Michael J. Hilkin

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Michael J. Hilkin represents clients in all aspects of complex state and local tax matters. He has a particular focus on tax controversy and transactional issues relating to state and local income, franchise, sales and use, gross receipts and other business taxes. Michael has extensive experience handling state and local tax issues before US administrative and judicial systems. Read Michael Hilkin's full bio.

California Legislatively Overturns Recent Office of Tax Appeals Taxpayer Win

By , and on Jul 3, 2024
Posted In Allocation/Apportionment, California, Federal Tax, Income Tax, Nationwide Importance, Tax Base

The California State Legislature overturned Microsoft’s recent win at the Office of Tax Appeals, which held that the gross amount of dividends received from foreign affiliates outside its water’s-edge group should be included in its sales factor denominator, regardless of the application of a dividends-received deduction excluding 75% of such dividends from its taxable base....

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Governor Murphy Saddles Taxpayers With the Nation’s Highest Corporate Tax Rate

By , and on Jul 2, 2024
Posted In Income Tax, New Jersey

New Jersey Governor Phil Murphy’s proposed flip-flop, which reneges on his promise to allow the state’s 2.5% corporate business tax surtax to expire, has now passed both the New Jersey State Assembly and Senate and been signed by the governor. As a result, New Jersey will once again have the highest corporate income tax rate...

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Good News for SALT Taxpayers? Supreme Court Overturns Federal Agency Deference

By , and on Jun 28, 2024
Posted In Nationwide Importance

On June 28, 2024, in Loper Bright Enterprises v. Secretary of Commerce, the Supreme Court of the United States ruled to overturn its four-decade-old decision in Chevron USA Inc. v. Natural Resources Defense Counsel. While the Loper case addressed deference to administrative agencies under the federal Administrative Procedure Act (APA), its outcome may give state...

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Colorado Changes Rules for Determining Members of Combined Filing Group

By , and on May 20, 2024
Posted In Colorado, Income Tax, Tax Base, Unitary Business

Colorado Governor Jared Polis has signed legislation that would replace Colorado’s unique “3 of 6” rule for determining the members of a unitary group for combined reporting purposes and instead adopt what Legislative Council Staff has called “the Multistate Tax Commission’s standard” for determining the members of a combined filing group. Under current law, a...

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California Legislator Considers Digital Advertising Tax

By , , and on Mar 29, 2024
Posted In Allocation/Apportionment, California, Constitutional Issues, Nationwide Importance, Sales Tax, Tax Base, Transaction Taxes

Senator Steven Glazer, chair of the California State Senate Revenue and Tax Committee, is treating data like the next gold rush and taking bold steps to mine this new vein of wealth with his proposed “Digital Data Extraction Tax Law.” While couched as a tax on “data extraction,” the base for the tax is digital...

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ALJ Rules That a Taxpayer Is a Qualified New York Manufacturer Even Though Qualifying Property Was Operated by a Third Party

By , and on Mar 4, 2024
Posted In Incentives, Income Tax, New York

The New York State Division of Tax Appeals determined that E. & J. Gallo Winery is a qualified New York manufacturer (QNYM) even though its only property in New York that could allow it to qualify for QNYM classification – a vineyard – was operated by a third-party contractor and Gallo did not have any...

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New Jersey Governor Flip-Flops on Corporate Business Tax Surtax Expiration

By , and on Feb 27, 2024
Posted In Income Tax, New Jersey

After months of insisting that he would not allow New Jersey’s 2.5% corporate business tax surtax to be extended – and previously having allowed it to lapse for tax years beginning on January 1, 2024 – New Jersey Governor Phil Murphy is now proposing that the surtax be revived for companies earning profits that exceed...

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Vermont Considers Imposing Mandatory Worldwide Combined Reporting

By , and on Feb 2, 2024
Posted In Federal Tax, Income Tax, Local Tax, Nationwide Importance, Tax Base, Unitary Business, Vermont

The Vermont House Committee on Ways and Means is actively exploring a proposal to become the first state to enact mandatory worldwide combined reporting for corporate income tax purposes. While legislation has not been formally proposed, the Committee has examined a working draft that could be embedded into a broader tax legislation package. In Committee...

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New York Formally Adopts Corporate Tax Reform Regulations

By , , and on Dec 28, 2023
Posted In New York

On December 27, 2023, the New York State Department of Taxation and Finance (Department) adopted corporate tax reform regulations addressing New York’s corporate tax reform effective in 2015. The adopted regulations are consistent with the proposed regulations released in August 2023 and only include what the Department has called “minor clarifying and technical changes.” Although...

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At the 10-Yard Line: New York Formally Proposes Corporate Tax Reform Regulations

By , , and on Aug 11, 2023
Posted In Allocation/Apportionment, Income Tax, Local Tax, Nationwide Importance, New York, Nexus, Unitary Business

On August 9, 2023, the New York State Department of Taxation and Finance (Department) released 417 pages of proposed regulations, an important step toward concluding a now almost decade-long process to implement corporate tax reform. The journey began in 2014 with the enactment of legislation modernizing the state’s corporate tax law. Thereafter, the Department released...

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