Weekly Round-Up: Trump Sues Over Hotel Taxes; Legal Pot More Likely in States

Highlights from the 11/18/16 issue of the Weekly State Tax Report :

  • Trump Refiles Suit Against D.C. Over Hotel Taxes
    President-elect Donald Trump refiled his lawsuit seeking a refund of taxes paid for his new luxury hotel project in Washington, D.C. Trump, through a company he owns called Trump Old Post Office LLC, first filed suit against the city in the Superior Court of the District of Columbia in June, contesting the assessment against several downtown lots along Pennsylvania Avenue.
  • Federal Partnership Rules Not Rushing States to Conformity
    It isn't looking like states are sprinting to pass laws responding to the new federal partnership audit regime in the upcoming session, according to feedback received by the Multistate Tax Commission. And the chance of more Treasury Department guidance this year appears slim.
  • Corporate Income Tax Cuts, Legal Pot More Likely in States
    A growing number of states may cut taxes on corporations and look to soft drinks and legalized marijuana to make up some of the difference, as a result of the elections. Republicans will be taking over three gubernatorial seats formerly held by Democrats: Eric Greitens in Missouri, Chris Sununu in New Hampshire and Phil Scott in Vermont.
  • Ready, Set, Tax! Hikes OK'd for New Las Vegas NFL Stadium
    Clark County has formalized approval of two hotel tax increases that would fuel Las Vegas's bid to lure the NFL's Oakland Raiders to town. The two 6-1 votes by county commissioners clear the way for work to begin on a 65,000-seat, NFL-ready football stadium.

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

  • Ohio Supreme Court Holds Physical Presence of Interstate Business Not Necessary Condition for Imposing Commercial-Activity Tax
  • New York Department of Taxation and Finance Publishes Technical Memorandum Providing Summary of Estate Tax Legislation Enacted in 2016
  • Arkansas Department of Finance and Administration Sustains Assessment After Removing Penalty, Taxpayers Fail to Prove Entitlement to Tax Credit
  • Virginia Tax Commissioner Issues Ruling on Application of Retail Sales and Use Tax to Various Catering Services Scenarios

For more information about this and other state tax issues, sign up for a free trial of the Bloomberg BNA Premier State Tax Library.

In other developments …  

Utah District Court – State required to follow IRC section 482 regulatory guidance when interpreting similar state revenue adjustment provision by PwC

Illinois: Purchaser of Consumer Accounts Entitled to Sales Tax Refund by KPMG

Compiled by Lauren E. Colandreo