Category Archives: Tax Law

To What Extent Does Your State Rely on Property Taxes?

Property taxes represent a major source of revenue for states and localities. In fiscal year 2015, the latest year of data available, 31.1 percent of total U.S. state and local tax collections came from property taxes, more than any other source of tax revenue. In the same year, 25 states and the District of Columbia raised the greatest share of their tax revenue from property taxes (see Facts and Figures Table 8). A variety of local political subdivisions have authority to set property tax rates, including counties, cities, school boards, fire departments, and utility commissions. While most tax jurisdictions levy property taxes based on the fair market value of a property, some base the property tax rate on income potential or other factors. In addition, some states place limits on the extent to which property tax rates may increase per year or impose rate adjustments to achieve uniformity throughout the state. In FY 2015, New Hampshire and Alaska relied most heavily on….. To continue reading this legal news please click Read full information...

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To Conform, or Not? States Mull Options for Taxation under Tax Cuts & Jobs Act

States are reviewing and/or adopting new approaching to state taxation in light of the Tax Cuts and Jobs Act. Learn more about the impact, how states are responding and the importance of planning under the new tax landscape in our recent article... To continue reading this legal news please click Read full information...

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Section 280E and the Harsh Reality of Double Taxation

There is not too much to say about the Tax Court’s latest decision involving a marijuana company.  In Loughman v. Commissioner, T.C. Memo 2018-85, the operators of a Colorado marijuana dispensary argued that for a marijuana dispensary operating as an S corporation, Section 280E discriminates against S corporation shareholders by double taxing income when shareholder salary is disallowed pursuant to Section 280E as a deduction from flow-through S corporation income and also included on the shareholder’s individual tax return as W-2 wages.  The Tax Court noted that the regime was not discriminatory, but rather applied equally, because Section 280E disallows salaries not attributable to cost of goods sold whether or not the salaries are paid to the shareholder. One of the harsh realities of operating a marijuana business is that Section 280E creates double taxation for owners who receive payments for services from marijuana companies.  It….. To continue reading this legal news please click Read full information...

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New Jersey May Adopt Highest Corporate Tax in the Country

No one would consider New Jersey a low-tax state, with the sixth-highest corporate tax rate (9 percent), fifth-highest top income tax rate (8.97 percent), eighth-highest state sales tax (6.625 percent), tenth-highest gasoline tax (37.1 cents per gallon), tenth-highest cigarette tax ($2.70 per pack), and highest property tax ($3,074 average per capita). But officials facing an end-of-month budget deadline are urging tax increases, although they disagree on the type. Gov. Phil Murphy (D) wants to increase in the top income tax rate from 8.97 to 10.75 percent, for income over $1 million. This would apply both to an estimated 20,000 individuals and 5,000 businesses. He has threatened to veto any budget that does not include the tax. Senate President Stephen Sweeney (D) and Assembly Speaker Craig Coughlin (D) instead want a corporate tax rate increase, to 11.5 percent on income over $1 million and 13 percent on income over $25 million. The 13 percent top rate would easily be the….. To continue reading this legal news please click Read full information...

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We have moved offices

If you've tried to find me, I've moved. Come see me at 717 N. Crockett St., Sherman, TX 75092. New phone is 903.964.0852. Same guy, different building.. To continue reading this legal news please click Read full information...

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