Stephen P. Kranz
Subscribe to Stephen P. Kranz's PostsStephen (Steve) P. Kranz is a tax lawyer who solves tax problems differently. Over the course of his extensive career, Steve has acquired specific skills and developed a unique approach that helps clients develop and implement holistic solutions to all varieties of tax problems. He combines strategic thinking with effective skills for the courtroom, the statehouse and the conference room. Read Stephen Kranz's full bio.
Washington’s Digital Ad Tax: A Lawsuit Waiting To Happen?
By Stephen P. Kranz, Mark Nebergall and Jonathan C. Hague on May 1, 2025
Posted In Allocation/Apportionment, Constitutional Issues, Nationwide Importance, Sales Tax, Tax Base, Washington
On April 27, 2025, the Washington Legislature delivered to Governor Bob Ferguson’s desk Senate Bill (SB) 5814, a sweeping tax bill that, among other changes, would expand the state’s retail sales and use tax to sales of digital advertising services and a range of high-tech and IT services. The bill now awaits the governor’s signature,...
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Let the Shakedowns Begin: Tax False Claims Legislation in California
By Stephen P. Kranz, Mark Nebergall and Jonathan C. Hague on Apr 22, 2025
Posted In California, Constitutional Issues, False Claims Act, Nationwide Importance
Legislators in Sacramento, California, are mulling over one of the most (if not the most) troubling state and local tax bills of the past decade. Senate Bill (SB) 799, introduced earlier this year and recently amended, would expand the California False Claims Act (CFCA) by removing the “tax bar,” a prohibition that exists in the...
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Kentucky Legislature Ends Judicial Deference To State Agencies
By Stephen P. Kranz, Michael J. Hilkin, Mark Nebergall and Jonathan C. Hague on Apr 2, 2025
Posted In Kentucky, Nationwide Importance
In a realignment of judicial review standards, the Kentucky General Assembly overrode Governor Andy Beshear’s (D-KY) veto of Senate Bill (SB) 84, effectively abolishing judicial deference to all agency interpretations of statutes and regulations. This development marks a shift in administrative law in the Commonwealth. A RESPONSE TO CHEVRON AND TO KENTUCKY COURTS SB 84...
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Unclaimed Property Laws and the Health Industry: Square Peg, Round Hole
By Stephen P. Kranz, Diann Smith, Eric D. Carstens and Vanessa S. Torres on Mar 18, 2025
Posted In Audits, False Claims Act, Unclaimed Property
The healthcare industry has recently become the target of increased scrutiny from multistate unclaimed property audits, likely due to the high volume of mergers, acquisitions, and private equity deals. These audits have shed light on the many complexities and challenges within the sector. Healthcare industry holders are often pressured by state auditors and administrators to...
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Texas Comptroller Proposes Rule Changes Cementing Tax on 130% of Marketplace Sales
By Stephen P. Kranz, Mark Nebergall and Jonathan C. Hague on Sep 17, 2024
Posted In Audits, Nationwide Importance, Sales Tax, Tax Base, Texas, Transaction Taxes
In a controversial move, the Texas Comptroller is poised to amend Rule 3.330, Data Processing Services, effectively rewriting the rules to favor the contentious stance it has adopted in recent audits and litigation. This proposed amendment, which aims to cement the aggressive stance the Comptroller has taken in audits and litigation that a marketplace provider’s...
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California Legislatively Overturns Recent Office of Tax Appeals Taxpayer Win
By Stephen P. Kranz, Michael J. Hilkin and David Jasphy 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 Stephen P. Kranz, Michael J. Hilkin and David Jasphy 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 Stephen P. Kranz, Diann Smith and Michael J. Hilkin 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 Stephen P. Kranz, Michael J. Hilkin and David Jasphy 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 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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