Latest COST Conscious

ISSUE 20-09; May 1, 2020

CARES ACT Impact on Your Company – Which CARES Act provision do you anticipate will impact your company the most for state and local tax purposes?

Latest Legislative Alert

ISSUE 20-23; May 26, 2020

Texas to Change Sales Tax Sourcing for Intrastate Sales; Portland Metro Business Profits Tax Approved by Voters on May 19 Ballot

Latest Practitioner Connection

ISSUE 20-10; May 22, 2020

Md. Digital Ad Tax Likely to Share Fate with Wash. Bank Tax – A Washington state judge recently ruled, in Washington Bankers Association et al. v. State of Washington et al., that a new surtax on large financial institutions violates the US Constitution's commerce clause by illegally targeting out-of-state taxpayers. The day before Washington's bank surtax was ruled unconstitutional, Maryland Gov.


Bickering and Confusion Stall $150 Billion Meant to Boost States


Weeks after states began receiving billions in federal Cares Act money in response to the Covid-19 crisis, lawmakers are fighting for control of it, interest groups are pushing for a piece of it, and governments are dragging their feet on spending it.

Lawyering Through Covid-19: What We've Heard From the Practices


For law firms, the recovery will depend on the health of their clients. Bloomberg Law reporters provide updates on how the pandemic is impacting specific industries and practice areas.

Lawyer at Center of Tax-Sharing Deals Being Probed on Ethics Law


California's government ethics watchdog is investigating possible conflict-of-interest violations by a lawyer who brokered sales-tax incentive deals between cities and major e-commerce companies that included multimillion-dollar payouts for himself.

Burden Shifts to States After IRS Eases Donor-Disclosure Rules


It's now on states to seek more information about nonprofit donors if they want it, after the IRS rolled back disclosure requirements.

Covering Your Bases: Documentation Is Key in Tax Matters


I am a firm believer in cover letters: I don’t even send most school forms without a cover letter. It might feel a little obsessive, but I’ve learned that things you might believe to be obvious may be interpreted differently by someone else.

INSIGHT: Legal Hiring in a Recession—Lessons From the Past Downturn


Retaining outstanding attorneys is key for law firms during the pandemic as they react to the pandemic and alter strategies to stay competitive. Robert Major, founding partner of Major, Lindsey & Africa, says now—as in past economic downturns—is not the time for law firms to curtail hiring.

New York Legislature Advances Bill to Drop Virus Tax Breaks for NYC


New York state legislators are seeking to make sure a batch of pandemic-related business tax breaks passed by Congress in March won't apply to New York City income tax laws.

NYC Revenue Picture Worsens With Shortfall Rising to $9 Billion


New York City’s fiscal crisis has worsened, with Mayor Bill de Blasio projecting a $9 billion loss in tax revenue through mid 2021 because of the coronavirus lockdown.

Cannabis Company Says Tax Break Limit Violates Constitution (1)


A tax code provision that bars marijuana companies from business tax breaks violates the 16th Amendment of the U.S. Constitution, an Oakland, Calif. cannabis company told the Ninth Circuit.

Louisiana Waiving Tax Penalties on March and April Returns (1)


Louisiana is offering sales tax relief, while Oklahoma City, Florida and Mississippi pointed to big declines in tax revenue. Here’s the latest on shifting state tax guidelines, deadlines, and policy to deal with the coronavirus pandemic. For our recent coverage click here. Here’s a state-by-state roadmap.

Tax Notes

Company's Gain From Sale of LLC Interest Not Apportionable to Idaho


Noell Industries Inc.’s $120 million gain from the sale of its interest in a manufacturer of combat and tactical gear was nonbusiness income under Idaho law, according to the state supreme court.

Louisiana Lawmakers Call Special Session to Address Fiscal Bills


Louisiana's legislators have called a special session that will allow them to continue working on tax legislation after this year’s regular session was disrupted by the COVID-19 pandemic.

Illinois Approves 'Fair Tax' Ballot Language


Illinois legislators have approved language for the graduated income tax ballot measure going before voters in November.

New York Court Declines to Revive Property Assessment Claims


A New York trial court properly dismissed select claims raised by several property owners after a town’s reassessment increased the value of their lakefront properties, according to a state appellate court.

Kansas Lawmakers Adjourn Without Approving Facilitator Bill


Kansas legislators have adjourned their 2020 session without voting on a marketplace facilitator bill that would have created a remote seller threshold.

Texas Governor Asks Localities Not to Raise Property Taxes


Gov. Greg Abbott (R) has urged Texas localities not to raise property taxes as homeowners confront the economic impact of the COVID-19 pandemic.

South Carolina DOR Can’t Amend in Pollution Control Exemption Suit


The South Carolina Administrative Law Court has ruled that the Department of Revenue may not amend its pre-hearing statement in an appeal by a pipeline company challenging the denial of a pollution control exemption.

New Haven to Ask Yale for Greater Contribution in Lieu of Taxes


New Haven, Connecticut, is planning to ask Yale University to contribute an additional $2.5 million to help the city reduce a fiscal 2021 budget gap.

Select State Tax News

How I Doubled My Income in 3 Years


Making more money takes making better decisions. May 28 · 9 min read I’ m very new to Medium and I still have a nine-to-five job. I work in Information Technology by day and I write personal...

