During the 2025 legislative session, the Georgia General Assembly passed several notable tax related bills including further decreasing the income tax rate and extending the time period for taxpayers to protest and appeal the Department of Revenue’s assessments. Additionally, the legislature passed clean-up legislation to clarify procedural elements of the new Georgia Tax Court which
Legislative
State tax legislative proposals and activities
Maryland seriously considers sweeping tax expansion, including taxing media rights and “other intellectual property”
Maryland is facing a $3 billion budget gap and is considering a host of tax hikes. On March 24, 2025, the Maryland House of Representatives Committee on Appropriations amended the state’s budget bill, House Bill 352 (cross-filed with Senate Bill 321) to include, among other things, a proposal to expand the sales and use tax…
Legal Alert: California’s proposed market sourcing reg raises questions
The California Franchise Tax Board (FTB) has proposed amendments to its regulations that govern how sales of services and intangibles are sourced for income tax purposes. The changes to this income tax apportionment regulation will apply to nearly every corporation that pays California tax. Comments regarding these proposed changes are due no later than February…
New York State proposes changes to GILTI
On January 8, 2025, a group of New York State Senators introduced S953, which proposes to increase the gross amount of GILTI under IRC § 951A included in the New York State business income base from 5% to 50%. This increase to corporations’ tax base is done by reducing the amount of GILTI excluded…
California governor proposes changes to financial institution taxation
In his draft budget plan for Fiscal Year 2025-2026 released on January 10, 2025, California Governor Gavin Newsom proposed to bring financial institutions in line with most other corporate taxpayers when it comes to apportioning multistate income. Banks and “financial corporations” currently use a three-factor apportionment formula consisting of property, payroll and sales to apportion…
Breaking down results of significant state ballot initiatives
On November 5, voters cast their ballots to determine who would fill a variety of federal, state, and local offices. Several states also considered tax related ballot initiatives. We describe some of the more significant ballot initiatives and their results.
Sales Tax
There were a few states with ballot initiatives that would exempt items from…
What to know about this year’s ballot measures on tax courts, property exemptions
In an article published by Savannah Morning News, Eversheds Sutherland SALT Partner Jonathan Feldman discusses a proposed constitutional amendment on the Georgia ballot this November that would create a new judicial branch tax court with the same judicial power as superior courts. Appeals from the new tax court would go directly to the Georgia…
D.C. Tax Revision Commission to no longer pursue business activities tax proposal; Engage in further research
On October 9, 2024, the D.C. Tax Revision Commission met to finalize their tax recommendations to the D.C. Council and Mayor. However, the Commission did not reach a consensus and instead opted to perform additional research.
The D.C. Tax Revision Commission’s last activity was to issue a Revised Chairman’s Mark in July 2024. That document…
The mysterious disappearance of D.C.’s Tax Revision Commission
In response to concerns that the District of Columbia needed to explore new or broadened revenue sources, the D.C. Council established D.C.’s Tax Revision Commission to comprehensively review the District’s tax code. The Commission’s mandate is to make tax policy recommendations, and it began meeting in 2022 with the intent of making tax recommendations to…
Better late than never: California FTB initiates formal process to amend market sourcing regulation
At long last, the California Franchise Tax Board (FTB) issued a Notice of Proposed Rulemaking today to amend FTB’s market sourcing regulation: California Code of Regulations, title 18, section 25136-2 (“Reg. 25136-2”). This is the latest step in a long journey that began over seven years ago, when FTB held its first interested parties meeting…