Minnesota SF 3197 would impose a gross receipts tax on social media platforms that collect data from over 100,000 Minnesota consumers in a month. The rate depends on how many consumers data is collected from starting at 10 cents/customer/month if over 100,000 customers but not over 500,000, to 50 cents/month/customer if over 1 million customers.
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Property Taxes Pay For Services; No Relation to Your Mortgage
In his State of the State address on March 4, 2025, Florida Governor DeSantis made this statement: “While Florida property values have surged in recent years, this has come at a cost to taxpayer squeezed by increasing local government property taxes. … Taxpayers need relief. You buy a home, pay off a mortgage – and yet…
Unusual Proposed Exclusion for Crypto Gains
HB 453 introduced in the Montana Legislature on February 11, 2025 calls for the Department of Revenue to create a program to allow state income taxes to be paid with cryptocurrency through arrangements with one ore more third party payment processors. That isn’t unusual as at least one other state already does this – Colorado…
What’s So Special About Tips to Make This Income Non-taxable?
Both presidential candidates offered a tax law change to make tips non-taxable. A few days after the inauguration, President Trump was in Las Vegas at a rally for “No Tax on Tips.” What is so special about tips to justify a law change to make then non-taxable? I can’t think of any, but offer…
Improving Tax Systems
Over the years, we see numerous federal and state tax law changes such as adding or modifying a credit, deduction or exclusion. We sometimes see rate cuts and increased deductions, such as most individuals experienced for 2018 through 2025 with the Tax Cuts and Jobs Act of 2017 changes that lowered the individual rates, almost…
Federal Tax Treatment of Proposed NY Inflation Refunds
12/9/24 news releasePer a December 9, 2024 story at the New York State website, Governor Hochul has proposed “sending 8.6 million New Yorkers an Inflation Refund Check as first proposal of 2025 State of the State.”The rationale is that inflation increased the price of taxable goods and services on which sales tax was charged.…
7th Anniversary of Tax Cuts and Jobs Act Enactment
P.L. 115-97, An Act to provide for reconciliation pursuant to titles II
and V of the concurrent resolution on the budget for fiscal year 2018, commonly known as the Tax Cuts and Jobs Act (TCJA), was signed into law on December 22, 2017. It had many changes including significant ones such as a permanent…
Reforming Treatment of Business Start-up Expenditures
Today, once a business starts carrying on business (when it is no longer getting ready, but is instead ready to serve customers), it can start amortizing its start-up expenditures as defined under IRC Section 195 over 15 years. If the total is $55,000 or less, up to $5,000 can be expensed immediately and this amount…
Modernizing California’s Tax System for Equity and Logic
Excerpt: California Tax Expenditure ReportCalifornia’s tax system has a few longstanding weaknesses including volatility in its income tax and a sales tax system designed for the early 20th century economy. Also, like the federal government and other states, California has special deductions and exclusions in its income tax system that provide oversized breaks (subsidies)…
Improving the American Opportunity Tax Credit
Excerpt from Pub 970In May 2024 I had the opportunity to participate in the California Lawyers Association Tax Section’s DC Delegation. Participants identify a tax rule in need of reform and draft a paper explaining why change is needed and offer proposals for that reform.My May paper was on modifying and clarifying the American…
