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Multistate Tax  |  June 2, 2023
State Tax Matters
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Property:
US Supreme Court Holds that Locality Keeping Excess Proceeds from Property Tax Sale is Unconstitutional

Docket No 22-166, US (5/25/23). In a case involving a condominium owner whose real property was seized and sold by a Minnesota county due to unpaid real estate taxes, the US Supreme Court (Court) held that the owner plausibly alleges that the county’s retention of the excess value of her home above her tax debt violated the Takings Clause of the Fifth Amendment. The Court explained that history and precedent dictate that, while the county had the power to sell the individual’s home to recover the unpaid property taxes, it could not use the tax debt to confiscate more property than was due. Doing so, according to the Court, effected a “classic taking in which the government directly appropriates private property for its own use.” In so concluding, the Court rejected the county’s argument that the former condominium owner has no property interest in the surplus because she constructively abandoned her home by failing to pay her taxes, reasoning that the county “cannot frame that failure as abandonment to avoid the demands of the Takings Clause.” Please contact us with any questions.

 

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Roburt Waldow (Minneapolis)

Principal

Deloitte Tax LLP

Sara Clear (Minneapolis)

Manager

Deloitte Tax LLP



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In this issue

Florida: New Law Generally Updates State Conformity to Internal Revenue Code Minnesota: New Law Updates State Conformity to IRC, Taxes GILTI, and Revises DRD and NOL Amounts Nebraska: New Law Lowers Corporate Income Tax Rates and Retroactively Permits PTE Tax Election Oklahoma: New Law Revises Election to Immediately and Fully Expense Qualified Property


Colorado DOR Says Taxable Telecom Includes Call Conferencing and Stresses 30-Day Bundled Services Deadline Florida: New Law Lowers Tax Rate on Commercial Rental of Real Property Illinois DOR Answers Questions Involving Drop Shipments and Marketplace Facilitators Minnesota: New Law Imposes Retail Delivery Fee on Some Items Delivered to In-State Customers


US Supreme Court Holds that Locality Keeping Excess Proceeds from Property Tax Sale is Unconstitutional Colorado Supreme Court Holds in Favor of Localities in Disputes Over Pandemic-Related Valuation


Maryland Supreme Court vacates lower court rulings on digital advertising services tax Montana enacts pass-through entity tax election




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