Minnesota’s Governor Mark Dayton vetoes tax conformity bill. The legislative session ends in four days, and yesterday Dayton vetoed a tax bill because lawmakers left $138 million in emergency school aid out of the measure. The governor reportedly had issues with some tax provisions as well.
Apple will fight its European Union tax case on its own. The EU ordered Apple to pay Ireland $15.3 billion in back taxes, and the US wanted to support the company in the European court. US officials claimed an unfavorable legal decision could affect the US more broadly, but the EU’s highest court didn’t buy the argument.
Facebook’s case is headed to US Tax Court. The dispute centers on IRS allegations that the social media company failed to pay taxes on $7 billion in overseas income. Facebook wanted the dispute heard by the IRS Appeal Board but, as Forbes explains, a US District Court in California ruled that Facebook has no legal standing under the 2015 PATH Act’s taxpayer bill of rights. The Tax Court will hear the case in August.
Paul’s Balanced Budget Amendment dies in the Senate. Majority leader Mitch McConnell gave fellow Kentuckian Rand Paul a chance for a floor vote on the measure, which would have resulted in trillions of dollars of spending cuts. But the plan never made it to first base. Yesterday, by a vote of 21-76, the Senate refused to even consider the Constitutional amendment.
Will Seattle’s new head tax hold? State Senator Mark Schoesler has drafted legislation to prevent Seattle from imposing its newly passed head tax on large and mid-sized employers. “The state can taketh away just as it giveth,” said Schoesler.
Another tax in Seattle? A city council committee voted to consider creating a local improvement district (LID) tax to pay for improvements to the Seattle waterfront, including a new park and more green space. Should the measure become law, about 6,900 properties in and around the waterfront would be assessed and taxed. That’s about 2 percent of city landowners. The full city council will consider the measure on Monday. After public comment, it expects to hold a full vote in September.
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