Tax Law

    • 3 Oct 2017

    Amendments to Partnership Audit Regime

    by Ronald Levitt * On November 2, 2015, the Bipartisan Budget Act of 2015 (Pub L No 114-74, 114th Cong (Nov 2, 2015)) (the Act) became law. The Act radically alters the audit procedures for partnerships. In this respect, Act Section 1101 (Partnership Audits and Adjustments) repeals the TEFRA Partnership Audit Rules (IRC Sections 6221 through 6234), the electing large partnership rules (IRC Sections 771 through 777...
    • 19 Jun 2017

    Taxation of New York City Real Property

    by Steven Tishko * In New York City, real estate taxes have become an increasingly greater expense for property owners and landlords in recent years. As such, they are an ever-growing factor that any potential purchaser or tenant must account for in its business decisions. Counsel on either side of any real estate transaction should possess at least a basic knowledge of the real estate taxation process to be able to...
    • 29 Sep 2016

    Global Positioning of IP: State Research and Development Credits

    by William H. Byrnes and Marvin Petry * Federal and state research and development (R&D) tax credits are powerful yet underutilized opportunities that can make a big difference in operating performance and cash flow for companies that rely on performing R&D activities and high-tech manufacturing in the US. Individual states are continuously trying to outdo one another by offering incentives to attract corporate...
    • 4 Apr 2016

    State Net Capitol Journal – April 4, 2016; Changing Economics of Recycling Could Soon Impact States

    Budget & Taxes Changing Economics of Recycling Could Soon Impact States For years recycling programs have allowed cities, counties and states to improve the environment while saving money on landfill fees and even making money from the sale of recycled materials to processors. But that was made possible by sky high world commodity prices for recyclables and other raw materials, driven largely by China’s...
    • 21 Mar 2016

    State Net Capitol Journal – March 21, 2016; West Virginia Ends Session Without Budget

    Budget & Taxes WV Ends Session Without Budget The last day of West Virginia’s 2016 regular session on March 12 didn’t resemble the frenzied pace of past final days due to the front loading of this year’s session with major bills to allow plenty of time for the GOP-controlled Legislature to override Democratic Gov. Earl Ray Tomblin’s vetoes. But the relative calm of the day belied the...
    • 14 Mar 2016

    State Net Capitol Journal – March 14, 2016; New York Lawmakers Seek to Close ‘Carried Interest Loophole’

    Budget & Taxes NY Lawmakers Seek to Close ‘Carried Interest Loophole’ A pair of Democratic New York state assemblymen - Sean Ryan and Jeffrion L. Aubry - introduced a bill this month (AB 9459) that would raise state income taxes on fund managers just enough to offset the federal tax savings they receive on the share of the fund’s profits they’re typically paid. The federal government...
    • 7 Mar 2016

    State Net Capitol Journal – March 7, 2016; Brownback Makes Big Cuts to Kansas University System

    Budget & Taxes Brownback Makes Big Cuts to KS University System Kansas Gov. Sam Brownback (R) announced plans for a 3 percent immediate cut to the state university system after tax collections came in well below projections last month. The $17 million reduction will be spread across the six state universities, but the University of Kansas and its Kansas City, Kan., medical center will absorb the biggest hit...
    • 22 Feb 2016

    State Net Capitol Journal – February 22, 2016; Oil Price Collapse Pressures State Budgets

    Budget & Taxes Oil Price Collapse Pressures State Budgets The collapse of oil prices is taking a toll on energy-producing states. As job losses mount in the nation’s oil patch, depressed oil and commodity prices are having a ripple effect on state budgets. As many as a dozen states have been affected by the energy-price downturn, said Scott Pattison, chief operating officer for the National Governors...
    • 16 Feb 2016

    State Net Capitol Journal – February 15, 2016; Snyder Proposes $195 Million for Flint

