Daily Tax Report: State

San Francisco Sees Budget Gaps as Highly-Paid Workers Flee City

NYC Property Values Decline as Offices and Hotels Stand Empty

Latest Stories

NY Prosecutors Seek Records on Trump’s Seven Springs Estate (1)

New York City prosecutors, who are investigating President Donald Trump’s company for possible tax, bank and insurance fraud, have broadened their probe to include a sprawling property in Westchester County.

San Francisco Sees Budget Gaps as Highly-Paid Workers Flee City

San Francisco officials expect to see budget shortfalls reaching $503 million in five years and said it’s unclear if high-wage workers will return to the technology hub after the coronavirus pandemic subsides.

NYC Property Values Decline 5% as Offices and Hotels Stand Empty

New York City property values are set to decline 5.2% from the current fiscal year, the biggest decline since the early 1990s, highlighting the toll the pandemic has taken on the city’s commercial and residential property values.

New York, Alabama Conform to Federal PPP Expense Deduction Rule

New York and Alabama will conform to a provision of the latest federal pandemic relief law that allows businesses to deduct expenses funded with forgiven Paycheck Protection Program loans.

Arizona Governor Pitches Income Tax Reform in Budget Proposal

Arizona Gov. Doug Ducey (R) wants state lawmakers to pass $200 million in income tax relief for the 2022 fiscal year, according to his budget proposal released Friday.

Colorado Legislature Restores Several CARES Act Tax Deductions

Colorado lawmakers approved a bill Friday that aims to restore some of the tax deductions triggered by federal CARES Act relief law last year which were taken away when the state General Assembly decoupled from the federal tax code.

Connecticut Erases $800 Million Gap As Income Taxes Surge

Connecticut erased its $800 million budget gap for the current fiscal year as revenue from capital gains and business taxes exceeds projections.

California Tax Board Seeks Fast Fixes for Inherited Property Law

California’s elected board overseeing property taxes is scrambling to fix confusing and conflicting provisions of a voter-approved law that limits tax breaks for inherited property.

Featured Topics

credits and incentives

California Lawmakers, Governor Float SALT Cap Workaround Plans

Occidental to Catch Carbon From the Air and Use It to Pump Oil

Bond Market Tax Haven Shrinks as Corporate-Style Munis Surge (1)

individual income tax

California Lawmakers, Governor Float SALT Cap Workaround Plans

Beating Biden’s Day One Freeze Sparks Stampede to Lock in Rules (1)

PPP Expense Deductions to Cost States Billions in Revenue

sales and use tax

San Francisco Sees Budget Gaps as Highly-Paid Workers Flee City

Kansas Poised to Stick to No Seller Exemption for Remote Taxes

States Pursue Online Ad Taxes to Help Fill Budget Gaps (Podcast)

Utah: Sales Tax Governing Board Publishes Revised State Guide to Streamlined Sales Tax Project

The Streamlined Sales Tax Governing Board Jan. 14 published a revised state guide to the Streamlined Sales Tax Project. The guide is intended to provide state lawmakers and sales and use tax administrators information on: 1) the requirements for joining the board as a full member state; 2) the requirements to remain a full member state; 3) governance of the board; 4) personnel commitments; and 5) technology requirements. [Streamlined Sales Tax Governing Bd., Utah: State Guide to the Streamlined Sales Tax Project, 01/14/21]

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Virginia Tax Commissioner Upholds Sales Taxes Assessed on Purchases by Mailbox Fabricator, Installer

The Virginia Tax Commissioner Sept. 15, 2020 determined in a letter ruling that all materials purchased by Taxpayer were taxable for sales and use tax purposes. Taxpayer was engaged in the fabrication and installation of mailboxes at new construction home sites. Upon audit, the Department of Taxation’s auditor issued an assessment for untaxed purchases of materials and concluded that Taxpayer was a consuming contractor. Taxpayer appealed, asserting that its business license classified Taxpayer as personal services and that the completed mailboxes were real property. The commissioner determined: 1) Taxpayer was clearly a consuming contractor; 2) any materials used in the fabrication of the mailboxes would be deemed consumed; and 3) Taxpayer’s local business license classification was irrelevant to the tax classification. Accordingly, the commissioner upheld the assessment and updated the tax bill with accrued interest. [Va. Dep’t of Tax’n, Ruling of the Comm’r /VA\Ruling\PD20-163///, 09/15/20]

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Utah Tax Commission Issues Revised Property Tax Publication on Business Personal Property Audits

The Utah State Tax Commission Jan. 14 issued a revised publication on business personal property audits. A personal property audit consists of a review of the taxable personal property used in a business. Personal property taxes are based upon property owned as of Jan. 1 each year. The publication explains that: 1) tangible personal property with a total aggregate fair market value of $15,300 or less per taxpayer within a single county is exempt; 2) if acquisition cost and time of purchase information isn’t provided to the auditor within the requested time-frame, the value will be estimated by the auditor; 3) if the auditor doesn’t hear of any questions and concerns from a taxpayer within 21 days of audit completion, the audit results are forwarded to the county assessor; and 4) taxpayers have 60 days from the postmarked date of the tax bill to file an appeal. [Utah Tax Comm’n, Publ’n 19, 01/14/21]

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