Ernst & Young's State and Local Tax Weekly newsletter for October 4 and October 11 is now available. Prepared by Ernst & Young's State and Local Taxation group, this weekly update summarizes important news, cases, and other developments in U.S. state and local taxation.

TOP STORIES

San Francisco voters to decide on changes to the City's business taxes

On November 5, 2024, San Francisco (City) residents will vote on Proposition M (Prop M), which, if approved, would drastically change the City's business taxes, including the gross receipts tax, the homelessness gross receipts tax, the overpaid executive gross receipts tax and the administrative office tax. Prop M would change rates for various taxes, consolidate and reduce the number of business activity classifications for the gross receipts and homelessness gross receipts taxes and modify the calculations of the gross receipts and overpaid executive gross receipts taxes.

Specifically, Prop M would make the following changes to the City's business taxes:

• Reduce the number of business activity classifications from 14 to seven for the gross receipts and homelessness gross receipts taxes, each with their own rate schedules.
• Change the gross receipts tax rates applicable to the new categories of business activities. Like current law, each business activity category would have a range of rates that apply depending on the amount of the business's gross receipts.
• Shift the calculation of San Francisco gross receipts to be based more on sales and less on payroll expenses, depending on the type of business. (Exceptions apply to business activities whose gross receipts already are based only on sales.)
• Increase the small business exemption to the gross receipts tax to exempt a person or combined group with gross receipts within the City that do not exceed $5 million (adjusted annually in accordance with an increase in inflation).
• Establish a small business exemption from the homelessness gross receipts tax (an exemption is currently provided for the gross receipts tax, the overpaid executive gross receipts tax and the early care and education commercial rents tax).
• Prop M would specify that the exemption provisions do not apply to taxpayers subject to taxes on administrative office business activities.
• Authorize the Tax Collector to promulgate market-based sourcing regulations to interpret whether the purchaser of services receives the benefit of the service, or whether intangible property is used, in the City.
• Apply the homelessness gross receipts tax to business activities — the same business activity categories that apply to the gross receipts tax — with San Francisco gross receipts over $25 million. Like current law, each business activity category would have a range of rates that apply depending on the amount of the business's taxable gross receipts.
• Modify the calculation of the overpaid executive gross receipts tax and who pays that tax, and provide for rate changes in 2025, 2027 and 2028. Like current law, the applicable tax rate would apply based on the business's taxable gross receipts.
• Adjust business registration fees to range from $41 up to $45,000 for the 2025–2026 registration year and from $55 up to $60,000 for registration years beginning on or after April 1, 2026 (adjusted annually in accordance with an increase in inflation).
• Adjust the administrative office tax rates for certain large businesses to range from 2.97% to 3.694% and adjust the business registration fees for these businesses to range from $375 up to $26,250 for the 2025–2026 registration year and from $500 up to $35,000 for registration years beginning on or after April 1, 2026 (adjusted annually in accordance with an increase in inflation).
• Establish tax credits for stadium operator admission taxes paid, supermarkets and other grocery retailers, and first lessees in qualified buildings.
• Establish certain exemptions and exclusions from gross receipts.
• Require the Office of the Treasurer and Tax Collector to develop an advance determination process for providing guidance to taxpayers on various business taxes.
• Make administrative changes to the City's business taxes, including provisions related to estimated tax payments, refund claims and requests, business registration, filing extensions, and notice of deficiency determinations.

An in-depth analysis of the measure (along with supporting documentation) is available here.

For additional information on this development, see Tax Alert 2024-1825.

The fate of several state and local tax ballot measures to be decided on November 5

On November 5, 2024, residents across the United States will vote on several state and local ballot measures affecting taxes on businesses and individuals and that would raise the state minimum wage and/or enact state law to provide paid sick leave to employees. Oregon Measure 118, for example, would impose a new 3% minimum tax on corporations whose gross sales exceed $25 million starting in 2025 (see, Tax Alert 2024-1250), while San Francisco Measure M would implement substantial revisions to the city's business taxes (see, Tax Alert 2024-1825). Ballot measures in Arizona and Massachusetts propose a higher minimum wage for tipped employees; Alaska, California, Massachusetts and Missouri propose an increase in the minimum wage; Missouri and Nebraska propose paid sick leave for employees.

Other measures would increase local sales taxes, provide various sales and property tax exemptions or tax revenue from sports betting, among other potential tax changes.

A summary of select state and local tax measure that will be considered during the upcoming general election is available via Tax Alert 2024-1941 (general) and 2024-1951 (minimum wage and paid sick leave).