    Budget & Taxes Snyder Proposes $195 Million for Flint Amidst a chorus of boos from protestors, Michigan Gov. Rick Snyder (R) unveiled his $54.9 billion FY 2017 budget proposal to lawmakers, a plan that includes $195 million to address the ongoing water contamination crisis in Flint. That funding would be spread over two years – the current FY 2016 and the FY 2017 budget lawmakers are now working on –...
    • 8 Feb 2016

    State Net Capitol Journal – February 8, 2016; Costly Legal Cases Pending in Texas

    Budget & Taxes Costly Legal Cases Pending in TX A pair of legal cases could have a big impact on budget decisions in Texas next year, when lawmakers meet again in regular session. One of the cases, set to go before the Texas Supreme Court in March, revolves around the issue of whether metal pipes and other equipment used in oil and gas production should be exempt from state sales taxes. Midland-based Southwest...
    • 1 Feb 2016

    State Net Capitol Journal – February 1, 2016; Final Pennsylvania Budget Unlikely Until After April Primary

    Budget & Taxes Final PA Budget Unlikely Until After April Primary Days before last Christmas - and six months after the start of the current fiscal year - Pennsylvania’s Republican-controlled Legislature sent Democratic Gov. Tom Wolf a $30.26 billion state budget. Wolf signed $23.39 billion of that spending plan into law but vetoed the rest, including six months’ worth of corrections and education...
    • 25 Jan 2016

    State Net Capitol Journal – January 25, 2016; Utah Looking to Force Action on Internet Sales Taxes

    Budget & Taxes UT Looking to Force Action on Internet Sales Taxes Utah Sen. Curt Bramble (R) said he and his colleagues will debate a bill this year requiring Utah-based businesses that sell on the Internet to collect sales taxes on those transactions and saying to businesses that do not, “We’re going to assess it against you because you failed to collect it.” The measure is part of a national...
    • 14 Dec 2015

    State Net Capitol Journal – December 14, 2015; Alaska Governor Proposes Challenging Deficit Reduction Plan

    Budget & Taxes AK Gov Proposes Challenging Deficit Reduction Plan Last week Alaska Gov. Bill Walker (I) unveiled his long-awaited plan to address the state’s multi-billion budget deficit, resulting from plunging oil prices and reduced oil production in the state. The proposal includes several measures that are bound to be widely unpopular, such as a restructuring of the Alaska Permanent Fund that will...
    • 23 Nov 2015

    State Net Capitol Journal – November 23, 2015; Trouble with Tax Cut ‘Triggers”

    Budget & Taxes Trouble With Tax Cut ‘Triggers” In January, nearly every Oklahoma taxpayer earning more than $9,000 a year will receive a break on their state income taxes, thanks to a tax cut “trigger” the state instituted two years ago. Unfortunately, due largely to plummeting oil prices, state revenues have fallen short of the estimate that triggered the coming tax cut, and the state...
    • 16 Nov 2015

    State Net Capitol Journal – November 16, 2015; Movement on Pennsylvania Budget Impasse

    Budget & Taxes Movement on PA Budget Impasse A deadlock between Pennsylvania Gov. Tom Wolf (D) and lawmakers has left the state budget-less four months into the current fiscal year. But the governor’s office and legislative leaders said last week they’d reached a tentative agreement on a framework for a new budget. That framework includes increases in funding for education, a sales tax hike and...
    • 9 Nov 2015

    State Net Capitol Journal – November 9, 2015; Alaska Governor Proposes Permanent Fund Restructuring

    Budget & Taxes AK Gov Proposes Permanent Fund Restructuring With a sharp drop in oil prices and declining production having blown a $3-billion hole in his state’s budget, Alaska Gov. Bill Walker (I) has proposed a plan to convert the state’s Permanent Fund into a “sovereign wealth fund” - a government-owned investment fund - to better insulate state government from swings in oil revenues...
    • 2 Nov 2015

    State Net Capitol Journal – November 2, 2015; U.S. House of Representatives Passes Budget

    Budget & Taxes US House Passes Budget The U.S. House has seen only disarray in recent weeks with the ouster of speaker John Boehner (R-Ohio) at the hands of his party’s far-right Freedom Caucus. But last Wednesday the chamber passed a two-year budget that would increase discretionary spending by $80 billion, boost military spending, hold down Medicare premiums, tighten eligibility requirements for Social...
    • 21 Oct 2015

    What a Surprise! Taxpayers Support Fair Taxation!

