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Note from the Editors
Welcome to the October 2024 edition of The BR State + Local Tax Spotlight. We know the importance of remaining up-to-date on State + Local Tax developments, which appear often and across numerous jurisdictions. Staying informed on significant legislative developments and judicial decisions helps tax departments function more efficiently, along with improving strategy as well as planning. That is where The BR State + Local Tax Spotlight can help. In each edition, we will highlight important State + Local Tax developments that could impact your business. In this issue, we will be covering:
- Kentucky Court Issues Permanent Injunction of Law Discriminating Against Interstate
- New York ALJ Finds Convenience of Employer Rule Applicable to Nonresident but Provides a Roadmap for How a Taxpayer May Prove the Rule Is Inapplicable
- Departments Don’t Always Know Best
- NYC Judge Applies Step Transaction Doctrine but Cancels Real Property Transfer Tax Assessment
We invite you to share The BR State + Local Tax Spotlight with your colleagues and visit Blank Rome’s State + Local Tax webpage for more information about our team. Click here to add State + Local Tax to your subscription preferences.
Updates from previous editions:
In the April 2024 edition of The BR State + Local Tax Spotlight, Nicole L. Johnson authored an article titled “Misapplication of Complete Auto” in which she analyzes the Supreme Court of South Dakota’s decision in Ellingson Drainage, Inc. v. South Dakota Department of Revenue. Since the publication of her article, Ellingson Drainage petitioned the U.S. Supreme Court to overturn the South Dakota Supreme Court’s decision. On October 7, 2024, the U.S. Supreme Court denied Ellingson Drainage’s petition for certiorari.
Joshua M. Sivin and Melanie L. Lee
ARTICLES
Kentucky Court Issues Permanent Injunction of Law Discriminating Against Interstate Commerce
By Craig B. Fields
A U.S. District Court ruled that a Kentucky statute that requires the State’s Public Service Commission to compute the reasonableness of the rates that utilities charge consumers by reducing fuel costs by any severance tax imposed by any jurisdiction unconstitutionally discriminates against interstate commerce and, therefore, granted an Illinois utility’s request for a permanent injunction of the law. Read More >>
New York ALJ Finds Convenience of Employer Rule Applicable to Nonresident but Provides a Roadmap for How a Taxpayer May Prove the Rule Is Inapplicable
By Joshua M. Sivin
In another challenge to New York’s so-called convenience of the employer rule, an Administrative Law Judge recently issued a determination upholding application of the rule against a nonresident working for a New York company. Read More >>
Departments Don’t Always Know Best
By Nicole L. Johnson
Departments of Revenue are notorious for treating their guidance as the final and absolute word on an issue. Read More >>
NYC Judge Applies Step Transaction Doctrine but Cancels Real Property Transfer Tax Assessment
By Irwin M. Slomka
A recent New York City determination limited the impact of the step transaction doctrine under the New York City real property transfer tax. Read More >>
WHAT'S SHAKING: BLANK ROME STATE + LOCAL TAX ROUNDUP
Blank Rome’s nationally prominent State + Local Tax attorneys are thought leaders in the community as frequent guest speakers at various local and national conferences throughout the year. Our State + Local Tax attorneys believe it is necessary to educate and inform their clients and contacts about topics that will impact their businesses. We invite you to attend, listen, and learn as our State + Local Tax attorneys interpret and discuss key legal issues companies are facing and how you can put together a plan of action to mitigate risk and advance your business in accordance with state and local tax laws. Read More >>
© 2024 Blank Rome LLP. All rights reserved. Please contact Blank Rome for permission to reprint. Notice: The purpose of this update is to identify select developments that may be of interest to readers. The information contained herein is abridged and summarized from various sources, the accuracy and completeness of which cannot be assured. This update should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel.