INCOME/FRANCHISE

Virginia: In response to a company's request to adjust the amount of a corporate income tax assessment, the Virginia Tax Commissioner (Commissioner) rejected the company's claim of a full exception to the add-back for intangible expenses paid to an affiliate under the "subject-to-tax" exception." The company argued that the royalty payments were entitled to a full exclusion because they were included in an affiliate's taxable income in another state. The Virginia Department of Taxation (Department) reduced the amount that could be excluded from add-back, limiting such amount to the portion of the company's intangible expense payments that corresponded to the portion of the affiliate's income apportioned to the state in which the affiliate paid tax. The Commissioner agreed with the Department, noting that Virginia case law's interpretation of the "subject-to-tax" exception is that it applies to payments "actually taxed by another state." The Commissioner further explained that the exception amount is computed as follows: (1) for Separate Return States in which the intangible holding company is subject to tax, the amount of the exception is the related entity's intercompany royalty income multiplied by that entity's apportionment percentage on the separate return; and (2) for Add-Back States in which the entity is subject to additions in other states, the amount of the exception is the amount of the company's intercompany intangible expense addition on a state's income tax return multiplied by the company's apportionment percentage in that state. If the company has an agreement with a state to use an alternative or special apportionment method for intangible income or expense, the amount eligible for the exception will be limited to the apportionment percentage reported on that state's return. The Commissioner did not consider the company's assertion that the affiliate met the standards of the valid business purpose exclusion because the company failed to properly make the claim for this exclusion. Va. Dept. Taxn., Rul. of Tax Comm'r No. 24-80 (Aug. 21, 2024).

Wisconsin: The Wisconsin Department of Revenue (WI DOR) extended through December 12, 2024 emergency administrative rule (EmR2404, Wis. Admin. Code 3.10), which clarifies what income from certain commercial and agricultural loans qualifies for a tax exemption enacted in 2023. For tax years beginning after December 31, 2022, Wis. Stat. 71.26(l)(i), 71.05(l)(i) permits financial institutions to exclude from their income interest, fees, and penalties from a commercial loan of $5 million or less that they provide to a Wisconsin resident primarily for business or agricultural purposes. The emergency rule further defines statutory terms, outlines the WI DOR's interpretation of the $5 million limitation, and prescribes record-keeping requirements. The emergency rule is described in Tax Alert 2024-0728. Without the extension, the emergency rule would have expired on October 13, 2024. Wis. Dept. of Rev., EmR2404 (Wis. Register No. 826A1, Oct. 7, 2024).

SALES & USE

California: The California Department of Tax and Fee Administration (CDTFA) issued guidance on recently enacted changes to the state's sales and use tax bad debt deduction provisions made by SB 167 (Cal. Laws 2024). Under the law change, affiliated entities of a retailer and lenders may no longer take a bad debt deduction or file a refund claim for accounts found worthless on and after January 1, 2025. The CDTFA explained that affiliated entities and lenders may continue to take a bad debt deduction or file a refund claim for accounts found worthless and written off before January 1, 2025. Refund claims must be filed within three years from the date the account was found worthless and written off for income tax purposes. If a previously claimed bad debt is subsequently collected, the taxable percentage of the amount collected must be reported to the CDTFA. The law change did not impact a retailer's ability to take a bad debt deduction; therefore, retailers may still take this deduction for accounts found worthless and written off on and after January 1, 2025. Cal. Dept. Tax and Fee Admin., Special Notice "Bad Debt Deductions for Lenders and Affiliated Entities Will Change on January 1, 2025" (Sept. 2024).

California: New law (AB 2854) requires local agencies by April 30 each year to report to the California Department of Tax and Fee Administration (CDTFA) specific information for each agreement that resulted in rebated sales and use tax revenue¹ in the immediately preceding fiscal year. Information that must be reported includes the following: (1) names of the parties to the agreement; (2) total dollar amount of rebated sales and use tax revenue received by each party to the agreement for various time periods; (3) the dates the agreement was originally executed and when it terminated (or will terminate); and (4) the percentage of a retailer's sales and use taxes used to calculate/determine the rebated sales and use tax revenues received by each party to the agreement and any other person that is not a party to the agreement. The local agency also must post this information on its website. The CDTFA may impose a penalty on a local agency that fails to report or publish this information. Cal. Laws 2024, ch. 842 (AB 2854), signed by the governor on Sept. 28, 2024.

