News & Analysis as of

State Taxes

Nossaman LLP

Worse Than Vermin: Restaurant Buyer Gets Stuck With Seller’s Unpaid Sales Tax Tab

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You wouldn’t buy a restaurant or bar without doing a “walk-through,” checking staff and clientele and kicking the floorboards for rats or cockroaches. But you should also kick the financial floorboards for unpaid sales taxes....more

Baker Botts L.L.P.

The California Billionaire Tax Act: Delayed, Contested, and Uncertain Revenue

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The 2026 Billionaire Tax Act (“BTA”) asks policymakers to rely on revenue that may be slow, contested, and uncertain. The Act’s own design creates four practical problems: (1) court challenges could delay collection for...more

Cozen O'Connor

New York City’s New Pied-à-Terre Tax: What Condominiums and Cooperatives Need to Know

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As part of its Fiscal Year 2026-2027 New York State Budget Bill, the New York State Legislature has amended the New York State Tax Law by adding Article 30-C, entitled “City Surcharge on Property That Does Not Serve as a...more

Haynsworth Sinkler Boyd, P.A.

Department of Revenue Issues Draft Ruling Addressing Critical FILOT Timing Requirements

The South Carolina Department of Revenue (“DOR”) issued a draft revenue ruling, Rev. Rul. #26-x, providing welcome clarity on key timing requirements associated with fee in lieu of tax (“FILOT”) agreements. The interplay...more

DLA Piper

California Eyes a Landmark Sales Tax Expansion on Digital Software and SaaS

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On May 14, 2026, Governor Newsom’s May Revision proposed extending California’s sales and use tax to digital prewritten software regardless of delivery method—including electronically delivered software and SaaS. Currently,...more

Kilpatrick

Illinois Tax Grab Update: Digital Economy, Sports Contests, and NOL Carryover Limitations to Name a Few

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On June 1, the Illinois legislature passed a budget bill (S.B. 3019) (“Bill”) that includes a variety of new taxes along with a number of other important tax changes. Governor Pritzker came out in favor of the budget and is...more

Lasher

Estate Planning for Millennials

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As the Millennial generation begins to enter middle age, there have been several recent articles that discuss the great wealth transfer that will be occurring in the next few years when the baby boomer generation passes their...more

Holland & Knight LLP

New York State Enacts Pied-à-Terre Tax on Expensive Non-Primary New York City Residences

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The New York State Legislature on May 26, 2026, enacted the 2026-2027 New York State Budget Bill, Part HH of which amends Article 30-C of the New York State Tax Law by adding Sections 1350 to 1356 titled "City Surcharge on...more

Flaster Greenberg PC

New Jersey Tax Court Creates Potential Mansion Tax Savings Opportunities for Mixed-Use Property Owners: Flaster Greenberg

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While many are now familiar with New Jersey's 2025 revised “Mansion Tax” rules (N.J.S.A. 46:15-7.2), which shifted the tax burden from buyers to sellers and increased tax rates on transactions exceeding $2 million, a recent...more

Stinson LLP

UPDATE: Minnesota Pass-Through Entity Tax Extended Through 2027

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On May 27, 2026, Governor Tim Walz signed legislation extending the Minnesota pass-through entity tax (PTET) through December 31, 2027. Prior to this extension, and as contemplated in our previous alert, Minnesota's PTET law...more

Kilpatrick

5 Key Takeaways | State and Local Tax Hot Topics: 2026 and Beyond

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Kilpatrick partners David Hughes and Jordan Goodman recently spoke at the annual AGN International “2026 Americas Regional Meeting.” Their presentation discussed “State and Local Tax Hot Topics: 2026 and Beyond.” David and...more

Lasher

The “I Love You Will” Trap: How Washington Estate Tax Can Cost Families Thousands

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It is the most natural estate plan anyone can think of. You sit down with your spouse and agree: “If I go first, you get everything. When you go, the kids split what is left.” It’s simple, it’s fair, and it reflects your...more

