Weekly Round-Up: NY to Challenge New Tax Law; States Eye Ways Around Federal Tax

Highlights from the 1/2/18 through 1/5/18 issues of the Daily Tax Report: State :

  • Tesla Complying with Nevada Incentive Agreement
    Tesla Motors, Inc. invested roughly $2.6 billion in its Nevada “gigafactory” through June 2017 and is complying with the state's tax break agreement, according to a report provided to legislators.
  • Legal Sports Betting Unlikely to Mean Big Tax Bucks for States
    A U.S. Supreme Court case that could legalize sports betting for states outside Nevada is unlikely to deliver a cash windfall to tax offices, attorneys familiar with the case said.
  • Pennsylvania Reacts to Federal Tax Law's Full Expensing
    Pennsylvania officials are already responding to a provision in the new federal tax law that allows full, immediate expensing for machinery that would cost most states revenue.
  • New York Governor Vows to Sue U.S. Over New Tax Law
    New York state will challenge the new federal tax law as unconstitutional “double taxation,” Gov. Andrew M. Cuomo (D) confirmed in his State of the State speech to the Legislature Jan. 3.
  • Washington Initiative Underway to Prohibit Income Taxes
    Washington state anti-tax activist Tim Eyman is seeking to place an initiative on the ballot to ban income taxes in the state.
  • States Decry DOJ Decision to End Hands-Off Marijuana Policy
    Governors, state attorneys general, and other elected officials in states with legal marijuana criticized U.S. Attorney General Jeff Sessions for his announcement rescinding 2013 guidance on marijuana regulation and enforcement by states.
  • Lawsuits, New Charities? States Eye Ways Around Federal Tax Law
    Several states are already pushing plans to mitigate the negative impact taxpayers may feel from the federal tax law's new limit on the deductibility of state and local taxes on federal returns.

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

  • Georgia Adopts Postproduction Film Tax Credits
  • Illinois Grants Refund As Motor Fuel Tax Law Didn't Apply to CNG
  • Idaho Amends Property Tax Administrative Rules
  • Kansas Taxpayer Doesn't Owe Use Tax on Gaming Machines Used at State-Owned Facility

Get a free trial to Bloomberg BNA Tax & Accounting's State Tax solution , a comprehensive research service that provides deep analysis and time-saving practice tools to help practitioners make well-informed decisions.

In other developments …  

What Percentage of Lottery Winnings Would be Withheld in Your State? by the Tax Foundation

Texas Supreme Court - Multistate Tax Compact three-factor election denied by PwC