State & Local

Progressive Tax Plans May Rise To Surface After Blue Wave

Paul Williams
Tax Correspondent

States that experienced a shift to Democratic control of their legislatures and governors' offices on Election Day could be poised to pursue more progressive tax policies next year, including combined reporting and higher taxes on millionaires.

Data Center Tax Breaks Face Election-Year Political Pushback

Maria Koklanaris
Senior Tax Correspondent

States across the country and political divide moved in 2026 to curb tax breaks for data centers, and the issue has featured prominently ahead of Tuesday's elections as candidates pledge to end or pull back on their exemptions for sales and property taxes.

Tax Policy To Watch After The Midterm Elections

Asha Glover

When lawmakers return to Washington, D.C., after the midterm elections, proposals to overhaul the Internal Revenue Service's administration could be ripe for inclusion in a year-end package if the goal is to clear the decks before the next legislative session, according to tax policy observers. Here, Law360 takes a look.

Planning Personal Phone Collections Before Discovery Begins

For counsel planning a personal phone collection as part of the litigation discovery process, it's important to take early steps to ensure that necessary information will be obtained without exposing unrelated information or running into access issues, says Jeremy Horowitz at MARA Forensics.

Judges Must Turn To Merits Earlier To Fix Civil Justice System

The U.S. justice system is long overdue for a cultural shift that encourages judges to engage with the merits of a case from the outset, which would help to cut through procedural complexities and deliver high-quality justice efficiently and at lower cost, says Steven Kayman at Rottenberg Lipman.

The Invisible AI Danger That May Undermine Legal Profession

A public database tracking cases involving hallucinations generated by artificial intelligence recently surpassed 2,200 entries, but the bigger risk underlying attorneys’ use of such tools is that they will slowly surrender their judgment to AI and lose analytical skills, says Massachusetts District Court Associate Justice Brian Palmucci.

How AI Could Help Judges Spot Their Own Biases

In close cases where there’s room for discretion, artificial intelligence could challenge judges’ implicit biases by running counterfactual tests at scale — but any judicial use of such tools would need guardrails, say Arnold Peter at Peter Law and Nancy Rapoport at University of Nevada.

Wishing A Rate Would Stay The Same: SALT In Review

From a proposed move toward graduated income tax rates in Pennsylvania to a Missouri amendment intended to eliminate all taxes there, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

3 Strategies To Reduce AI Sycophancy In Legal Work

The tendency of generative artificial intelligence models to tell users what they want to hear can reinforce attorneys’ confirmation bias when testing the strength of arguments, and it can’t simply be prompted away — but a few practices can help mitigate it, says Michael Ott at Ice Miller.

Tariffs Could Be Behind Surge In FTZ Production Filings

As tariffs reshape production sourcing decisions, manufacturers are seeking foreign trade zone production authority at more than twice last year's pace, making it important to consider the potential duty and export benefits, along with review delays and restrictions that can curb savings, say attorneys at Sidley.

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.