State & Local
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April 30, 2025
Fried Frank Taps Sidley's UK Tax Head
The former head of Sidley Austin LLP's U.K. tax practice has joined Fried Frank Harris Shriver & Jacobson LLP's London office, where he will advise on U.K. and international tax structuring, the firm announced.
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April 30, 2025
Mont. To Cut Top Individual Income Tax Rate, Adjust Brackets
Montana will lower its top individual income tax rate, adjust tax brackets so that more income is subject to a lower tax rate and double the state's earned income tax credit under a bill signed by the governor.
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April 30, 2025
Texas House OKs Ballot Question On Banning Inheritance Tax
Texas would have voters decide if the state should create a constitutional amendment prohibiting taxes on a decedent's property or the transfer of an estate, inheritance, legacy, succession or gift under a resolution passed by the state House of Representatives.
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April 30, 2025
Colo. House OKs Extending Advanced Industry Tax Credit
Colorado's tax credit for investment in certain advanced industries would extend for five years beyond its current sunset under legislation approved Wednesday by the state House of Representatives.
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April 30, 2025
Mich. Revenues Through March Surge $466M From Last Year
Michigan's general revenue collection from October through March exceeded the same period in the previous year by $466 million, according to a report by the state Budget Office released Wednesday.
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April 30, 2025
NJ Panel Declines To Revive Tobacco Co.'s Tax Refund Claim
A tobacco company cannot revive its claim for a tax refund, a New Jersey appeals court found, agreeing with the state's tax court that 2020 amendments to a regulation limiting a royalty add-back deduction must be applied retroactively.
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April 30, 2025
Bipartisan House Members Pitch Expanded Paid Family Leave
A bipartisan group of House lawmakers unveiled legislation Wednesday that they said would expand access to paid family leave by incentivizing states to establish their own programs and facilitating the exchange of information between state and federal officials.
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April 29, 2025
MTC Digital Work Group Backs Tax Pact's Bundling Rules
The Streamlined Sales Tax Governing Board's model for how to tax products sold in a bundle generally works well and more states should consider it, a Multistate Tax Commission work group studying how to harmonize state rules for taxing digital products said Tuesday.
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April 29, 2025
MTC Group Finalizing Work On Sourcing Partners' Payments
The Multistate Tax Commission group working on the state taxation of partnerships said Tuesday it is preparing for the final stages of one of its major fields of research, the state sourcing of partnership income.
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April 29, 2025
New MTC Form Would Assure Sellers On Sales Tax Collection
Fifteen states have so far approved, on an optional basis, a new form that a marketplace facilitator can use to certify to its marketplace sellers that it will be taking over the collection and remittance of sales tax, relieving the sellers of that responsibility, a Multistate Tax Commission official said Tuesday.
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April 29, 2025
NY Court Upholds PL 86-272 Regulations, Bars Retroactivity
A New York rule allowing state taxation of nonsolicitation business activities over the internet isn't barred by a federal law providing limited protections against state income tax, but the rule cannot apply retroactively, a state Supreme Court ruled.
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April 29, 2025
MTC Group To Weigh Updating Airline, Broadcaster Tax Rules
A Multistate Tax Commission committee gave the green light Tuesday for a work group to consider ways to revise the intergovernmental agency's decades-old sourcing regulations for airlines and broadcasting companies to account for how they generate income from current business practices.
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April 29, 2025
Hochul, Legislators Agree On Budget With Small-Biz Tax Cuts
New York Gov. Kathy Hochul and lawmakers agreed on a budget plan with payroll mobility tax relief for small businesses and a $1 billion tax cut for middle- and low-income residents, the governor said, despite critics saying the plan leaves the state exposed to federal cuts.
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April 29, 2025
Kansas To Require Single Sales Factor For Multistate Cos.
Kansas will require multistate corporations to switch from the three-factor apportionment method for income to a single-sales-factor apportionment method and to market-based sourcing of receipts under a bill signed by the governor.
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April 29, 2025
Kan. Creates Sales Tax Exemption For Data Center Developers
Kansas established a sales tax exemption for businesses that build and make purchases for the development of data centers in the state under a bill signed by the governor.
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April 28, 2025
Court Urged To Reconsider Jurisdiction In Tribal Tariff Row
Blackfeet Nation members are asking a Montana federal judge to reconsider an order to transfer their challenge against President Donald Trump's tariffs on imports from Canada and abroad to the U.S. Court of International Trade, saying the decision is based on the constitutional question of the Indian commerce clause.
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April 28, 2025
Mich. Justices Won't Hear Cos.' Bid To Adjust Asset Basis
Michigan's highest court declined Monday to review an appeals court's decision that two companies may not account for depreciation they didn't receive credit for under Michigan law to increase the basis of assets they sold when determining their state tax liabilities.
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April 28, 2025
Colo. House OKs Tax Break For Employee-Owned Businesses
Colorado would offer a $1 million state tax deduction and other tax benefits for conversions of businesses into worker-owned cooperatives under a bill approved Monday by the state House of Representatives.
