State & Local
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July 29, 2024
Atty Pitches Prospective Sales Tax Audit Program To MTC
A tax practitioner asked the Multistate Tax Commission's audit committee Monday to develop a prospective sales tax audit initiative that would permit large retailers to work with the MTC staff to ensure they are meeting their sales tax collection obligations in real time.
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July 29, 2024
Immigrants Paid $96.7B In Taxes In 2022, ITEP Study Says
Unauthorized immigrants paid $96.7 billion in federal, state, and local taxes in 2022 but received few benefits in return, according to a new study released Monday, whose authors said granting such taxpayers work authorization would boost tax revenue and economic activity.
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July 29, 2024
Mississippi Joins MTC Corp. Income Tax Audit Program
Mississippi has joined the Multistate Tax Commission's joint audit program, the chair of the MTC's audit committee said Monday, making it the 30th state to sign onto the initiative.
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July 29, 2024
Mo. Menards Store Ruled Properly Valued At $17M
A Missouri Menards home improvement store was properly valued at $17 million by a county assessor because the store's appraiser failed to use comparable properties in his valuation, the state Tax Commission affirmed.
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July 29, 2024
Wayfair To Pay Colo. City Under 10% Of Disputed Sales Tax
Wayfair will pay less than 10% of the disputed funds in a lawsuit settled last month with a Colorado city over sales tax assessments on remote sales, counsel for the home furnishings retailer said.
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July 29, 2024
Utah General Revenue Collection In Fiscal Year 2024 Up $31M
Utah's revenue collection for the 2024 fiscal year was nearly $31 million higher than in the preceding year, the state Tax Commission reported.
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July 29, 2024
Ill. Rule Clarifies Investment Partnership Tax Liability
Illinois clarified the calculation of withholding tax for investment partnerships under a rule adopted by the state Department of Revenue.
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July 29, 2024
NRA Avoids Compliance Monitor In NY AG Case
A Manhattan judge on Monday rejected the New York attorney general's request for a compliance monitor to oversee the National Rifle Association, saying such relief would "result in a long, awkward and potentially speech-chilling government involvement in a political organization."
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July 29, 2024
Mastercard To Appeal $7.7M Tax Sourcing Decision In SC
A Mastercard entity will appeal a South Carolina administrative law judge's decision that upheld a $7.7 million corporate income tax assessment in a dispute over how the activities of the company's network should be sourced, an attorney representing the business said Monday.
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July 29, 2024
Chevron's Fall A 'Nothingburger' For SALT Cases, Atty Says
The U.S. Supreme Court's overturning of the Chevron deference doctrine may amount to a "nothingburger" for state tax litigation purposes due to other doctrines that already guide courts on how to address ambiguous tax laws, a practitioner said Monday.
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July 29, 2024
DC Taxes Due From Property Transfer Prior To Sale
A business that sold a commercial property in Washington, D.C., was properly assessed back taxes for a 2007 merger with a subsidiary, the District of Columbia Court of Appeals ruled.
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July 29, 2024
Vt. General Fund Revenues In 2024 Fiscal Year Up $46M
Vermont's general fund revenue in fiscal year 2024 increased by $46 million from the previous fiscal year, according to the state Agency of Administration.
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July 26, 2024
Biz Groups Call Corp. Transparency Act Unconstitutional
The U.S. government has failed to show how the Corporate Transparency Act meets narrow exceptions to the Fourth Amendment's search warrant requirements, a group of small businesses told a Michigan federal court Friday in contending that the statute is unconstitutional.
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July 26, 2024
The Tax Angle: TCJA Prep, IRS Phone Problems
From a look at Democrats' preparation to rewrite the 2017 GOP tax law to the Internal Revenue Service's continuing problems with providing customer service to tax professionals, here's a peek into a reporter's notebook on a few of the week's developing tax stories.
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July 26, 2024
Ind. Tax Court Says Tax Cap Acre Limitation Unconstitutional
The Indiana Constitution doesn't permit a fixed 1-acre limitation on land eligible for the state's 1% property tax cap, the state tax court said, siding with a couple who argued their entire property qualified for the cap.
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July 26, 2024
Uber Accused Of Illegally Charging Tax On Delivery Fees
Uber illegally collects sales tax on food delivery fees in Florida, a customer claimed in a proposed class action removed to federal court, saying the company cannot charge the tax if customers have the option of picking up the order themselves.
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July 26, 2024
Ohio McDonald's Properly Valued At $1.9M, Board Says
An Ohio McDonald's was properly valued at $1.9 million by the county appraiser, the state Board of Tax Appeals ruled Friday, rejecting the business's bid to have the value lowered to $1.18 million.
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July 26, 2024
Taxation With Representation: Wachtell, Polsinelli, Kirkland
In this week's Taxation With Representation, T-Mobile partners with KKR to acquire Metronet, Exclusive Networks gets a takeover offer, KKR buys Instructure Holdings Inc., and Bally's Corp. merges with The Queen Casino & Entertainment Inc.
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July 26, 2024
Ariz. Revenues In Fiscal Year 2024 Up $563M From Forecast
Arizona's general revenue collection in the 2024 fiscal year was $563 million higher than estimated, according to the state Joint Budget Committee.
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July 26, 2024
SC Tax Applies To Durable Med Equipment Sales, Dept. Says
Sales of durable medical equipment in South Carolina are subject to sales tax, which must be collected and remitted on sales completed after June 26, following a state Supreme Court ruling that found an exemption for such sales to be invalid, the state Department of Revenue said.
