Taxation-State and Local Commons^™

Strange Bedfellows: The Federal Constitution, Out-Of-State Nongrantor Accumulation Trusts, And The Complete Avoidance Of State Income Taxation, Jeffrey Schoenblum

Vanderbilt Law Review

With the maximum rate of federal income tax at 39.6 percent, the Medicare surtax on investment income of 3.8 percent, and some state income tax rates exceeding 9 percent, taxpayers in the highest brackets have been seeking to develop strategies to lessen the tax burden. One strategy that has been receiving increased attention is the use of a highly specialized trust known as the NING, a Nevada incomplete gift nongrantor trust, which eliminates state income taxation of investment income altogether without generating additional federal income or transfer taxes. A major obstacle standing in the way of accomplishing this objective, however, …

State Taxation - Unitary Business/Formula Apportionment Tax Accounting Method - Application Of A Three Factor Formula To Apportion Income Of Foreign-Parent Corporations For State Tax Reporting Purposes Does Not Violate The Commerce Clausse Or The Due Process Clause Of The U.S. Constitution - Barclay's Bank Int'l, Ltd. V. Franchise Tax Bd., 10 Cal. App. 4th 1742, 14 Cal. Rptr. 2d 537 (Cal. Ct. App. 1992), Modified Reh'g Denied, 11 Cal. App. 4th 1678a (Cal. Ct. App. 1992)., Sarah B. Pierce

Georgia Journal of International & Comparative Law

No abstract provided.

Foul Play: Tennessee's Unequal Application Of Its Jock Tax Against Professional Athletes, Kirk Berger

Cardozo Public Law, Policy & Ethics Journal

The Framers of the Constitution knew, and we should not forget today, that there is no more effective practical guaranty against arbitrary and unreasonable government than to require that the principles of law which officials would impose upon a minority must be imposed generally. Conversely, nothing opens the door to arbitrary action so effectively as to allow those officials to pick and choose only a few to whom they will apply legislation and thus escape political retribution that might be visited upon them if larger numbers were affected. Courts can take no better measure to assure that laws will be …

Summary Of Déjà Vu Showgirls V. Nev. Dept. Of Taxation, 130 Nev. Adv. Op. 73, Joseph Meissner

Nevada Supreme Court Summaries

Exotic dancing establishments sought a declaration that Nevada’s Live Entertainment Tax (NLET) violates the First Amendment to the U.S. Constitution because it singles out small groups based on the content of their speech and taxes them in an effort to suppress their ideas. The Supreme Court of Nevada found that NLET does not discriminate on the basis of speech, target a small group of speakers, or threaten to suppress viewpoints or ideas in violation of the First Amendment because appellants failed to show that NLET is not rationally related to a legitimate government purpose.

Congress Promotes Perpetual Trusts: Why?, Lawrence W. Waggoner

Law & Economics Working Papers

This posting updates the article titled Congress Promotes Perpetual Trusts: Why?. The article was originally posted on SSRN in September 2013. The updated version incorporates a discussion of two new developments—the unveiling of the long-awaited House Ways and Means Committee’s proposal for comprehensive tax reform and the issuance of the president’s proposed budget for 2015. Both of these new developments are disappointing because neither proposes curtailing or effectively curtailing perpetual trusts. By unwittingly granting a tax exemption for perpetual trusts, Congress undermined state perpetuity law and promoted private trusts that can last and remain tax exempt for many centuries and …

Fairness, Equity, And A Level Playing Field: Development Goals For The Resilient City, Christopher K. Odinet

Faculty Scholarship

In the wake of the Great Recession and in the midst of a political climate that endorses the devolution of governmental power to more localized levels there has been a resurgence in recent years of the idea of the city as the center of American life. Competition between cities in capturing economic development projects has become palpable. Success can lead to job creation and growth, private investment, and, importantly, increased tax revenues. Cities often compete with one another by each offering their own package of public incentives. In the waning hours of negotiations hundreds of millions of public dollars can …

The Impact Of The Tax Revolt And School Reform On Oregon Schools During The 1990s, Beth Cookler

Dissertations and Theses

When Oregon voters passed the property tax limitation initiative, Measure 5, and the state legislature enacted school reform under the Oregon Educational Act for the 21st Century during the 1990-91 school year, the trajectory of public schooling in the state changed significantly. After Oregon's tax revolt, the state legislature also enacted legislation that equalized school funding throughout the state. The combination of equalization and the Measure 5 step-down to the $5 per $1000 tax limitation led to a decrease in statewide school funding over the decade. Many wealthy urban districts experienced years of budget cuts, while rural districts received additional …

When Everything Matters, Nothing Matters: Minnesota's Unprincipled Approach For Determining Domicile In Tax Disputes, And A Path Forward, Joseph E. Cooch

Hamline Law Review

abstract

Winning The Crowd: Harnessing Taxpayer Choices To Improve Educational Quality, W. Edward Afield

Catholic University Law Review

No abstract provided.