Louisiana: The Louisiana Department of Revenue (LA DOR) issued a Notice on the application of sales and use tax on discounted and complimentary items (collectively, "discounted item") provided by a casino or gaming establishment (collectively, "casino"). For sales tax purposes, the sales price of discounted items provided by a casino as an incentive to its patrons is the actual cash amount paid by the patron for the discounted item at the time it is provided to them. The LA DOR said that sales and use tax is not due on complimentary items, explaining that any "theoretical win" or winnings realized by the casino will not be imputed as consideration given for the items. The LA DOR describes items that are "complimentary" and "discounted" for purposes of the Notice, such as rooms, cabanas, meeting spaces, meals, priority services, parking, admissions to entertainment venues, and other like goods and services. The LA DOR stated that this Notice does not apply to sales and use tax imposed on a casino's purchase or use of tangible personal property, including meals and beverages, used as a complimentary incentive or inducement. Nor does it apply to any other sale or use otherwise subject to the state's sales and use tax. La. Dept. of Rev., Notice to Taxpayers - Sales and Use Tax: Discounted and Complimentary Items Provided by a Casino or Gaming Establishment (Sept. 26, 2024).

Massachusetts: In response to a ruling request from a pharmaceutical equipment and supplies retailer and wholesaler, the Massachusetts Department of Revenue (MA DOR) said that sales of devices used in conjunction with automated insulin delivery systems are exempt from sales tax under Ma. G.L. c. 64H, Section 6(l). The MA DOR found the device, which is not expressly designated as exempt under Section 6(l), qualifies for the exemption because it is "an essential component of an integrated system worn on the body, which operates as a substitute for the pancreas." In reaching this decision, the MA DOR distinguished the device at issue with the continuous glucose monitors at issue in Letter Ruling 22-1, which did not qualify for the exemption. Ma. Dept. of Rev., Letter Ruling 24-2: Taxability of Continuous Glucose Monitors Designed for Use in Conjunction with Automated Insulin Delivery Systems (Sept. 17, 2024).

New York: In response to a ruling request, the New York Department of Taxation and Finance (NY DOTF) determined that a company's receipts from providing an online directory that lists persons who can assist and represent claimants with certain disability benefits, are not subject to the state's sales and use tax as the online directory constitutes the furnishing of advertising services. Claimants can use the online directory for free, but representative are charged a fee for listing their information on the website. Representatives who pay the fee to be listed in the directory can upload their photo, logo, biography, and contact information. The NY DOTF found the type of listing on the company's online directory constitutes the placing of advertising, the charges for which are not subject to tax. N.Y. Dept. of Taxn. and Fin., TSB-A-24(31)S (Aug. 14, 2024).

New York: In response to a ruling request, the New York Department of Taxation and Finance said a company's sales of network security monitoring services (which detects, provides alerts on and prevents cyber-attacks on network-connected assets) and professional advisory services (which includes the creation, oversight and implementation of formal cybersecurity policies and procedures) are protective services subject to state and local sales taxes. If the protective services are provided to property being protected in New York, the services are sourced to the state. If protected assets/data are located in and outside of New York, tax should be collected only with respect to the protective services that protect assets/data located in New York. N.Y. Dept. of Taxn. and Fin., TSB-A-24(12)S (July 30, 2024).

South Dakota: The U.S. Supreme Court will not review a South Dakota Supreme Court ruling upholding the imposition of use tax on an out-of-state company's movable construction equipment that the company brought into South Dakota for varying amounts of time. The Court had been asked: "Whether South Dakota's imposition of an unapportioned use tax on the fair market value of [the taxpayer's] movable construction equipment — some of which was used in South Dakota for one day — violates the fair apportionment requirement of the Commerce Clause." Ellingson Drainage, Inc. v. South Dakota Dept. of Rev., petition for cert. denied, Dkt. No. 23-1202 (Oct. 7, 2024).