Cole Schotz

The New Price of Luxury: What New York City’s Pied-à-terre Tax Means to Part-Time Residents

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New York’s newly adopted pied-à-terre tax adds yet another layer of complexity for owners of high-value residential property in New York City. Beginning July 1, 2026, certain non-primary residences will be subject to...more

Husch Blackwell LLP

As U.S. Plug-In Solar Market Expands, So Do Tax Risks

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Plug-in solar systems (also known as balcony solar or apartment solar) have been legalized by seven states this year. This opens up new markets to the sellers of small solar panels, microinverters, and their related...more

Eversheds Sutherland (US) LLP

Illinois tax increases part two: Digital asset privilege tax, prediction markets, NOL carryover limitations, and more

On June 1, 2026, the Illinois General Assembly passed S.B. 3019. In part one of this Legal Alert series, we addressed the tax on targeted advertising services and a Social Media Platform Fee. In this part two, we address a...more

Parker Poe Adams & Bernstein LLP

South Carolina Amends Abandoned Building Tax Credit, Providing Much-Needed Clarity to the Marketplace

The South Carolina legislature recently amended the abandoned building tax credit statute, marking the first substantive update since 2018. With the governor’s signature on May 19, Senate Bill 853 became law. ...more

Fried Frank

New York Legislature Passes Pied-à-Terre Tax

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On May 28, 2026, New York Governor Kathy Hochul signed legislation imposing an annual property tax surcharge — referred to as a “pied-à-terre tax” — on certain New York City properties valued at $5 million or more....more

Eversheds Sutherland (US) LLP

Illinois tax increases part one: Digital services taxes

On June 1, 2026, the Illinois General Assembly passed S.B. 3019, which serves as the state’s budget bill. Via a late amendment, Illinois will make a number of significant tax changes. Here, in part one of this Legal Alert...more

Hogan Lovells

New York enacts annual Pied-à-Terre tax on high value non primary residences in NYC: What to know

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New York State lawmakers have enacted a new annual “pied‑à‑terre” tax applicable to certain high‑value residential properties in New York City that are not used as a primary residence. The tax is designed as a surcharge...more

Opportune LLP

Rethinking Upstream Severance Tax: Moving From Transactional Refunds to Process Correction

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Severance tax is among the largest recurring tax burdens that many upstream producers face, yet it is often one of the least reviewed areas in the tax process. Calculating allowable deductions, particularly marketing costs...more

Brooks Pierce

Brooks Pierce Capital Dispatch: Legislators Return to Raleigh with Focus on Budget

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The North Carolina General Assembly returns to Raleigh on June 1 after a break for Memorial Day. The attention of legislators will be on the state budget bill and remaining policy items....more

Ballard Spahr LLP

Oregon Decouples From the QSBS Regime: How a State Tax Policy Change Could Fund Your Year Abroad

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As discussed in a prior alert, Oregon enacted a tax bill that, in part, decouples from the beneficial federal tax regime for sales of qualified small business stock (QSBS). As a result, Oregonians selling QSBS will have to...more

Haynsworth Sinkler Boyd, P.A.

South Carolina Updates the Abandoned Buildings Revitalization Act: What It Means for Economic Development

South Carolina has taken an important step to make it easier to redevelop abandoned properties. On May 19, 2026, Governor Henry McMaster signed S.853 into law, updating the South Carolina Abandoned Buildings...more

Foley & Lardner LLP

Wealth Tax Watch: New York's Pied-à-Terre Tax Clears Final Legislative Hurdle — What Property Owners and Planners Need to Know

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New York State’s legislature is poised to approve a new annual tax on second homes in New York City valued at over $5 million, with the tax expected to take effect on July 1, 2026, and generate approximately $500 million in...more

Rivkin Radler LLP

Purchasing Residential Property in NYC: Coordinating State Tax and Beneficial Ownership Rules

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According to a recent report, Manhattan boasted the most expensive residential real estate market in the country last year. “Manhattan residents spend nearly five times the national average for housing.” That shouldn’t...more

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