State & Local
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May 05, 2025
Colo. Senate Approves Employee Biz Ownership Tax Breaks
Colorado would allow new tax breaks, including a $1 million state income tax deduction, to promote employee ownership of businesses under legislation the state Senate approved Monday.
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May 05, 2025
Mass. Income Tax Cap Plan Halted By Legislative Panel
A proposal for a Massachusetts ballot measure to cap the state's income tax rate at 6.25% was stalled by a state legislative panel.
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May 05, 2025
Ariz. Gov. Vetoes Tax Law Change, Warns Of Political Risks
Legislation to mandate that Arizona's tax department notify lawmakers if a proposed new interpretation or application of law would adversely affect taxpayers was vetoed by Gov. Katie Hobbs.
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May 02, 2025
Charter Ineligible For Tech Tax Break, NY Tells Appeals Court
New York's tax agency urged a state appeals court to affirm its determination that Charter Communications Inc. is ineligible for a reduced tax rate offered to certain technology businesses because some members of its combined group didn't have property in the state.
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May 02, 2025
State & Local Tax Takeaways From April
The federal law that shields businesses from a state's tax on net income when their only business activities in that state are soliciting orders of tangible personal property was the focus of significant attention in April. Those events were part of another busy month in the state and local tax world. Here, Law360 presents state and local tax developments to know from the past month.
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May 02, 2025
Alabama Exempts Aircraft, Parts From Sales And Use Taxes
Alabama will exempt qualifying aircraft and aircraft parts from state sales and use taxes under a bill signed by the governor.
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May 02, 2025
Calif. Cannabis Excise Tax To Rise By 4 Percentage Points
The California cannabis excise tax on gross receipts from retail sales of cannabis will increase from 15% to 19% as a part of a law requiring the rate be adjusted every two years, the state Department of Tax and Fee Administration announced Friday.
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May 02, 2025
Mass. Board Knocks $36K Off Senior Condo's Tax Valuation
A Massachusetts senior condominium unit was overvalued by $36,000, the state Appellate Tax Board ruled in an opinion released Friday, saying the owner's comparable sales analysis showed the property's valuation was inconsistent with the other properties.
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May 02, 2025
Miss. Justices Agree Gas Co.'s Freight Charges Not Taxable
The Mississippi Department of Revenue didn't have the authority to tax freight charges paid by a gas transportation company to a third party because they were part of a separate transaction and not the overall purchase, the state Supreme Court ruled.
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May 02, 2025
Mass. Board Upholds Home's Valuation Despite Comparables
A Massachusetts homeowner cannot have the value of her home lowered after failing to account for the differences between her home and the comparable sales she provided, the state tax appeals board said in a ruling released Friday.
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May 02, 2025
White House Budget Seeks $2.5B Cut From IRS Funding
The Internal Revenue Service's budget would be cut by nearly $2.5 billion compared with 2025 under the 2026 budget request released Friday by President Donald Trump's administration.
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May 02, 2025
Arkansas Dept. Says General Revenue Down From Last Year
Arkansas general revenue collection from July through April fell below the same time period last year by nearly $225 million, the state Department of Finance and Administration said Friday.
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May 02, 2025
Taxation With Representation: Goodwin, Haynes Boone
In this week's Taxation With Representation, Merck buys SpringWorks Therapeutics, Novartis AG acquires Regulus Therapeutics Inc., Sabre Corp. sells its Hospitality Solutions business to private equity shop TPG, and TWG Global and Mubadala Capital team up to bolster their investments.
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May 02, 2025
Fla. Net Revenue Through March Beat Estimates By $28M
Florida's net revenue collection from July through March exceeded forecasts by $28 million, according to a report from the state's Office of Economic and Demographic Research.
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May 02, 2025
West Virginia Revenues Beat Forecast By $237M
West Virginia's general fund revenue from July through April exceeded estimates by $237 million but lagged behind last year during the same period by $111 million, according to a report by the state Budget Office.
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May 02, 2025
Ala. Couple Can't Deduct Costs Incurred Before Biz Operated
A couple who own a running merchandise business in Alabama can't claim a deduction for business expenses incurred before the business was operational, the Alabama Tax Tribunal ruled.
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May 02, 2025
Michigan Income Tax Rate Cut Triggers Weren't Hit, State Says
Michigan's personal income tax rate will remain at 4.25% for tax year 2025 because revenue triggers that can temporarily reduce the rate weren't hit for the prior fiscal year, the state Department of Treasury said.
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May 01, 2025
PepsiCo Owes $2.1M In Tax Penalties, Illinois Panel Affirms
PepsiCo was correctly assessed $2.1 million in penalties for categorizing Frito-Lay expatriates' compensation as foreign payroll that would allow the company's profits to be excluded from state income tax calculations, according to an Illinois Appellate Court panel.
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May 01, 2025
Uber Needed To Collect Tax Pre-Wayfair, Ga. Panel Affirms
Uber was required to collect and remit millions in sales taxes on behalf of drivers and customers who used its app before the Wayfair decision, a Georgia appellate panel held Thursday, ruling against the ride-hailing company and upholding a trial court decision.
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May 01, 2025
Va. Delays Tax Deadlines For Those Hit By Feb. Flooding
Virginia will allow taxpayers who were affected by winter storms and severe flooding in February until the end of this year to file state tax returns and payments, the Department of Taxation said Thursday.
