Michael J. Hilkin
Subscribe to Michael J. Hilkin's PostsMichael 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 Legislator Considers Digital Advertising Tax
By Stephen P. Kranz, Michael J. Hilkin, Mark Nebergall and Jonathan C. Hague 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 Stephen P. Kranz, Michael J. Hilkin and David Jasphy 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 Stephen P. Kranz, Michael J. Hilkin and David Jasphy 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 Stephen P. Kranz, Michael J. Hilkin and David Jasphy 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 Stephen P. Kranz, Richard C. Call, Michael J. Hilkin and David Jasphy 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 Stephen P. Kranz, Richard C. Call, Michael J. Hilkin and David Jasphy 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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As Minnesota Moves Toward GILTI Taxation, New Jersey May Be Moving Away from It
By Stephen P. Kranz, Michael J. Hilkin and Diann Smith on May 23, 2023
Posted In Allocation/Apportionment, Federal Tax, Income Tax, Minnesota, Nationwide Importance, New Jersey, Tax Base, Unitary Business
We previously reported that the Minnesota Legislature was considering imposing mandatory worldwide combined reporting through an omnibus tax bill. Subsequent to our report and in the face of numerous criticisms, Minnesota Senate leaders backed away from the proposal. But ominously, those same leaders said they would examine other tax increases to make up for the...
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Buehler Doesn’t Get a Day Off from Double Taxation
By Charles Moll, III and Michael J. Hilkin on May 12, 2023
Posted In California, Constitutional Issues, Income Tax, Massachusetts, State Tax, Unitary Business
The California Office of Tax Appeals (OTA) recently held that a California resident’s income tax paid to Massachusetts from the sale of his membership interest in a limited liability company (LLC) doing business in Massachusetts was not eligible for California’s other state tax credit. The OTA reached this conclusion while acknowledging that it “will result...
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Be Careful What You Wish For: Minnesota May Be on the Precipice of Enacting Worldwide Combined Reporting at the Worst Possible Time
By Stephen P. Kranz, Michael J. Hilkin and Diann Smith on May 4, 2023
Posted In Federal Tax, Income Tax, Local Tax, Minnesota, Nationwide Importance, Tax Base, Unitary Business
It has been widely reported that the Minnesota Legislature has advanced an omnibus tax bill that would require the inclusion of the “entire worldwide income” of combined corporate income tax filers engaging in a unitary business. Tax press outlets have made the broad claim that mandatory worldwide combined reporting will “add foreign subsidiaries’ profits” to...
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New York Budget Legislation Contains Significant Tax Provisions
By Richard C. Call, Michael J. Hilkin and David Jasphy on May 2, 2023
Posted In False Claims Act, Franchise Tax, Income Tax, Interest and Penalties, New York, Procedure
New York Governor Kathy Hochul and the New York State Legislature have reached an agreement on the state’s fiscal year 2024 budget legislation. Most surprisingly, the legislation grants the New York State Department of Taxation and Finance the right to petition for judicial review of New York State Tax Appeals Tribunal decisions that are “premised...
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