State & Local
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September 24, 2024
NY Escape Rooms Subject To Sales Tax, Dept. Says
Admissions charges to escape or "mystery" rooms, where customers participate in interactive challenges and activities, are amusements subject to sales tax, the New York state tax department said in an opinion released Tuesday.
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September 24, 2024
NY Tax Dept. Says Coffee-Flavored Drinks Not Taxed
A New York business's sales of coffee-flavored products don't incur sales tax, the state Department of Taxation and Finance said in an advisory opinion released Tuesday.
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September 24, 2024
Ariz. Revenue Through August Tops Forecast By $119M
Arizona's general revenue collection from July through August was $119 million higher than expected, according to the state Joint Legislative Budget Committee.
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September 24, 2024
NY Sales Tax Due On Vehicle's Lease Balance, Dept. Says
A New York taxpayer who assumed a lease on a motor vehicle from another taxpayer owes sales tax on the remainder of lease payments despite tax being paid on the initial lease, the state Department of Taxation and Finance said in a ruling released Tuesday.
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September 24, 2024
NY Tax Applies To Tree Inventory Services, Dept. Says
A company's tree inventory services are subject to New York sales tax because the custom reports the company gives clients constitute taxable maintenance and servicing of real property, the state Department of Taxation and Finance said in a ruling released Tuesday.
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September 24, 2024
Mich. Court Affirms Walmart Valuation As $5M Vacant Property
The $5 million tax valuation of a Walmart store in Michigan will stand, the state court of appeals said, rejecting arguments by a local township that a tax panel was wrong to value it as if it were vacant.
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September 24, 2024
NY Tax Doesn't Apply To UK Biz's Motor Parts Purchases
New York sales tax doesn't apply to a business's purchases of motor parts, because while the parts were purchased in New York, they were resold overseas, the state tax department said in a ruling released Tuesday.
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September 24, 2024
Miller & Chevalier Adds Federal Tax Expert From White & Case
Miller & Chevalier Chtd. announced that it added a former partner at White & Case LLP to its tax controversy and litigation practice.
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September 23, 2024
NJ Justices Probe State's Role In Tax Sale Foreclosures
The New Jersey Supreme Court on Monday probed whether the state's Tax Sale Law still holds up in the wake of a 2023 U.S. Supreme Court ruling that the government cannot profit from a property seizure, pondering the state's role in tax sale foreclosures and if a private, third-party lienholder could be considered a state actor.
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September 23, 2024
SC Judge Won't Rethink CarMax Transfer Pricing Ruling
A South Carolina administrative law judge denied a request from CarMax to revisit his decision that the company used intercompany transactions to distort an entity's business activity and thus its tax burden in the state.
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September 23, 2024
Newsom Vetoes Tax Credit For Buyers Of Manufacturing Gear
A California bill that would have provided purchasers of manufacturing equipment with state tax credits equal to the amount of nonexempt sales and use taxes paid on the purchase of equipment was vetoed by Gov. Gavin Newsom.
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September 23, 2024
The Tax Angle: Corporate Inversions, SALT Cap
From a look at criticisms that the 2017 federal tax law failed to stop corporations from moving overseas to GOP efforts to navigate the SALT cap ahead of the November elections, here's a peek into a reporter's notebook on a few of the week's developing tax stories.
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September 23, 2024
NY Extends Industrial Property Tax Break Application Deadline
New York state extended by four years to 2029 the deadline to apply for property tax abatements for eligible industrial and commercial buildings in New York City as part of a bill signed by Democratic Gov. Kathy Hochul.
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September 23, 2024
Disney Asks Justices To Review NY Tax On Foreign Royalties
New York's highest court used the wrong standard for evaluating tax statutes for discrimination when it denied deductions that The Walt Disney Co. sought for royalties received from foreign affiliates, the company argued in a petition to the U.S. Supreme Court that Law360 obtained Monday.
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September 23, 2024
NJ Senate Bill Seeks To Ditch Transaction Nexus Requirement
New Jersey would get rid of part of the state's remote sales and use tax nexus requirement, axing a part that specifies that retailers that make at least 200 transactions collect and remit the tax, as part of a bill introduced in the state Senate.
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September 23, 2024
NY Tax Applies To Trading Platform's Sales, Dept. Says
New York sales tax applies to the receipts of a web-based exchange where people can trade foreign currencies, the state's Department of Taxation and Finance said in an advisory opinion.
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September 23, 2024
NY Sales Tax Doesn't Apply To Sales Of Energy Gels
New York doesn't levy a sales tax on energy enhancing gels and chews because they are considered dietary foods and health supplements, the state Department of Taxation and Finance said.
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September 23, 2024
Minn. Court Won't Slash Home's $189K Tax Valuation
A Minnesota homeowner's attempt to cut the tax valuation of his home by nearly one-third was rejected by the state tax court, which said his use of comparable sales fell short of the evidence needed to overturn the assessment.
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September 23, 2024
SC General Fund Revenue Up $184M From Last Year
South Carolina's general fund revenue from July through August beat last year's total for that period by $184 million, according to the state Board of Economic Advisors.
