Tax Law

WASHINGTON -- The Supreme Court indicated yesterday that businesses may often be entitled to refunds if they paid state taxes that turned out to be unconstitutional.Because the court was split 6-3, and especially because the majority of six gave its views in four separate and sometimes conflicting opinions, the decision in a liquor tax case from Georgia did not lay down a general rule requiring states to pay back all collections of taxes after the taxes have been struck down.What did emerge was a ruling that a court decision striking down one state's tax law should usually be understood as nullifying simultaneously all similar laws in other states and making collections under themunconstitutional.

The stew of ideas about how to change Howard County's senior property tax-cut law is stirring toward a boil as elected officials react to recommendations from a citizens task force. The County Council, which has just under two weeks to decide on any new legislation, is to get a presentation on the committee's work Monday, while one county legislator is submitting bills aimed at influencing the outcome. A bill to change the law must be submitted to the council by Feb. 22 to affect July's property tax bills, officials have said.

When Congress finally hammered out a deal to balance the federal budget by 2002, Republicans and Democrats, eager to sweeten the sell to the public, threw in $152 billion in tax cuts over the same period, enough for both parties to claim bragging rights.The result: "These are the most dramatic changes we've seen since '86," said Arthur E. Flach, tax partner in Grant Thornton's Baltimore office.For the investor, the tax overhaul means financial planning may be in order. In all, the Taxpayer Relief Act of 1997 contains more than 100 provisions that jiggers the rules affecting everything from IRAs to estate taxes to capital-gains taxes to college tuition benefits.

Letting the boss fly to the Super Bowl on the corporate jet is going to be more expensive, the Treasury Department said yesterday as it issued guidance regarding the tax law passed by Congress last fall. The department said that any time a senior executive of a company uses a corporate airplane for entertainment, such as flying to the Super Bowl or to a golf tournament, the company will not be able to deduct the expenses of the flight unless the executive pays a high amount of personal taxes.

WASHINGTON - A new study by groups critical of the tax law that President Bush signed Wednesday has found that 8 million mostly low-income taxpayers will not receive any benefit from the measure. Republicans have said for weeks that the new law was designed to benefit anyone who pays income taxes. This is the second time since Congress passed the bill that critics have pointed out that some of its provisions will not help millions of people in the lowest tax brackets. In response to earlier disclosures about the complex bill's fine print, Senate Finance Committee Chairman Charles E. Grassley said Friday that Congress should revise at least some of the law's provisions, involving child tax credits, to broaden their effect.

Although Michael Dingman has saved millions of dollars in U.S. taxes by renouncing his U.S. citizenship and moving to the Bahamas, he has given up one right:He no longer can contribute to American political campaigns.Which may not break his heart.Dingman, a "yacht person," who reaps great financial benefit by spurning the country of his birth, is the chairman and CEO of TTC Abex Inc., an aerospace company in New Hampshire.And, in the past, Abex has been generous to American politicians.In 1992, something called the Abex Inc. Employees for Sensible Government contributed $5,000 each to the successful campaigns of Republican U.S. Sen. Judd Gregg, Republican U.S. Rep. Bill Zeliff, and Democratic U.S. Rep. Dick Swett.

For years, anyone in Maryland could prepare tax returns for money, so it wasn't unheard of to find tax services offered at laundromats, car dealerships or palm-reader shops. The industry is no longer unregulated. Starting this year, individual tax preparers in Maryland must register with the state before they can fill out a return for a fee. They will have to undergo continuing education if they want to stay registered. And consumers now have a place to go to find out if there have been complaints or disciplinary action against a local tax preparer.

In a hunt for more revenue, Maryland officials are weighing ways to pressure hotel-booking websites such as Expedia and Orbitz to pay more taxes — a tactic that has netted some cities, counties and states tens of millions of dollars, but left others mired in lengthy legal battles. The premise is simple. Maryland now collects sales taxes based on the bulk rates that the websites pay hotels for their rooms. But some officials say the taxes should be based on the higher prices for which the websites sell the rooms to customers.

Americans are very patriotic - except when it comes to paying taxes. As Mark Twain put it, "The difference between a taxidermist and a tax collector is that the taxidermist leaves the skin." Anger over taxes spawned our very republic. "Taxation without representation" was the cry at the 1773 Boston Tea Party. Patriots dumped 342 crates of British tea into Boston Harbor to protest a Tea Act that raised the price of all tea except that produced by one British supplier. Mobster Al Capone was infamous for his violent and illegal Prohibition liquor trade, but was ultimately found guilty of income tax evasion.

: Recent data show that Baltimore-area home sales increased 10 percent in July compared to 2008, though sale prices dropped about 7 percent. Does that indicate the housing market is turning around? Yes 28% No 59% Not sure 13% (665 votes, results not scientific) Next poll: : Gov. O'Malley and legislative leaders say they'll balance the budget with cuts, but some lawmakers want tax law changes that would make corporations pay more. Should the state consider such a measure? Vote at baltimoresun.