State & Local
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December 20, 2024
NY Settles Unclaimed Gift Card Balance Dispute For $4.4M
A gift card company will pay nearly $4.4 million for helping a retailer wrongly keep unused gift card funds belonging to New York residents, the state attorney general said Friday.
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December 20, 2024
Mich. Duplex Wrongly Added To Site's Tax Value, Court Says
A Michigan municipality should not have boosted the assessment of a property by adding in the value of a third duplex it had erroneously omitted from its tax rolls, the state appeals court said, reversing a state tax panel.
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December 20, 2024
Top State And Local Tax Policies Of 2024
Taxes are often unpopular, but in 2024, voters in a couple of states approved taxes that target those with larger earnings, and one state’s voters embraced using tax policy to combat problems surrounding homelessness. Here, Law360 looks at some notable state and local tax policies of the past year.
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December 19, 2024
Outgoing Wash. Gov. Proposes Wealth Tax In Budget
Washington state would levy a 1% tax on residents with worldwide wealth of more than $100 million and increase taxes on businesses under a budget proposal from outgoing Gov. Jay Inslee.
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December 19, 2024
Fla. Court Won't Dismiss JetBlue Airline Miles Tax Case
JetBlue can proceed with its arguments that the Florida Department of Revenue's method of determining the airline's miles flown in the state violated the U.S. Constitution's commerce and due process clauses, a state court ruled.
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December 19, 2024
La. Remote Seller Entity Eyes Swift Guidance On Tax Changes
The Louisiana Sales and Use Tax Commission for Remote Sellers plans to release guidance soon on sales tax changes that will take effect Jan. 1 under a tax overhaul package the governor recently signed, the agency's executive director said Thursday.
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December 19, 2024
New Jersey Power Broker Says RICO Case Isn't Fit For Jury
Defendants dubbed the "Norcross Enterprise" are fighting back against New Jersey Attorney General Matthew Platkin's assertion that their bid to toss a criminal indictment accusing them of engaging in a sprawling racketeering scheme is out of place, claiming the state misunderstands the roles of judge and jury.
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December 19, 2024
Top State And Local Tax Cases Of 2024
From the U.S. Supreme Court declining to hear a construction company's case over South Dakota apportionment to the Minnesota Tax Court's ruling on a packing product company's nexus in the state, this has been a busy year for state and local tax cases. Here, Law360 looks at the most influential cases of 2024 and their impact going into the new year.
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December 18, 2024
NY Apportionment Regs OK, Court Finds In Paychex Dispute
The New York state tax agency did not exceed its authority when it adopted a regulation that doesn't permit Paychex to include reimbursements for certain expenses, such as paying employee wages, in its business receipts, a state court found Wednesday, handing a defeat to Paychex.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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."
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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.
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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.
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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.
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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%.
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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.
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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.
Expert Analysis
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Lawyers Can Take Action To Honor The Voting Rights Act
As the Voting Rights Act reaches its 59th anniversary Tuesday, it must urgently be reinforced against recent efforts to dismantle voter protections, and lawyers can pitch in immediately by volunteering and taking on pro bono work to directly help safeguard the right to vote, says Anna Chu at We The Action.
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How To Grow Marketing, Biz Dev Teams In A Tight Market
Faced with fierce competition and rising operating costs, firms are feeling the pressure to build a well-oiled marketing and business development team that supports strategic priorities, but they’ll need to be flexible and creative given a tight talent market, says Ben Curle at Ambition.
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Rock Climbing Makes Me A Better Lawyer
Rock climbing requires problem-solving, focus, risk management and resilience, skills that are also invaluable assets in my role as a finance lawyer, says Mei Zhang at Haynes and Boone.
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Think Like A Lawyer: Dance The Legal Standard Two-Step
From rookie brief writers to Chief Justice John Roberts, lawyers should master the legal standard two-step — framing the governing standard at the outset, and clarifying why they meet that standard — which has benefits for both the drafter and reader, says Luke Andrews at Poole Huffman.
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Shake-Ups For Courts In Different Fields: SALT In Review
From the end of Chevron deference in the courts to the planned sale of the NBA's reigning champion, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Kentucky Tax Talk: Appeals Court Revisits Leases' Tax Effects
With better facts and greater emphasis on the Kentucky Constitution, Walgreen Co. may succeed in its latest Kentucky Court of Appeals challenge to a tax assessor's method of valuing leaseholds on real property for purposes of determining ad valorem tax, say Mark Sommer and Elizabeth Ethington at Frost Brown Todd.
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Lead Like 'Ted Lasso' By Embracing Cognitive Diversity
The Apple TV+ series “Ted Lasso” aptly illustrates how embracing cognitive diversity can be a winning strategy for teams, providing a useful lesson for law firms, which can benefit significantly from fresh, diverse perspectives and collaborative problem-solving, says Paul Manuele at PR Manuele Consulting.
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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.