Weekly Round-Up: Marijuana, California Tax Breaks, and Federal Tax Reform

Highlights from the 10/10/17 through 10/13/17 issues of the Daily Tax Report: State :

  • Colorado Pot Tax Revenue Hits New High in September
    Sales taxes, excise taxes, and fees collected on retail and medical marijuana in Colorado reached nearly $182 million in September, a new high for the first three quarters of a year.
  • Maine Marijuana Bill Allows Municipalities to Opt In
    The final draft of Maine's marijuana legalization bill allows cities and towns to choose if they want marijuana businesses to set up shop.
  • High Court Bypasses Battle on State Rights to Tax Marijuana
    Chicago mobster Al Capone might have been on the U.S. Supreme Court justices’ minds when they declined to hear the case of a Washington marijuana salesman claiming a federal statute prohibited the state from imposing sales tax on medical marijuana.
  • Maine Considers 20 Percent Combined Tax for Marijuana
    A Maine legislative committee submitted a marijuana legalization proposal to the Legislature that folds a volume-based excise tax into its proposed 20 percent tax rate.
  • New California Laws Offer Tax Breaks, Aid to College Students
    Gov. Jerry Brown (D) signed bills to help college students with tax credits and forgiven loan debt while vetoing other bills to create new tax benefits.
  • State Legislatures Group Urges Congress to Save Tax Deduction
    The National Conference of State Legislatures submitted a letter to congressional leaders asking that they oppose any attempt to repeal the federal deduction for taxes paid to state and local governments.
  • Tax Reform Timetable Could Be Tricky For States
    The timing of a potential overhaul of the federal tax code could have a material impact on states. If federal tax reform passes before the end of 2017, that will put a lot of pressure on state legislatures in the spring of 2018, Bill Backstrom, tax partner at Jones Walker LLP, told Bloomberg BNA Oct. 4.

Some notable developments from the State Tax Developments Tracker —Bloomberg BNA’s tool for monitoring important developments in all the states:

  • California Provides Personal Income Taxes Exclusion to Wrongfully Incarcerated Individuals
  • Michigan Issues Bulletin on Individual Retirement Arrangements
  • Rhode Island Announces Filing Deadline, Relief for Taxpayers in Disaster Areas
  • Washington Department of Revenue Issues Special Notice Regarding Main Street Tax Credit
  • West Virginia Finds Tax Lien Purchasers Liable for Unpaid Property Taxes

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In other developments …  

How High Are State and Local Tax Collections in Your State? by the Tax Foundation

Alabama Credit for Taxes Paid to Other States by PwC