Supreme Court finding that the organizations are not operated primarily for religious purposes.

  • December 13, 2024

    NC Justices Grant Philip Morris Win On Tax Credit Cap

    North Carolina's $6 million cap on cigarette export tax credits limits only the credits that can be claimed in a year, not the amount of credit that can be generated, the North Carolina Supreme Court ruled Friday, handing a victory to tobacco giant Philip Morris.

  • December 13, 2024

    Amazon Was A Taxable Seller Before Wayfair, SC Agency Says

    Amazon's sales of third-party products in South Carolina were subject to taxation even before the U.S. Supreme Court's landmark Wayfair decision, the state Revenue Department told the state Supreme Court on Friday, urging it to uphold an appeals court decision.

  • December 13, 2024

    Ark. Justices Back Biz's $4M Refund In Apportionment Fight

    An Arkansas motor fuel company is eligible for a $4 million income tax refund after amending its corporate income tax returns to apportion all its interest expenses to the state, the Arkansas Supreme Court affirmed, saying the expenses were nonbusiness expenses that could be deducted.

  • December 13, 2024

    Tax Pact Group Fleshes Out Voluntary Disclosure Plan

    A proposal for a voluntary disclosure program that allows remote sellers to limit their back sales tax liabilities to the past two years was expanded to include sellers that have inventory in member states during a Streamlined Sales Tax Governing Board meeting Friday.

  • December 13, 2024

    NJ Revenue Collection Through Nov. Up $309M

    New Jersey's major revenues from July through November rose $309 million compared with the same period last fiscal year, according to a report by the state Department of the Treasury.

  • December 13, 2024

    Taxation With Representation: Kirkland, Davis Polk, Wachtell

    In this week's Taxation With Representation, Google and TPG Rise Climate partner with Intersect Power, Gen Digital Inc. acquires MoneyLion Inc., Patient Square Capital acquires Patterson Companies Inc., and the Buffalo Bills and Miami Dolphins sell minority ownership shares to private equity firms.

  • December 13, 2024

    La. Tax Board OKs Resale Exemption For Used Car Dealer

    The sale of a new car to a licensed used car dealer in Louisiana was not subject to state sales tax because the car was intended for resale to another entity, a state tax board ruled Friday.

  • December 13, 2024

    Minn. Senior Home's Tax Appeal Nixed For Lack Of Info

    A Minnesota senior living community failed to provide a local assessor with required income and expense information related to its property tax appeal, the Minnesota Tax Court said, dismissing the case.

  • December 12, 2024

    IRS Wants Choice Retained In Dual Loss Rules, Official Says

    The Internal Revenue Service is working to preserve flexibility for taxpayers in rules aimed at preventing companies from using the same economic loss twice after concerns were raised about how the rules could negatively interact with the Pillar Two global minimum tax, an official said Thursday.

  • December 12, 2024

    IRS Chief Makes Case To Restore $20B Funding Shortfall

    Congress should reverse a $20 billion IRS funding gap in a year-end budget bill to help the agency modernize its technology, improve customer service and collect unpaid taxes from wealthy businesses and individuals, Internal Revenue Commissioner Daniel Werfel said Thursday.

  • December 12, 2024

    Wash. Justices OK Tax Break For Pharmacy Benefits Manager

    A Washington pharmacy benefits manager is exempt from a state business tax on its services for Medicaid patients because its corporate sibling paid premium taxes in connection with the same services, the state's high court affirmed Thursday.

Expert Analysis

  • How To Grow Marketing, Biz Dev Teams In A Tight Market

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    Faced with fierce competition and rising operating costs, firms are feeling the pressure to build a well-oiled marketing and business development team that supports strategic priorities, but they’ll need to be flexible and creative given a tight talent market, says Ben Curle at Ambition.

  • Rock Climbing Makes Me A Better Lawyer

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    Rock climbing requires problem-solving, focus, risk management and resilience, skills that are also invaluable assets in my role as a finance lawyer, says Mei Zhang at Haynes and Boone.

  • Think Like A Lawyer: Dance The Legal Standard Two-Step

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    From rookie brief writers to Chief Justice John Roberts, lawyers should master the legal standard two-step — framing the governing standard at the outset, and clarifying why they meet that standard — which has benefits for both the drafter and reader, says Luke Andrews at Poole Huffman.

  • Shake-Ups For Courts In Different Fields: SALT In Review

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    From the end of Chevron deference in the courts to the planned sale of the NBA's reigning champion, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

  • Kentucky Tax Talk: Appeals Court Revisits Leases' Tax Effects

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    With better facts and greater emphasis on the Kentucky Constitution, Walgreen Co. may succeed in its latest Kentucky Court of Appeals challenge to a tax assessor's method of valuing leaseholds on real property for purposes of determining ad valorem tax, say Mark Sommer and Elizabeth Ethington at Frost Brown Todd.

  • Lead Like 'Ted Lasso' By Embracing Cognitive Diversity

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    The Apple TV+ series “Ted Lasso” aptly illustrates how embracing cognitive diversity can be a winning strategy for teams, providing a useful lesson for law firms, which can benefit significantly from fresh, diverse perspectives and collaborative problem-solving, says Paul Manuele at PR Manuele Consulting.

  • Now More Than Ever, Lawyers Must Exhibit Professionalism

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    As society becomes increasingly fractured and workplace incivility is on the rise, attorneys must champion professionalism and lead by example, demonstrating how lawyers can respectfully disagree without being disagreeable, says Edward Casmere at Norton Rose.

  • Reading Between The Lines Of Justices' Moore Ruling

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    The U.S. Supreme Court's recent Moore v. U.S. decision, that the Internal Revenue Code Section 965 did not violate the 16th Amendment, was narrowly tailored to minimally disrupt existing tax regimes, but the justices' various opinions leave the door open to future tax challenges and provide clues for what the battles may look like, say Caroline Ngo and Le Chen at McDermott.

  • A Midyear Forecast: Tailwinds Expected For Atty Hourly Rates

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    Hourly rates for partners, associates and support staff continued to rise in the first half of this year, and this growth shows no signs of slowing for the rest of 2024 and into next year, driven in part by the return of mergers and acquisitions and the widespread adoption of artificial intelligence, says Chuck Chandler at Valeo Partners.

  • Another Crack In The Shield: SALT In Review

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    From the latest assault on a federal shield against taxing out-of-state businesses to an update on beer taxes, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

  • States Should Loosen Law Firm Ownership Restrictions

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    Despite growing buzz, normalized nonlawyer ownership of law firms is a distant prospect, so the legal community should focus first on liberalizing state restrictions on attorney and firm purchases of practices, which would bolster succession planning and improve access to justice, says Michael Di Gennaro at The Law Practice Exchange.

  • Texas Ethics Opinion Flags Hazards Of Unauthorized Practice

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    The Texas Professional Ethics Committee's recently issued proposed opinion finding that in-house counsel providing legal services to the company's clients constitutes the unauthorized practice of law is a valuable clarification given that a UPL violation — a misdemeanor in most states — carries high stakes, say Hilary Gerzhoy and Julienne Pasichow at HWG.

  • How To Clean Up Your Generative AI-Produced Legal Drafts

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    As law firms increasingly rely on generative artificial intelligence tools to produce legal text, attorneys should be on guard for the overuse of cohesive devices in initial drafts, and consider a few editing pointers to clean up AI’s repetitive and choppy outputs, says Ivy Grey at WordRake.

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