    If you think that John Q. Taxpayer wants everyone but himself to pay Uncle Sam, think again. The International Council of Shopping Centers has updated its original 2013 poll on Internet sales taxation. The updated survey finds that 70 percent support legislation that would require online merchants to collect sales taxes from customers. [ Columbus Dispatch , October 21, 2015.] Who would have guessed that taxpayers now...
    • 19 Oct 2015

    State Net Capitol Journal – October 19, 2015; Denver to Consider Local Tax for Higher Ed

    Budget & Taxes Denver to Consider Local Tax for Higher Ed A measure bound for Denver, Colorado’s Nov. 3 ballot would raise the city’s sales tax to help local college students cover the rising cost of their tuition. Supporters of Measure 2A - who include Denver Mayor Michael Hancock (D) and former Denver Mayor and current Colorado Gov. John Hickenlooper (D) - say it gives the city an opportunity to...
    • 12 Oct 2015

    State Net Capitol Journal – October 12, 2015; Utah’s Gas Tax Hike Strategy

    Budget & Taxes UT’s Gas Tax Hike Strategy Nearly every state in the nation is struggling to maintain its aging transportation system. But Utah is one of just seven states (the others are Georgia, Idaho, Iowa, Nebraska, South Dakota and Washington) that passed a gas tax increase this year to help with that task, according to the left-leaning Citizens for Tax Justice. So how did that happen in a conservative...
    • 8 Oct 2015

    FATCA Taxpayer Account Information Exchange Begins

    The IRS has announced that the exchange of financial account information under FATCA has begun, meeting the September 30 date set by the Service. (See the FATCA timeline on the IRS website for important dates at http://www.irs.gov/Businesses/Corporations/Summary-of-FATCA-Timelines ). As noted in the Service’s release, IR-2015-111 (Oct. 2, 2015), the key milestone was met because the “. .. IRS successfully...
    • 7 Oct 2015

    State Net Capitol Journal – Pennsylvania Budget Stalemate Continues

    Budget & Taxes PA Budget Stalemate Continues Pennsylvania’s Republican-led House and Senate passed an $11-billion stopgap budget last month, seeking to end the state’s nearly three-month-long budget impasse. But as he did on June 30 to begin the budget stalemate, first-year, Democratic Gov. Tom Wolf, vetoed the spending plan, maintaining that it didn’t include the additional funding for education...
    • 6 Oct 2015

    Streaming Services Not Subject to 3 Kentucky Tax Regimes

    In September 2015, the Kentucky Board of Tax Appeals ruled that Netflix’s “streaming services” were not taxable under Kentucky’s Gross Revenues Tax, Excise Tax, and Utility Gross Receipts License Tax for Schools. In Netflix Inc. v. Finance and Administration Cabinet Department of Revenue, the Kentucky Department of Revenue had imposed and Netflix had paid the state’s Gross Revenues Tax under...
    • 24 Sep 2015

    State of Washington Joins Click-Through Nexus Club

    The State of Washington is now among the states that have adopted a “click-through” presumption of nexus standard for certain sales by out-of-state retailers. According to the state department of revenue’s website, the presumption of nexus applies for both retailing retail sales tax purposes and business and occupation retail sales tax purposes. [See "New Presumption of Nexus for Click-Through Retail...
    • 21 Sep 2015

    Job Creation Tax Incentives Viewed as Fools’ Gold

    Notwithstanding improvements in job market statistics in recent months, concerns persist about underemployment and low job market participation. State governments use a variety of tools to improve economic conditions, including job creation tax incentives. But what do such tax incentives actually yield? Do benefits derived from corporate employers from tax incentives cascade to the general public? Skepticism about...