Sales Suppression As A Service (Ssaas) & The Apple Store Solution, Richard Thompson Ainsworth

Faculty Scholarship

The problem of sales suppression fraud is estimated to cost state and local governments $20 billion annually ($2 billion in New York restaurants alone). Modern sales suppression (skimming) is carried out with technology (Zappers and Phantom-ware). Nine undercover sting operations in and around Manhattan and the Bronx by investigators working for New York’s Department of Taxation and Finance (NY-DT&F) have identified the SSaaS variant of modern skimming.

A striking example of SSaaS may be unfolding in the $1 million sales suppression case against Congressman Michael Grimm (R-NY). It is alleged that Grimm skimmed sales from his Healthalicious restaurant in Manhattan, …

First Amendment Decisions From The October 2006 Term, Erwin Chemerinsky, Marci A. Hamilton

Touro Law Review

No abstract provided.

The Contemporary Tax Journal’S Interview Of Pam Olson, Stuti Seth

The Contemporary Tax Journal

No abstract provided.

Some Reflections On The Past, Present And State-Dependent Future Of Lotteries In American Gaming Law, Stephen J. Leacock

Faculty Scholarship

No abstract provided.

The Pitfalls Of The Pittman-Robertson Act: Threats To An American Wildlife Act That Ensnare Hunters And Hikers Alike, Greg Huffaker

Cardozo Public Law, Policy & Ethics Journal

No abstract provided.

Summary Of Harrah's V. Nevada Department Of Taxation, 130 Nev. Op. 15, Edward Wynder

Nevada Supreme Court Summaries

The Court considered the meaning of “first use” to determine whether Harrah’s was entitled to a refund of the Nevada use tax under NRS 372.258 for four aircraft it purchased outside Nevada and used to fly employees and clients to Harrah’s properties when most flights either began or ended outside Nevada.

New York’S Taxable Lap Dancing …At A Strip Club Near You!, Harvey Gilmore

Pace Intellectual Property, Sports & Entertainment Law Forum

In today’s difficult economic times, state governments are more hard pressed than ever to come up with new sources of revenue to at least stay revenue neutral. Leave it to the perpetually money-hungry State of New York to come up with this gem of an idea for generating tax revenues: In 2005, the New York State Department of Taxation and Finance attempted to impose sales tax on a nightclub’s offering of exotic dancing to its customers. This resulted in one nightclub instigating a legal challenge to the state’s attempt to impose sales taxes on exotic dancing. This resulted in the …

Rethinking The Dormant Commerce Clause: The Supreme Court As Catalyst For Spurring Legislative Gridlock In State Income Tax Reform, Brian L. Hazen

BYU Law Review

No abstract provided.

Cigarette Tax To Fund Brain Research. Initiative Statute

Initiatives

Increases cigarette tax by $1.00 per pack, with an equivalent increase on other tobacco products. Requires tax revenues to be deposited into a special fund to provide grants and loans to support brain research on causes, treatments, detection, and cures for brain disorders and diseases. Creates 11-member oversight committee charged with administering the fund. If new tax causes decreased tobacco consumption, transfers sufficient amount of new tax revenues to offset revenue decrease to other programs funded by existing tobacco taxes. Requires annual independent audit. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and …

Cigarette Tax To Fund Brain And Stem Cell Research. Initiative Statute.

Initiatives

Increases cigarette tax by $1.00 per pack, with an equivalent increase on other tobacco products. Requires tax revenues to be deposited into a special fund to provide grants and loans to support brain research, including stem cell research, on causes, treatments, detection, and cures for brain disorders and diseases. Creates 11-member oversight committee charged with administering the fund. If new tax causes decreased tobacco consumption, transfers sufficient amount of new tax revenues to offset revenue decrease to other programs funded by existing tobacco taxes. Requires annual independent audit. Summary of estimate by Legislative Analyst and Director of Finance of fiscal …

Consistency Is Key: To Preserve Legislative Intent The Irs Must Afford Legal Recognition To Non-Marital Relationships In A Post-Doma World, Shane R. Martins

Marquette Elder's Advisor

Although the Supreme Court’s recent ruling in Windsor v. US allows for federal recognition of same-sex marriages, the Internal Revenue Service will only grant spousal recognition to couples residing in states that term same-sex unions as marriages. Consequently, spousal treatment will not be extended to non-marital relationships, even in states that treat their Civil Unions and Domestic Partnerships as “marital equivalents.” Given that spousal recognition for federal tax purposes was intended to ensure geographic uniformity and horizontal equity, the IRS must grant spousal recognition to couples who are in relationships that their respective state identifies as a “marital equivalent”.

Chapter 546: Preventing Retroactive Taxes On Entrepreneurs, Nicholas Kump

McGeorge Law Review

No abstract provided.

