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Abstract: 

During 2023, there were many noteworthy state and local tax (SALT) developments encompassing a wide variety of topics. While New Jersey and Minnesota both enacted significant tax legislation during the year, elective pass-through entity taxes continued to receive considerable attention in multiple states. Some states maintained a strong fiscal position and reduced income tax rates, but other states projected revenue shortfalls and extended higher tax rates. State courts considered major apportionment litigation concerning the sourcing of gains and service revenue. In addition, some states further expanded the scope of their indirect tax bases. These developments as well as several others merit further discussion and careful consideration.

Keywords: New Jersey tax legislation; Minnesota tax legislation; pass-through entity tax; Maryland digital advertising tax; apportionment cases; Synthes US HQ, Inc. v. Commonwelth, Express Scripts Inc. v. State Tax Assessor, Vectran Infrastructure Services Cor

Affiliations:  1: Grant Thornton LLP; 2: Grant Thornton LLP; 3: Grant Thornton LLP.