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April 28, 2025
Reds, Bengals Stadiums' Land Tax Upheld By Ohio Board
The land on which the stadiums for the Cincinnati Bengals and Cincinnati Reds reside are subject to property tax, but parking facilities near the sports complexes are tax-exempt because they are used for public purposes, the Ohio Board of Tax Appeals ruled.
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April 28, 2025
Maine Revenue Surpasses Forecast By $8M Through March
Maine's general revenue collection from July through March outperformed a forecast by $8 million, according to a report by the state Department of Administrative and Financial Services.
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April 28, 2025
Mo. Proposed Rule Outlines SALT Cap Workaround
The Missouri Department of Revenue would carry out a law that allows members of pass-through entities to opt out of the state's entity-level tax that bypasses the $10,000 federal cap on state and local tax deductions under a proposed regulation.
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April 28, 2025
Ore. Tax Court Allows Partial Deduction For Timber Biz Owner
The owner of an Oregon timber business can make a partial deduction from gross income for contract labor expenses, but the rest of his claimed deductions were properly recalculated by a state Department of Revenue auditor, the Oregon Tax Court ruled.
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April 28, 2025
Ark. Will Exempt Groceries From State Sales Tax
Arkansas will exempt groceries from state sales and use tax starting in 2026 under a bill signed into law by Gov. Sarah Huckabee Sanders.
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April 28, 2025
Colo. House Panel OKs Axing Deduction For Free Sports Bets
Colorado would eliminate a tax deduction for sports betting operators for free bets placed by players under a bill approved by the state House Appropriations Committee.
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April 28, 2025
Ala. Couple Failed To Abandon Domicile, Tribunal Says
A couple who left Alabama for work in other states owe income tax for the 2014 and 2019 tax years because they failed to abandon their domicile, the state's Tax Tribunal ruled.
Expert Analysis
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Now More Than Ever, Lawyers Must Exhibit Professionalism
As society becomes increasingly fractured and workplace incivility is on the rise, attorneys must champion professionalism and lead by example, demonstrating how lawyers can respectfully disagree without being disagreeable, says Edward Casmere at Norton Rose.
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Reading Between The Lines Of Justices' Moore Ruling
The U.S. Supreme Court's recent Moore v. U.S. decision, that the Internal Revenue Code Section 965 did not violate the 16th Amendment, was narrowly tailored to minimally disrupt existing tax regimes, but the justices' various opinions leave the door open to future tax challenges and provide clues for what the battles may look like, say Caroline Ngo and Le Chen at McDermott.
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A Midyear Forecast: Tailwinds Expected For Atty Hourly Rates
Hourly rates for partners, associates and support staff continued to rise in the first half of this year, and this growth shows no signs of slowing for the rest of 2024 and into next year, driven in part by the return of mergers and acquisitions and the widespread adoption of artificial intelligence, says Chuck Chandler at Valeo Partners.
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Another Crack In The Shield: SALT In Review
From the latest assault on a federal shield against taxing out-of-state businesses to an update on beer taxes, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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States Should Loosen Law Firm Ownership Restrictions
Despite growing buzz, normalized nonlawyer ownership of law firms is a distant prospect, so the legal community should focus first on liberalizing state restrictions on attorney and firm purchases of practices, which would bolster succession planning and improve access to justice, says Michael Di Gennaro at The Law Practice Exchange.
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Texas Ethics Opinion Flags Hazards Of Unauthorized Practice
The Texas Professional Ethics Committee's recently issued proposed opinion finding that in-house counsel providing legal services to the company's clients constitutes the unauthorized practice of law is a valuable clarification given that a UPL violation — a misdemeanor in most states — carries high stakes, say Hilary Gerzhoy and Julienne Pasichow at HWG.
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How To Clean Up Your Generative AI-Produced Legal Drafts
As law firms increasingly rely on generative artificial intelligence tools to produce legal text, attorneys should be on guard for the overuse of cohesive devices in initial drafts, and consider a few editing pointers to clean up AI’s repetitive and choppy outputs, says Ivy Grey at WordRake.
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A Tale Of 2 Trump Cases: The Rule Of Law Is A Live Issue
The U.S. Supreme Court’s decision this week in Trump v. U.S., holding that former President Donald Trump has broad immunity from prosecution, undercuts the rule of law, while the former president’s New York hush money conviction vindicates it in eight key ways, says David Postel at Henein Hutchison.
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Industry Self-Regulation Will Shine Post-Chevron
The U.S. Supreme Court's Loper decision will shape the contours of industry self-regulation in the years to come, providing opportunities for this often-misunderstood practice, says Eric Reicin at BBB National Programs.
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3 Ways Agencies Will Keep Making Law After Chevron
The U.S. Supreme Court clearly thinks it has done something big in overturning the Chevron precedent that had given deference to agencies' statutory interpretations, but regulated parties have to consider how agencies retain significant power to shape the law and its meaning, say attorneys at K&L Gates.
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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.