Weekly BNA Insights: States Continue to Improve Evaluation and Transparency of Tax Incentive Programs


From the 12/23/16 edition of the Weekly State Tax Report:

States have a number of tools at their disposal to promote economic policies. Supporters of lowered taxes on business argue that tax incentives (including credits, exemptions and deductions) are a great way to stimulate and support economic growth and equality. Some argue, however, that tax incentives may not be as effective at spurring economic growth as their supporters suggest. Others recommend broad-based reform to business taxes rather than incentive programs as the best way to foster economic growth.

James Gatliff from Bloomberg BNA discusses how states are developing procedures to evaluate, and provide public disclosure of, the effectiveness of tax incentive programs in this week’s BNA Insights article, available here (subscription required). Or sign up for a free trial to the Weekly State Tax Report.

Lease Renewals at Fair Market Value Not Counted in Determining Whether Lease is Taxable Transfer in Pennsylvania

In Pennsylvania, certain long-term leases are subject to realty transfer taxes. A panel of the Commonwealth Court of Pennsylvania rejected the Pennsylvania Department of Revenue's interpretation of its regulation regarding taxable leases. Saturday Family LP v. Commonwealth, 2016 Pa. Commw. LEXIS 438.

Cozen O'Connor's Joseph C. Bright discusses the Saturday Family case and its impact on determining the length of leases subject to realty transfer taxes in a second BNA Insights article this week, article, available here (subscription required). Or sign up for a free trial to the Weekly State Tax Report.

New Portland, Oregon Pay-Ratio Surtax Seeks to Alleviate Income Inequality

In a third BNA Insights article, available here (subscription required), Sarah McGahan, a director in the State and Local Tax group of KPMG LLP’s Washington National Tax practice, discusses the new Portland, Ore. CEO surtax.

Compiled by Lauren E. Colandreo