Tax Ferrets, Tax Consultants, Bounty Hunters, And Hired Guns: The Property Tax Netherworld Fueled By Contingency Fees And Champertous Agreements, J. Lyn Entrikin

Chicago-Kent Law Review

Contingency fee agreements between local tax assessors and contract auditors on the one hand, and property owners and private tax consultants on the other, create perverse financial incentives that undermine the integrity of state and local property tax administration. When local governments engage outside auditors to identify undervalued or escaped taxable property, the practice raises serious due process and ethical concerns. As a matter of policy, diverting a share of property tax revenue to private third parties in consideration for outsourced tax assessment services undermines public accountability and reduces net property tax revenue for local government services. And when states …

Occupy Wall Street, Distributive Justice, And Tax Scholarship: An Ideology Critique Of The Consumption Tax Debate, Partrick Crawford

The University of New Hampshire Law Review

[Excerpt] “This Article argues that the pro-consumption tax literature is wrong to claim that no legitimate fairness objections to the consumption tax exist. It argues that the persistent and widespread wariness about replacing our current hybrid consumption tax/income tax system with a pure consumption tax is, contrary to what the pro-consumption tax literature asserts, completely justified. In fact, our reservations about the consumption tax’s fairness reflect legitimate concern about the role of capitalist power in America, particularly over the past thirty years. Indeed, the more the nation continues to experience the social welfare effects of increased capitalist power, the more …

Stubhub's Tug At The Municipal Purse String: Why The Home-Rule Taxing Powers Enumerated In The Illinois Constitution Must Remain Broad And Strong, 48 J. Marshall L. Rev. 37 (2014), Joseph Kearney

UIC Law Review

The issues facing Illinois cities are equally, if not more, important today as in 1970 and will require local leaders to be able to use all governance tools at their disposal. The ability of a municipality to raise revenue is arguably one of the most important expressly granted by home rule. Accordingly, the Stubhub case should be viewed with caution going forward, as it raises the possibility of potentially serious challenges to municipal home rule power in the future. This article, then, will do several things. First, it will give the reader a concise definition and history of the constitutional …

Tax Ferrets, Tax Consultants, Bounty Hunters, And Hired Guns: The Property Tax Netherworld Fueled By Contingency Fees And Champertous Agreements, J. Lyn Entrikin

Law Faculty Scholarship

Contingency fee agreements between local tax assessors and contract auditors on the one hand, and property owners and private tax consultants on the other, create perverse financial incentives that undermine the integrity of state and local tax administration. When local governments engage outside auditors to identify undervalued or escaped taxable property, the practice raises serious due process and ethical concerns. As a matter of policy, diverting a share of property tax revenue to private third parties in consideration for outsourced tax assessment services undermines public accountability and reduces net property tax revenue for local government services. And when states allow …

Income Imputation: Toward Equal Treatment Of Renters And Owners, Henry Ordower

All Faculty Scholarship

This chapter argues that fundamental fairness principles demand changes in U.S. tax law to place those who rent on an equal tax footing with those who own their residences. The disparity in tax treatment of owners and renters results primarily from the failure of the tax law to include the use value from investment of capital in a personal residence in the incomes of owners. While the yield from investment in a personal residence is not cash, the yield is valuable as it replaces an outlay for dwelling use the owner otherwise would have to make. That occupancy right as …

Heal The Suffering Children: Fifty Years After The Declaration Of War On Poverty, Francine J. Lipman, Dawn Davis

Scholarly Works

Fifty years ago, President Lyndon B. Johnson declared the War on Poverty. Since then, the federal tax code has been a fundamental tool in providing financial assistance to poor working families. Even today, however, thirty-two million children live in families that cannot support basic living expenses, and sixteen million of those live in extreme poverty. This Article navigates the confusing requirements of an array of child-related tax benefits including the dependency exemption deduction, head of household filing status, the Earned Income Tax Credit, and the Child Tax Credit. Specifically, this Article explores how altering the definition of a qualifying child …

Comments: The Illegal Immigrant Tax: Evaluating State Remittance Taxes Under The Dormant Commerce Clause And The Equal Protection Clause, Meredith Cipriano

University of Baltimore Law Review

No abstract provided.

Taking The Bloody Linen Out Of The Closet: Menstrual Hygiene As A Priority For Achieving Gender Equality, Inga T. Winkler, Virginia Roaf

Cardozo Journal of Equal Rights & Social Justice

Regular menstruation signals a woman's health and fertility. menstruation is surrounded by shame, secrecy, embarrassment, fear, humiliation, silence, taboo, and stigma. Linked to this taboo, many cultural and religious norms-often grounded in patriarchal assumptions-seek to prevent contact with menstruating women and girls in order to avoid 'contamination' or 'becoming impure'. To some extent, this perception of menstruation is a paradox, given that motherhood is glorified. However, menstruation is not perceived as feminine', and it does not conform to the stereotypical role and behavior of women. Such stereotypes require women to be beautiful and beautified, deodorized and fresh, not bloody and …

California – Land Of “Lawless Taxation” And The “Midnight Special”: Outlier Or Leader In A Growing Trend?, Mystica M. Alexander

The University of New Hampshire Law Review

[Excerpt] “Taxpayers in California recently found themselves the target of a retroactive grab for revenue by the Franchise Tax Board (FTB) in what has called an act of “lawless taxation” by the state of California. The source of the conflict was the Qualified Small Business Stock credit that had been in place in California since 1993. The tax credit, which was designed to encourage innovation and investment in California-based enterprises, allowed business owners who had at least eighty percent of their assets and employees in California to take a credit of fifty percent of the capital gain realized on a …