Maryland appeals income tax case to Supreme Court
Tax Law
The Daily Record reports the justices on Monday asked for the Obama administration's views on the constitutionality of barring state residents from deducting income taxes paid to other states from their local city or county taxes owed in Maryland.
Last year, the Maryland Court of Appeals found the state law unconstitutional, saying it violates the Commerce Clause. The court said the law discourages Maryland residents from earning money outside the state.
Maryland law allows residents to deduct income taxes paid to other states from their Maryland state tax. But the state says that provision does not apply to the "piggyback tax" the state collects for local governments.
In a brief to the Supreme Court, Maryland Attorney General Douglas Gansler said the state has broad authority to "tax all income of its residents, even income earned outside the taxing jurisdiction." He noted that the Court of Appeals' decision could cost local governments $45 million to $50 million annually. If the law is found unconstitutional, Maryland also might have to refund up to $120 million in taxes, Gansler noted in his petition.
The case arose after Brian and Karen Wynne challenged their Howard County tax bill. They had been blocked from deducting $84,550 from their county tax bill that they had paid in income taxes to other states. Brian Wynne's out-of-state income resulted from his ownership stake in a company that operates nationwide.
Related listings
-
Idaho Supreme Court upholds grocery tax veto
Tax Law 08/07/2017The Idaho Supreme Court on Tuesday upheld Gov. C.L. "Butch" Otter's contentious veto of legislation repealing the state's 6 percent sales tax on groceries.The high court's decision comes after 30 state lawmakers filed a lawsuit claiming Otter took to...
-
Court sides with towns over utilities in tax dispute
Tax Law 07/13/2017Two electric utilities seeking to reduce their property taxes in dozens of towns across New Hampshire lost an appeal Friday to the state Supreme Court.Eversource and the New Hampshire Electric Cooperative sought tax abatements from 64 towns in 2011 a...
-
South Dakota and Flandreau Santee Sioux tribe clash in court
Tax Law 07/03/2017The Flandreau Santee Sioux tribe is suing South Dakota over the state's interpretation that contractors working on an expansion of the Royal River Casino are required to pay contractor excise taxes to the state.The Argus Leader reported that the laws...
USCIS to Begin Accepting Applications under the International Entrepreneur Rule
U.S. Citizenship and Immigration Services (USCIS) announced today it is taking steps to implement the International Entrepreneur Rule (IER), in accordance with a recent court decision.
Although the IER was published during the previous administration with an effective date of July 17, 2017, it did not take effect because the Department of Homeland Security (DHS) issued a final rule on July 11, 2017, delaying the IER’s effective date until March 14, 2018. This delay rule was meant to give USCIS time to review the IER and, if necessary, to issue a rule proposing to remove the IER program regulations.
However, a Dec. 1, 2017, ruling from the U.S. District Court for the District of Columbia in National Venture Capital Association v. Duke vacated USCIS’ final rule to delay the effective date. The Dec. 1, 2017, court decision is a result of litigation filed in district court on Sept. 19, 2017, which challenged the delay rule.