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July 25, 2024
Trump Judge Won't Exit Over 'Nothingburger' Atty Encounter
The New York judge who ordered Donald Trump to pay $465 million in penalties in his civil fraud case Thursday rejected the former president's demand that he step down from the case, saying a brief hallway encounter with an attorney acquaintance was a "nothingburger" that did not influence his decision.
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July 25, 2024
Conn.'s Added Tax On Warranties Called Double Taxation
The Connecticut state tax commissioner's levy of an additional tax on extended vehicle warranties connected to out-of-state vehicle sales is double taxation because the warranties are already taxed by the buyer's home state, a Connecticut-based auto wholesaler told a state trial court.
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July 25, 2024
Louisiana Lawmakers Hit Brakes On Tax Overhaul Proposals
Louisiana's legislative leadership said Thursday that it won't move forward with a special session to overhaul the state's tax system in the near future, rebuffing a push from the governor to place sweeping changes to the state's tax structure on the November ballot.
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July 25, 2024
NJ To Provide Up To $500M In Tax Credits For AI Projects
New Jersey will provide up to $500 million in tax credits to artificial intelligence businesses that make a capital investment of at least $100 million and create at least 100 full-time jobs under a bill Democratic Gov. Phil Murphy signed Thursday.
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July 25, 2024
Ohio Board Incorrectly Calculated Land, Improvement Value
An Ohio warehouse property had its land value incorrectly increased to $1.2 million, from $715,000, a state appeals court ruled Thursday after finding no evidence was presented that warranted a change in its value.
Expert Analysis
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Thinking Big And Soaking The Rich: SALT In Review
From a bold and broad tax plan in Louisiana to proposed legislation targeting the well-to-do in Rhode Island and Michigan, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Reimagining Law Firm Culture To Break The Cycle Of Burnout
While attorney burnout remains a perennial issue in the legal profession, shifting post-pandemic expectations mean that law firms must adapt their office cultures to retain talent, say Kevin Henderson and Eric Pacifici at SMB Law Group.
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High Court Case Could Reshape Local Development Fees
If last month's oral arguments are any indication of how the U.S. Supreme Court will rule in Sheetz v. County of El Dorado, it's unlikely the justices will hold that the essential nexus and rough proportionality tests under the cases of Nollan, Dolan and Koontz apply to legislative exactions, but a sweeping decision would still be the natural progression in the line of cases giving property owners takings claims, says Phillip Babich at Reed Smith.
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Nebraska Should Abandon Proposed Digital Ad Tax
If passed, Nebraska’s recently proposed Advertising Services Tax Act, which would finance property tax relief by imposing a 7.5% gross revenue tax on advertising services, would cause a politically risky shift of tax burdens from landowners to local businesses and consumers, and would most certainly face litigation, say attorneys at McDermott.
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The Legal Industry Needs A Cybersecurity Paradigm Shift
As law firms face ever-increasing risks of cyberattacks and ransomware incidents, the legal industry must implement robust cybersecurity measures and privacy-centric practices to preserve attorney-client privilege, safeguard client trust and uphold the profession’s integrity, says Ryan Paterson at Unplugged.
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As Promised, IRS Is Coming For Crypto Tax Evaders
The IRS is fulfilling its promise to crack down on those who have neglected to pay taxes on cryptocurrency earnings, as demonstrated by recently imposed prison sentences, enforcement initiatives and meetings with international counterparts — suggesting a few key takeaways for taxpayer compliance, say attorneys at BakerHostetler.
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5 Reasons Associates Shouldn't Take A Job Just For Money
As a number of BigLaw firms increase salary scales for early-career attorneys, law students and lateral associates considering new job offers should weigh several key factors that may matter more than financial compensation, say Albert Tawil at Lateral Hub and Ruvin Levavi at Power Forward.
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The Pop Culture Docket: Judge Djerassi On Super Bowl 52
Philadelphia Court of Common Pleas Judge Ramy Djerassi discusses how Super Bowl 52, in which the Philadelphia Eagles prevailed over the New England Patriots, provides an apt metaphor for alternative dispute resolution processes in commercial business cases.
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Envy, Regressivity And Other Sins: SALT In Review
From a California official's remarks on a star athlete's contract to another study documenting the regressivity of tax policies across the land, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Employee Experience Strategy Can Boost Law Firm Success
Amid continuing business uncertainty, law firms should consider adopting a holistic employee experience strategy — prioritizing consistency, targeting signature moments and leveraging measurement tools — to maximize productivity and profitability, says Haley Revel at Calibrate Consulting.
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6 Practice Pointers For Pro Bono Immigration Practice
An attorney taking on their first pro bono immigration matter may find the law and procedures beguiling, but understanding key deadlines, the significance of individual immigration judges' rules and specialized aspects of the practice can help avoid common missteps, says Steven Malm at Haynes Boone.
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Lessons From Country Singer's Personal Service Saga
Recent reports that country singer Luke Combs won a judgment against a Florida woman who didn’t receive notice of the counterfeit suit against her should serve as a reminder for attorneys on best practices for effectuating service by electronic means, say attorneys at Jenner & Block.
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7 E-Discovery Predictions For 2024 And Beyond
The legal and technical issues of e-discovery now affect virtually every lawsuit, and in the year to come, practitioners can expect practices and policies to evolve in a number of ways, from the expanded use of relevancy redactions to mandated information security provisions in protective orders, say attorneys at Littler.