Treasury will issue proposed regulations related to “Pillar Two.” The Treasury announced new guidance yesterday addressing how US foreign tax credit rules—which are more strict as of Dec. 2021—will apply to Pillar Two of the international minimum corporate tax agreement brokered by the Organization for Economic Cooperation and Development. The rules will explain how credits for foreign taxes paid could interact with the enforcement mechanisms related to the 15 percent global minimum corporate tax plan, per Tax Notes (paywall).
Will Oklahoma City voters approve a new $900 million arena? The NBA’s Oklahoma City Thunder, formerly the Seattle SuperSonics, are Oklahoma’s first major league sports franchise. Team owners have now pitched a new arena that would cost taxpayers $900 million. Voters will decide today whether 1 percent sales tax (imposed for six years) is worth it. The team would agree to stay in the city for 25 years in the new arena, which would open before 2029.
A buildup to a buzzkill in Colorado? Colorado Public Radio (CPR) reports that the growth in marijuana tax revenue is slowing and starting to reverse, even though the public has grand thoughts on what the new revenue could do. “Despite narrowly defining what the marijuana taxes would be used for, many people still believe that marijuana taxes were meant solve the school funding problem in Colorado,” Ben Markus of CPR News wrote. However, the $2.3 billion in marijuana taxes collected by the state since legal recreational sales began (in 2014) represents just 0.7 percent of the state budget and less than 5 percent of what Colorado spends on education.
Virginia state lawmakers reintroduce a bill to let localities impose sales taxes for school capital projects. Under current law, only nine localities can impose a 1 percent sales tax to fund school construction and renovation projects. Other local governments can adjust their property tax rates but need permission from the General Assembly to change their sales tax rates. Democratic legislation would allow local governments to hold referenda on increasing their sales tax rates to pay for school capital projects, like construction and renovation.
China will continue offering tax breaks to most of its new energy vehicle models. According to China's Ministry of Industry and Information Technology, more than 90 percent of new EV models will continue to receive purchase tax exemptions through 2024. The government issued $72.41 billion in tax breaks over four years for electric vehicles and other cleaner-fueled cars to boost growth in auto sales.
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