BUSINESS INCENTIVES

California: New law (AB 2922) reinstates the capital investment incentive program (CIIP) until January 1, 2035. (The prior CIIP sunset at the beginning of 2024.) A county, city and county, or city (collectively, "city") that elects to establish such program shall pay a capital investment incentive amount for up to 15 consecutive fiscal years to a proponent of a qualified manufacturing facility (QMF). The capital investment incentive amount with respect to a QMF is the amount of ad valorem property tax revenue allocated to a participating city from taxing the portion of the total assessed value of a QMF's real and personal property that exceeds $150 million. A proponent receiving a CIIP payment must enter into a community services agreement with the city, provisions of which, among other things, (1) require the proponent to remit an annual community service fee equal to 25% of the capital investment incentive amount, not to exceed $2 million a year, and (2) set forth a job creation plan with respect to the relevant QMF. The law also expands the CIIP, allowing it to be offered to QMF with assessed value that exceeds $25 million if the project proponent meets additional job creation requirements (e.g., specifies the number and types of jobs to be created by the QMF as well as compensation ranges, and commitments for hourly wage for each job classification, value and type of fringe benefits, commitment of the proponent regarding hiring preferences for local/community area residents and disadvantage workers, and a targeted hiring program). A CIIP established before January 1, 2035 may remain in effect for the full term of the program. Cal. Laws 2024, ch. 581 (AB 2922), signed by the governor on Sept. 25, 2024.

New Jersey: New law (S. 3097) modifies the Economic Redevelopment and Growth Grant program, expanding the definition of "project cost" to include the funding of a debt services reserve funds. The law also extends the deadline for a developer to submit a temporary certificate of occupancy for certain qualified residential projects and mixed use parking projects to June 30, 2028 (from June 30, 2026). Further, a developer may amend an application, or assign the application to a municipal redeveloper, for certain mixed use parking projects by excluding the visitor center, youth center or both from the application, provided that the project otherwise qualifies as a mixed use parking project. Lastly, municipal redevelopers have until June 30, 2028 (from June 30, 2026) to submit a temporary certificate of occupancy for certain mixed use parking projects. S. 3097 took effect immediately. N.J. Laws 2024, c. 71 (S. 3097), signed by the governor on Sept. 12, 2024.

Oregon: The Oregon Business Development Department (Department) adopted rules for the Research and Development (R&D) Tax Credit for Semiconductors — Ore. Admin. R. Sections 123-401-0100, -0200, -0300, -0400, -0500, -0600. To claim the credit, an eligible business must submit a one-time registration with, and annually apply for and obtain certification from, the Department. To be eligible for the R&D tax credit, a taxpayer must meet the following requirements: (1) be a qualified semiconductor company, (2) incur qualified research expenses or basic research payments in Oregon in the tax year for which the certification is requested, and (3) be subject to corporate excise or personal income tax. Additional statutory and administrative requirements may apply. The rules described the application process and lists the information that must be in the certification application. The Department may establish a $3,000 certification application fee. The annual credit cap gradually increases from $35 million in 2024 up to $50 million for tax year 2029. The amount of credit that may be certified or claimed by a taxpayer is capped at $4 million. The rules were adopted, and take effect, on July 1, 2024.

PROPERTY TAX

Alabama: The Alabama Department of Revenue (AL DOR) adopted new Rule 810-4-1-.28. The new rule "establishes the procedures and guidelines for counties to limit [or cap] increases in the assessed values of certain Class II and Class III real property, for ad valorem tax purposes … " The AL DOR explained that because the cap, which is new step in the property tax administration process, will be considered after the annual appraisal is completed, property will continue to be appraised at its fair market value or current use value under current laws and guidance. The AL DOR further said that ratio studies, land studies, index studies and directives will continue to be used. The rule defines key terms, including "cap," "ordinary maintenance," "significant improvement," "taxable assessed value" and "true assessed value." The rule describes the assessment procedure and it list events that would necessitate the removal of the cap, which would result in the property being assessed based on its true assessed value. Such events include a change of ownership, an addition to or significant improvement has been made to the property. The rule provides clarifications to the assessment procedure as well as impacts on related processes. The new rule was adopted on August 30, 2024 and takes effect on October 14, 2024.

Louisiana: New law (HB 921), effective January 1, 2025, requires the fair market value (FMV) of real property in a determination by a board of review or the tax commissioner or in a final, non-appealable judgment in action to review the correctness of an assessment, to be used by the assessor in subsequent tax years until the property is reappraised in a future mandated reappraisal year. An earlier reappraisal may occur when there is a change in the physical condition of the property that results in an increase or decrease in the FMV of the property by more than 25%. An assessor still has the ability and obligation to reduce an assessment due to property damaged, depreciated or destroyed because of a flood or other disaster or governor declared disaster. La. Laws 2024, Act 578 (HB 921), signed by the governor on June 10, 2024.