Plenty of options to save energy


Thanks to The Free Press's "Home + Style" magazine for its feature story on home solar panels and geothermal systems. It contained lots of good information. However, there was an error on the...

Local bank disperses $65 million to small businesses


RICHMOND, Ind. — The lobby of First Bank Richmond has been closed and customers have been serviced using the bank's drive-thru since the outbreak of COVID-19 , but Garry Kleer said it's been one of...

State Tax Treatment of Opportunity Zone Fund Investments


Most states recognize the federal deferral of gain on qualified opportunity zone investments. A few states limit tax deferral on the gain to in-state qualified opportunity zone designations or...

Liquor and Lottery for revenue: Kerala's failed financial system raises many questions


Avoid Sex for 30 Days, Thai Expert Advises Coronavirus Survivors After months of anxious wait, the Kerala government has opened liquor outlets on May 28. Amid an increasing number of...

Arkansas Explains Sales Tax on Trailer Purchase


Click here to see operators for terms and connectors searching. Search Connectors Note:  To search with a Code section , or with proximity , use Advanced Search . A space between words is...

Labor, Payroll Tax Law Exemption for App-Based Companies on California Ballot


Click here to see operators for terms and connectors searching. Search Connectors Note:  To search with a Code section , or with proximity , use Advanced Search . A space between words is...

Is “The New Normal” in “The Ordinary Course of Business”?


In the midst of the COVID-19 pandemic, we’re repeatedly challenged by “the new normal,” and, as M&A advisors, we’ve wondered, “is ‘the new normal’ in ‘the ordinary course of business’”? A few weeks...

Texas comptroller predicts slow, steady economic turnaround post-pandemic


Texas Comptroller Glenn Hegar said at a May 27 virtual luncheon that the state entered the era of the coronavirus in a healthy financial situation, which bodes well for the future as reopening...

Idaho Supreme Court Finds Corporation's Gain From Selling Ownership Interest in Entity Nonbusiness Income


The Idaho Supreme Court May 22 found that the gain from the sale of an ownership interest in a limited liability company (LLC) didn’t...

Woolf: Income tax structure does not bode well for revenue picture


is a columnist for VTDigger. He recently retired as an associate professor of economics at the University of Vermont.  With the arrival of Covid-19 and the partial shutdown of the Vermont economy,...

ALLISON TRANSMISSION : Q1 2020 Investor Relations Presentation


Investor Relations Presentation First Quarter 2020 (Published May 27, 2020) Safe Harbor Statement The following information contains, or may be deemed to contain, "forward-looking...

Washington State Fly-away rule


Consult a tax lawyer, but I'll tell you my experience: I had to do something like this when I bought my Cherokee. Owner lived in Alabama. He sold it to me here in FL. Because it was a FL...

Captive Insurance Opportunities and Solutions Post-COVID-19


Companies with coronavirus (COVID-19)-related losses and legacy liabilities may appreciate significant additional tax benefits from funding those legacy liabilities through a captive insurer before...

Poll: Most Georgians support tobacco tax increase to boost state budget


Nearly three-quarters of Georgia voters said they support increasing the state tax on tobacco products to help make up for the budget shortfall caused by the coronavirus pandemic, according to a new...

Impact of GST on Supply Chain


The Goods & Services Tax is one step closer to reality with the rates of most products being announced yesterday, May 18, 2017. Based on the proposed rates, it does seem that most products will see...

Tesla Drops Prices on Everything (Except Model Y)


Justin Sullivan Tesla , just like every other automaker, is feeling the pressure during the quarantine and has cut the prices of almost all its cars overnight. The only one that didn’t get a...

Thinking Ahead: Financial impacts of Alzheimer’s during tax season


By The impact of Alzheimer’s disease and other dementias goes far beyond health. The costs associated with Alzheimer’s can be staggering for families, with average out-of-pocket costs for health care...

Tax Treaty Interpretation: The Limits of Fiction


Facts Mr Fowler was a qualified diver, resident in South Africa at all relevant times (including for the purposes of the double taxation treaty between the UK and South Africa, the “ Treaty ”). ...

State Tax Services


Frequently Asked Questions What are the benefits of a predominant use study? There are two benefits. Your company will no longer pay sales tax on your electric and/or gas bill, lowering your...

Louisiana Waiving Sales Tax Penalties on March and April Returns


Louisiana is offering sales tax relief, while Florida and Mississippi point to big declines in tax revenue. Here’s the latest on shifting state tax guidelines, deadlines, and policy to deal with the...

Showboat owner planning $100M water park in Atlantic City


By WAYNE PARRY Associated Press May 27, 2020 11:43 AM The owner of Atlantic City's Showboat hotel plans to build a $100 million year-round indoor water park next to it and will break...

Economist: Arizona in better shape than many to weather COVID-19 recession, but tough fiscal times loom


(The Center Square) – Arizona Gov. Doug Ducey could not have known, as he focused on building up the state's rainy day fund in 2019, that he was preparing the state for the dark days ahead of...

Economist: State’s recovery may not come until 2023


State economist Darren Webb told the Mississippi Legislature on Tuesday that the state’s economy might not return to its pre-COVID-19 recession levels until 2023. Webb briefed the Senate...