Welcome to the September 2025 edition of The BR State + Local Tax Spotlight. We know the importance of remaining up-to-date on State + Local Tax developments, which appear often and across numerous jurisdictions. Staying informed on significant developments and decisions helps tax departments function more efficiently, along with improving strategy as well as planning. That is where The BR State + Local Tax Spotlight can help. In each edition, we will highlight important State + Local Tax developments that could impact your business. In this issue, we will be covering:
- Maryland Cannot Muzzle Taxpayers on Passthrough of Tax
- North Carolina High Court Rules That Only State Courts May Determine That a Tax Statute Is Unconstitutional
- Ohio Supreme Court Gets to the Root of the Problem to Preserve Timber Farm’s Tax Exemption
- California Attorney General Clarifies OTA’s Power to Disregard Conflicting Tax Regulations
We invite you to share The BR State + Local Tax Spotlight with your colleagues and visit Blank Rome’s State + Local Tax webpage for more information about our team. Click here to add State + Local Tax to your subscription preferences.
Joshua M. Sivin and Melanie L. Lee
ARTICLES
Maryland Cannot Muzzle Taxpayers on Passthrough of Tax
Maryland must allow digital advertising taxpayers to separately state the amount of tax that is passed through to customers, so concludes a federal appeals court in a published opinion. Read More >>
North Carolina High Court Rules That Only State Courts May Determine That a Tax Statute is Unconstitutional
On August 22, 2025, The North Carolina Supreme Court held that the North Carolina Office of Administrative Hearings, an administrative body within North Carolina’s executive branch, does not have the authority to decide that a tax statute is unconstitutional either on its face or on an as-applied basis. Read More >>
Ohio Supreme Court Gets to the Root of the Problem to Preserve Timber Farm’s Tax Exemption
The Ohio Supreme Court, reversing a decision of the Board of Tax Appeals, held that a timber farm’s purchase of a Mercedes Benz vehicle qualified for a use tax exemption. Read More >>
California Attorney General Clarifies OTA’s Power to Disregard Conflicting Tax Regulations
In Opinion No. 23-701, issued July 31, 2025, California’s Attorney General settled a fundamental question about the reach of California’s newest tax adjudicatory body: can the Office of Tax Appeals refuse to apply a regulation promulgated by another tax agency if the OTA concludes that the regulation conflicts with governing statutes? Read More >>
WHAT'S SHAKING: BLANK ROME'S STATE + LOCAL TAX ROUNDUP
Blank Rome’s nationally prominent State + Local Tax attorneys are thought leaders in the community as frequent guest speakers at various local and national conferences throughout the year. Our State + Local Tax attorneys believe it is necessary to educate and inform their clients and contacts about topics that will impact their businesses. We invite you to attend, listen, and learn as our State + Local Tax attorneys interpret and discuss key legal issues companies are facing and how you can put together a plan of action to mitigate risk and advance your business in accordance with state and local tax laws. Read More »
© 2025 Blank Rome LLP. All rights reserved. Please contact Blank Rome for permission to reprint. Notice: The purpose of this update is to identify select developments that may be of interest to readers. The information contained herein is abridged and summarized from various sources, the accuracy and completeness of which cannot be assured. This update should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel.
