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.
Massachusetts Supreme Judicial Court Approves Sales Tax Apportionment for Software
By Stephen P. Kranz, Richard C. Call, Mark Nebergall and Jonathan C. Hague on May 25, 2021
Posted In Allocation/Appointment, Constitutional Issues, Local Tax, Massachusetts, Nationwide Importance, Sales Tax
On May 21, 2021, the Massachusetts Supreme Judicial Court issued a decision affirming the Massachusetts Tax Appeal Board’s decision in favor of Microsoft and Oracle, ruling that the companies may apportion sales tax to other states on software purchased by a Massachusetts company from which the software was accessed and seek a tax refund. The...
Continue Reading
US Treasury Issues Guidance on the ARPA Claw-Back Provision
By Stephen P. Kranz, Mark Nebergall and McDermott Will & Emery on May 12, 2021
Posted In Constitutional Issues, Franchise Tax, Income Tax, Insurance Tax, Local Tax, Nationwide Importance, Property Tax, Sales Tax, Tax Base, Transaction Taxes
Earlier this week, the US Department of the Treasury (Treasury) issued formal guidance regarding the administration of the American Rescue Plan Act of 2021 (ARPA) claw-back provision. The guidance (Interim Final Rule) provides that the claw-back provision is triggered when there is a reduction in net tax revenue caused by changes in law, regulation or...
Continue Reading
Kansas Decouples from GILTI and 163j
By Stephen P. Kranz and McDermott Will & Emery on May 4, 2021
Posted In Federal Tax, Income Tax, Kansas, Tax Base
Yesterday afternoon the Kansas legislature overrode Governor Laura Kelly’s veto of Senate Bill (SB) 50, effectively enacting the provisions of the bill into law. Among those are provisions decoupling from certain Tax Cuts and Jobs Act (TCJA) provisions that taxpayers have been advocating for since 2018. Under the new law, for tax years beginning after...
Continue Reading
The US Department of the Treasury Says State IRC Conformity Bills Do Not Trigger Federal Relief Claw-Back Provision
By Stephen P. Kranz and Mark Nebergall on Apr 9, 2021
Posted In Constitutional Issues, Franchise Tax, Gross Receipts Tax, Income Tax, Insurance Tax, Local Tax, Nationwide Importance, Property Tax, Sales Tax, Tax Base, Transaction Taxes
As we’ve blogged about in the past, the recently enacted American Rescue Plan Act of 2021 (ARPA) includes an ambiguous claw-back provision. If broadly interpreted, it could result in states losing relief funding provided under the APRA if there is any state legislative or administrative change that results in the reduction of state revenue. This...
Continue Reading
McDermott Provides Treasury Department with Concrete Suggestions for Guidance on the American Rescue Plan Act’s Claw-Back Provision
By Stephen P. Kranz and Mark Nebergall on Mar 25, 2021
Posted In Constitutional Issues, Franchise Tax, Gross Receipts Tax, Income Tax, Insurance Tax, Local Tax, Nationwide Importance, Property Tax, Sales Tax, Tax Base, Transaction Taxes
The recently enacted American Rescue Plan Act of 2021 (ARPA) includes an ambiguous claw-back provision that has brought the world of state and local tax policymaking to a grinding halt. Because ARPA’s adoption occurred during the final weeks of many states’ legislative sessions, rapid issuance of guidance from the US Department of the Treasury is...
Continue Reading
Federal COVID-19 Relief Bill Brings State Tax Policy to a Grinding Halt
By Stephen P. Kranz, Mark Nebergall and Eric D. Carstens on Mar 16, 2021
Posted In Constitutional Issues, Franchise Tax, Incentives, Income Tax, Local Tax, Nationwide Importance, Property Tax, Sales Tax, Tax Base
On March 11, 2021, US President Joe Biden signed the American Rescue Plan Act of 2021 (ARPA), the COVID-19 relief bill that includes $350 billion in relief to states and localities. To prevent states from using federal relief funds to finance tax cuts, Congress included a clawback provision requiring that any relief funds used to...
Continue Reading
False Claims Act Risk for Unclaimed Property Holders
By Diann Smith, Stephen P. Kranz and Eric D. Carstens on Mar 15, 2021
Posted In False Claims Act, Nationwide Importance
In what has become an unfortunate trend, unclaimed property holders continue to be subject to lawsuits under state false claims acts (FCA – also called a qui tam or whistleblower action) for alleged underreporting and remittance of unclaimed property obligations. More than 30 states have a false claims act with whistleblower provisions and nearly all...
Continue Reading
Maryland Digital Advertising Services Tax—Implementation Delay Likely
By Michael Kimberly, Stephen P. Kranz and Mark Nebergall on Mar 2, 2021
Posted In Allocation/Appointment, Constitutional Issues, Maryland, Nationwide Importance
On the morning of Friday, February 26, 2021, the Maryland Senate Budget and Taxation Committee added a new item to its agenda for the hearing later that morning. The new item was proposed amendments to Senate Bill 787, a bill that would amend the Maryland Digital Advertising Tax by excluding broadcasters and news media and...
Continue Reading
Maryland Sued over Digital Advertising “Tax”
By Michael Kimberly and Stephen P. Kranz on Feb 18, 2021
Posted In Allocation/Appointment, Connecticut, Constitutional Issues, Maryland, Montana, Nationwide Importance, New York
Today, McDermott Will & Emery filed suit in Maryland federal court on behalf of a number of leading trade associations against Maryland Comptroller Peter Franchot, challenging the state’s recently enacted 10% gross receipts “tax” applicable to digital advertising revenue. The plaintiffs in the suit are the US Chamber of Commerce, the Internet Association, NetChoice and...
Continue Reading
Maryland Enacts First Digital Advertising Services Gross Receipts Tax: Now What?
By Stephen P. Kranz, Mark Nebergall and Eric D. Carstens on Feb 12, 2021
Posted In Allocation/Appointment, Connecticut, Constitutional Issues, Indiana, Maryland, Montana, Nationwide Importance, New York, Oregon, Washington
General Assembly Veto Override On February 12, 2021, the Maryland General Assembly overrode Governor Larry Hogan’s veto of HB 732 (2020) (the Act), a bill enacting a first-of-its-kind digital advertising services tax on the annual gross receipts from the provision of digital advertising services in Maryland. The tax only applies to companies having annual gross...
Continue Reading
