State & Local

State & Local Tax Takeaways From September

Maria Koklanaris
Senior Tax Correspondent

Action in the state and local tax world in September was centered in courthouses in Massachusetts, Texas, California and elsewhere. Here, Law360 looks at highlights from the past month.

Overseas Income Regs May Cause M&A Headaches

Natalie Olivo
Senior Tax Correspondent

Regulations proposed by the U.S. Treasury Department would provide clean breaks for companies that sell more than 50% of their foreign affiliates, but transactions that fall below this threshold could still expose corporations to post-closing tax risks and deal friction.

Prediction Markets' High Court Clash Looks More Imminent

Alex Lawson

The widespread clash over whether the regulation of prediction markets falls under federal or state jurisdiction was bound to land in the U.S. Supreme Court, and a new circuit split and urgent policy questions may force the justices' hands to take up the issue.

Transfer Pricing Analyses May Apply To Tariff Refunds Claims

Both plaintiffs and defendants in consumer class actions over tariff refunds should examine transfer pricing analyses, which can offer contemporaneous evidence as to how much of a tariff was borne in the U.S. by the importer or consumers rather than absorbed earlier in the supply chain, say economists at The Brattle Group.

Allowed To Usurp A Power Of Congress: SALT In Review

From a defeat in court for challengers of a New Jersey rule on businesses online to a proposed supermajority requirement in Iowa, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

Importer Risk Rises As AI Enters Trade Fraud Enforcement

The Trump administration's new data-driven and artificial intelligence-enabled push against tariff evasion raises the stakes for companies with global supply chains, making it crucial that they consider strengthening response protocols, documentation and internal reporting mechanisms, say attorneys at Cooley.

What Lawyers Should Know Before Accepting Crypto Payment

As clients increasingly request to pay legal fees, retainers and escrow funds using cryptocurrency, lawyers should consider how only a handful of state bar authorities have addressed the issue with varying ethics opinions, as well as the related questions that no authority has yet answered, says attorney Felix Shipkevich.

Why And How To Build A Neurodiversity-Informed Practice

By better understanding neurodiversity and implementing simple accommodations for clients with autism, ADHD or learning differences, attorneys can build stronger relationships with those who may otherwise struggle to obtain and benefit from legal services, while developing good habits that will benefit everyone they represent, says Ting Cheung at Sanford Heisler.

Illinois Banking Brief: All The Notable Legal Updates In Q3

Recent banking developments in Illinois include significant new consumer protection legislation, three meaningful Seventh Circuit decisions, and a high-profile constitutional challenge to the state's new digital asset tax, say attorneys at Barnes & Thornburg.

The Courts Are There For A Reason: SALT In Review

From a challenge to Illinois' taxing of digital advertising and social media to the Montana governor's call for a flat income tax, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

What's Next For Prediction Markets If States Win At High Court

While the Supreme Court hasn't taken up a prediction market case yet, a high court win for the states in their quest to regulate the exchanges would likely mean a wave of state legislature bills and regulatory guidance arriving on different timelines, rather than a single uniform transition, says Howard Herndon at Bradley Arant.

AI Meeting Recaps Pose New Discovery And Privilege Risks

The New York City Bar Association’s recent ethics opinion, cautioning attorneys not to record nonclient conversations with artificial intelligence tools, reflects an emerging view that AI meeting recaps are now a distinct business record category, meaning counsel should set meeting-level controls and apply framework-level updates, says William Wright at Faegre Drinker.

Playing Bid Whist Makes Me A Better Lawyer

As a child, I viewed bid whist as a family tradition and a source of friendly card game competition, but as a lawyer, I see it as a tool that has helped me cultivate skills like communication, teamwork, risk assessment and composure, says Keyonn Pope at Riley Safer.

Md. Digital Tax Ruling Is A Road Map For Future Challenges

Three Maryland Tax Court rulings that recently struck down the state's digital advertising tax suggest constitutional and statutory vulnerabilities that could be used to challenge newly enacted digital services laws or legislation being considered by other states, say attorneys at Holland & Knight.

Calif. Bill Goes Too Far In Trying To Regulate Attorney AI Use

California’s first-in-the-nation act regulating how attorneys and arbitrators use generative artificial intelligence will likely soon become law, but read broadly, the provisions may dissuade lawyers from employing AI at all, thereby depriving them of key work tools, says Joshua Wurtzel at Schlam Stone.

Not What The Law Says: SALT In Review

From an appellate ruling on a deduction in Alabama to a California tax credit that would support journalists, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.