State & Local
-
December 18, 2024
Court Urged To Reject Arbitration In Walmart Fla. Tax Suit
A class action claiming Walmart unlawfully taxed delivery fees in Florida should not go to arbitration, the shopper bringing the suit told a Florida federal court, opposing Walmart's motion to compel arbitration and dismiss the case.
-
December 18, 2024
Justices Limit Wis. Charity Tax Case To 1st Amendment Fight
The U.S. Supreme Court will limit its review of a Wisconsin Catholic charity's appeal of the state's denial of an unemployment tax exemption, the court said in an amended order, agreeing to review the group's First Amendment question.
-
December 18, 2024
Fla. Says Gym Dues Paid During Tax Holiday Are Exempt
Gym membership dues paid during a monthlong summer sales tax holiday in Florida are exempt from tax, the state Department of Revenue said, finding that the date of the actual payment is what determines eligibility.
-
December 18, 2024
State Tax Revenue Stable In 2024, But Warning Signs Abound
State tax revenues have been stable in 2024 despite continuing tax rate cuts in many states, but some research groups are predicting difficult years ahead as the last of the federal funding from the pandemic runs out.
-
December 17, 2024
Fla. Taxpayer Owes Tax On Palladium Purchases, Dept. Says
A Florida taxpayer is liable to pay state sales tax on its purchases of palladium, as palladium is not tax-exempt in the state, the Florida Department of Revenue said in a technical advisement.
-
December 17, 2024
NJ To Add Crypto Question To Personal Income Tax Returns
New Jersey plans on updating its personal income tax returns to include a question asking if a taxpayer held or engaged in transactions involving digital assets such as cryptocurrencies, the state Division of Taxation's top official said Tuesday.
-
December 17, 2024
NY Tax Chief Sees New Tech Aiding Partnership Audits
The acting commissioner of New York state's tax agency said Tuesday that she's excited about the possibility of harnessing advancements in technology to further scrutinize returns from complex partnerships that are difficult for auditors to digest on their own.
-
December 17, 2024
NY Urges Justices To Pass On IBM, Disney Royalty Tax Fight
The U.S. Supreme Court should decline to hear appeals by IBM and Disney that claim New York state's tax treatment of royalties received from foreign affiliates resulted in unconstitutional discrimination against interstate commerce, the state told the court Tuesday.
-
December 17, 2024
Mo. Appeals Court Won't Rethink Quash Of County Pot Taxes
The Missouri Court of Appeals said it will not reconsider its ruling that barred counties from levying taxes on cannabis sales within municipalities, rejecting a request by two counties seeking to impose such taxes.
-
December 17, 2024
Pa. Supreme Court Says Judge's Side Job Sinks Tax Rulings
A Pennsylvania state judge who held a side job on a Philadelphia tax appeals board had nullified rulings he made on a local hospital's tax cases, the state's Supreme Court said Tuesday, reasoning that holding both jobs was a "constitutionally impermissible conflict of duties."
-
December 17, 2024
Ex-Pol Can't Shake Fraud Rap Over Jury's Racial Makeup
A Massachusetts federal judge denied a Vietnamese-American former state senator's bid to undo his conviction for unlawfully accepting unemployment assistance and filing a false tax return, rejecting claims that jury selection was tainted by "racial animus" on the part of prosecutors.
-
December 16, 2024
NY Courts Shifting Bundled Transaction Precedent, Attys Say
A New York state appeals court ruling from earlier this year that upheld a sales tax assessment on usage agreements for laser medical equipment created a presumption of taxability for bundled transactions that is difficult for businesses to overcome, practitioners said Monday.
-
December 16, 2024
Va. Gov. Proposes Income Tax Exemption For Workers' Tips
Virginia would exempt income from tips from state income tax as part of a budget proposal from Republican Gov. Glenn Youngkin, the governor's office announced Monday.
-
December 16, 2024
NY Gov. Vetoes Change To Property Tax Interest Rates
New York Gov. Kathy Hochul vetoed legislation that would have linked the state's interest rates for delinquent residential property taxes to the prime rate and lowered the minimum rate from 12% to 2%, with a cap of 16%.
-
December 16, 2024
Ga. Tax Agency Overvalued Railroad Property, Tribunal Finds
A Georgia short-line railway was overvalued for property tax purposes, the state's tax tribunal said, adopting the company's proposed per-mile value for its leased track and reducing the overall valuation from $4.1 million to $2.6 million.