COMPLIANCE & REPORTING

Federal and Multistate: The IRS has extended (IR 2024-253) the due dates for filing individual and business tax returns and making tax payments to May 1, 2025, for taxpayers in seven states affected by Hurricane Helene. The extension applies to taxpayers, including tax-exempt organizations, that reside or have a business in the federally declared disaster areas. In addition to all of Alabama, Georgia, North Carolina and South Carolina, this currently includes counties in Florida, Tennessee and Virginia. Taxpayers that are not located in the disaster area but have records there may also qualify for the extension. Taxpayers without an IRS address of record in the disaster area may still qualify for penalty abatement resulting from a late filing or payment notice. Affected taxpayers should contact the IRS to determine if their circumstances and situation warrant penalty abatement.

The tax relief postpones various tax filing and payment deadlines that occurred beginning on September 22, 2024, in Alabama; September 23 in Florida; September 24 in Georgia; September 25 in North Carolina, South Carolina and Virginia; and September 26 in Tennessee. Affected individuals, businesses and tax-exempt entities will have until May 1, 2025, to file returns and pay any taxes that were originally due during this period.

The postponement until May 1, 2025, applies to various individual and business filings and payments. For more on the federal Hurricane Helene relief, see Tax Alert 2024-1823.

The IRS also has postponed (IR 2024-264) the due dates for filing individual and business tax returns and making tax payments to May 1, 2025, for taxpayers in all of Florida as a result of Hurricane Milton. The postponement applies to taxpayers, including tax-exempt organizations, in six counties that did not previously qualify for disaster relief because of either Hurricane Debby or Hurricane Helene beginning October 5, 2024, and concluding on May 1, 2025. Those counties are Broward, Indian River, Martin, Miami-Dade, Palm Beach and St. Lucie. Additionally, taxpayers in 20 counties that previously received disaster relief under Hurricane Debby, but not Helene will receive disaster tax relief under Hurricane Milton from August 1, 2024, through May 1, 2025. Those counties are Baker, Brevard, Clay, DeSoto, Duval, Flagler, Glades, Hardee, Hendry, Highlands, Lake, Nassau, Okeechobee, Orange, Osceola, Polk, Putnam, Seminole, St. Johns and Volusia. Those counties previously had disaster tax relief through February 3, 2025. Taxpayers that are not located in the disaster area but have records there may also qualify for the postponed deadlines. Taxpayers without an IRS address of record in the disaster area may still qualify for penalty abatement resulting from a late filing or payment notice. Affected taxpayers should contact the IRS to determine if their circumstances and situation warrant penalty abatement. For more on Hurricane Milton relief, see Tax Alert 2024-1899.

In addition to the federal government, several states are providing relief for those affected by Hurricane Helene and Hurricane Milton. States providing some form of filing and penalty relief include: Alabama, Colorado (both Helene and Milton), District of Columbia, Florida (both Helene and Milton), Georgia, Idaho, New Jersey, North Carolina, (see also HB 149 — waiver of interest, extension of time to make the pass-through entity tax election for tax year 2023 so that the election is timely if made on a return filed by May 1, 2025), South Carolina, Tennessee, Texas (both Helene and Milton) and Virginia.

Additional relief, often related to fuel, is available in Alabama (temporary suspension of certain terminal excise tax requirements and international fuel tax agreement (IFTA)), Georgia (waiver of state dyed fuel penalty and IFTA), Illinois (waiver of IFTA registration) and North Carolina (use of non-highway diesel fuel).

CONTROVERSY

Federal: The IRS has issued final regulations (TD 10007) identifying certain syndicated conservation easement transactions and substantially similar transactions as listed transactions under IRC Sections 6111 and 6112. The IRS previously identified certain syndicated conservation easement transactions as listed transactions in Notice 2017-10. The issuance of these final regulations clarifies that participants and material advisors must report these transactions, including any transactions that were completed in tax years that are still open. The final regulations adopt, with modifications, the proposed regulations (REG-106134-22) published in the Federal Register on December 8, 2022. TD 10007 is effective October 8, 2024. For additional information on this development, see Tax Alert 2024-1902.

PAYROLL & EMPLOYMENT TAX

Multistate: EY's Employment Tax Advisory Services group has developed a monthly publication summarizing the latest developments in US federal, state and local payroll and human resources matters. The September edition is now available via Tax Alert 2024-1839.

Multistate: While there is no federal requirement to give employees voting leave, 31 states and the District of Columbia have stepped in to fill the gap. State laws vary in terms of breadth and scope; therefore, some of the employer policy issues to consider include: Is leave paid or unpaid? How many hours of leave must be provided? Is the employee required to give advance notice of the need for leave? Is a workplace poster required informing employees of their right to leave? As Election Day approaches, employers will need to confirm that they are compliant with laws that require eligible voters have sufficient time off to vote. For more on this development, see Tax Alert 2024-1793.

