The following were originally printed in the Weekly State Tax Report, part of the State Tax Library.

Weekly State Tax Report

Volume 2009 Number 45
Friday, November 6, 2009

Supreme Court Justices Skeptical of New York's RICO Arguments in Cigarette Tax Case

The stakes are high for New York City in Hemi Group LLC v. New York, N.Y., a case where the city seeks to capitalize on RICO's treble damages and collect 300 cents on each dollar of tax out-of-state vendors failed to collect on cigarettes sold to New York City residents. During oral arguments before the Supreme Court, claims by the city that it can assert RICO against these vendors were met with skepticism by the justices who questioned whether Congress intended RICO to apply to state and city taxes.

Luxury Car Manufacturer Wins California Tax Break on Electric Vehicle Production

Gov. Arnold Schwarzenegger has announced that Tesla Motors Inc. will secure a waiver from state sales tax on $320 million in manufacturing equipment, enabling the company to expand production of electric cars in California. Although Tesla secured the waiver under a policy specifically adopted to prevent it from moving its operations to New Mexico, state officials have said that the same tax break is open to any manufacturer.

State Fiscal Crisis Will Get Worse Before It Improves, Tax Experts Predict

At a recent roundtable discussion, a panel of state tax experts predicted that, despite recent improvements in the general economy, the states' fiscal crisis is likely to grow worse in the coming year. In this article, BNA provides highlights from the discussion, including the various theories offered by the panelists on the causes of—and solutions for—the crisis.

Perspective: The L3C—An Unlikely Marriage of For-Profit Entities and Private Foundations

Since Vermont first pioneered the low-profit limited liability company in 2008, the L3C as it is commonly known, has emerged as a new legal structure, enabling private foundations to invest in profit-making ventures with a social-benefit purpose. In this article, Elizabeth Carrott Minnigh, of Buchanan Ingersoll & Rooney, discusses the uses of the L3C and its benefits and risks to the private foundation that may invest in it.

New BNA Portfolio Offers Tax Minimization Strategies for Struggling Companies

BNA Tax & Accounting is proud to announce the latest addition to its State Tax Library, Portfolio No. 1250, Income Taxes: State Tax Minimization Strategies. The portfolio, authored by John Cronin, a former leader of Deloitte LLP's Multistate Tax Practice, offers valuable insight and timely advice for companies experiencing flat or declining profits and looking to state tax minimization strategies to help preserve their bottom line.