State & Local
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May 05, 2025
Hawaii Legislature OKs Increase To Transient Lodging Tax
Hawaii would increase its transient accommodation tax and use the additional revenue to fund climate change mitigation efforts in the state under a bill passed by the Legislature and sent to the governor.
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May 05, 2025
Fla. Voters To Decide On Property Tax Exemption For Ag Land
Florida will have voters decide via a statewide ballot measure during the state's next general election on a proposed amendment to the state constitution to exempt property on designated agricultural land from taxes under a House joint resolution approved by lawmakers.
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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.Â
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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.
Expert Analysis
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How Law Firms Can Avoid 'Collaboration Drag'
Law firm decision making can be stifled by “collaboration drag” — characterized by too many pointless meetings, too much peer feedback and too little dissent — but a few strategies can help stakeholders improve decision-making processes and build consensus, says Steve Groom at Miles Mediation.
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Assessing The Practicality Of Harris' Affordable Housing Plan
Vice President Kamala Harris' proposed "Build the American Dream" plan to tackle housing affordability issues takes solid recommendations into account and may fare better than California's unsuccessful attempt at a similar program, but the scope of the problem is beyond what a three-point plan can solve, says Brooke Miller at Sheppard Mullin.
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Litigation Funding Disclosure Key To Open, Impartial Process
Blanket investor and funding agreement disclosures should be required in all civil cases where the investor has a financial interest in the outcome in order to address issues ranging from potential conflicts of interest to national security concerns, says Bob Goodlatte, former U.S. House Representative for Virginia.
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What NFL Draft Picks Have In Common With Lateral Law Hires
Nearly half of law firm lateral hires leave within a few years — a failure rate that is strikingly similar to the performance of NFL quarterbacks drafted in the first round — in part because evaluators focus too heavily on quantifiable metrics and not enough on a prospect's character traits, says Howard Rosenberg at Baretz+Brunelle.
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Replacing The Stigma Of Menopause With Law Firm Support
A large proportion of the workforce is forced to pull the brakes on their career aspirations because of the taboo surrounding menopause and a lack of consistent support, but law firms can initiate the cultural shift needed by formulating thoughtful workplace policies, says Barbara Hamilton-Bruce at Simmons & Simmons.
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Planning Law Firm Content Calendars: What, When, Where
During the slower month of August, law firms should begin working on their 2025 content calendars, planning out a content creation and distribution framework that aligns with the firm’s objectives and maintains audience engagement throughout the year, says Jessica Kaplan at Legally Penned.
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Specific Attacks On A Vague Tax Law: SALT In Review
From legal assaults on California's vague new sales-factor law to Minnesota Gov. Tim Walz's record on tax policy, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Law Firms Should Move From Reactive To Proactive Marketing
Most law firm marketing and business development teams operate in silos, leading to an ad hoc, reactive approach, but shifting to a culture of proactive planning — beginning with comprehensive campaigns — can help firms effectively execute their broader business strategy, says Paul Manuele at PR Manuele Consulting.
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The Big Issues A BigLaw Associates' Union Could Address
A BigLaw associates’ union could address a number of issues that have the potential to meaningfully improve working conditions, diversity and attorney well-being — from restructured billable hour requirements to origination credit allocation, return-to-office mandates and more, says Tara Rhoades at The Sanity Plea.
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It's Time For A BigLaw Associates' Union
As BigLaw faces a steady stream of criticism about its employment policies and practices, an associates union could effect real change — and it could start with law students organizing around opposition to recent recruiting trends, says Tara Rhoades at The Sanity Plea.
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How Justices Upended The Administrative Procedure Act
In its recent Loper Bright, Corner Post and Jarkesy decisions, the U.S. Supreme Court fundamentally changed the Administrative Procedure Act in ways that undermine Congress and the executive branch, shift power to the judiciary, curtail public and business input, and create great uncertainty, say Alene Taber and Beth Hummer at Hanson Bridgett.
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Trump's Best Hush Money Appeal Options Still Likely To Fail
The two strongest potential arguments former President Donald Trump could raise in appealing his New York hush money conviction seem promising at first, but precedent strongly suggests they will still ultimately fail — though, of course, Trump's unique position could lead to surprising results, says former New York Supreme Court Justice Ethan Greenberg, now at Anderson Kill.
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Mirror, Mirror On The Wall, Is My Counterclaim Bound To Fall?
A Pennsylvania federal court’s recent dismissal of the defendants’ counterclaims in Morgan v. Noss should remind attorneys to avoid the temptation to repackage a claim’s facts and law into a mirror-image counterclaim, as this approach will often result in a waste of time and resources, says Matthew Selmasska at Kaufman Dolowich.