Indiana: The Indiana Department of Revenue announced that the local income tax rates have changed for the four counties: Decatur, Fayette, Fulton and Henry. Employers should withhold Indiana county income tax based on employees' Indiana county of residence as of January 1 of the tax year. If employees reside outside of Indiana on January 1 but have their principal place of work or business in an Indiana county as of January 1, the employer should withhold for the Indiana county of employees' principal place of work or business. For additional information on this development, see Tax Alert 2024-1856.

Utah: Governor Spencer Cox signed into law SB 69, which effective retroactive to January 1, 2024, lowers the state personal income tax rate from 4.65% to 4.55%. The Utah Tax Commission has updated Publication 14, \Withholding Tax Guide, to reflect the updated withholding formula and tables. This is the third consecutive year that Utah has retroactively lowered the personal income tax rate. In 2023, HB 54 lowered the state personal tax rate from 4.85% to 4.65% and in 2022, SB 59 lowered it from 4.95% to 4.85%. Employers are instructed to withhold Utah state income tax according to information employees provide on the Federal Form W-4. For additional information on this development, see Tax Alert 2024-1845.

MISCELLANEOUS TAX

Delaware: New law (Senate Sub. No. 1 for SB 13) creates an assessment on Delaware hospitals' net patient revenues — the Hospital Quality and Health Equity Assessment (assessment). The assessment is imposed on hospitals that provide specified services, on a for-profit or not-for-profit basis, in Delaware. Specified services include in- and out-patient hospital services, but exclude nursing facility services, skilled nursing facility services or physician services. For the "initial enactment period" of fiscal year July 1, 2025 through June 30, 2026, the assessment is 1.79% of the hospital's net patient revenues during the taxable year. For each fiscal year thereafter, the assessment is 3.58% of the hospital's net patient revenue for the taxable year. During the initial enactment period, the assessment will be paid in two equal installments. Thereafter, the assessment will be paid in four equal installments that are due on September 15, December 15, March 15 and June 15 (or as otherwise allowed by the Delaware Department of Finance). SB 13 took effect upon enactment and is to be implemented for fiscal years beginning after June 30, 2025. Del. Laws 2024, Senate Sub. No. 1 for SB 13, signed by the governor on Oct. 1, 2024.

GLOBAL TRADE

Federal: The October 2024 edition of TradeFlash, a roundup of the latest developments in global trade around the world, is now is available. In this issue, we provide links to EY articles and webcasts covering key trade topics, many of them focused on the impact of sustainability and data challenges on international trade. We also include an article on the possible impact of the forthcoming United States (US) presidential election on global trade issues, as the US plays a pivotal role in shaping international trade dynamics.

VALUE ADDED TAX

International - Philippines: Republic Act (RA) No. 12023 amends certain provisions of the Philippine Tax Code and imposes a 12% Value Added Tax (VAT) on digital services provided by both resident and nonresident digital service providers. The term "digital service" shall refer to any service that is supplied over the internet or other electronic network with the use of information technology and where the supply of the service is essentially automated. The term "digital services" includes online search engines, online marketplaces or e-marketplaces, cloud services, online media and advertising, online platforms and digital goods. For more on this development, see Tax Alert 2024-1874.

UPCOMING WEBCASTS November 7, 2024. 2024 US election impacts on state and local tax policy (Noon-1:00 p.m. ET). Following the November 5 US elections, federal policymakers will turn their attention to other pressing matters, including funding the federal government and contending with expiring Tax Cuts and Jobs Act (TCJA) provisions. State governments and businesses alike will address the results of tax ballot initiatives and react to any new federal tax laws and policies. In addition, some state legislatures may have to confront slowing state and local tax revenue collections. Join our panel as we discuss the election results from a state and local tax perspective and what they mean for business executives. Topics will include: (1) notable 2024 federal, state and local election results; (2) projected election impacts on federal tax provisions affecting state taxes, including TCJA provisions (e.g., state and local tax deduction cap, "bonus" depreciation; the IRC Section 163(j) interest limitation; and treatment of research and experimental expenditures under IRC Section 174), OECD BEPS 2.0 proposals, and campaign proposals; (3) an update on the fate of state and local tax-related ballot measures; and (4) state legislative policy considerations, including fiscal conditions. Register.

Because the matters covered herein are complicated, State and Local Tax Weekly should not be regarded as offering a complete explanation and should not be used for making decisions. Any decision concerning matters covered herein should be reviewed with a qualified tax advisor.