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September 23, 2024
Squire Patton Tax Ace Joins Winston & Strawn In Dallas
Winston & Strawn LLP announced Monday it has expanded its tax offerings with the addition of an experienced attorney from Squire Patton Boggs LLP in Texas.
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September 23, 2024
Walmart Accused Of Wrongly Taxing Delivery Fees In Fla.
Walmart unlawfully collects sales tax on delivery fees in Florida, a customer claimed in a proposed class action removed to federal court, saying the tax cannot apply if customers may choose to pick up the order themselves.
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September 23, 2024
ND General Revenues Up $350M Over Budget Forecast
North Dakota's general revenue collection from July 2023 through August 2024 came in $350 million over estimates, according to the state's Legislative Council.
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September 23, 2024
RI General Revenue Collection Beats Estimates By $49M
Rhode Island's total general revenue exceeded budget estimates by $49 million for July through August, according to the state Department of Revenue.
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September 23, 2024
Ala. Biz Tax Refund Denied For Lack Of Family Entity Election
An Alabama taxpayer was properly assessed business privilege tax in 2021 after failing to file the correct form to be considered a family limited liability entity, the state Tax Tribunal ruled.
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September 20, 2024
NY Sales Tax Applies To Use Of Portal Software, Dept. Says
New York state and local sales taxes apply to charges for the use of a web portal host's software by customers and applicants, the state tax department said, finding the charges constitute the sale of prewritten software.
Expert Analysis
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Atty Well-Being Efforts Ignore Root Causes Of The Problem
The legal industry is engaged in a critical conversation about lawyers' mental health, but current attorney well-being programs primarily focus on helping lawyers cope with the stress of excessive workloads, instead of examining whether this work culture is even fundamentally compatible with lawyer well-being, says Jonathan Baum at Avenir Guild.
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Less Power To The People: SALT In Review
Starting with a measure that won't appear on the California ballot in November, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Unpacking The Circuit Split Over A Federal Atty Fee Rule
Federal circuit courts that have addressed Rule 41(d) of the Federal Rules of Civil Procedure are split as to whether attorney fees are included as part of the costs of a previously dismissed action, so practitioners aiming to recover or avoid fees should tailor arguments to the appropriate court, says Joseph Myles and Lionel Lavenue at Finnegan.
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6 Tips For Maximizing After-Tax Returns In Private M&A Deals
With potential tax legislation likely to spur a surge in private business sales, sellers can make the most of after-tax proceeds with strategies that include price allocation and qualified investment options, say Isaac Grossman and Daniel Studin at Morrison Cohen.
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After A Brief Hiccup, The 'Rocket Docket' Soars Back To No. 1
The Eastern District of Virginia’s precipitous 2022 fall from its storied rocket docket status appears to have been a temporary aberration, as recent statistics reveal that the court is once again back on top as the fastest federal civil trial court in the nation, says Robert Tata at Hunton.
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Recruitment Trends In Emerging Law Firm Frontiers
BigLaw firms are facing local recruitment challenges as they increasingly establish offices in cities outside of the major legal hubs, requiring them to weigh various strategies for attracting talent that present different risks and benefits, says Tom Hanlon at Buchanan Law.
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Money, Money, Money: Limiting White Collar Wealth Evidence
As courts increasingly recognize that allowing unfettered evidence of wealth could prejudice a jury against a defendant, white collar defense counsel should consider several avenues for excluding visual evidence of a lavish lifestyle at trial, says Jonathan Porter at Husch Blackwell.
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How Associates Can Build A Professional Image
As hybrid work arrangements become the norm in the legal industry, early-career attorneys must be proactive in building and maintaining a professional presence in both physical and digital settings, ensuring that their image aligns with their long-term career goals, say Lana Manganiello at Equinox Strategy Partners and Estelle Winsett at Estelle Winsett Professional Image Consulting.
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Firms Must Rethink How They Train New Lawyers In AI Age
As law firms begin to use generative artificial intelligence to complete lower-level legal tasks, they’ll need to consider new ways to train summer associates and early-career attorneys, keeping in mind the five stages of skill acquisition, says Liisa Thomas at Sheppard Mullin.
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Think Like A Lawyer: Always Be Closing
When a lawyer presents their case with the right propulsive structure throughout trial, there is little need for further argument after the close of evidence — and in fact, rehashing it all may test jurors’ patience — so attorneys should consider other strategies for closing arguments, says Luke Andrews at Poole Huffman.
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Credit Cards And Trading Cards: SALT In Review
From Mastercard's loss in a South Carolina court case to the taxability of trading cards imported to California, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Calif. Budget Will Likely Have Unexpected Tax Consequences
A temporary suspension of net operating loss deductions and business incentive tax credits, likely to be approved on June 15 as part of California’s next budget, may create unanticipated tax liabilities for businesses that modeled recently completed transactions on current law, says Myra Sutanto Shen at Wilson Sonsini.
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Litigation Inspiration: Attys Can Be Heroic Like Olympians
Although litigation won’t earn anyone an Olympic medal in Paris this summer, it can be worthy of the same lasting honor if attorneys exercise focused restraint — seeking both their clients’ interests and those of the court — instead of merely pursuing every advantage short of sanctionable conduct, says Bennett Rawicki at Hilgers Graben.