-
December 16, 2024
Mich. House OKs Raising Detroit-Area Hotel Tax
The tax on certain hotel stays in the Detroit metro area could be increased from its current 2% rate under legislation passed unanimously by the Michigan House of Representatives, potentially reaching 4% in 2031.
-
December 16, 2024
Ohio Tax Board Floats Regs To Streamline Appeal Resolution
The Ohio Board of Tax Appeals proposed a regulation amendment to clarify its authority to issue orders in response to several common, rarely contested types of filings and streamline the resolution of tax disputes in such cases.
-
December 16, 2024
Mich. Appeals Court OKs Poverty Tax Break For Resident
A Michigan resident qualified for a poverty tax break on property taxes, the state Court of Appeals ruled, saying the state Tax Tribunal incorrectly relied on the federal poverty guidelines instead of its own alternative income guidelines under state law.
-
December 16, 2024
High Court Won't Review Ore. Tax On Out-Of-State Co.
The U.S. Supreme Court said Monday it will not review an Oregon Supreme Court finding that an out-of-state tobacco company was liable for state taxes, letting stand a decision that the company's Oregon activities negated protections against state taxation in federal law.
-
December 13, 2024
Supreme Court To Review Wis. Catholic Charity Tax Case
The U.S. Supreme Court plans to examine whether a group of Catholic charities is exempt from Wisconsin's unemployment tax, agreeing Friday to review a state Supreme Court finding that the organizations are not operated primarily for religious purposes.
-
December 13, 2024
NC Justices Grant Philip Morris Win On Tax Credit Cap
North Carolina's $6 million cap on cigarette export tax credits limits only the credits that can be claimed in a year, not the amount of credit that can be generated, the North Carolina Supreme Court ruled Friday, handing a victory to tobacco giant Philip Morris.
-
December 13, 2024
Amazon Was A Taxable Seller Before Wayfair, SC Agency Says
Amazon's sales of third-party products in South Carolina were subject to taxation even before the U.S. Supreme Court's landmark Wayfair decision, the state Revenue Department told the state Supreme Court on Friday, urging it to uphold an appeals court decision.
-
December 13, 2024
Ark. Justices Back Biz's $4M Refund In Apportionment Fight
An Arkansas motor fuel company is eligible for a $4 million income tax refund after amending its corporate income tax returns to apportion all its interest expenses to the state, the Arkansas Supreme Court affirmed, saying the expenses were nonbusiness expenses that could be deducted.
-
December 13, 2024
Tax Pact Group Fleshes Out Voluntary Disclosure Plan
A proposal for a voluntary disclosure program that allows remote sellers to limit their back sales tax liabilities to the past two years was expanded to include sellers that have inventory in member states during a Streamlined Sales Tax Governing Board meeting Friday.
-
December 13, 2024
NJ Revenue Collection Through Nov. Up $309M
New Jersey's major revenues from July through November rose $309 million compared with the same period last fiscal year, according to a report by the state Department of the Treasury.
Expert Analysis
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
6 Tips For Maximizing After-Tax Returns In Private M&A Deals
With potential tax legislation likely to spur a surge in private business sales, sellers can make the most of after-tax proceeds with strategies that include price allocation and qualified investment options, say Isaac Grossman and Daniel Studin at Morrison Cohen.
-
After A Brief Hiccup, The 'Rocket Docket' Soars Back To No. 1
The Eastern District of Virginia’s precipitous 2022 fall from its storied rocket docket status appears to have been a temporary aberration, as recent statistics reveal that the court is once again back on top as the fastest federal civil trial court in the nation, says Robert Tata at Hunton.
-
Recruitment Trends In Emerging Law Firm Frontiers
BigLaw firms are facing local recruitment challenges as they increasingly establish offices in cities outside of the major legal hubs, requiring them to weigh various strategies for attracting talent that present different risks and benefits, says Tom Hanlon at Buchanan Law.
-
Money, Money, Money: Limiting White Collar Wealth Evidence
As courts increasingly recognize that allowing unfettered evidence of wealth could prejudice a jury against a defendant, white collar defense counsel should consider several avenues for excluding visual evidence of a lavish lifestyle at trial, says Jonathan Porter at Husch Blackwell.
-
How Associates Can Build A Professional Image
As hybrid work arrangements become the norm in the legal industry, early-career attorneys must be proactive in building and maintaining a professional presence in both physical and digital settings, ensuring that their image aligns with their long-term career goals, say Lana Manganiello at Equinox Strategy Partners and Estelle Winsett at Estelle Winsett Professional Image Consulting.