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The City of Chicago Issues Nexus Guidance and Safe Harbor In Light of Wayfair and Illinois State Level “Economic Nexus” Standards

By and 3 Mins Read

The City of Chicago recently issued nexus guidance and a limited safe harbor for City tax purposes in light of the U.S. Supreme Court’s pivotal South Dakota v. Wayfair ruling and the State of Illinois’ statutory economic nexus standards. True to form, the City implemented its new nexus standards by executive action via publication of a “nexus and safe harbor” “information bulletin” on its website (available on the City’s website, here), as opposed to the Chicago City Council more formally (and more appropriately) adopting a new ordinance.

Something Fishy in the False Claims Act World

By and 5 Mins Read

New York lawmakers recently introduced two bills to expand the application of the New York State False Claims Act (“FCA”). The first intends to require the FCA to apply to non-filers, the second to remove the scienter element (i.e., no longer imposing a “knowing” requirement). Although both bills are retroactive and concerning, removing the scienter element should put all businesses on high alert as enforcement of the tax laws could now be in the hands…

“Majority” Rules: California Court of Appeal Rules that Supermajority not Needed to Pass Voter Initiative Tax Measures

By 7 Mins Read

In City & County of San Francisco v. All Persons Interested in the Matter of Proposition C, Dkt. A158645 (Cal. App., June 30, 2020), the California Court of Appeal upheld Proposition C—a voter initiative that created a new local business tax in San Francisco.  The court upheld the initiative that was enacted by a simple majority of electors.  This ruling answers a question that was been heavily debated since the California Supreme Court’s decision in California Cannabis Coalition v. City of Upland, 3 Cal. 5th 924 (Cal. 2017).  That is, do special taxes proposed by voter initiative require a supermajority of voters to pass?  This decision expressly narrows the supermajority requirement to only those tax measures proposed directly by local governments and will likely trigger more tax initiatives proposed and passed by citizen groups.

State and Local Tax Responses to COVID-19: States Grapple with CARES Act Conformity; Additional States Extend Tax Filing and Payment Deadlines; State Tax Tribunals Postpone Hearings

By , , , , , , , , , , , , , and 9 Mins Read

States and local jurisdictions continue to grapple with novel tax issues in response to the COVID-19 outbreak.  On Friday, March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), a $2 trillion federal stimulus package to provide fiscal relief in response to the COVID-19 outbreak.  The CARES Act includes numerous tax relief provisions.  States will need to consider whether, and how, they will conform to the federal provisions.

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