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May 01, 2025
Colo. Fees Don't Violate TABOR, Appeals Panel Says
The enterprise fees in Colorado's state transportation package passed in 2021 do not violate the state's Taxpayer Bill of Rights, a state appeals court said Thursday, upholding a district court ruling and rejecting a challenge from a conservative group.
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May 01, 2025
Colo. House OKs Eliminating Deduction For Free Sports Bets
Colorado would reduce and then eliminate a tax deduction for sports betting operators for free bets placed by players under a bill passed by the state House of Representatives and referred to the state Senate's Finance Committee.
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May 01, 2025
Ind. Co. May Get OK For GILTI, Foreign Dividends Deduction
A company in Indiana that was originally assessed additional corporate income tax after being denied a $17 million deduction for dividends from foreign subsidiaries may be able to claim another deduction, the Department of State Revenue said in a letter of findings.
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May 01, 2025
Ore. Tax Court Retains Nix Of Microsoft Foreign Income Relief
The Oregon Tax Court is adhering to its finding on the treatment of Microsoft's repatriated foreign income when calculating its state income, making only minor changes to an earlier order and rejecting the company's arguments for further relief.
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May 01, 2025
Ind. Sales Tax Applies To Car Service's Rentals
An Indiana company providing car transportation services properly paid sales tax on its rentals of vehicles, the state Department of Revenue determined, finding that the company failed to prove it was entitled to a refund.
Expert Analysis
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Time To Fix NYC's Broken Property Assessment System
A New York appellate court's decision to revive Tax Equity Now New York v. City of New York may force the city to revamp its outdated and unfair real estate tax assessment system, which could be fixed with a couple of simple changes, says Seth Feldman at Romer Debbas.
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Strange Notions Bubble Up: SALT In Review
From an assault on North Carolina's phaseout of its corporate income tax to a court ruling on the taxability of sparkling water in Pennsylvania, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Don't Use The Same Template For Every Client Alert
As the old marketing adage goes, consistency is key, but law firm style guides need consistency that contemplates variety when it comes to client alert formats, allowing attorneys to tailor alerts to best fit the audience and subject matter, says Jessica Kaplan at Legally Penned.
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Think Like A Lawyer: Follow The Iron Rule Of Trial Logic
Many diligent and eager attorneys include every good fact, point and rule in their trial narratives — spurred by the gnawing fear they’ll be second-guessed for leaving something out — but this approach ignores a fundamental principle of successful trial lawyering, says Luke Andrews at Poole Huffman.
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The Art Of Asking: Leveraging Your Contacts For Referrals
Though attorneys may hesitate to ask for referral recommendations to generate new business, research shows that people want to help others they know, like and trust, so consider who in your network you should approach and how to make the ask, says Rebecca Hnatowski at Edwards Advisory.
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4 Ways To Refresh Your Law Firm's Marketing Strategy
With many BigLaw firms relying on an increasingly obsolete marketing approach that prioritizes stiff professionalism over authentic connection, adopting a few key communications strategies to better connect with today's clients and prospects can make all the difference, say Eric Pacifici and Kevin Henderson at SMB Law.
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Consider 2 Alternative Exit Plans In RE Distress Scenarios
In the face of an impending wave of foreclosures, lenders and borrowers alike should consider two exit strategies — deed-in-lieu of foreclosure and consent foreclosure — that can mitigate potential costs and diminution in property value that could be incurred during a lengthy proceeding, say attorneys at BCLP.
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SC's Courts Have It Wrong On Amazon Marketplace Sales Tax
The South Carolina Supreme Court should step in and correct the misguided change in tax law effectuated by lower court rulings that found Amazon owes state sales tax for marketplace sales made prior to the U.S. Supreme Court’s Wayfair v. South Dakota decision in 2018, says Hayes Holderness at the University of Richmond.
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Constitutional Shenanigans And Other Sports: SALT In Review
From a challenge to New York's end run on a federal law to voters' rejection of a sales tax that would aid Kansas City's major league teams, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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This Earth Day, Consider How Your Firm Can Go Greener
As Earth Day approaches, law firms and attorneys should consider adopting more sustainable practices to reduce their carbon footprint — from minimizing single-use plastics to purchasing carbon offsets for air travel — which ultimately can also reduce costs for clients, say M’Lynn Phillips and Lisa Walters at IMS Legal Strategies.
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Weisselberg's Perjury At Trial Spotlights Atty Ethics Issues
Former Trump Organization executive Allen Weisselberg’s recent guilty plea for perjury in the New York attorney general's civil fraud trial should serve as a reminder to attorneys of their ethical duties when they know a client has lied or plans to lie in court, and the potential penalties for not fulfilling those obligations, say Hilary Gerzhoy and Julienne Pasichow at HWG.
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Practicing Law With Parkinson's Disease
This Parkinson’s Awareness Month, Adam Siegler at Greenberg Traurig discusses his experience working as a lawyer with Parkinson’s disease, sharing both lessons on how to cope with a diagnosis and advice for supporting colleagues who live with the disease.
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Why Supreme Court Should Allow Repatriation Tax To Stand
If the U.S. Supreme Court doesn't reject the taxpayers' misguided claims in Moore v. U.S. that the mandatory repatriation tax is unconstitutional, it could wreak havoc on our system of taxation and result in a catastrophic loss of revenue for the government, say Christina Mason and Theresa Balducci at Herrick Feinstein.