Maryland has enacted a tax on revenues derived from digital advertising services, effective this year. Our State & Local Tax Team breaks down how the tax will be applied but questions whether it can survive legal challenges.
Earlier this week, our State & Local Tax Team examined the New York Appellate Division’s rejection of the state’s attempt to retroactively unwind already-claimed taxed credits after a New York court invalidates the state’s retroactive application of tax legislation as violating the Due Process Clause.
Applying New York’s three-factor standard to determine whether a retroactive tax law is constitutional
Comparing a taxpayer-friendly outcome to a taxpayer defeat
It all comes down to how and why
Read the full advisory here. [...]Read more
By Zach Gladney and Josh Labat
New York’s new real estate transfer tax recording requirements for LLCs raise questions on whether the scope and complexity of the changes can be enforced or noncompliance monitored. Our State & Local Tax Group explores:
Disclosing all LLC members
Who is a “natural person”?
Compliance and confidentiality concerns
Read the full advisory here. [...]Read more
By Zach Gladney and Andrew Yates
One year after dropping the landmark Wayfair decision, our State & Local Tax Group examines why this year’s Supreme Court decision in North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust won’t leave much of a mark.
Kaestner focuses narrowly on the trust at issue in the case
The Court goes out of its way to ensure that the decision does not affect precedent
The decision reaffirms the due-process test of Quill
Read the full advisory here. [...]Read more
By Charles Wakefield and Zach Gladney
Our State & Local Tax Group examines why proposed federal regulations for the new interest expense limitation complicates matters for state tax purposes.
Not every state follows the new Section 163(j)
Federal deduction determined on a consolidated basis …
… But states are all over the place
Read the full advisory here. [...]Read more